Partnership As an Approach to Finance SMEs

الملخص

Financing SMEs is considered one of the most important tools in middle east. To support SMEs, and sustain their business, the existence of financial solutions that comply with the Islamic rules will provide more alternatives for SMEs to finance their short-term obligations represented in profit and loss sharing tools (Musharakah and Modaraba). This study is based on using partnership as an approach to finance SMEs. The study was conducted in Kingdom of Bahrain. Recently, many financial institutions started to adopt many Islamic financial tools. The purpose of this study is exploring how the partnership is different from the traditional financial solutions and the impact of it on nonbanking financial institutions and on the financial services.  The study was conducted through a five-points Likert scale questionnaire as the research instrument. The respondents of the study are the employees in nonbanking financial service providers and SMEs in Bahrain. The statistical techniques used in the study are Correlation Analysis, General Linear Model Structural Equation Methods and Path Analysis. The results showed a strong positive and significant correlation between partnership, non-banking financial institutions, financial services and SMEs. The study provides suggestions and recommendations for SMEs in Kingdom of Bahrain to have more alternatives to finance their operations.  

المراجع

1. AAOIFI. 1998. Accounting and auditing standards for Islamic financial institutions. Manama: AAOIFI
2. Abdul Razak, M. (2017). SMEs have the potential to contribute substantially to the
3. economy. Available at: http://www.inceif.org/inceif-2018/wp-content/uploads/2018/02/IFHUB4_booklet_online.pdf
4. Ahmed, M., Rahaman, H., and Begum, M. (2008). Practice of Mudaraba and Musharaka in Islamic Banking. Islami Bank Training and Research Academy, Dhaka
5. Alghamdi, A. (2017). The Viability of Profit-Loss Sharing Models to Finance Small and Medium Enterprises. The Case of Saudi Arabia. Master Thesis. Faculty of Social Sciences University of Denver.
6. Ali, M., Hussain., T. (2017), Murabaha Perceptions of Islamic Bankers: Case of Pakistan. Journal of Islamic Finance. Vol. 2(2), pp. 42-58
7. Bahrain News Agency (2015), Ministry of Industry, Commerce & Tourism, Bahrain.
8. Cosgrave, B., & Bayley, R. (2014). UK: Innovation & Opportunities in Islamic Finance. Available at: http://www.mondaq.com/uk/x/327508/islamicfinance/Innovation Opportunities in Islamic Finance
9. Factoring (finance). (2013). Wikipedia. Available at: https://en.wikipedia.org/wiki/Factoring_(finance)
10. Islamic Factoring. (2018). Kenanga. Available at: https://www.kenanga.com.my/group-products/islamic-factoring.
11. Jalil, A and Sabri, H. (2007). Islamic Equity Financing for SMEs Development. Readings in Islamic Financial Services. Kolej Sains Islam Malaysia University. Nilai. (10) pp. 91-104
12. Johnston, I. (2018). Is Factoring Halal or Haram? Available at: https://www.factoringsolutions.co.uk/is-factoring-halal-or-haram/.
13. Kabir, MD., Worthington, A., and Gupta, R. (2015). Comparative Credit Risk in Islamic and Conventional Bank. Pacific-Basin Finance Journal.
14. Kasi, R. (2016). An Overview of Bahrain’s SME Sector. In Proceedings of 11th Annual London Business Research Conference.: Royal University for Women, Kingdom of Bahrain. Manama, Bahrain. (pp. 1-11). Available at: https://wbiworldconpro.com/uploads/london-conference-2016-july/management/1467266700.pdf
15. Kuckreja, R., Hafizi, W., Falck, A., Saeed, M., Ali, S., & Abdul Kader, B. (2018). Is there a Sharia-compliant factoring or receivables finance solution? Available at: https://www.quora.com/Is-there-a-Sharia-compliant-factoring-or-receivables-financesolution
16. Ministry of Industry, Commerce & Tourism (2016). An Overview of Bahrain’s SME Sector. Bahrain.
17. Parker, M. (2018). Islamic trade finance continues to flourish. Available at: http://www.cashandtrademagazine.com/islamic-finance/islamic-trade-financecontinues-to-flourish/
18. Wikipedia. (2015). Profit and loss sharing. Available at: https://en.wikipedia.org/wiki/Profit_and_loss_sharing#cite_note-IIBI-2
19. Profile of M/SMEs in Egypt. (2003). Ministry of Foreign Trade. The Small and Medium Enterprises, Policy Development Project (SMEPol). Available At:
20. http://www.mof.gov.eg/MOFGallerySource/English/SME/Research_studies/10.pdf
21. Sapuan, N. M. (2016). An Evolution of Mudarabah Contract: A Viewpoint from