Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES)
One of the important issues that have been discussed in the study of Small and Medium Enterprise ("SMEs") is their difficulty in getting access to external financing, particularly from the banking institutions. This problem occurs because the banking institutionsare predominantly debt b...
| Main Authors: | , |
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| Format: | Proceeding Paper |
| Language: | English English |
| Published: |
2017
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| Online Access: | http://irep.iium.edu.my/59229/ http://irep.iium.edu.my/59229/1/Adoption%20of%20Musharakah%20Financing%20Model%20for%20Long%20Term%20Development%20of%20SMEs.docx.pdf http://irep.iium.edu.my/59229/7/59229_certificate.pdf |
| _version_ | 1848785269984067584 |
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| author | Abd. Rahman, Nur Hasnida Mohamed, Mustafa Omar |
| author_facet | Abd. Rahman, Nur Hasnida Mohamed, Mustafa Omar |
| author_sort | Abd. Rahman, Nur Hasnida |
| building | IIUM Repository |
| collection | Online Access |
| description | One of the important issues that have been discussed in the study of Small and Medium
Enterprise ("SMEs") is their difficulty in getting access to external financing, particularly from
the banking institutions. This problem occurs because the banking institutionsare predominantly
debt based financing system which requires SMEs to fulfill banking requirementsof providing
adequate collateral and payment of high interest rates. SMEs inability to fulfill these
requirements obliges them to rely heavily on internal financing and this limits their long-term
growth and development. As financing is crucial to ensure SMEs' long-term growth and
development, this study has been conducted to examine the potential of Musharakah as a viable
alternative financing for SMEs. Accordingly, the Musharakah financing model was developed
and a survey among SMEs firms in Malaysia was conducted to validate the potential of
Musharakah financing model for SMEs. The results show that Musharakah financing has
potential in providing SMEs' with a greater access to financing. Therefore, the model needs to
be given a premier attention so that SMEs will have greater access to financing for their longterm
growth and expansion. |
| first_indexed | 2025-11-14T16:50:28Z |
| format | Proceeding Paper |
| id | iium-59229 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T16:50:28Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-592292017-12-04T08:00:10Z http://irep.iium.edu.my/59229/ Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES) Abd. Rahman, Nur Hasnida Mohamed, Mustafa Omar HG3368 Islamic Banking and Finance One of the important issues that have been discussed in the study of Small and Medium Enterprise ("SMEs") is their difficulty in getting access to external financing, particularly from the banking institutions. This problem occurs because the banking institutionsare predominantly debt based financing system which requires SMEs to fulfill banking requirementsof providing adequate collateral and payment of high interest rates. SMEs inability to fulfill these requirements obliges them to rely heavily on internal financing and this limits their long-term growth and development. As financing is crucial to ensure SMEs' long-term growth and development, this study has been conducted to examine the potential of Musharakah as a viable alternative financing for SMEs. Accordingly, the Musharakah financing model was developed and a survey among SMEs firms in Malaysia was conducted to validate the potential of Musharakah financing model for SMEs. The results show that Musharakah financing has potential in providing SMEs' with a greater access to financing. Therefore, the model needs to be given a premier attention so that SMEs will have greater access to financing for their longterm growth and expansion. 2017 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/59229/1/Adoption%20of%20Musharakah%20Financing%20Model%20for%20Long%20Term%20Development%20of%20SMEs.docx.pdf application/pdf en http://irep.iium.edu.my/59229/7/59229_certificate.pdf Abd. Rahman, Nur Hasnida and Mohamed, Mustafa Omar (2017) Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES). In: International Conference on Economic Development and Diversification (ICEDD 2017), 26th-27th April 2017, Salalah, Oman. (Unpublished) http://salalah.cas.edu.om/Pages/ICEDD2017.aspx |
| spellingShingle | HG3368 Islamic Banking and Finance Abd. Rahman, Nur Hasnida Mohamed, Mustafa Omar Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES) |
| title | Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES) |
| title_full | Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES) |
| title_fullStr | Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES) |
| title_full_unstemmed | Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES) |
| title_short | Adoption of musharakah financing model for long term development of small medium sized enterprises (SMES) |
| title_sort | adoption of musharakah financing model for long term development of small medium sized enterprises (smes) |
| topic | HG3368 Islamic Banking and Finance |
| url | http://irep.iium.edu.my/59229/ http://irep.iium.edu.my/59229/ http://irep.iium.edu.my/59229/1/Adoption%20of%20Musharakah%20Financing%20Model%20for%20Long%20Term%20Development%20of%20SMEs.docx.pdf http://irep.iium.edu.my/59229/7/59229_certificate.pdf |