The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan
Microfinance is a general term that entails the provision of financial services to micro- entrepreneurs or to those who do not have access to banking facilities. The current issues faced by micro-entrepreneurs are difficulties in seeking financing from financial institutions due to lack of sufficien...
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| Format: | Proceeding Paper |
| Language: | English |
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2012
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| Online Access: | http://irep.iium.edu.my/25900/ http://irep.iium.edu.my/25900/1/%28C_-11%29_-__ISRA_Conference_-_27.11.12.pdf |
| _version_ | 1848779546269057024 |
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| author | Abbas, kausar Abdul Razak, Dzuljastri Md Saad, Norma |
| author_facet | Abbas, kausar Abdul Razak, Dzuljastri Md Saad, Norma |
| author_sort | Abbas, kausar |
| building | IIUM Repository |
| collection | Online Access |
| description | Microfinance is a general term that entails the provision of financial services to micro- entrepreneurs or to those who do not have access to banking facilities. The current issues faced by micro-entrepreneurs are difficulties in seeking financing from financial institutions due to lack of sufficient collateral, no credit history, irregular or uneasily verified sources of income. Consequently, they often rely on relatives or local moneylenders who charge high interest rates. Thus, on grounds of equity and justice, Islamic microfinance seems to provide an alternative needed by them. This research deals with the perceptions of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance in Pakistan. It further investigates the intention to use Islamic microfinance and challenges for the micro-entrepreneurs. A total of 270 people were surveyed by means of self- administered questionnaire. The sample comprises 81.3 percent males and 18.7 percent females in three major cities; Rawalpindi, Lahore and Peshawar. Results of this study indicate that Islamic microfinance is a preferred choice as compared to conventional microfinance and best answer to poverty eradication. Although, Islamic microfinance is a new concept but majority of respondents had some understanding of this concept. However, the respondents also expressed their dissatisfaction to the management of Islamic banks.
Key words: Conventional microfinance, Islamic microfinance, poverty and Pakistan
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| first_indexed | 2025-11-14T15:19:29Z |
| format | Proceeding Paper |
| id | iium-25900 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T15:19:29Z |
| publishDate | 2012 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-259002012-12-17T07:56:44Z http://irep.iium.edu.my/25900/ The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan Abbas, kausar Abdul Razak, Dzuljastri Md Saad, Norma HG Finance Microfinance is a general term that entails the provision of financial services to micro- entrepreneurs or to those who do not have access to banking facilities. The current issues faced by micro-entrepreneurs are difficulties in seeking financing from financial institutions due to lack of sufficient collateral, no credit history, irregular or uneasily verified sources of income. Consequently, they often rely on relatives or local moneylenders who charge high interest rates. Thus, on grounds of equity and justice, Islamic microfinance seems to provide an alternative needed by them. This research deals with the perceptions of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance in Pakistan. It further investigates the intention to use Islamic microfinance and challenges for the micro-entrepreneurs. A total of 270 people were surveyed by means of self- administered questionnaire. The sample comprises 81.3 percent males and 18.7 percent females in three major cities; Rawalpindi, Lahore and Peshawar. Results of this study indicate that Islamic microfinance is a preferred choice as compared to conventional microfinance and best answer to poverty eradication. Although, Islamic microfinance is a new concept but majority of respondents had some understanding of this concept. However, the respondents also expressed their dissatisfaction to the management of Islamic banks. Key words: Conventional microfinance, Islamic microfinance, poverty and Pakistan 2012-11-27 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/25900/1/%28C_-11%29_-__ISRA_Conference_-_27.11.12.pdf Abbas, kausar and Abdul Razak, Dzuljastri and Md Saad, Norma (2012) The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan. In: Islamic Finance in a Challenging Economy : Moving Forward, 27 November 2012, Kualal Lumpur. (Unpublished) http://www.islamicfinance.de/?q=node/4127 |
| spellingShingle | HG Finance Abbas, kausar Abdul Razak, Dzuljastri Md Saad, Norma The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan |
| title | The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan
|
| title_full | The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan
|
| title_fullStr | The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan
|
| title_full_unstemmed | The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan
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| title_short | The perception of micro-entrepreneurs and petty traders towards conventional and Islamic microfinance : a case study of Pakistan
|
| title_sort | perception of micro-entrepreneurs and petty traders towards conventional and islamic microfinance : a case study of pakistan |
| topic | HG Finance |
| url | http://irep.iium.edu.my/25900/ http://irep.iium.edu.my/25900/ http://irep.iium.edu.my/25900/1/%28C_-11%29_-__ISRA_Conference_-_27.11.12.pdf |