Mudarabah and musharakah as micro-equity finance : perception of Selangor’s disadvantaged women entrepreneurs
Joint Authors
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 12, Issue 2 (31 Aug. 2020), pp.217-237, 21 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2020-08-31
Country of Publication
Malaysia
No. of Pages
21
Main Subjects
Law
Islamic Economics and Finance
Abstract EN
Purpose-this study aims to gain the perception of selangor’s disadvantaged women on the shariah (Islamic law) rules on two micro-equity financing instruments, namely, Mudarabah (profit sharing) and Musharakah (profit-and-loss sharing) (m&m).
design/methodology/approach-a survey was carried out in the rural area of selangor district in Malaysia by administering a self-generated structured questionnaire.
a total of 330 completed questionnaires were retrieved from the members of an Islamic microfinance institution (ismfi), namely, Amanah Ikhtiar Malaysia (aim).
the data were analysed by using structural equation modelling.
Findings-the female borrowers of aim perceive the sharIah rules of m&m requiring high moral and ethical values and diligent repayment performance.
they are aware of some other underlying provisions such as business liquidation, share transfer, information discloser and business termination.
the overall findings of this study suggest that the perceived shariah rules are akin to those that are commonly used in general partnership businesses between Muslims.
it also indicates that disadvantaged entrepreneurs would accept the rules that are easy to comprehend as well as favourable to their interests.
it further suggests that respondents’ experiences of microfinance and business operation do not have a significant influence on their perception of m&minstruments.
research limitations/implications – this study was limited to selangor.
so, the perception of Muslim women surveyed may not represent the views of all women in Malaysia.
however, it can offer a primary understanding of the said issue.
practical implications – the findings of this study can help ismifs take initiatives to offer m&m as micro-equity finance to poor women entrepreneurs.
originality/value – so far, limited studies have been carried out on m&m-based microfinancing.
this paper offers new insights presenting disadvantaged women entrepreneurs’ perception of these financing instruments.
American Psychological Association (APA)
Islam, Reazul& Ahmad, Rubi. 2020. Mudarabah and musharakah as micro-equity finance : perception of Selangor’s disadvantaged women entrepreneurs. ISRA International Journal of Islamic Finance،Vol. 12, no. 2, pp.217-237.
https://search.emarefa.net/detail/BIM-1430173
Modern Language Association (MLA)
Islam, Reazul& Ahmad, Rubi. Mudarabah and musharakah as micro-equity finance : perception of Selangor’s disadvantaged women entrepreneurs. ISRA International Journal of Islamic Finance Vol. 12, no. 2 (2020), pp.217-237.
https://search.emarefa.net/detail/BIM-1430173
American Medical Association (AMA)
Islam, Reazul& Ahmad, Rubi. Mudarabah and musharakah as micro-equity finance : perception of Selangor’s disadvantaged women entrepreneurs. ISRA International Journal of Islamic Finance. 2020. Vol. 12, no. 2, pp.217-237.
https://search.emarefa.net/detail/BIM-1430173
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 232-236.
Record ID
BIM-1430173