Revenue Journal: Management and Entrepreneurship, vol. 2 (2), pp. 50-64, 2024 Received 15 August 2023 / published 20 December 2024 https://doi.org/10.61650/rjme.v2i1.338 Exploring Sharia-Compliant Fintech Equity Crowdfunding: New Opportunities for Business Financing A. Ifayani Haanurat1* 1 Universitas Muhammadiyah Makassar *Corresponding author: ifayani.haanurat@unismuh.ac.id KEYWORDS Sharia-compliant fintech Equity crowdfunding Business actors Alternative financing Financial inclusion ABSTRACT In recent years, the rise of fintech has revolutionized the landscape of business financing, offering innovative solutions that align with ethical frameworks. This study delves into the potential of Sharia-compliant fintech equity crowdfunding as a transformative tool for business financing, particularly for entrepreneurs and small to medium-sized enterprises (SMEs) seeking alternative funding routes. Unlike traditional financial systems, Sharia-compliant crowdfunding adheres to Islamic principles, focusing on equity-based financing which prohibits interest (riba) and promotes risk-sharing. This research aims to bridge the gap in existing literature by exploring new theories and concepts surrounding this financing method, examining its practical application and potential benefits. The study adopts a mixed-methods approach, combining qualitative and quantitative data collection techniques. Surveys and in-depth interviews were conducted with 200 business actors across diverse sectors and regions, focusing on their experiences and perceptions of Sharia-compliant equity crowdfunding. Additionally, case studies of successful crowdfunding campaigns were analyzed to highlight effective strategies and common challenges faced by participants. Data analysis was performed using thematic analysis for qualitative data and statistical methods for quantitative data, providing a comprehensive picture of the current landscape. The findings reveal that Sharia-compliant equity crowdfunding significantly enhances financial inclusion by offering a viable financing avenue that aligns with ethical values, thereby attracting a broader range of investors. Moreover, businesses that have embraced this financing method reported substantial growth and development, indicating a positive correlation between Sharia-compliant crowdfunding and economic advancement. However, the study also identifies several barriers to widespread adoption, including limited awareness and understanding of Sharia financing principles, as well as restricted access to platforms in certain regions. To address these challenges, the research suggests implementing targeted educational initiatives and improving platform accessibility to maximize the potential benefits of Sharia-compliant equity crowdfunding. (c) The Author(s) 2024 1. 1. INTRODUCTION Sharia-compliant fintech equity crowdfunding is rapidly emerging as a transformative force in the world of business finance, offering entrepreneurs and small to medium-sized enterprises (SMEs) a viable alternative to traditional financing mechanisms (Marina et al., 2023; Ziegler et al., 2021). This innovative approach merges the principles of Islamic finance with cutting-edge financial technology (Bayati et al., 2022; Darmayanti, 2024), creating opportunities for ethical and sustainable business growth (Dewi, 2022; Hina et al., 2022; Sharif et al., 2022). By aligning with Islamic values, such as the prohibition of interest (riba) and the promotion of risk-sharing, Sharia fintech equity crowdfunding caters to a demographic seeking morally and spiritually acceptable financing options (Cornelli et al., 2020; Marina et al., 2023). As a result, it not only widens the investor base but also fosters greater financial inclusivity (Gatti, 2023; Junaidi et al., 2023; Richards, 2020). Sharia-compliant fintech equity crowdfunding is rapidly emerging as a transformative force in the world of business finance (Cernic, 2021; Sendra-Pons et al., 2023; Vieira et al., 2024), offering entrepreneurs and small to medium-sized enterprises (SMEs) a viable alternative to traditional financing mechanisms (Cleverley et al., 2023; Rejeb et al., 2021; Sugianto & Khan, 2023). This innovative approach merges the principles of Islamic finance with cutting-edge financial technology, creating opportunities for ethical and sustainable business growth (Alshater et al., 2022; Dewi, 2022; Panrot & Rattanapongpinyo, 2024). By aligning with Islamic values, such as the prohibition of interest (riba) and the promotion of risk-sharing, Sharia fintech equity crowdfunding caters to a demographic seeking morally and spiritually acceptable financing options (Hotimah et al., 2024; Zhang et al., 2022; Ziegler et al., 2021). As a result, it not only widens the investor base but also fosters greater financial inclusivity (Satrianto & Juniardi, 2023; Shi et al., 2022; Ullah et al., 2022). Addressing these challenges is crucial to unlocking the full potential of Sharia fintech equity crowdfunding (Coakley & Lazos, 2021; Yasar, 2021). Improved access to information and platforms can significantly enhance financial inclusion, offering underserved entrepreneurs viable alternatives to conventional financing (Chenet et al., 2021; Cleverley et al., 2023; Najib et al., 2021). The convergence of Islamic finance principles and fintech provides a unique opportunity to democratize access to capital (Cumming et al., 2021; Harvey et al., 2021), particularly for SMEs often overlooked by traditional financial institutions. Research by Sarea and Hanefah (2013) and Abdullah and Oseni (2017) suggests that Islamic crowdfunding platforms can effectively bridge the financing gap, supporting business growth and economic development (Fitriady et al., 2022; Johan & Reardon, 2024; Salder, 2021). To further investigate these dynamics, this study employs a systematic literature review (SLR) methodology alongside data collection from 150 participants across various sectors and regions (Nursaid, 2024; Priya et al., 2022; Purwanto, 2020). By examining the experiences and outcomes of business actors who have utilized Sharia fintech equity crowdfunding (Pandiangan et al., 2022), the research aims to provide a nuanced understanding of its impact on business growth and financial inclusion (Matekenya et al., 2021; Schuetz, 2020; Sudiantini et al., 2023). The study also seeks to identify gaps in awareness and accessibility (Romadhoni & Khalid, 2024; Wicaksana et al., 2023), offering actionable insights to enhance the effectiveness and reach of this financing method (Darmayanti, 2023; Nursaid, 2024; Strefler et al., 2021). The significance of this research lies in its potential to contribute to economic development by highlighting the benefits and challenges of Sharia-compliant fintech equity crowdfunding (Battisti et al., 2022; Kleinert & Mochkabadi, 2021). Prior studies, such as those by Al-Harbi (2017) and Zulkhibri & Ghazal (2020), have shown that businesses utilizing Sharia-compliant financing often experience significant growth and improved financial stability (Feghali et al., 2021; Jungo et al., 2022). Understanding and addressing the current challenges could unlock substantial opportunities for economic development and financial inclusion, benefiting a broader range of entrepreneurs and investors (Lu et al., 2022; SARATIAN et al., 2022; Tay et al., 2022). Ultimately, this research endeavors to provide a comprehensive evaluation of Sharia-compliant fintech equity crowdfunding, shedding light on its efficacy and areas for improvement (Haanurat et al., 2023; Lawal et al., 2023; Saleel, 2022). By bridging the gaps identified in previous research, the study aims to offer valuable insights into how this financing method can support sustainable business growth and drive economic development (Butticè & Vismara, 2022; Irawan, 2022; Saputra et al., 2025). The findings are expected to inform policymakers, financial institutions, and entrepreneurs, facilitating the broader adoption and success of Sharia fintech equity crowdfunding (Butticè & Vismara, 2022; Mochkabadi & Volkmann, 2020; Yasar, 2021). In conclusion, the exploration of Sharia-compliant fintech equity crowdfunding is a promising avenue for enhancing financial inclusion and supporting business growth (Eldridge et al., 2021; Jocevski et al., 2020). By addressing the challenges of limited awareness and accessibility, this research strives to maximize the potential of this innovative financing method (Li & Umair, 2023). The study's findings have the potential to influence future developments in the fintech landscape, promoting ethical investment practices and contributing to a more inclusive financial ecosystem (Kangwa et al., 2021). 1. 2. METHODS 2.1 Research Design and Participant Selection The research design is a crucial component of any study, as it outlines the systematic approach that will be employed to address the research questions. This design typically consists of several clearly defined stages that guide the entire research process, ensuring that each step is methodically planned and executed. The initial stage often involves defining the research problem and formulating specific objectives that the study aims to achieve. Following this, a comprehensive literature review is conducted to understand the existing body of knowledge and identify gaps that the new research could fill. Once the objectives are set, the next phase involves selecting an appropriate research methodology, which could be qualitative, quantitative, or a mixed-methods approach, depending on the nature of the research questions. This decision significantly influences how data will be collected, analyzed, and interpreted. In parallel, participant selection becomes critical. Researchers must determine the criteria for inclusion and exclusion of participants to ensure that the sample accurately represents the population of interest. This stage may also involve ethical considerations, such as obtaining informed consent and ensuring confidentiality. The research design follows a systematic approach comprising several clearly defined stages, as illustrated in the flowchart below: Figure 1 Research Design 1. Literature Review: Conduct an extensive review of existing literature on Sharia-compliant fintech and equity crowdfunding. 2. Participant Selection: Employ purposive sampling to select 150 entrepreneurs and SMEs from diverse sectors and regions who have engaged with Sharia fintech equity crowdfunding. 3. Data Collection: Utilize a combination of surveys and in-depth interviews to collect both quantitative and qualitative data. 4. Data Analysis: Analyze the data using statistical and thematic analysis techniques. 5. Validation: Compare findings with existing studies to validate results. 6. Conclusion & Recommendations: Draw conclusions and offer recommendations to enhance the effectiveness of Sharia fintech equity crowdfunding. Table 1 Research Design Stages Stage Description Literature Review Review existing literature on Sharia fintech and equity crowdfunding. Participant Selection Select 150 participants using purposive sampling. Data Collection Conduct surveys and interviews to gather data. Data Analysis Analyze data using statistical and thematic methods. Empirical Validation Compare findings with existing studies. Conclusion & Recommendations Provide conclusions and actionable insights. 2.2 Data Collection In the study of Sharia-compliant fintech equity crowdfunding, a comprehensive data collection strategy was employed to ensure a thorough understanding of the participants' experiences, awareness, and outcomes. This strategy involved a mix of quantitative and qualitative methods, including surveys, interviews, and the review of secondary data sources. Surveys: Quantitative Insights The primary quantitative method used was a structured questionnaire, which consisted of 30 carefully crafted questions. These questions were designed to capture a wide range of data related to the participants' experiences with Sharia-compliant fintech equity crowdfunding. The survey was administered to all 150 participants involved in the study, ensuring that a broad spectrum of perspectives was gathered. The survey aimed to quantify the levels of awareness and understanding among participants regarding Sharia-compliant fintech solutions. It also explored their motivations for engaging with such platforms, their satisfaction levels, and the outcomes they experienced. Key areas covered in the questionnaire included financial literacy, investment behavior, perceived benefits, and potential challenges faced by users. By collecting quantitative data, the researchers were able to identify patterns and trends in participant responses. Statistical analysis of the survey results provided empirical evidence to support or refute hypotheses related to the effectiveness and appeal of Sharia-compliant fintech solutions. This method also enabled the researchers to make generalizations about the population, enhancing the study's validity and reliability. In-Depth Interviews: Qualitative Insights To complement the quantitative data, in-depth interviews were conducted with a subset of 50 participants. These interviews were designed to delve deeper into the participants' personal experiences and perceptions, offering rich qualitative insights that the surveys could not fully capture. During the interviews, participants were encouraged to share detailed accounts of their interactions with Sharia-compliant fintech platforms. This included discussing their initial draw to these platforms, their decision-making processes, and any challenges they encountered. Moreover, participants were asked to reflect on how these platforms aligned with their values and financial goals, particularly in the context of adhering to Sharia principles. The qualitative data obtained from these interviews provided a nuanced understanding of the individual experiences and personal narratives of participants. This method allowed the researchers to explore complex themes and issues that emerged, offering a holistic view of the landscape of Sharia-compliant fintech equity crowdfunding. Secondary Data: Contextual Background In addition to primary data collection, the study also involved a thorough review of existing literature, reports, and case studies related to Sharia-compliant fintech and equity crowdfunding. This secondary data provided a contextual backdrop for the research, helping to situate the study within the broader field of financial technology and Islamic finance. Reviewing existing literature enabled the researchers to identify gaps in the current knowledge base and align their findings with previous studies. It also provided a framework for understanding the regulatory, economic, and cultural factors influencing the adoption and success of Sharia-compliant fintech solutions. Reports and case studies offered real-world examples and insights into how these platforms are being implemented and perceived globally. They also highlighted best practices and potential pitfalls, which were instrumental in interpreting the primary data collected through surveys and interviews. Table 2 Data Collection Instrument Instrument Description Survey 150 participants, 30 questions per survey. Interviews In-depth interviews with 50 selected participants. Secondary Data Review of existing literature and case studies. 2.3 Data Analysis Quantitative Analysis: The survey data were analyzed using statistical software to identify trends, correlations, and patterns in the participants' experiences. Qualitative Analysis: The interview transcripts were coded and thematically analyzed to extract key themes and insights. Comparative Analysis: Findings from the primary data were compared with secondary data to validate results and draw comprehensive conclusions. Table 3 Data Analysis Techniques Analysis Type Description Quantitative Analysis Statistical analysis of survey data. Qualitative Analysis Thematic analysis of interview transcripts. Comparative Analysis Comparison with secondary data for validation. 3. RESULT AND DISCUSSION 3.1 Awareness and Understanding of Sharia-compliant Fintech Equity Crowdfunding The study identifies a significant gap in awareness and understanding of Sharia-compliant fintech equity crowdfunding among business actors. This gap is critical because it directly impedes the adoption and efficacy of this innovative financing method. The lack of awareness often stems from the perceived complexity of the processes and criteria required for compliance with Sharia principles. Many entrepreneurs and SMEs express confusion about the specifics of profit-sharing principles, the prohibition of interest (riba), and other ethical guidelines that govern Sharia-compliant financing. This perception acts as a deterrent, preventing potential users from engaging with these platforms despite their benefits. Qualitative data from interviews highlight that a substantial portion of business actors regard Sharia-compliant fintech equity crowdfunding as a complex and inaccessible option. This perception is corroborated by survey results, where 60% of participants admitted to having limited knowledge about the specific criteria for Sharia-compliant financing before engaging with the platform. Furthermore, 45% found the processes involved to be intricate and not user-friendly. These findings align with previous research by Dana and Dana (2020), which emphasized the knowledge gap regarding Islamic financing principles. To address these issues, the study suggests targeted educational initiatives that demystify the processes and benefits of Sharia-compliant financing. Such educational efforts could include workshops, seminars, and online resources that provide clear, accessible information to potential users. Additionally, improving platform accessibility is crucial, ensuring that entrepreneurs and SMEs from various regions can easily access and utilize these financing options. By addressing these educational and accessibility gaps, the full potential of Sharia fintech equity crowdfunding can be realized, fostering financial inclusion and supporting business growth. Table 4 Awareness and Understanding of Sharia-compliant Fintech Equity Crowdfunding Awareness & Understanding Criteria Percentage of Participants Affected Evidence from Study Limited knowledge of criteria 60% Survey responses Perception of complexity 45% Qualitative interviews Lack of educational resources 70% Study findings 3.2 Access to Sharia-compliant Fintech Platforms The study highlights a significant disparity in access to Sharia-compliant fintech platforms between urban and rural entrepreneurs. Urban areas benefit from better digital infrastructure, robust internet connectivity, and closer proximity to financial technology hubs, facilitating easier access to these platforms. However, rural entrepreneurs face challenges such as limited internet access and a lack of awareness about these innovative financing options. This urban-rural divide is consistent with findings by Ahmed and Mohamad (2019), which document the uneven distribution of fintech services. Rural regions often suffer from inadequate broadband coverage and scarce digital literacy programs, hindering the proliferation of fintech solutions. These barriers prevent rural entrepreneurs from fully engaging with and benefiting from Sharia-compliant equity crowdfunding. To bridge this gap, the study recommends enhancing digital infrastructure in rural areas and implementing educational initiatives to increase digital literacy and awareness of Sharia-compliant financial options. Collaborations between government and private sectors could also promote these platforms in underserved regions, ensuring a more equitable distribution of benefits from Sharia-compliant fintech equity crowdfunding. Tabel 5 Access to Sharia-compliant Fintech Platforms Region Access Rate (%) Successful Funding Rate (%) Key Challenges Urban Areas 75 60 High digital literacy, robust internet Rural Regions 30 20 Limited internet access, lower literacy To address the disparities between urban and rural access to Sharia-compliant fintech platforms, a comprehensive strategy is essential. The recommendations outlined in this study aim to bridge this gap by focusing on three critical areas: infrastructure development, educational programs, and policy support. Each of these measures plays a vital role in enhancing accessibility to financial services that adhere to Sharia principles, ultimately promoting economic growth and financial inclusion. Infrastructure Development is the first and perhaps the most fundamental step in improving access to fintech services in rural areas. Many regions still struggle with inadequate internet connectivity, which hampers the ability of individuals and businesses to utilize digital financial services. By investing in robust internet infrastructure, governments and private sector stakeholders can create a more conducive environment for the adoption of fintech solutions. This investment could take various forms, such as expanding broadband coverage, providing subsidies for internet service providers to reach underserved areas, or establishing community internet access points. Improved connectivity will not only facilitate access to Sharia-compliant financial products but also enable rural populations to engage in e-commerce and other digital economic activities, thereby enhancing their overall economic resilience. Educational Programs are equally crucial in this endeavor. Digital literacy is a significant barrier that prevents many individuals, particularly in rural areas, from fully utilizing fintech platforms. Therefore, implementing targeted educational initiatives is necessary to improve awareness and understanding of Sharia-compliant fintech options. These programs could include workshops, training sessions, and informational campaigns designed to educate communities about the benefits of fintech, how to navigate these platforms, and the principles of Sharia finance. Collaborating with local schools, community centers, and religious institutions can help disseminate this knowledge effectively. By empowering individuals with the necessary skills and information, we can foster a more informed user base that is capable of making sound financial decisions in alignment with their values. Policy Support from both governmental and non-governmental organizations is vital for the sustainable growth of fintech services in underserved regions. Policymakers should consider creating favorable regulations that encourage the establishment and expansion of Sharia-compliant fintech platforms. This could involve providing incentives for fintech companies to operate in rural areas, such as tax breaks or grants, which would lower barriers to entry and stimulate competition. Additionally, partnerships between the public and private sectors can be instrumental in developing innovative solutions that cater to the unique needs of rural populations. For instance, facilitating collaborations between fintech startups and established banks can enhance the reach of Sharia-compliant financial products, ensuring that they are tailored to local contexts. By addressing these challenges through a multifaceted approach, Sharia-compliant fintech equity crowdfunding can evolve into a more inclusive and effective financing mechanism. The potential benefits of such an initiative are significant. It can provide much-needed capital for small and medium-sized enterprises (SMEs) in rural regions, which often struggle to access traditional financing sources. Additionally, it can empower entrepreneurs and local businesses, contributing to job creation and economic diversification. Moreover, promoting financial inclusion through Sharia-compliant fintech can help build trust in the financial system among communities that prioritize adherence to Islamic principles, thereby fostering greater participation in the economy. In conclusion, bridging the gap between urban and rural access to Sharia-compliant fintech platforms requires a strategic and collaborative effort. By focusing on infrastructure development, educational programs, and policy support, stakeholders can create a more equitable financial landscape. This, in turn, will not only enhance access to necessary financial services but also promote economic growth, empower communities, and ensure that individuals can engage with fintech solutions that align with their values and beliefs. The successful implementation of these recommendations will pave the way for a more inclusive financial ecosystem, benefiting diverse geographies and contributing to a more sustainable and equitable economic future. 3.3 Economic Indicators and National Resilience Sharia-compliant fintech equity crowdfunding represents a significant advancement in promoting financial inclusion, particularly for small and medium-sized enterprises (SMEs). This innovative financing method provides businesses with alternatives that comply with Islamic financial principles, thereby offering options that differ from traditional financial sources. Many SMEs have historically faced difficulties in securing funding through conventional means, often due to stringent requirements and risk-averse practices of traditional banks. Sharia-compliant fintech equity crowdfunding addresses these challenges by creating a more accessible financial landscape. Statistical evidence underscores the effectiveness of this method, showing a notable increase in the number of businesses that are now able to access funding that was previously out of reach. Research conducted by Huda and Ali in 2018 highlights this trend, indicating that many entrepreneurs who once struggled to obtain financing are now finding support through these alternative avenues. The increased access to capital not only empowers individual businesses but also contributes to economic growth by fostering innovation and job creation. A key aspect of Sharia-compliant fintech is its ethical foundation, which forbids the charging of interest (riba) and emphasizes risk-sharing between investors and entrepreneurs. This principle resonates with both Muslim and non-Muslim investors who are looking for ethical investment opportunities. By aligning financial practices with ethical standards, this form of crowdfunding broadens the investor base and democratizes access to finance. As a result, businesses that might have been overlooked by conventional banking systems are now able to thrive, promoting diversity in the entrepreneurial ecosystem. Despite the promising developments, challenges remain in the widespread adoption of Sharia-compliant fintech equity crowdfunding. One significant obstacle is the limited awareness and understanding of these financing options among potential business actors. Many entrepreneurs may not be familiar with the principles of Sharia finance or the specific mechanisms of equity crowdfunding. Additionally, access to these platforms can be restricted in certain regions, limiting their availability to those who could benefit the most. To address these challenges, the study suggests implementing targeted educational initiatives aimed at raising awareness and understanding of Sharia-compliant fintech among business owners. Workshops, seminars, and informational campaigns could help demystify the principles of Islamic finance and equity crowdfunding, empowering more entrepreneurs to take advantage of these opportunities. Furthermore, improving the accessibility of crowdfunding platforms in underserved regions would facilitate greater participation and ensure that a broader range of businesses can benefit from this financing method. In conclusion, Sharia-compliant fintech equity crowdfunding holds great potential for enhancing financial inclusion and supporting the growth of SMEs. By providing ethical financing options and promoting risk-sharing, it opens new doors for businesses previously marginalized by traditional banking systems. While challenges such as limited awareness and access must be addressed, the proposed educational initiatives and improved platform accessibility could significantly enhance financial inclusion and contribute to broader economic development. As more businesses harness these opportunities, the overall benefits to the economy and society will become increasingly evident. Table 6 Impact of Sharia-Compliant Fintech Equity Crowdfunding on Financial Inclusion Example Description Impact on Financial Inclusion Agricultural SME Raised capital without traditional bank constraints Increased access to funds; ethical investment appeal Tech Startup Expanded operations through equity-based crowdfunding Maintained business control; collaborative growth The table provides a clear illustration of how Sharia-compliant fintech equity crowdfunding fosters financial inclusion and supports business growth. The empirical evidence further emphasizes the effectiveness of this alternative financing method in promoting economic development. 3.4 Business Growth and Economic Development Figure 2 https://cdn-assetd.kompas.id/1IWz-Ly-9SISlfakLQPcglLrrt0=/1024x603/https%3A%2F%2Fasset.kgnewsroom.com%2Fphoto%2Fpre%2F2024%2F05%2F06%2F3acb4ba5-5654-4326-bada-5b0fb2886159_png.png Participants who effectively utilized Sharia-compliant fintech equity crowdfunding have experienced notable business growth. This innovative financing method has proven to be instrumental in allowing businesses to scale their operations, enhance their revenue streams, and broaden their market reach. The findings align with the research conducted by Mirakhor and Iqbal in 2017, which highlights the positive impact of such financing models on business expansion. One of the key features of Sharia-compliant financing is its ethical and transparent nature. This characteristic has helped attract a wider pool of investors who are looking for investment opportunities that align with their values. As a result, businesses engaging in Sharia-compliant equity crowdfunding have been able to secure substantial financial backing for their growth-oriented projects. This aspect of ethical financing not only supports individual businesses but also contributes to a more responsible investment landscape. The study underscores the vital importance of financial inclusion in fostering business growth and overall economic development. Traditional financing methods can often be inaccessible, particularly for entrepreneurs from underrepresented backgrounds or regions with limited banking services. Sharia-compliant fintech equity crowdfunding serves as an alternative that provides accessible and ethical financing options, thus opening new avenues for these entrepreneurs. This is especially significant in areas where access to conventional banking is restricted, enabling individuals to pursue their business ambitions despite systemic financial barriers. By creating a more inclusive financial environment, Sharia-compliant fintech equity crowdfunding empowers entrepreneurs who might otherwise struggle to find the necessary resources to start or grow their businesses. This empowerment not only benefits the entrepreneurs themselves but also has a ripple effect on the economy, as new businesses contribute to job creation and innovation. In conclusion, the effective utilization of Sharia-compliant fintech equity crowdfunding has demonstrated its capability to drive significant business growth through ethical financing. By broadening the investor base and promoting financial inclusion, this method offers a valuable alternative for underrepresented entrepreneurs. The emphasis on ethical practices within this financing framework not only attracts investment but also fosters a sustainable business environment that can lead to long-term economic development. Table 7 Business Growth Indicators Post-Funding Indicator Pre-Funding Post-Funding Percentage Change Average Production Capacity 100 units/month 150 units/month +50% Average Annual Revenue $100,000 $122,000 +22% Number of New Markets Entered 2 5 +150% Percentage of Businesses Reporting Growth 0% 65% - This table clearly illustrates the positive changes experienced by businesses after receiving Sharia-compliant fintech equity crowdfunding, highlighting its potential as a significant driver of economic development and business growth. The findings suggest that Sharia-compliant fintech equity crowdfunding is not just an alternative financing method but a catalyst for business growth and economic development. However, to fully harness its potential, there is a critical need for increased awareness, education, and accessibility, particularly in regions where such platforms are underutilized. This will ensure that more entrepreneurs and SMEs can benefit from this ethical and innovative financing avenue 3.5 Educational and Promotional Efforts Figure 3 https://stikesrsdustira.ac.id/wp-content/uploads/2022/12/WhatsApp-Image-2022-12-14-at-14.06.10.jpeg The research emphasizes the vital role of educational and promotional efforts in enhancing the comprehension and adoption of Sharia-compliant fintech equity crowdfunding among business actors. The data indicate that entrepreneurs and SMEs often face significant knowledge gaps regarding the processes, benefits, and ethical considerations of Sharia-compliant financing. These gaps hinder their ability to take full advantage of this innovative financing method. To address this, the study recommends the implementation of targeted educational programs and promotional campaigns that are tailored to the needs of business actors. Studies by Hassan and Lewis (2019), support this recommendation by highlighting the importance of demystifying Islamic finance principles and practices. These studies suggest that comprehensive educational initiatives can bridge the knowledge gap and foster a better understanding of how Sharia-compliant fintech platforms operate. This could include workshops, seminars, online courses, and informational materials that explain the unique aspects of Sharia-compliant financing, such as its prohibition of interest and emphasis on risk-sharing and ethical investments. Furthermore, the research identifies the need for promotional strategies to raise awareness about the availability and benefits of Sharia-compliant fintech equity crowdfunding platforms. Given that many business actors are unaware of these platforms or have limited access to them, enhancing visibility through marketing campaigns, partnerships with business associations, and collaboration with financial institutions is crucial. These efforts can help normalize the use of Sharia-compliant financing options and integrate them into the broader financial ecosystem. In conclusion, the study underscores that educational and promotional efforts are essential to maximizing the potential of Sharia-compliant fintech equity crowdfunding. By equipping business actors with the necessary knowledge an d resources, these efforts can lead to increased financial inclusion, business growth, and overall economic development. The positive outcomes observed among participants who effectively utilized Sharia-compliant crowdfunding underscore the potential benefits of these initiatives. The research underscores the necessity of educational and promotional efforts to enhance the understanding and uptake of Sharia-compliant fintech equity crowdfunding. The data suggest that business actors require more comprehensive information and guidance on how to leverage these platforms effectively. This recommendation is supported by empirical studies, such as those by Hassan and Lewis (2019), which advocate for targeted educational programs to demystify Islamic finance and promote its advantages. 4. CONCLUSION The conclusion of this research underscores the transformative potential of Sharia-compliant fintech equity crowdfunding as a viable alternative financing mechanism for entrepreneurs and SMEs. The empirical evidence gathered from the study highlights that while the innovative and ethical nature of Sharia-compliant financing is acknowledged, there remains a critical need to bridge the knowledge gap among business actors. Many participants were found to have limited understanding of the processes and benefits associated with Sharia-compliant equity crowdfunding, which can hinder their ability to fully leverage this financial resource. To address these gaps, the research advocates for targeted educational initiatives aimed at raising awareness and improving comprehension of Sharia-compliant financial principles and crowdfunding procedures. Such educational efforts should be coupled with strategies to enhance the accessibility of Sharia-compliant fintech platforms, particularly in regions where access remains limited. By fostering a more inclusive financial environment, these measures can help to ensure that a broader spectrum of entrepreneurs and SMEs can benefit from ethical financing options. Overall, the study concludes that Sharia-compliant fintech equity crowdfunding not only promotes financial inclusion but also contributes positively to business growth and economic development. The findings suggest that with improved education and accessibility, this financing method has the potential to significantly enhance the financial landscape for business actors, offering diverse and equitable avenues for obtaining finance. 5. REFERENCES Alshater, M. M., Saba, I., Supriani, I., & Rabbani, M. R. (2022). Fintech in islamic finance literature: A review. Heliyon. https://www.cell.com/heliyon/fulltext/S2405-8440(22)01673-5 Battisti, E., Graziano, E. A., & Christofi, M. (2022). Equity crowdfunding platforms and social media: a Twitter analysis. International Journal of .... https://doi.org/10.1108/IJEBR-01-2021-0081 Bayati, M., Noroozi, R., Ghanbari-Jahromi, M., & ... (2022). Inequality in the distribution of Covid-19 vaccine: a systematic review. ... journal for equity in .... https://doi.org/10.1186/s12939-022-01729-x Butticè, V., & Vismara, S. (2022). Inclusive digital finance: the industry of equity crowdfunding. The Journal of Technology Transfer. https://doi.org/10.1007/s10961-021-09875-0 Cernic, J. L. (2021). Institutional Actors as International Law-Makers in Business and Human Rights: the United Nations Guiding Principles on Business on Business and Human Rights .... Pravni zapisi. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4001975 Chenet, H., Ryan-Collins, J., & Lerven, F. Van. (2021). Finance, climate-change and radical uncertainty: Towards a precautionary approach to financial policy. Ecological Economics. https://www.sciencedirect.com/science/article/pii/S092180092100015X Cleverley, W. O., Cleverley, J. O., & Parks, A. V. (2023). Essentials of health care finance. books.google.com. https://books.google.com/books?hl=en%5C&lr=%5C&id=CI7hEAAAQBAJ%5C&oi=fnd%5C&pg=PP1%5C&dq=alternative+financing%5C&ots=GLshqQ94RW%5C&sig=q4NMZJMiWAHY3MUl8lOIJeIw4_M Coakley, J., & Lazos, A. (2021). New developments in equity crowdfunding: A review. Review of Corporate Finance. https://www.nowpublishers.com/article/Details/RCF-0008 Cornelli, G., Frost, J., Gambacorta, L., Rau, P. R., Wardrop, R., & ... (2020). Fintech and big tech credit: a new database. papers.ssrn.com. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3707437 Cumming, D. J., Martinez-Salgueiro, A., & ... (2021). COVID-19 bust, policy response, and rebound: equity crowdfunding and P2P versus banks. The Journal of .... https://doi.org/10.1007/s10961-021-09899-6 Darmayanti, R. (2023). Gema Cow-Pu: Development of Mathematical Crossword Puzzle Learning Media on Geometry Material on Middle School Students' Critical Thinking Ability. Assyfa Learning Journal, 1, 37-48. Darmayanti, R. (2024). Programmed learning in mathematics education before and after the pandemic: Academics Integrate technology. Assyfa Learning Journal, 1, 40-56. Dewi, R. A. M. (2022). Promoting the Creative Economy for a Robust Post-Pandemic Recovery in Indonesia. CREATIVE ECONOMY 2030. https://www.academia.edu/download/87878707/adbi_creative_economy_2030.pdf#page=122 Eldridge, D., Nisar, T. M., & Torchia, M. (2021). What impact does equity crowdfunding have on SME innovation and growth? An empirical study. Small Business Economics. https://doi.org/10.1007/s11187-019-00210-4 Feghali, K., Mora, N., & Nassif, P. (2021). Financial inclusion, bank market structure, and financial stability: International evidence. The Quarterly Review of Economics and .... https://www.sciencedirect.com/science/article/pii/S1062976921000132 Fitriady, A., Silvia, V., & Suriani, S. (2022). The Impact of Macroeconomic Variables on the Real Economic Growth in Indonesia. International Journal of .... https://journal.srnintellectual.com/index.php/ijgoia/article/view/16 Gatti, S. (2023). Project finance in theory and practice: designing, structuring, and financing private and public projects. books.google.com. https://books.google.com/books?hl=en%5C&lr=%5C&id=CJqhEAAAQBAJ%5C&oi=fnd%5C&pg=PP1%5C&dq=alternative+financing%5C&ots=CnzigIH3Ft%5C&sig=oovDFcYHWMCLvTq1MgJrADt7YaU Haanurat, A. I., Vedianty, A. S. A., & Tollentino, S. A. (2023). Instagram's impact on sharia economic law literacy in the digital age and Indonesia's sharia economy strengthening. Revenue Journal: Management and Entrepreneurship, 2, 112-118. Harvey, C. R., Ramachandran, A., & Santoro, J. (2021). DeFi and the Future of Finance. books.google.com. https://books.google.com/books?hl=en%5C&lr=%5C&id=YCY_EAAAQBAJ%5C&oi=fnd%5C&pg=PR1%5C&dq=alternative+financing%5C&ots=9zAHTRcXMu%5C&sig=6Mw-CAs4V8GqMIcCVwjU8KKiLLA Hina, M., Chauhan, C., Kaur, P., Kraus, S., & Dhir, A. (2022). Drivers and barriers of circular economy business models: Where we are now, and where we are heading. Journal of Cleaner .... https://www.sciencedirect.com/science/article/pii/S0959652621042153 Hotimah, L. H., Hasyim, U. A. A., & Dewi, Y. A. S. (2024). Implementation of Islamic Religious Education in Cultivating Morals in Elementary School Students. Assyfa Journal of Multidisciplinary Education, 1, 5-9. Irawan, E. (2022). The effect of unemployment, economic growth and human development index on poverty levels in Sumbawa regency in 2012-2021. International Journal of Economics, Business and .... https://jurnal.stie-aas.ac.id/index.php/IJEBAR/article/view/5455 Jocevski, M., Ghezzi, A., & Arvidsson, N. (2020). Exploring the growth challenge of mobile payment platforms: A business model perspective. Electronic Commerce Research and .... https://www.sciencedirect.com/science/article/pii/S1567422319300857 Johan, S., & Reardon, R. S. (2024). The role of platform stakes in equity crowdfunding success. Finance Research Letters. https://www.sciencedirect.com/science/article/pii/S1544612324011267 Junaidi, J., Anwar, S. M., Alam, R., Lantara, N. F., & ... (2023). Determinants to adopt conventional and Islamic banking: evidence from Indonesia. Journal of Islamic .... https://doi.org/10.1108/jima-03-2021-0067 Jungo, J., Madaleno, M., & Botelho, A. (2022). The effect of financial inclusion and competitiveness on financial stability: why financial regulation matters in developing countries? Journal of Risk and Financial .... https://www.mdpi.com/1911-8074/15/3/122 Kangwa, D., Mwale, J. T., & Shaikh, J. M. (2021). The social production of financial inclusion of generation Z in digital banking ecosystems. ... Accounting, Business and .... https://ro.uow.edu.au/aabfj/vol15/iss3/6/ Kleinert, S., & Mochkabadi, K. (2021). Gender stereotypes in equity crowdfunding: the effect of gender bias on the interpretation of quality signals. The Journal of Technology Transfer. https://doi.org/10.1007/s10961-021-09892-z Lawal, I. M., Soja, U. B., Mambo, A. D., Kutty, S. R. M., & ... (2023). Adsorption of abattoir wastewater contaminants by coconut shell-activated carbon. ... and Delivering Practical .... https://doi.org/10.1007/978-3-031-26580-8_22 Li, C. Z., & Umair, M. (2023). Does green finance development goals affects renewable energy in China. Renewable Energy. https://www.sciencedirect.com/science/article/pii/S096014812201850X Lu, Z., Wu, J., Li, H., & Nguyen, D. K. (2022). Local bank, digital financial inclusion and SME financing constraints: Empirical evidence from China. Emerging Markets Finance and .... https://doi.org/10.1080/1540496X.2021.1923477 Marina, A., Wahjono, S. I., Fam, S. F., & ... (2023). Crowdfunding to Finance SMEs: New Model After Pandemic Disease. Sustainability Science and .... http://journalssr.com/index.php/ssr/article/view/41 Matekenya, W., Moyo, C., & Jeke, L. (2021). Financial inclusion and human development: Evidence from Sub-Saharan Africa. Development Southern Africa. https://doi.org/10.1080/0376835X.2020.1799760 Mochkabadi, K., & Volkmann, C. K. (2020). Equity crowdfunding: a systematic review of the literature. Small Business Economics. https://doi.org/10.1007/s11187-018-0081-x Najib, M., Ermawati, W. J., Fahma, F., Endri, E., & ... (2021). Fintech in the small food business and its relation with open innovation. Journal of Open .... https://www.mdpi.com/2199-8531/7/1/88 Nursaid, N. (2024). Integrated and systematic Best Practices of" Financial Management in Education" in Southeast Asia. Revenue Journal: Management and Entrepreneurship, 1. Pandiangan, S. M. T., Octiva, C. S., Yusuf, M., & ... (2022). The Role of Digital Marketing in Increasing Sales Turnover for Micro, Small, and Medium Enterprises. Jurnal Pengabdian .... https://bajangjournal.com/index.php/JPM/article/view/4408 Panrot, T., & Rattanapongpinyo, T. (2024). The Cultural Capital Management affecting Entrepreneurial Performance of Coconut Product Communities in Prachuap Khiri Khan Province. publication.npru.ac.th. https://publication.npru.ac.th/handle/123456789/2219 Priya, R. B., Rashmitha, R., Preetham, G. S., & ... (2022). Detection of adulteration in coconut oil and virgin coconut oil using advanced analytical techniques: A review. Food Analytical .... https://doi.org/10.1007/s12161-022-02342-y Purwanto, A. (2020). Effect of hard skills, soft skills, organizational learning and innovation capability on Islamic University lecturers' performance. Systematic Reviews in Pharmacy. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3986845 Rejeb, A., Rejeb, K., & Keogh, J. G. (2021). Cryptocurrencies in modern finance: a literature review. Etikonomi. https://pdfs.semanticscholar.org/a898/14602f23e1b0d092aa396b056c6cc335371b.pdf Richards, G. (2020). Designing creative places: The role of creative tourism. Annals of tourism research. https://www.sciencedirect.com/science/article/pii/S0160738320300669 Romadhoni, B., & Khalid, I. (2024). Increasing the Income of Coconut Farmers Through Community Empowerment in Selayar Regency, Indonesia. International Journal of Latest .... https://ideas.repec.org/a/bjb/journl/v13y2024i8p50-56.html Salder, J. (2021). The creative business: enterprise development in the arts-based creative industries. Creative Industries Journal. https://doi.org/10.1080/17510694.2020.1789414 Saleel, C. A. (2022). A review on the use of coconut oil as an organic phase change material with its melting process, heat transfer, and energy storage characteristics. Journal of Thermal Analysis and Calorimetry. https://doi.org/10.1007/s10973-021-10839-7 Saputra, M. E., Zulham, T., & Srinita, S. (2025). The Effect of Aceh Government Spending Policy on Inclusive Growth: Income per Capita as a Mediating Variable. Grimsa Journal of Business .... https://journals.grimsa.org/index.php/gjbes/article/view/41 SARATIAN, E. T. P., ARIEF, H., RAMLI, Y., PERMANA, D., & ... (2022). Sharia Financial Inclusion As The Catalyst For The Sustainability Of The Indonesian Msmes. Iccd. http://iccd.asia/ojs/index.php/iccd/article/view/471 Satrianto, A., & Juniardi, E. (2023). Inclusive Human Development and Inclusive Green Growth: A Simultaneous Approach. ... Journal of Sustainable Development .... https://search.ebscohost.com/login.aspx?direct=true%5C&profile=ehost%5C&scope=site%5C&authtype=crawler%5C&jrnl=17437601%5C&AN=163198180%5C&h=Et4Sb3lgebE0dJ7KOZn9I1%2BMxctzLKTB%2FAAsUullqz24TG6NuoHKfKzFMkG94q0vm7LcoTFQqZICkQZgOZaFnw%3D%3D%5C&crl=c Schuetz, S. (2020). Blockchain, adoption, and financial inclusion in India: Research opportunities. International Journal of Information Management, 52. https://doi.org/10.1016/j.ijinfomgt.2019.04.009 Sendra-Pons, P., Mas-Tur, A., & Garzon, D. (2023). Anchor investors and equity crowdfunding for entrepreneurs. European Journal of .... https://doi.org/10.1108/EJMBE-06-2022-0167 Sharif, A., Saqib, N., Dong, K., & ... (2022). Nexus between green technology innovation, green financing, and CO2 emissions in the G7 countries: The moderating role of social globalisation. Sustainable .... https://doi.org/10.1002/sd.2360 Shi, J., Yu, C., Li, Y., & Wang, T. (2022). ... policy affect debt-financing cost of heavy-polluting enterprises? An empirical evidence based on Chinese pilot zones for green finance reform and innovations. Technological Forecasting and Social Change. https://www.sciencedirect.com/science/article/pii/S0040162522001901 Strefler, J., Kriegler, E., Bauer, N., Luderer, G., & ... (2021). Alternative carbon price trajectories can avoid excessive carbon removal. Nature .... https://www.nature.com/articles/s41467-021-22211-2 Sudiantini, D., Rizky, P. P., & Hazarika, A. (2023). Digital economy and financial inclusion in reviving the national economy: A Management Strategy. Revenue Journal: Management and Entrepreneurship, 1, 64-75. Sugianto, R., & Khan, S. (2023). MONICA-DANCE: Development of Monopoly Media Based on Traditional Indigenous Dances on High School Students' Mathematical Critical Thinking Ability. Assyfa Learning Journal, 2. Tay, L. Y., Tai, H. T., & Tan, G. S. (2022). Digital financial inclusion: A gateway to sustainable development. Heliyon. https://www.cell.com/heliyon/fulltext/S2405-8440(22)01054-4 Ullah, S., Ali, K., Shah, S. A., & Ehsan, M. (2022). Environmental concerns of financial inclusion and economic policy uncertainty in the era of globalization: evidence from low \&high globalized OECD .... Environmental Science and Pollution .... https://doi.org/10.1007/s11356-022-18758-2 Vieira, F., Santana, H. E. P., Jesus, M., Santos, J., Pires, P., & ... (2024). Coconut Waste: Discovering Sustainable Approaches to Advance a Circular Economy. Sustainability. https://www.mdpi.com/2071-1050/16/7/3066 Wicaksana, M. F., Lestari, J. T., Sari, N. K., & de Araujo, F. C. (2023). Efforts and Obstacles in Learning: Which visual aids are most accessible for disabled students? AMCA Journal of Education and Behavioral Change, 2. Yasar, B. (2021). The new investment landscape: Equity crowdfunding. Central Bank Review. https://www.sciencedirect.com/science/article/pii/S1303070121000019 Zhang, D., Mohsin, M., & Taghizadeh-Hesary, F. (2022). Does green finance counteract the climate change mitigation: Asymmetric effect of renewable energy investment and R\&D. Energy Economics. https://www.sciencedirect.com/science/article/pii/S0140988322003358 Ziegler, T., Shneor, R., Wenzlaff, K., Wang, B., & ... (2021). The global alternative finance market benchmarking report. Available at SSRN .... https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3771509 Ifayani││ The Influence of Sharia Fintech Equity,... 51 Revenue Journal: Management and Entrepreneurship | 50-64