Abstract
This pilot study seek to explore the structural characteristics of Islamic Micro-finance and statistically group them in to Products (Independent), Empowerment (Mediator) and Clients’ wellbeing (dependent) constructs. This is to conceptualize an Islamic Micro-finance model towards the Clients wellbeing. Empirical data was collected from the staff of eight (8) branches of Amanah Ikhtiar Malaysia (AIM) in the Johor state, Malaysia. The data collected was analyzed by means of an Exploratory Factor Analysis using IBM SPSS Statistics 21, which resulted to the extraction of five (5) factors which upon grouping, defined the variables for this study. The results indicated an acceptable factor loadings and effective grouping according to the conceptualized framework. The Cronbach’s alpha of ≥0.7 is an indication of acceptable internal consistency and reliability of the five Islamic Micro-finance constructs. This study is part of on-going Ph.D. to proof the capacity of Islamic Micro-finance towards Clients’ wellbeing.
Highlights
Over the last four decades, Malaysia has made remarkable achievements in terms of its economic growth as well as its socio-economic development (MWR, 2013)
The results indicated that the variables can be grouped effectively into the five (5) constructs based on their characteristics Micro-credit, Microsaving, Welfare fund, Empowerment and Clients’ wellbeing
The Exploratory Factor Analysis (EFA) results revealed the extraction of factors for the five (5) conceptualized constructs of Islamic Micro-finance products (Micro-credit, Micro-saving, Charity and Welfare Fund, Entrepreneurial Empowerment and Clients’ Wellbeing)
Summary
Over the last four decades, Malaysia has made remarkable achievements in terms of its economic growth as well as its socio-economic development (MWR, 2013). There is the need to achieve a combination of economic development, environmental sustainability, and social inclusion This typified the triple bottom line approach to human wellbeing, which is in line with the developmental objectives of nations (Sachs, 2012). In Muslim countries, Micro-finance is shaped by Islamic principles that seek to achieve prosperity for humanity through opportunities for economic and human capital development This is perceived as crucial in achieving progress towards greater wellbeing by means of an inclusive growth (Che Rasuli et al, 2016; Al Mamun, Adaikalam and Abdul Wahab, 2012; Mohieldin et al, 2011; Nair, 2010)
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