The acceptance of islamic JV among microenterprise operators. ASEAN Entrepreneurship Journal, 5 (1): 5. pp. 40-50. ISSN 2637-0301 (2019)
Abstract
Most Small Medium Enterprises (SMEs) worldwide operate as microenterprises and quite a significant number inheriting their family businesses. In Malaysia, as reported by Economic Census 2016, majority of the business establishments can be classified as microenterprises (76.5%) followed by small (21.2%) and medium (2.3%). Although their establishments are dominant in number, but their contribution to the economy is still disproportionately low, i.e. only 37.1% of gross domestic product (GDP) and 17.3% of the total export value as reported by SME Corp in 2017. The microenterprise operators primarily engage in cash transactions because they are micro or even tiny in size including what are called as ‘invisible entrepreneurs’ and ‘nano-enterprises’. Thus, they prefer to obtain financing from non-banking channels. Although many SME financing alternatives have been provided by the banking sector, but yet microenterprise operators still prefer informal funding due to their flexibility in terms of documentation, repayment, timing, and transaction costs, which formal banking and financial institutions are very rigid about it.
| Item Type: | Article |
|---|---|
| Keywords: | Microenterprises, Islamic Joint Venture, Musharakah, banking factors |
| Taxonomy: | By Subject > Entrepreneurship > Business Planning |
| Local Content Hub: | Subjects > Entrepreneurship |
| Depositing User: | Eza Eliana Abdul Wahid |
| Date Deposited: | 18 Jan 2021 00:50 |
| Last Modified: | 18 Jan 2021 00:50 |
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