Leveraging financial inclusion through Islamic microfinance: A new model proposal for participation banks in Turkiye

Özdemir, Mücahit; Savaşan, Fatih; Ülev, Salih

doi:10.1016/j.bir.2023.01.011

Cited by 15 publications

(9 citation statements)

References 11 publications

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“…Women entrepreneurs continue to face challenges, which include limited financing options, insufficient financial safeguarding, and societal restrictions (Mashapure, et al, 2022). According to Ozdemir, et al (2023), microtakaful emerges as a solution, blending risk management with financial inclusivity; an essential combination for empowering female entrepreneurs. This blend is particularly potent in Islamic settings, adhering to cultural and religious values while providing a security framework and broadening financial access.…”

Section: Problem Statementmentioning

confidence: 99%

Systematic Literature Review on Microtakaful and Women Entrepreneurship

Rosman,

Mohd Yusoff,

Kassim

et al. 2024

IJARBSS

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Microtakaful does not mirror the concept of microinsurance. It is rooted in Islamic principles of mutual aids, such as Tabarru (voluntary contribution), Taawun (cooperation), and avoiding Riba (interest). The goal of microtakaful is to assist the underprivileged group to protect their future financial well being. This investigation focuses on how microtakaful applies to women entrepreneurs, a group often overlooked in the realm of financial risk management studies. With its unique aim, structure, risk protection, affordability, and selection criteria, microtakaful aims to bolster the economic resilience of less privileged individuals, particularly women who start and operate their own businesses. The limited research at the juncture of microtakaful and women's entrepreneurship points to a substantial void in scholarly work. Tackling this omission, the current study evaluates existing publications sourced from databases like Scopus and Google Scholar and key scholarly journals. By examining these articles, the study pinpoints various key themes and documents how microtakaful could significantly support women business owners, providing vital information for parties interested in promoting women's roles in commerce.

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Section: Problem Statementmentioning

confidence: 99%

Systematic Literature Review on Microtakaful and Women Entrepreneurship

Rosman,

Mohd Yusoff,

Kassim

et al. 2024

IJARBSS

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“…In the context of refugees, entrepreneurship has the potential to alleviate the strain placed on nations that take in refugees by creating new employment possibilities and self independence, as well as making a financial contribution to those nations Several studies have documented that the participation rate of ethnic entrepreneurs in business operations is much greater than that of the host community (see, for examples Abebe, 2023;Ozdemir et al, 2023. In contrast to the conventional types of small and medium businesses, refugee entrepreneurs aim to emphasize expansion and the pursuit of new possibilities.…”

Section: Enabling Refugee Entrepreneurship Through Islamic Microfinancementioning

confidence: 99%

Empowering Rohingya Refugees through Islamic Microfinance Exploring Prospects and Challenges in Bangladesh

Uddin,

Saad,

Lutfun Nahar

2023

JISF

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This research examines the potential and problems of Islamic microfinance for Rohingya refugees in Bangladesh. Many Rohingya Muslims have left Myanmar due to the refugee crisis. These refugees cannot work because they lack banking services. Islamic microfinance can solve financial marginalization based on fairness, social justice, and ethics. This study aims to assess Islamic microfinance's prospects and potential benefits, identify, and analyse the challenges of implementing such programs for Rohingya refugees, explore its role in promoting entrepreneurship and socioeconomic integration, and provide recommendations for effective implementation. Islamic microfinance targeting Rohingya refugees in Bangladesh is understudied. Islamic microfinance for Rohingya refugees is neglected in microfinance literature. This study examines Islamic microfinance's potential and problems to fill this research vacuum and expand knowledge. This study is to inform refugee policymakers, practitioners, and humanitarian organizations. Understanding the opportunities and limitations of Islamic microfinance programs might help Rohingya refugees empower and integrate by tailoring interventions to their needs and ambitions. This study used qualitative semi-structured interviews with NGO experts in Cox's Bazar, Bangladesh's Islamic microfinance industry for Rohingya refugees. Interview replies and document evaluations will provide insight into experts' viewpoints and experiences. Islamic microfinance empowers Rohingya refugees in Bangladesh. This research explores opportunities and problems to assist policymakers and practitioners in successfully implementing Islamic microfinance projects, boosting Rohingya refugees' chances for a sustainable future.

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“…In fact, microfinance institutions that have digitized their services play more important role in financial inclusion of the rural poor because it solves the problem of absence of bank branches due to geographical barrier (Dong et al, 2023). Cull and Hartarska (2023) also argue that microfinance banks can provide access to varieties of financial services such as microcredit, micro-savings, micro-insurance and money transfers, including Islamic financial products to the unbanked rural population, especially the women MSMEs through Joint Liability Group lending in the absence of physical collateral (see also Ozdemir et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

“…Cull and Hartarska (2023) also argue that microfinance banks can provide access to varieties of financial services such as microcredit, micro-savings, micro-insurance and money transfers, including Islamic financial products to the unbanked rural population, especially the women MSMEs through Joint Liability Group lending in the absence of physical collateral (see also Ozdemir et al ., 2023).…”

Section: Introductionmentioning

confidence: 99%

Credit counselling: a contemporary strategy for survival of micro small and medium-sized enterprises in under-developed financial markets post COVID-19 pandemic

Okello Candiya Bongomin,

Chrysostome,

Nkongolo-Bakenda

et al. 2024

JEPP

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PurposeThe main purpose of this paper is to establish the mediating effect of credit counselling in the relationship between access to microcredit and survival of micro small and medium-sized enterprises (MSMEs) in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.Design/methodology/approachStructural equation modelling (SEM) through SmartPLS 4.0 was used to generate the standardized parameters to test whether credit counselling mediates the relationship between access to microcredit and survival of MSMEs in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.FindingsThe SEM bootstrap results revealed that credit counselling enhances access to microcredit by 27% to promote survival of MSMEs in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.Research limitationsThe current study focused only on women MSMEs. Future studies may possibly collect data from all the MSMEs to draw better generalization of the findings within the sector.Practical implicationsThe findings can help public finance policy to ensure provision of credit counselling to microentrepreneurs who borrow from different financial institutions to reduce the problem of loan defaults and delinquency rampant in lending. This could be done through conducting routine business education and counselling sessions for microentrepreneurs who often need credit to grow their businesses.Originality/valueThis study is amongst the first few studies to establish the mediating effect of credit counselling in the relationship between access to microcredit and survival of MSMEs in developing countries in sub-Saharan Africa in the aftermath of COVID-19 pandemic with data collected from rural Uganda. There is a dearth in literature and theory on the rehabilitative and preventive role of credit counselling in reducing repayment defaults amongst borrowers within the credit market to spur survival of MSMEs seen as the main enabler of economic growth, especially in developing countries. In fact, credit counselling acts as a safety net by substituting financial literacy and education to solve the rampant problem of overindebtedness amongst borrowers who are debt illiterate within the credit market.

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Leveraging financial inclusion through Islamic microfinance: A new model proposal for participation banks in Turkiye

Cited by 15 publications

References 11 publications

Systematic Literature Review on Microtakaful and Women Entrepreneurship

Systematic Literature Review on Microtakaful and Women Entrepreneurship

Empowering Rohingya Refugees through Islamic Microfinance Exploring Prospects and Challenges in Bangladesh

Credit counselling: a contemporary strategy for survival of micro small and medium-sized enterprises in under-developed financial markets post COVID-19 pandemic

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