Optimizing village empowerment through creative MSMEs, financial literacy, and government policies for poverty alleviation

Wahyu Wibowo; Mega Rahmawati; Taufikur  Rohman; Nasrudin Nasrudin; Zakiyudin  Fikri

doi:10.55942/pssj.v6i3.1439

Authors

Wahyu Wibowo Universitas Islam Negeri Sunan Kalijaga Yogyakarta
Mega Rahmawati Universitas Islam Negeri Sunan Kalijaga Yogyakarta
Taufikur Rohman Universitas Islam Negeri Sunan Kalijaga Yogyakarta
Nasrudin Nasrudin Universitas Islam Kalimantan Muhammad Arsyad Al-Banjari, Banjarmasin, Indonesia
Zakiyudin Fikri Pahlawan 12 Institute, Sungailiat, Bangka Belitung, Indonesia

DOI:

https://doi.org/10.55942/pssj.v6i3.1439

Keywords:

cultural independent villages, creative msmes, financial literacy, village poverty alleviation, government policies, culture-based creative economy

Abstract

This study examines village empowerment strategies for poverty alleviation through the integration of strengthening creative MSMEs based on local culture, increasing financial literacy (including digital financial literacy), and government policy support. The study uses a literature study by selecting and synthesizing research findings related to the concept of Cultural Independent Villages, creative entrepreneurship, financial inclusion, and collaborative governance models. The results of the synthesis show that local culture can be an endogenous capital that generates economic added value through creative products and services, while strengthening citizen participation. However, the growth of MSMEs is not sustainable without the ability to record finances, plan capital, and utilize secure digital financial services. Policy support is needed to build an ecosystem in the form of tiered mentoring, business incubation, pentahelix partnerships, access to financing, and market access through marketing digitalization. The study confirms that fragmented interventions tend to produce short-term impacts, so programs should be designed place-based with success indicators that include revenue, business sustainability, market expansion, and financial inclusion. Future agendas include cross-village integrative model testing, data-driven impact measurement, and risk and consumer protection assessments on digital financial literacy. Practically, the main recommendations are to build an applicable financial literacy curriculum, facilitate legality and product standardization, and strengthen culture-based branding so that MSMEs upgrade and their benefits are evenly distributed at the household level.

Author Biographies

Wahyu Wibowo, Universitas Islam Negeri Sunan Kalijaga Yogyakarta

Wahyu Wibowo is an alumnus of the Master’s Program in Islamic Economics at Sunan Kalijaga State Islamic University (UIN Sunan Kalijaga), Yogyakarta, Indonesia. He currently teaches the Graduate Student Writing Class at the Faculty of Islamic Economics and Business. In August 2025, he graduated and received recognition as the fastest and best-performing graduate in his graduation period. His interests include village empowerment and the development of Islamic economics-based community programs.

Mega Rahmawati, Universitas Islam Negeri Sunan Kalijaga Yogyakarta

Mega Rahmawati is a graduate student in the Master’s Program in Sharia Accounting at Sunan Kalijaga State Islamic University (UIN Sunan Kalijaga), Yogyakarta, Indonesia. She is currently enrolled in the Graduate Student Writing Class at the Faculty of Islamic Economics and Business. She is originally from Bantul, Yogyakarta. Her academic interests include financial literacy and sharia-based accounting practices for community development.

Taufikur Rohman , Universitas Islam Negeri Sunan Kalijaga Yogyakarta

Taufikur Rohman is a graduate student in the Master’s Program in Islamic Economics at Sunan Kalijaga State Islamic University (UIN Sunan Kalijaga), Yogyakarta, Indonesia. He is currently participating in the Graduate Student Writing Class at the Faculty of Islamic Economics and Business. He is originally from Palembang, South Sumatra, Indonesia. His research interests include village economic empowerment, MSME development, and poverty alleviation strategies.

Nasrudin Nasrudin, Universitas Islam Kalimantan Muhammad Arsyad Al-Banjari, Banjarmasin, Indonesia

Nasrudin is a lecturer at Universitas Islam Kalimantan Muhammad Arsyad Al-Banjari, Banjarmasin, Indonesia. He completed his master’s degree at Sunan Kalijaga State Islamic University (UIN Sunan Kalijaga), Yogyakarta, Indonesia. Upon graduation, he received recognition as the fastest and best-performing graduate in his graduation period. His work focuses on community development and higher education engagement in regional development.

Zakiyudin Fikri, Pahlawan 12 Institute, Sungailiat, Bangka Belitung, Indonesia

Zakiyudin Fikri is affiliated with Pahlawan 12 Institute, Sungailiat, Bangka Belitung, Indonesia, and is also active at IAIN Syaikh Abdurrahman Siddik (IAIN SAS) Bangka Belitung, Indonesia. Several of his writings discuss government policy and its implications for development outcomes. His interests include public policy analysis, governance, and community-based development programs. He contributes to research and academic activities related to policy-driven poverty reduction.

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