Shaping entrepreneurial performance in small business sectors: does Islamic financial institutions’ support matter?

Yusfiarto, Rizaldi and Abdeljawad, Islam and Syarifah, Lailatis and Rosman, Romzie and Febriyanto, Ahmad and Ibrahim, Muhammad Hanif (2025) Shaping entrepreneurial performance in small business sectors: does Islamic financial institutions’ support matter? Journal of Developmental Entrepreneurship, 30 (2). pp. 1-29. ISSN 1084-9467 E-ISSN 1793-706X

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Abstract

This study explores the role of Islamic financial institutions’ (IFIs) support in the entrepreneurial success of Muslim-owned micro, small and medium-sized enterprises (MSMEs). It also integrates the constructs of Islamic financial literacy, management control systems and the alleviation of financial constraints as key components of business internalization. The study involved 265 Muslim MSME owners, who were analyzed using partial least squares structural equation modeling (PLS-SEM). The empirical results reveal that IFIs play a significant role in enhancing entrepreneurial performance by enabling MSME actors to access both tangible and intangible resources critical to business success. Furthermore, the findings emphasize that IFIs act not only as capital providers but also as entrepreneurial support organizations, facilitating strategic guidance to support economic transformation through a more integrated approach grounded in Islamic values.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Islamic financial institution; entrepreneurial support organizations; Islamic financial literacy; alleviation of financial constraints; micro, small and medium-sized enterprises
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	PROF. DR. ROMZIE ROSMAN
Date Deposited:	28 Jul 2025 09:01
Last Modified:	28 Jul 2025 09:03
URI:	http://irep.iium.edu.my/id/eprint/122285

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