Open AccessIslamic Financing Selection Among Small And Micro-Scale Entrepreneurs
Author(s) -
JaritaDuasa,
Nur Hidayah Zainal,
Ilza Febrina Syafril
Publication year - 2021
Publication title -
jurnal pengurusan dan penyelidikan fatwa
Language(s) - English
Resource type - Journals
ISSN - 2232-1047
DOI - 10.33102/jfatwa.vol26no2.401
Subject(s) - microfinance , loan , logistic regression , islam , scale (ratio) , asset (computer security) , business , finance , economics , economic growth , geography , statistics , mathematics , cartography , archaeology , computer security , computer science
The study attempts to investigate the probability of small and micro entrepreneurs who received financial assistance from microfinance program of Amanah Ikhtiar Malaysia (AIM) to select Islamic financing in business activities. A survey was conducted on the participants of AIM in Kelantan and Perak and data collected are analyzed using binary logistic regressions. The findings of the study show that the likelihood that Islamic financing is selected among small and micro entrepreneurs is likely to be determined by higher level of education, more asset value obtained and more understanding on the concept of ‘riba’. Variables of age, amount of loan, household size, income obtained from AIM program, spending, understanding on concept of ‘gharar’, ‘mudharabah’, ‘musyarakah’, ‘bai’ bithamin ajil’, ‘istisna’, ‘salam’, ‘qard al-hasan’ and ‘al-inah’ are not significantly influence the tendency to choose Islamic financing among small and micro entrepreneurs.