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Title: Islamic Equity Financing for Small and Medium-Size Enterprises (SMEs) Development
Authors: Hisham Sabri
Abdullaah Jalil
Suhaila Abdul Hamid
Amir Shaharuddin
Norhaziah Nawai
Keywords: SMEs
Islamic Equity
Issue Date: 2007
Publisher: Universiti Sains Islam Malaysia
Abstract: Following the Asian Financial Crisis 1997-98, the Malaysian government started to focus on the strength of the domestic economic activities rather than reliance on the foreign investment and trade which are subject to volatilities (Fong, 2003). This fact entails efforts to foster the development of small-and-medium scale enterprises (hereafter stated as SMEs) in order to make them as the national backbone for future growth. Considering the significance of SMEs to the national outlook, this humble chapter seeks to discuss the role of Islamic equity financing in developing more and more successful SMEs. The discussion commences with the definition of SMEs in Malaysia and a brief highlight on their needs to equity financing. Then, the authors generally describe the modes of Islamic equity financing available in Islamic jurisprudence. The following chapters briefly discuss on the applicability of the two widely quoted Islamic trading partnerships i.e. Mudarabah and Musharakah in SMEs development. Finally, a bold concluding section wraps up the whole article with several recommendations.
Description: A book chapter of Readings in Islamic Financial Services (ISBN: 983-2950-28-7)
Appears in Collections:Readings in Islamic Financial Services

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