Abstract
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.
Highlights
IntroductionBusinesses and firms are still struggling to cope with the pandemic and in the same time to revive back from the economic impact
The pandemic of covid 19 has hit the economies of the world in unexpected ways
From total number of respondents ie.1895, 97.1 percent (1692 respondents) are female and 2.9 percent (51) are male with the balance are missing data. 50.3 percent of total respondents are from Kelantan and 49.7 percent are from Perak
Summary
Businesses and firms are still struggling to cope with the pandemic and in the same time to revive back from the economic impact. The fact that SME’s are the backbone of the Malaysia economy is emphasize from the data where 98.5% business establishment in Malaysia are built up by the SME’s. From this figure, majority of the SME’s (76.5%) are from the micro enterprises and most of the businesses are focusing on the services sector. Looking at the progress of SME’s are significant in terms of it leads to 38.9% contribution to Malaysia total Gross Domestic Product (GDP) and the SME’s bring about 48.4% employment to the Malaysian
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
