Impact that Islamic Finance has On Small Businesses (SME's) and is Islamic Banking the Way to Success in Today's Economy

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TABLE OF CONTENTS

CHAPTER 01: INTRODUCTION1

1.1 Background of the Study1

1.2 Aim and Objectives2

1.3 Research Questions2

1.4 Significance of the Study2

CHAPTER 02: LITERATURE REVIEW3

2.1 Introduction3

2.2 History of Islamic Banking3

2.3 Islamic Finance and Small and Medium Enterprises4

2.4 Islamic Banking as a Way to Success in Today's Economy5

CHAPTER 03: RESEARCH METHODOLOGY8

3.1 Introduction8

3.2 Research Method8

3.3 Overview of the Qualitative Research Method8

3.4 Overview of the Secondary Research Method8

3.5 Research Instrument9

3.6 Sample9

3.7 Reliability10

3.8 Validity10

3.9 Conclusion10

CHAPTER 04: POTENTIAL OUTCOMES AND CONCLUSION11

3.1 Conclusion11

3.2 Potential Outcomes11

REFERENCES13

CHAPTER 01: INTRODUCTION

1.1 Background of the Study

SME financing during the recent period is the centre of a debate about their fragility characterized by a context marked by increasing constantly increasing interest rates, reaching significant levels and a slowdown economic manifested acutely in the past. Banks are a fundamental tool for the development of productive structures and provide currently providing the bulk of investment credits. The major purpose of banks is to finance investments that require mobilization of large amount funds. Accessing the financial resources has been identified that are considered to be the major obstacles to the survival and growth of Small and Medium Enterprises.

Recent banking theory has shown that banks obtain an advantage by making comparisons of the provision of credit to businesses. This advantage is their ability to lend to borrowers whose economic and financial situation is difficult to analyze particularly because of imperfect information. This is one of the reasons why banks are considered to be the main funders of small and medium businesses dimension. Their needs are generally modest, but the risk is more difficult to measure the relevance of the project, the existence of a profitable market, etc.

Since, the financial crisis continues over the period of time, therefore, another source of raising finance has been extended that is helpful in imposing financial decisions. The activity of Islamic finance has been on a boom and is a source for the people to obtain finance. It has emerged through all the continents and has upset the system of classical or conventional finance.

1.2 Aim and Objectives

The aim of this research study is to study the impact the Islamic finance has on the Small and Medium Enterprises. This research has formulated certain objectives that would be required to meet the aim of this dissertation.

To assess the impact that Islamic finance has on Small and Medium Enterprises.

To assess if Islamic banking is a way to success in the world of today.

1.3 Research Questions

This research study will answer the below mentioned research questions.

How has Islamic finance impacted on small businesses (SME's)?

Is Islamic banking the way to success in today's economy?

1.4 Significance of the Study

This research study will be of utmost significance because it highlights the impact that Islamic finance has on the Small and Medium Enterprises. This research study highlights the importance of the Islamic banking and finance in the today's economy. This research will also add to the existing literature on the impact that Islamic finance has ...