Embedding Crowdfunding Structure in Islamic Venture Capital for SMEs Development

Athief, Fauzul Hanif Noor

doi:10.21580/economica.2019.10.1.3186

Cited by 8 publications

(8 citation statements)

References 10 publications

(13 reference statements)

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“…The decrease in national growth means a small increase or even a decrease in the income of business revenue. It is important to note that more than 90% of business players in Indonesia are SMEs and thus are characterized by many types of constraints to accessing the financial pool (Athief, 2019). Thus, SMEs who suffered a lot during the pandemic will find their selves hard to generate revenue or get financial access in order to survive and pay their obligations.…”

Section: Imfis Resilience In the Pandemic Periodmentioning

confidence: 99%

Surviving amidst pandemic: Indonesian Islamic microfinance experience

Athief¹,

Ma’ruf²,

Zakiy³

2023

Int. j. adv. appl. sci.

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The purpose of this study is to investigate the Indonesian Islamic microfinance institutions' (IMFIs) condition, and their strategies to survive and to explore their contribution during the pandemic by combining and synthesizing the result of all previous studies. To achieve that goal, this research uses a systematic literature review method by mining all data available which in addition makes this paper different from other previous works. This enables us to provide a deeper, broader, and more comprehensive understanding of the topic. Google Scholar is set as the database for three reasons. This research found that Indonesian IMFIs are affected by the pandemic and classified into three categories based on the severity of the impact: Severely hit, affected yet stable, and IMFIs that grow during the pandemic. Indonesian IMFIs had in total 6 types of strategies to survive during the pandemic: Active and passive approaches, common and innovative schemes, as well as persuasive and administrative activities. The study also found the contributions of Indonesian IMFIs during the pandemic and classified them into two categories financial and non-financial contributions. This research is unique by delivering comprehensive non-segregated data and well-synthesized condition of IMFIs in entire Indonesia during the pandemic. The results of this study give policymakers a fundamental ground to develop proper policy in fostering IMFIs after the pandemic. IMFI practitioners should also take benefit from the results by mirroring, modifying, or improving the strategies to face future economic turbulences.

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Section: Imfis Resilience In the Pandemic Periodmentioning

confidence: 99%

Surviving amidst pandemic: Indonesian Islamic microfinance experience

Athief¹,

Ma’ruf²,

Zakiy³

2023

Int. j. adv. appl. sci.

Self Cite

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“…The authors suggested also that IVC firms should include additional conditions in "Musharaka" and "Mudharaba" contracts such as a compensation to be paid in the case of the breach of the contract. In addition, Athief (2019) proposes to combine both IVC and crowdfunding. The idea lies in having additional IMEFM 15,6 income, which comes from the service provided by the IVC firm through publishing the selected company on its website in the form of equity crowdfunding campaign on the one hand.…”

Section: Literature Reviewmentioning

confidence: 99%

An alternative model for Islamic venture capital firms

Gafrej

Boujelbène

2022

IMEFM

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Purpose The purpose of this paper is to propose a financial instrument by combining two main contracts in Islamic finance with the aim to minimize risks involved in Islamic venture capital (IVC) activities. Design/methodology/approach A mathematical model and explanatory figures are provided to see how IVC firms can benefit from the combination of “Ijara” contract and “Diminishing Musharaka” contract to provide financing for start-up and high-tech companies. Findings The proposed instrument could be considered as an alternative solution for IVC firms. It represents a low level of risk with a stable income in the beginning of the project. In addition, it allows benefiting from the possible development of start-up and high-tech companies with a smooth exit from the capital of the financed company without the intervention of another investor. It is also considered as a motivational instrument for the entrepreneurs, because it allows benefiting from a grace period on the one hand and from a lower cost of financing compared to other type of funding on the other hand. Practical implications Some studies have concentrated on identifying and understanding the concept, the operation and the challenges of IVC industry. The study is considered among few studies that provide a practical model for IVC firms, which takes account of the different stages of venture capital process. The instrument can promote the development of IVC firms and give alternative financing opportunities to Muslim entrepreneurs. Originality/value The current model provides a truly revolutionary solution for young Muslim entrepreneurs who do not accept to be financed by the proposed instruments of venture capital (VC) firms such as convertible bonds and warrants. On the other side, it provides an alternative solution for IVC firms to the already offered products such as “Musharaka”, “Mudharaba” and “Wakalah” contracts. An expert in “Fiqh Al-Muamalat” (Islamic law of transaction) assessed the Sharia compliance of the model.

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“…Based on the results of the Dynamic LQ analysis, the information technology sector in Cirebon Regency grew negatively, this was because the growth of the same sector in other regions in West Java Province grew much faster. MSME performance will be more optimal when supported by all parties including financial institutions and banks (Athief, 2019). Based on ("PP No.…”

Section: Figure 1 Map Of the Leading Sector Of Cirebon Regency In 2018mentioning

confidence: 99%

Contribution of MSMES To The Economy of Cirebon Regency In The Covid-19 Pandemic

Fauzi

Bakhri²,

Julian

2022

Al-Amwal : Jurnal Ekonomi Dan Perbankan Syari'ah

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Micro, small and medium enterprises or SMEs have a role that is very important in advancing the Indonesian economy, especially the economy in areas such as Cirebon Regency which is a Trade Regency. The existence of MSMEs in the Cirebon Regency for contributions or contributions to GRDP during the current Covid-19 pandemic condition is certainly something that must be maintained. This study aims to map the industrial sector development centers in Cirebon Regency during the Covid-19 Pandemic by using a quantitative descriptive approach and using the Location Quotient (LQ) analysis tool as an analytical tool. Based on the results of the analysis, it can be seen that as a result of the Covid-19 pandemic, Cirebon Regency experienced an economic shift with increasing economic sectors, both secondary and tertiary. Then several economic sectors such as services and the agricultural, forestry, and livestock sectors contributed significantly and experienced positive growth. There are superior commodities that grow and develop well, such as the rattan and furniture industry, then processed food and batik. Meanwhile, the results of the analysis of the potential for small and medium industry centers (IKM) that are recommended to be superior SMEs are the woven bamboo IKM center, the pindang fish IKM center and the tempe and tofu IKM center.

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Embedding Crowdfunding Structure in Islamic Venture Capital for SMEs Development

Cited by 8 publications

References 10 publications

Surviving amidst pandemic: Indonesian Islamic microfinance experience

Surviving amidst pandemic: Indonesian Islamic microfinance experience

An alternative model for Islamic venture capital firms

Contribution of MSMES To The Economy of Cirebon Regency In The Covid-19 Pandemic

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