Applicability of mudarabah and musharakah as Islamic micro-equity finance to underprivileged women in Malaysia

Islam, Reazul and Ahmad, Rubi (2020) Applicability of mudarabah and musharakah as Islamic micro-equity finance to underprivileged women in Malaysia. European Journal of Development Research, 32 (1). pp. 176-197. ISSN 0957-8811, DOI

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No microfinance institutions (MFIs) in Malaysia offer mudarabah and musharakah (M&M) as micro-equity instruments. This study looks into the possibility of introducing M&M for underprivileged women entrepreneurs in Selangor State. Hence, it assesses clients' willingness to accept Shariah rules, religiosity, product knowledge and entrepreneurial skills. Data from 330 respondents were collected from female Muslim members of an MFI, namely Amanah Ikhtiar Malaysia (AIM). The data were analysed by using exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling (SEM). The findings show that women entrepreneurs prefer those Shariah principles that seem easy to comprehend and preserve their interests. They possess primary knowledge of M&M and fairly practise intrinsic and extrinsic religiosity, but lack proper entrepreneurial skills. Therefore, application of M&M would be viable if clients' knowledge of Shariah and M&M were improved along with their religiosity and entrepreneurial skills. These findings would help include M&M within the context of microfinancing.

Item Type: Article
Funders: Institut Pengurusan dan Pemantauan Penyelidikan (IPPP), University of Malaya "Peruntukan Penyelidikan Pascasiswazah (PPP)"-2013 (UM.TNC2/IPPP/PPGP/638/PPP)
Uncontrolled Keywords: Mudarabah and musharakah; Profit and loss sharing; Islamic microfinance; Poverty alleviation
Subjects: B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > Islam
H Social Sciences > HG Finance
H Social Sciences > HM Sociology
Divisions: Deputy Vice Chancellor (Academic & International) Office > Asia-Europe Institute
Faculty of Business and Economics
Depositing User: Ms Zaharah Ramly
Date Deposited: 08 Jun 2023 07:33
Last Modified: 08 Jun 2023 07:33

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