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Islamic financing selection among small and micro-scale entrepreneurs

Duasa, Jarita and Zainal, Nur Hidayah and Syafril, Ilza Febrina (2021) Islamic financing selection among small and micro-scale entrepreneurs. Journal of Fatwa Management and Research, 26 (2 (Special Issue)). pp. 63-77. ISSN 2232-1047 E-ISSN 0127-8886

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The study attempts to investigate the probability of small and micro entrepreneurs who received financial assistance from microfinance program of Amanah Ikhtiar Malaysia (AIM) to select Islamic financing in business activities. A survey was conducted on the participants of AIM in Kelantan and Perak and data collected are analyzed using binary logistic regressions. The findings of the study show that the likelihood that Islamic financing is selected among small and micro entrepreneurs is likely to be determined by higher level of education, more asset value obtained and more understanding on the concept of ‘riba’. Variables of age, amount of loan, household size, income obtained from AIM program, spending, understanding on concept of ‘gharar’, ‘mudharabah’, ‘musyarakah’, ‘bai’ bithamin ajil’, ‘istisna’, ‘salam’, ‘qard al-hasan’ and ‘al-inah’ are not significantly influence the tendency to choose Islamic financing among small and micro entrepreneurs.

Item Type: Article (Journal)
Additional Information: 3479/93357
Uncontrolled Keywords: Small and micro-enterprises, Amanah Ikhtiar Malaysia, Islamic financing, Malaysia.
Subjects: BPH Islamic Economics
H Social Sciences > HA Statistics > HA29 Theory and method of social science statistics
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Economics
Kulliyyah of Economics and Management Sciences
Depositing User: Prof. Dr. Jarita Duasa
Date Deposited: 28 Oct 2021 15:33
Last Modified: 28 Oct 2021 15:33
URI: http://irep.iium.edu.my/id/eprint/93357

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