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Impact of Infrastructure and Entrepreneurial Ecosystems on MSME Growth in Medan: An Islamic Economics Perspective

Al-Muamalat · Vol. 12 No. 2 (2025) · pp. 285–300

DOI
10.15575/am.v12i2.49667
ISSN
2716-0610, 2086-3225
Published
2025-10-01
Publisher
Department of Sharia Economic Law, Faculty Sharia and Law, UIN Sunan Gunung Djati Bandung
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

This study investigates the impact of infrastructure development and the entrepreneurial environment on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Medan City, with a focus on integrating Islamic economic principles. Using a quantitative correlational design, the research examines the causal relationships between infrastructure (X1), the entrepreneurial environment (X2), and MSME growth (Y). Data were collected through a structured questionnaire from 100 MSME owners, and analyzed using multiple linear regression. Findings indicate that both infrastructure and the entrepreneurial environment significantly influence MSME growth; however, the entrepreneurial environment emerged as a more dominant factor, with a significant positive effect. Infrastructure development showed a positive but statistically insignificant impact on MSME growth. The study suggests that while physical infrastructure plays a role, a supportive and ethical entrepreneurial environment, grounded in Islamic principles such as justice, fairness, and sustainability, is crucial for fostering sustainable MSME growth. This study also emphasizes the importance of integrating Islamic economic values to create a competitive and equitable business ecosystem in Medan, aligning with the objectives of maqāṣid al-sharīʿah.

Keywords

Collaboration network of the authors

31 authors · 58 co-authorship links · 3 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • State University of Jakarta
  • Sam Houston State University
  • Universitas Halu Oleo
  • Universitas Islam Negeri Imam Bonjol Padang
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Vina SerevinaState University of Jakarta1
Li-Jen LesterSam Houston State University1
Muhammad Abrar Asyrafy YacobiState University of Jakarta1
Ahmad Fakhri BurhanudinState University of Jakarta1
Muhammad AminUniversitas Halu Oleo1
AGUSTINA -Affiliation unknown1
Agusti EfiAffiliation unknown1
DaryustiAffiliation unknown1
Tabah Aris NurjamanAffiliation unknown1
Meirison MeirisonUniversitas Islam Negeri Imam Bonjol Padang1
Desmadi SaharuddinAffiliation unknown1
Rosdialena RosdialenaAffiliation unknown1
Khairina TambunanAffiliation unknown1
Sukiman SukimanAffiliation unknown1
Muhammad Arfan HarahapAffiliation unknown1
S. A. Safry SaingAffiliation unknown1
Yenni Samri Juliati NasutionAffiliation unknown1
Mustapa Khamal RokanAffiliation unknown1
Chuzaimah BatubaraAffiliation unknown1
Sukiati SukiatiAffiliation unknown1
Muhammad Firdaus Bin Abdul ManafAffiliation unknown1
Muhammad YafizAffiliation unknown1
Sri CahyantiAffiliation unknown1
Alhadi BustamamAffiliation unknown1
Risman AdnanAffiliation unknown1
Indah WidiastutiAffiliation unknown1
Herpandi HerpandiAffiliation unknown1
Nafa Ya’la ArrahmiAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.uinsgd.ac.id/index.php/mua/oai, first harvested 7 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">Impact of Infrastructure and Entrepreneurial Ecosystems on MSME Growth in Medan: An Islamic Economics Perspective</dc:title>
	<dc:creator>Ridho, Muhammad</dc:creator>
	<dc:creator>Harahap, Isnaini</dc:creator>
	<dc:creator>Nurbaiti</dc:creator>
	<dc:subject xml:lang="en-US">MSMEs</dc:subject>
	<dc:subject xml:lang="en-US">Infrastructure Development</dc:subject>
	<dc:subject xml:lang="en-US">Entrepreneurial Environment</dc:subject>
	<dc:subject xml:lang="en-US">Islamic Economics</dc:subject>
	<dc:description xml:lang="en-US">This study investigates the impact of infrastructure development and the entrepreneurial environment on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Medan City, with a focus on integrating Islamic economic principles. Using a quantitative correlational design, the research examines the causal relationships between infrastructure (X1), the entrepreneurial environment (X2), and MSME growth (Y). Data were collected through a structured questionnaire from 100 MSME owners, and analyzed using multiple linear regression. Findings indicate that both infrastructure and the entrepreneurial environment significantly influence MSME growth; however, the entrepreneurial environment emerged as a more dominant factor, with a significant positive effect. Infrastructure development showed a positive but statistically insignificant impact on MSME growth. The study suggests that while physical infrastructure plays a role, a supportive and ethical entrepreneurial environment, grounded in Islamic principles such as justice, fairness, and sustainability, is crucial for fostering sustainable MSME growth. This study also emphasizes the importance of integrating Islamic economic values to create a competitive and equitable business ecosystem in Medan, aligning with the objectives of maqāṣid al-sharīʿah.</dc:description>
	<dc:publisher xml:lang="en-US">Department of Sharia Economic Law, Faculty Sharia and Law, UIN Sunan Gunung Djati Bandung</dc:publisher>
	<dc:date>2025-10-01</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.uinsgd.ac.id/index.php/mua/article/view/49667</dc:identifier>
	<dc:identifier>10.15575/am.v12i2.49667</dc:identifier>
	<dc:source xml:lang="en-US">Al-Muamalat; Vol. 12 No. 2 (2025): July; 285-300</dc:source>
	<dc:source>2716-0610</dc:source>
	<dc:source>2086-3225</dc:source>
	<dc:source>10.15575/am.v12i2</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.uinsgd.ac.id/index.php/mua/article/view/49667/15210</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2025 Muhammad Ridho, Isnaini Harahap, Nurbaiti</dc:rights>
	<dc:rights xml:lang="en-US">https://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>