2021_Developing Qard Hasan Based Crowdfunding as An Alternative Mode of Financing
| Format: | General Document |
|---|
| _version_ | 1860798159131770880 |
|---|---|
| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2021-10-10 |
| format | General Document |
| id | 16227 |
| institution | UniSZA |
| originalfilename | DEVELOPING QARD HASAN BASED CROWDFUNDING AS AN ALTERNATIVE MODE OF FINANCING (MASTER_2021).pdf |
| person | Abdulmajeed Muhammad Raji Aderemi |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16227 |
| sourcemedia | Server storage Scanned document |
| spelling | 16227 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16227 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) 237 2021-10-10 Copyright©PWB2025 Islamic finance DEVELOPING QARD HASAN BASED CROWDFUNDING AS AN ALTERNATIVE MODE OF FINANCING (MASTER_2021).pdf Abdulmajeed Muhammad Raji Aderemi Qard Hasan Based Crowdfunding Alternative Mode Of Financing Qard hasan (Islamic finance) Crowdfunding Interest-free banking Social finance 2021_Developing Qard Hasan Based Crowdfunding as An Alternative Mode of Financing The 2008 global financial crisis makes it harder for small and medium enterprises to obtain financing from banking institutions due to a very strict condition imposed by these institutions. Consequently, a new method for obtaining capital known as crowdfunding has emerged as a response towards limited funds from mainstream financial institutions, particularly banking institutions. Over the period, crowdfunding has gained more attentions from entrepreneurs as a result of the evolution and globalization of social media and financial technology. However, there are still Shari’ah issues on the current practice of crowdfunding. While there may have no serious issues from Shari’ah standpoint regarding donation and reward-based crowdfunding, equity and lending crowdfunding should be modified in terms of their instrument to ensure it is in line with Shari’ah principle. At the same time, previous literature has highlighted that Islamic crowdfunding mechanisms are still facing some problems from Shari’ah standpoint, including to develop a relevant micro-lending based model for SMEs. Thus, the present study serves to bridge the gap prevails in the previous literature which it aims to explore the potential of Islamic crowdfunding as an alternative means of financing. In this regard, it attempts to explore the applicability of Qard Hasan (benevolent loan) as a potential crowdfunding financial instrument for financing. This study adopts a qualitative research approach using both secondary and primary data. The primary data was obtained via semi-structured interviews conducted with ten (10) interviewees from crowdfunding industry and Shari’ah advisors. Thematic analysis is applied in order to achieve research objective. The findings of this study show that Qard Hasan financing can improve the business of SMEs effectively, thus it can be used as a financial instrument for Islamic crowdfunding which would be a great alternative for pioneering business to get an access to financing their businesses in compliance with Shari’ah. However, this framework is associated with several risks such as default risk and the risk of acquiring big funds. Nonetheless, these risks can be mitigated through proper reviewing by crowdfunding platforms as well as closely monitoring by them. Even though it is often argued that Qard Hasan is basically not a business-oriented instrument, a closer look at the framework reveals the uniqueness and flexibility of this instrument to be adopted as a viable financial instrument for financing. Subsequently, Qard Hasan based crowdfunding could be an alternative Shari’ah financing to mainstream Islamic financial institutions as well as conventional crowdfunding for SMEs so in return they can support socio economic development in the country. Dissertations, Academic Thesis |
| spellingShingle | 2021_Developing Qard Hasan Based Crowdfunding as An Alternative Mode of Financing |
| state | Terengganu |
| subject | Islamic finance Qard hasan (Islamic finance) Crowdfunding Interest-free banking Social finance Dissertations, Academic |
| summary | The 2008 global financial crisis makes it harder for small and medium enterprises to obtain financing from banking institutions due to a very strict condition imposed by these institutions. Consequently, a new method for obtaining capital known as crowdfunding has emerged as a response towards limited funds from mainstream financial institutions, particularly banking institutions. Over the period, crowdfunding has gained more attentions from entrepreneurs as a result of the evolution and globalization of social media and financial technology. However, there are still Shari’ah issues on the current practice of crowdfunding. While there may have no serious issues from Shari’ah standpoint regarding donation and reward-based crowdfunding, equity and lending crowdfunding should be modified in terms of their instrument to ensure it is in line with Shari’ah principle. At the same time, previous literature has highlighted that Islamic crowdfunding mechanisms are still facing some problems from Shari’ah standpoint, including to develop a relevant micro-lending based model for SMEs. Thus, the present study serves to bridge the gap prevails in the previous literature which it aims to explore the potential of Islamic crowdfunding as an alternative means of financing. In this regard, it attempts to explore the applicability of Qard Hasan (benevolent loan) as a potential crowdfunding financial instrument for financing. This study adopts a qualitative research approach using both secondary and primary data. The primary data was obtained via semi-structured interviews conducted with ten (10) interviewees from crowdfunding industry and Shari’ah advisors. Thematic analysis is applied in order to achieve research objective. The findings of this study show that Qard Hasan financing can improve the business of SMEs effectively, thus it can be used as a financial instrument for Islamic crowdfunding which would be a great alternative for pioneering business to get an access to financing their businesses in compliance with Shari’ah. However, this framework is associated with several risks such as default risk and the risk of acquiring big funds. Nonetheless, these risks can be mitigated through proper reviewing by crowdfunding platforms as well as closely monitoring by them. Even though it is often argued that Qard Hasan is basically not a business-oriented instrument, a closer look at the framework reveals the uniqueness and flexibility of this instrument to be adopted as a viable financial instrument for financing. Subsequently, Qard Hasan based crowdfunding could be an alternative Shari’ah financing to mainstream Islamic financial institutions as well as conventional crowdfunding for SMEs so in return they can support socio economic development in the country. |
| title | 2021_Developing Qard Hasan Based Crowdfunding as An Alternative Mode of Financing |
| title_full | 2021_Developing Qard Hasan Based Crowdfunding as An Alternative Mode of Financing |
| title_fullStr | 2021_Developing Qard Hasan Based Crowdfunding as An Alternative Mode of Financing |
| title_full_unstemmed | 2021_Developing Qard Hasan Based Crowdfunding as An Alternative Mode of Financing |
| title_short | 2021_Developing Qard Hasan Based Crowdfunding as An Alternative Mode of Financing |
| title_sort | 2021_developing qard hasan based crowdfunding as an alternative mode of financing |