Enhancing Community Welfare Through Micro, Small, and Medium Enterprises (MSMEs): Insights from Islamic Economic Principles

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are widely recognized as pivotal drivers of national economic development, particularly in mitigating unemployment and poverty in rural communities. This study investigates the role of tape-producing MSMEs in enhancing community welfare, focusing on female workers in Pordapor Village. A qualitative methodology was employed, with primary data collected through in-depth interviews and structured questionnaires administered to 10 female workers. Data were analyzed using systematic stages of reduction, presentation, and conclusion verification. Findings reveal that tape MSMEs provide critical employment opportunities and generate income that contributes to local livelihoods. Despite persisting gaps in fully meeting basic and secondary needs, these enterprises are perceived to substantially improve the socio-economic well-being of residents. From the perspective of Islamic economics, tape MSMEs promote maslahah (public benefit) and falah (prosperity), emphasizing their role in fostering socially responsible entrepreneurship and sustainable rural development. The study highlights practical implications for policymakers, local entrepreneurs, and community development practitioners by demonstrating how MSMEs can serve as effective instruments for economic empowerment and social welfare enhancement. These insights reinforce the potential of MSMEs to drive inclusive growth, particularly in rural settings where access to formal employment is limited.