Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia

Small and Medium Enterprises ("SMEs") have been recognized as one of the most important component that contributes towards the economic growth of many countries around the world. Despite its importance, SMEs have limited access to external financing that is dominated by debt financing. The...

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Main Authors:	Abdul Razak, Dzuljastri, Mohammed, Mustafa Omar, Abd Rahman, Nur Hasnisda
Format:	Article
Language:	English
Published:	COMSATS Institute of Information Technology 2016
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/57300/ http://irep.iium.edu.my/57300/ http://irep.iium.edu.my/57300/2/57300.pdf

id	iium-57300
recordtype	eprints
spelling	iium-573002017-06-20T04:25:26Z http://irep.iium.edu.my/57300/ Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia Abdul Razak, Dzuljastri Mohammed, Mustafa Omar Abd Rahman, Nur Hasnisda HG4001 Financial management. Business finance. Corporation finance. Small and Medium Enterprises ("SMEs") have been recognized as one of the most important component that contributes towards the economic growth of many countries around the world. Despite its importance, SMEs have limited access to external financing that is dominated by debt financing. They have difficulty in fulfilling debt requirements particularly in providing collateral, coping with high interest/ profit payment and adapting to credit rationing. Such limitations curb their growth and expansion.Therefore, there is a need to explore an alternative financing,which is more accessible by SMEs. Quantitative method is adopted in this study. Questionnaires were self administered using drop-off method, to a sample of 100 SMEs firms in Klang Valley and Selangor, Malaysia. The data were analyzed using Exploratory Factor Analysis. Musharakah is found to be s viable alternative financing mode for SMEs. Its three main features, namely (i) risks sharing (ii) profit and loss sharing and (iii) participation have immense potential of salvaging SMEs from their debt based challenges of access to financing, collateral, high interest. This study contributes towards a better understanding of the potential of Musharakah as a viable financing for SMEs. Hence, it provides foundation and direction in structuring Musharakah as an alternative financing mode for SMEs COMSATS Institute of Information Technology 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/57300/2/57300.pdf Abdul Razak, Dzuljastri and Mohammed, Mustafa Omar and Abd Rahman, Nur Hasnisda (2016) Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia. COMSATS Journal of Islamic Finance, 1. pp. 19-28. ISSN 2519-707x http://lahore.comsats.edu.pk/CIF/Journal/Vol1CJIF.aspx
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Abdul Razak, Dzuljastri Mohammed, Mustafa Omar Abd Rahman, Nur Hasnisda Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia
description	Small and Medium Enterprises ("SMEs") have been recognized as one of the most important component that contributes towards the economic growth of many countries around the world. Despite its importance, SMEs have limited access to external financing that is dominated by debt financing. They have difficulty in fulfilling debt requirements particularly in providing collateral, coping with high interest/ profit payment and adapting to credit rationing. Such limitations curb their growth and expansion.Therefore, there is a need to explore an alternative financing,which is more accessible by SMEs. Quantitative method is adopted in this study. Questionnaires were self administered using drop-off method, to a sample of 100 SMEs firms in Klang Valley and Selangor, Malaysia. The data were analyzed using Exploratory Factor Analysis. Musharakah is found to be s viable alternative financing mode for SMEs. Its three main features, namely (i) risks sharing (ii) profit and loss sharing and (iii) participation have immense potential of salvaging SMEs from their debt based challenges of access to financing, collateral, high interest. This study contributes towards a better understanding of the potential of Musharakah as a viable financing for SMEs. Hence, it provides foundation and direction in structuring Musharakah as an alternative financing mode for SMEs
format	Article
author	Abdul Razak, Dzuljastri Mohammed, Mustafa Omar Abd Rahman, Nur Hasnisda
author_facet	Abdul Razak, Dzuljastri Mohammed, Mustafa Omar Abd Rahman, Nur Hasnisda
author_sort	Abdul Razak, Dzuljastri
title	Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia
title_short	Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia
title_full	Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia
title_fullStr	Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia
title_full_unstemmed	Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia
title_sort	viability of musharakah as an alternative financing mode for small and medium enterprises: the case of klang valley and selangor, malaysia
publisher	COMSATS Institute of Information Technology
publishDate	2016
url	http://irep.iium.edu.my/57300/ http://irep.iium.edu.my/57300/ http://irep.iium.edu.my/57300/2/57300.pdf
first_indexed	2023-09-18T21:20:58Z
last_indexed	2023-09-18T21:20:58Z
_version_	1777411879098908672

Viability of musharakah as an alternative financing mode for small and medium enterprises: The Case of Klang Valley and Selangor, Malaysia

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