Adoption of musharakah financing model for the long term development of Small and 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 institutions are predominantly debt...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Ministry of Higher Education, Sultanate of Oman
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/61788/ http://irep.iium.edu.my/61788/7/61788-Adoption%20of%20Musharakah%20Financing%20Model.pdf |
| _version_ | 1848785733706317824 |
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| author | Abd Rahman, Nur Hasnida Mohammed, Mustafa Omar |
| author_facet | Abd Rahman, Nur Hasnida Mohammed, 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
institutions are predominantly debt based financing system which requires SMEs to
fulfill banking requirements of 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 long-term growth and expansion. |
| first_indexed | 2025-11-14T16:57:50Z |
| format | Article |
| id | iium-61788 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T16:57:50Z |
| publishDate | 2017 |
| publisher | Ministry of Higher Education, Sultanate of Oman |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-617882018-02-02T02:35:45Z http://irep.iium.edu.my/61788/ Adoption of musharakah financing model for the long term development of Small and Medium Sized Enterprises (SMES) Abd Rahman, Nur Hasnida Mohammed, 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 institutions are predominantly debt based financing system which requires SMEs to fulfill banking requirements of 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 long-term growth and expansion. Ministry of Higher Education, Sultanate of Oman 2017-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61788/7/61788-Adoption%20of%20Musharakah%20Financing%20Model.pdf Abd Rahman, Nur Hasnida and Mohammed, Mustafa Omar (2017) Adoption of musharakah financing model for the long term development of Small and Medium Sized Enterprises (SMES). Omani Journal of Applied Sciences, 6 (1). pp. 19-31. ISSN 1990-5149 http://www.cas.edu.om/ckfinder/userfiles/files/Omani%20Journal%20of%20Applied%20Sciences_the%20sixth%20version.pdf |
| spellingShingle | HG3368 Islamic Banking and Finance Abd Rahman, Nur Hasnida Mohammed, Mustafa Omar Adoption of musharakah financing model for the long term development of Small and Medium Sized Enterprises (SMES) |
| title | Adoption of musharakah financing model for the long term development of Small and Medium Sized Enterprises (SMES) |
| title_full | Adoption of musharakah financing model for the long term development of Small and Medium Sized Enterprises (SMES) |
| title_fullStr | Adoption of musharakah financing model for the long term development of Small and Medium Sized Enterprises (SMES) |
| title_full_unstemmed | Adoption of musharakah financing model for the long term development of Small and Medium Sized Enterprises (SMES) |
| title_short | Adoption of musharakah financing model for the long term development of Small and Medium Sized Enterprises (SMES) |
| title_sort | adoption of musharakah financing model for the long term development of small and medium sized enterprises (smes) |
| topic | HG3368 Islamic Banking and Finance |
| url | http://irep.iium.edu.my/61788/ http://irep.iium.edu.my/61788/ http://irep.iium.edu.my/61788/7/61788-Adoption%20of%20Musharakah%20Financing%20Model.pdf |