Small entrepreneurs finance by Islamic Banks: An empirical review (An Institutional-Network Approach), Dr Mohammed Nurul Alam
Dr Mohammed Nurul Alam
Canadian University Dubai
United States
Purpose: The purpose of this paper is to delineate Islamic banking fi nance and its impact on Small Entrepreneurs (SEs) in a particular country context.
Design/methodology/approach: An Institutional-Network theoretical frame of references is used to study this particular phenomenon. The research methodology applied in the study is of a qualitative nature. A multiple explanatory case study is adopted as a research strategy in order to focus on contemporary phenomenon within the real life context of SEs.
Findings: Among others, the fi nding includes the extent to which interest free fi nancing by Islamic banks contributes in
developing network relationships between the lenders and the borrowers and other related economic actors in a society. Thefinding also reveals the impact of societal sector institutions in accelerating the Islamic fi nancing activities in a particular socio cultural environment.
Research limitations/implications: The study mainly relates the Islamic banking fi nance to SEs by different branches of the Islami Bank Bangladesh Limited (IBBL) in the greater Chittagong. The bank is one of the leading sharia1 – based bank in the money market of Bangladesh.
Practical implications: Since lending organisations under the Islamic Financing System (IFS) renders services to their clienteles without interest, the lender-borrowers relationships is featured by a close supervision of their borrowed funds. While lending funds to its customers; the Islamic banks invest funds under different investment modes of funding like the Mudaraba, Musharaka, Murabaha and Bai-Muajjal.
Originality/value: The study is based on the socio-cultural context of Bangladesh where the paper premised on its theoretical perspective and 'Institutional-Network Approach' in the field of Islamic finance towards SEs.
Keywords: Small Entrepreneurs; SEs; Islami bank Bangladesh Limited; IBBL; Bangladesh; institutions; networks; societal sector; Islamic Financing Systems; IFSs; Musharaka; Bai-Muajjal.
Citation: Alam, M. N. (2016): Small entrepreneurs finance by Islamic Banks: An empirical review (An Institutional-Network Approach). In Ahmed, A. (Ed.): Europe at a Crossroads and the Impact of Globalization, Vol. 14, pp. 419-440.
