Enhancing Halal Certification Literacy Among MSMEs: Barriers, Strategies, and Impacts

Abstract

Halal certification plays a crucial role in ensuring compliance with shariah standards and is increasingly recognized as a strategic asset for Micro, Small, and Medium Enterprises (MSMEs) aiming to access the global halal market. Despite its importance, many MSMEs struggle with halal literacy—defined as the knowledge, competency, and motivation to understand and implement halal standards. This study explores how MSMEs conceptualize halal certification, identifies key structural and cognitive barriers they face, and analyzes how halal literacy influences business performance. Employing a qualitative document analysis approach grounded in sociocultural learning theory and institutional theory, the study synthesizes findings from academic literature, policy reports, and institutional sources published through 2024. Results indicate that limited access to training, regulatory complexity, and financial constraints impede certification efforts, while peer learning and institutional support can significantly enhance literacy. The findings contribute to the theoretical discourse by framing halal literacy as both a social and structural phenomenon and propose actionable policy recommendations to support MSMEs in achieving certification. Enhancing halal certification literacy is vital not only for religious and ethical compliance but also for improving MSME competitiveness and inclusivity within the expanding halal economy.