Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Islamic Finance for Small Business
    Islamic Finance for Small Business
    Islamic Finance for Small Business
    Ebook68 pages36 minutes

    Islamic Finance for Small Business

    By Hussein Elasrag

    ()

    Read preview

    About this ebook

    The purpose of this book is to investigate the opportunities of development and growth as well as the main challenges to Islamic finance for Small Business.
    LanguageEnglish
    PublisherHussein Elasrag
    Release dateFeb 12, 2018
    ISBN9788828328827
    Islamic Finance for Small Business

    Read more from Hussein Elasrag

    Related to Islamic Finance for Small Business

    Related ebooks

    Finance & Money Management For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      SMMEs Need Support During And After Lockdown

      Nov 8, 2020

      JOHN DLUDLU SOUTH African micro, small, and medium enterprises (MSMEs) faced a headwind of challenges even before a global pandemic blew in to shut down the economy. The Small Business Institute (SBI) has listed many of them over the years on this

      3 min read

    • Article

      Build Business Resilience

      May 17, 2023

      The recently released fourth South Africa Economic Outlook report for 2023 by PwC focuses on the need for businesses to transform in an effort to build their resilience against the country’s long-term socio-economic headwinds. According to PwC’s 26th

      3 min read

    • Article

      A Strong Foundation

      May 13, 2019

      A Strong Foundation
      2 min read

    • Article

      Analysing The State Of SMMEs In A Stagnant Economy

      Feb 28, 2020

      relatively little credible data is available about small, micro and medium enterprises (SMMEs) in South Africa, and the available stats look dismal. A 2018 study by the Small Business Institute (SBI) showed that the number of micro firms in SA increa

      4 min read

    • Article

      MSMEs: Powering India

      Feb 7, 2022

      MSMEs: Powering India
      3 min read

    • Article

      Building Financial Resilience

      Aug 18, 2023

      THE CURRENT ECONOMIC epoch is fascinating, and India’s exceptional achievements make the country stand out. The country has successfully handled several challenges, including healthcare issues during the Covid-19 outbreak and recent events in Europe,

      3 min read

    • Article

      Death By A Thousand Cuts

      Jun 8, 2020

      Death By A Thousand Cuts
      6 min read

    • Article

      Saving Small Businesses?

      Apr 17, 2020

      Saving Small Businesses?
      3 min read

    • Article

      Transformation In The Financial Services Sector

      Apr 25, 2021

      THE difficulty in transforming South Africa’s financial services sector is made quite clear by the every-so-often dramatic exits of black executives in the largest institutions within the sector. Peter Moyo’s exit at Old Mutual in June 2019 could ver

      3 min read

    • Article

      Capital Measure

      Jun 25, 2020

      Lai Huigang, founder of Xiaoerjie, a fresh food store chain, thanks a recent government policy for his organization’s expansion in May despite the effects of the novel coronavirus. Xiaoerjie opened three new stores in Jiangmen, a city in Guangdong Pr

      5 min read

    • Article

      The Year Small Businesses Suffered

      Dec 18, 2020

      running a small-, medium- or micro-enterprise (SMME) in South Africa has been an extreme sport for a few years now. Local SMMEs have been contending with a myriad of hurdles. Operating in a sluggish economy, lack of funding, crime, little or debilita

      3 min read

    • Article

      Banking Sector Is Platform For Growth

      Jan 17, 2020

      With more than a dozen players of varying size, Saudi Arabia’s banking industry is well capitalized, a key conduit for FDI and trade, and complemented by a financial services sector comprising insurance companies, specialized lending institutions, an

      3 min read

    • Article

      Bridging The (funding) Gap

      Feb 14, 2020

      the South African economy is bearing down on companies, and particularly small- and medium-sized enterprises (SMEs), with liquidations on the rise. The latest figures from Stats SA show an increase of 10.7% in the number of liquidations in 2019 compa

      3 min read

    • Article

      A Spurt For Economic Revival

      Aug 7, 2020

      south Africa’s fiscal position, with its gross-debt-to-GDP expected to exceed 100% between 2021 and 2022, severely limits the government’s room to drive economic recovery, therefore the current emphasis on an investment-led recovery. To stimulate eco

      3 min read

    • Article

      Standing Tall

      Feb 7, 2022

      Standing Tall
      7 min read

    • Article

      Testing Times For Trustees

      Dec 1, 2021

      Like defeated Roman generals, failed MySuper products know what to do. The seeds of the biggest changes to superannuation in its history were planted in 2021 when the results of the first super performance test on MySuper products were released. Out

      4 min read

    • Article

      Calling Capital

      Aug 19, 2021

      The last eighteen months have been a peculiar time for Indian financial markets and its participants. We saw one of the most serious market corrections during this period followed by a strong unidirectional bull run. The way the markets have moved si

      4 min read

    • Article

      A High Risk Game

      Jul 25, 2020

      A High Risk Game
      4 min read

    Related categories

    Reviews for Islamic Finance for Small Business

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Islamic Finance for Small Business - Hussein Elasrag

      Notes

      Introduction

      The influence of small and medium-sized enterprises (SMEs) on the structure, performance and future prospects of a nation’s economy is the subject of increasing interest among policymakers at the national, regional and global level. This reflects the fact that in most countries, SMEs constitute the overwhelming majority of firms and are major sources of employment. Add to this evidence that SMEs, and in particular young small firms, have been net contributors to employment growth since the 2008 financial crisis, and the rationale behind the greater focus on SME performance becomes clear.(International Trade Centre (ITC), 2015)

      Small and medium-sized enterprises have positive contributions in providing and maintaining balanced economic and social development. They also play an important role in decreasing the level of unemployment and creating new employment opportunities and with their flexible production structure they can follow the changes in the market conditions more effectively. SMEs make crucial contributions to job creation and income generation; they account for two-thirds of all jobs worldwide.(International Labour Office, 2015).

      SMEs make up the majority of firms in the world and are responsible for a large portion of its employment. According to some estimates, SMEs constitute up to 95% of the world’s firms and between 80-90% of total employment in the developing world. However, not all that employment takes place within formal establishments. An estimate by ILO suggests: …there are 420 to 510 million SMEs worldwide, of which 9 per cent are formal SMEs (excluding micro-enterprises) (Navas-Alemán & Guerrero, 2016)

      The constraints to SME growth – as perceived by business owners – is a relatively well-researched area. The three biggest constraints across countries are access to finance, access to electricity and competition from informal enterprises. However, constraints vary according to countries’ level of development as well as by region.(International Labour Office, 2015).

      The term SME encompasses a broad spectrum of definitions. Different organizations and countries set their own guidelines for defining SMEs, often based on headcount, sales or assets. SMEs come in many different shapes and sizes; however, in today’s complex business environment they may have close financial, operational or governance relationships with other enterprises. These relationships often make it difficult to precisely draw the line between an SME and a larger enterprise.

      This book will try to give hints and insights into this, and to present some of the Islamic financial instruments that are being supplied by the market for the financing of SMEs in particular.

      SMEs Definitions

      Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. Formal SMEs contribute up to 45 percent of total employments and up to 33 percent of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. According to estimates, 600 million jobs will be needed in the next 15 years to absorb the growing global workforce, mainly in Asia and Sub-Saharan Africa. In emerging markets, most formal jobs are with SMEs, which also create 4 out of 5 new positions. However, access to finance is a key constraint to SME growth; without it, many SMEs languish and stagnate.

      Despite the fact that SMEs account for a significant part of the country's economy and provide employment opportunities for the majority of people. SMEs are less

      Enjoying the preview?
      Page 1 of 1