Rahman, Maya Puspa and Mohd Thas Thaker, Mohamed Asmy and Duasa, Jarita (2020) Developing a Sharīʿah-compliant equity-based crowdfunding framework for entrepreneurship development in Malaysia. ISRA International Journal of Islamic Finance, 12 (2). pp. 239-252. ISSN 0128-1976
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Abstract
Abstract Purpose – Crowdfunding has become one of the preferred mechanisms to raise funds by startups and small entrepreneurs. As such, this paper aims to develop an appropriate framework for Sharīʿah-compliant equitybased crowdfunding (SEC) for entrepreneurship development in Malaysia. Design/methodology/approach – The research begins by analyzing the intention of 200 entrepreneurs in Kuala Lumpur and Selangor regarding the use of crowdfunding to raise capital. The analysis is based on the theory of reasoned action (TRA), which is also associated with the technology acceptance model (TAM) and is effected by using structural equation modeling (SEM). Findings – The entrepreneurs agree on the ease of use of crowdfunding in raising capital, although it appeared that they are quite reluctant to share their business ideas online. Subsequently, an SEC framework is proposed, to further enhance entrepreneurship development in Malaysia particularly in meeting the need for raising funds in line with Sharīʿah (Islamic law) principles. Practical implications – This paper aims to contribute more to the development of a blueprint for an SEC platform for market players and regulators in Malaysia. Social implications – This paper also aims to highlight the growing needs of entrepreneurs, particularly in Malaysia to have a Sharīʿah-compliant alternative to raise funds via crowdfunding. Originality/value – This paper makes two main contributions. First, it provides evidence on Malaysian entrepreneurs’ intention to use crowdfunding for fundraising through TAM and SEM analysis. Second, it proposes an SEC framework for the development of entrepreneurs in Malaysia.
| Item Type: | Article (Journal) |
|---|---|
| Additional Information: | 7137/83476 |
| Subjects: | BPH Islamic Economics H Social Sciences > H Social Sciences (General) |
| Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): | Kulliyyah of Economics and Management Sciences > Department of Economics |
| Depositing User: | Dr Mohamed Asmy Bin Mohd Thas Thaker |
| Date Deposited: | 09 Oct 2020 16:35 |
| Last Modified: | 09 Oct 2020 16:35 |
| URI: | http://irep.iium.edu.my/id/eprint/83476 |
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