الفهرس | Only 14 pages are availabe for public view |
Abstract Background/context - Small and medium enterprises (SMEs) have a strategic and significant position in the economic development of developing countries and emerging economies, including member states of the organisation of Islamic cooperation (OIC). The SME sector faces challenges that would restrict its economic and social magnitude. On top of the problems that face SMEs is the availability of funds and access to finance. The SME financing gap in developing countries (OIC countries as an example) has been estimated as greater than 50%. This calls for the exploration and innovation of new financing sources that would help sustain SMEs’ development. Purpose - The purpose of this study is to investigate the purported role(s) of employing Sukuk as a source of finance in the field of SMEs. In this way, this study contributes to the growing stream of SME financing studies by examining ”why” and ”how” Sukuk can be institutionalised as an additional innovative source. Design/methodology/approach – This study proposes an empirically-informed SME financing framework using Sukuk. To illustrate this, a qualitative approach is adopted using semi-structured interviews and secondary documentation. Interviewees were selected through both purposive sampling and snowball sampling. Findings - Distinct from the previous literature and efforts, this study reveals the powerful role of Sukuk in financing SMEs, especially in Muslim developing economies. A multi-faceted financing/theoretical framework is developed with two distinct SME Sukuk: investment Sukuk and charitable Sukuk. SME Sukuk can be institutionalised into a multi-scenario traditional model and a digital model based on the ideology of crowdfunding. SME charitable Sukuk can be institutionalised using two different Sukuk tools: Waqf and Ihsan. |