The Impact of Islamic Financing on the Small Medium Enterprises (SME’s) Performance in Lasanod Somalia

Abdinur, Mohamed Ali; Öndeş, Turan

doi:10.6007/ijarafms/v12-i1/11813

Cited by 4 publications

(8 citation statements)

References 6 publications

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“…A report by FurtherAfrica, an online news platform, stated that almost 80% of Somalian people are unbanked (FurtherAfrica, 2022). Abdinur and Ondes (2022) distributed 148 questionnaires in their study on Islamic financing and small and medium enterprises (SMEs) in Somalia. Table 1 provides the overall breakdown of the sampled respondents.…”

Section: Methodsmentioning

confidence: 99%

“…Musse et al (2019) reported that the main reasons why tawarruq is not offered in Somalia are insufficient human capital, low level of awareness of the product and Shariah issues pertaining to the product. So far, there are limited empirical studies that have been conducted in Somalia about Islamic banks, particularly tawarruq (Abdinur and Ondes, 2022). Therefore, this study aims to evaluate the possible application of tawarruq contract in Somalia for cash financing purpose by focusing on the various factors, following (Amin et al , 2014; Obeid and Kaabachi, 2016; Jansson, 2011; Nomran and Haron (2020); Amin et al , 2018; Chawla and Joshi, 2019; Musse et al , 2019; Haron et al , 2020) i.e.…”

Section: Background and Objectives Of The Studymentioning

confidence: 99%

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Application of tawarruq in Islamic banking institutions in Somalia

Haron

Barre²

2023

QRFM

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Purpose The purpose of this study is to examine the acceptability of tawarruq in the banking industry in Somalia, focusing on awareness, need, compatibility, relative advantage, behavioral attitude and the role of Shariah scholars. This study is governed by the Theory of Islamic Consumer Behavior. Design/methodology/approach A questionnaire survey was conducted involving 150 customers of Islamic banks in Mogadishu, Somalia. This research adopts a quantitative methodology, using descriptive and survey analyses by employing SPSS 23. Smart-PLS-4 SEM was used to test the six hypotheses established in the study. Findings This study provides evidence that the customers of Islamic banks in Somalia are looking forward to Islamic banks offering tawarruq in the country. Respondents viewed tawarruq as a very attractive product compared to other existing products of Islamic banks in the country. The need for tawarruq, its compatibility and relative advantage have a positive and significant influence on the intention to use tawarruq products for cash financing purposes, whereas customer awareness, behavioral attitudes and the role of Shariah scholars have insignificant influence. Practical implications The findings of this study can be beneficial to all Islamic financial institutions in Somalia by applying tawarruq contract to facilitate cash financing. Originality/value This study contributes to the literature by enhancing the awareness of tawarruq in Somalia. The study also shed light on the need of Islamic banks’ customers on tawarruq for cash financing purposes in Somalia.

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Section: Methodsmentioning

confidence: 99%

Section: Background and Objectives Of The Studymentioning

confidence: 99%

Application of tawarruq in Islamic banking institutions in Somalia

Haron

Barre²

2023

QRFM

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“…Recent data and trends suggest that numerous MSEs in Mogadishu are grappling with underwhelming performance metrics. For instance, a preliminary survey conducted in 2022 indicated that over 60% of MSEs in the city reported stagnant or declining profits over the past year, while another 45% acknowledged facing significant challenges in penetrating or sustaining their market positions (Abdinur and Karcioglu, 2023). This declining trajectory of MSEs' performance is not merely a statistic but represents a dire concern for local entrepreneurs, investors, and the broader Mogadishu economic fabric.…”

Section: Problem Statementmentioning

confidence: 99%

“…Further, Abdinur and Karcioglu (2023) research also highlighted that effective handling of organizational and financial data in business management requires the utilization of highquality accounting information systems (AIS). However, most SMEs in Somalia have been sluggish to embrace such information systems.…”

Section: Literature Review Empirical Reviewmentioning

confidence: 99%

Influence of Internal Capabilities on the Performance of Micro and Small Enterprises (MSEs) in Mogadishu, Somalia

Mohamed

2023

IJFA

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Purpose: The main aim of this study was to determine the influence of internal capabilities on the performance of Micro and Small Enterprises (MSEs) in Mogadishu, Somalia Methodology: The research paper adopted a descriptive research design. The target population in this study was undefined given that the number of MSEs in Mogadishu, Somalia operate under no regulatory framework. The researcher used snowballing sampling techniques, where one MSEs was requested to introduce the researcher to another MSE until the sample size of 120 MSEs was reached. The collected data was then subjected to analysis using descriptive and inferential statistics. The researcher included statistical tools such as SPSS and MS Excel to provide a comprehensive description of the data. The findings were presented using tables. Findings: The findings revealed that financial, marketing and HR capabilities had a positive and significant influence on performance of MSEs in Mogadishu, Somalia. Where, financial capabilities (β=0.547) had the highest statistical influence, followed by marketing capabilities (β=0.428) and lastly HR capabilities (β=0.415). Unique Contribution to Theory, Practice and Policy: The study recommended that owners of Micro and Small Enterprises (MSEs) prioritize investing in skill training and the recruitment of expert professionals to bolster the knowledge base and capabilities of their enterprises. The study findings discuss a deeper understanding of the determinants of MSE performance, and how this knowledge can be translated into targeted actions by business owners, policymakers, and other stakeholders. This not only supports the practical application but also illustrates its value in informing policies that promote the growth and sustainability of MSEs in the region.

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“…Recent studies concerning AIS within the tourism sector have emphasized the need for a more profound understanding of the challenges confronted during the implementation of these systems and the strategies formulated to overcome them (Abdinur & Karcioglu, 2023;Thuan et al, 2022;Elsharif, 2019). Nonetheless, a conspicuous gap persists in the literature, particularly focusing on tourism enterprises in Boac, Marinduque, and there is a conspicuous lack of focus on the impact of human error on financial reporting and decision-making in this context.…”

Section: Introductionmentioning

confidence: 99%

Opportunities and Challenges in Implementing AIS Practices: Insights from Boac, Marinduque’s Tourism Business

Dimacali – Rojo

2023

IJSMR

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This study investigates challenges encountered by tourism enterprises in Boac, Marinduque, during the integration of accounting information systems (AIS) and strategies employed to overcome these problems. Through a qualitative research approach involving interviews with ten tourism-related businesses, the study assesses the efficacy of current AIS and plans for future enhancement. Key hurdles in AIS integration include insufficient training, a lack of technical understanding, and financial barriers. Regardless of these, businesses deploy diverse methods to mitigate these issues, such as hiring experts, using cloud-based software, and investing in workforce training. Although the current AIS is deemed reasonably efficient, there is a recognized need for development. Initiatives are underway for technology funding, strengthening internal controls, and expert recommendation acquisition. Findings suggest that with the aid of addressing AIS implementation challenges, tourism businesses in Boac, Marinduque, can enhance their financial reporting, decision-making tactics, and overall performance. The study underscores that human error in financial reporting can extensively impact operations, necessitating measures to reduce related risks. These insights are crucial for tourism enterprise stakeholders, policymakers, educators, and researchers in Marinduque and comparable tourist locations within the Philippines, contributing to the domains of tourism management, accounting, and information systems.

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The Impact of Islamic Financing on the Small Medium Enterprises (SME’s) Performance in Lasanod Somalia

Cited by 4 publications

References 6 publications

Application of tawarruq in Islamic banking institutions in Somalia

Application of tawarruq in Islamic banking institutions in Somalia

Influence of Internal Capabilities on the Performance of Micro and Small Enterprises (MSEs) in Mogadishu, Somalia

Opportunities and Challenges in Implementing AIS Practices: Insights from Boac, Marinduque’s Tourism Business

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