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Purpose – Micro-enterprises, like any other business entity, face financing challenges. However, micro-enterprises often cannot access financial institutions as they cannot fulfill the conditions to obtain financing facilities from a formal financial institution. As such, they have to rely on family or friends for financing needs. The most critical challenge faced in this regard to Muslim micro-enterprises is finding out a way in which family and friends could give a financial helping hand without the involvement of riba (interest). At the same time, the person giving the financing can enjoy a profit. This paper aims to propose the Tawarruq Fardi Financing (TFF) model that Islamic micro-enterprises could use to fulfill their financial needs. It becomes a solution when obtaining financing from friends and family or any other third party who could be a private investor who does not want to engage in an equity relationship. Design/methodology/approach – This study adopts a qualitative research methodology, combining descriptive and content analysis using the inductive reasoning approach. Findings – The paper's outcome shows that the proposed TFF could assist Islamic micro-enterprises in obtaining Shariah-compliant financing without engaging in an equity partnership. It allows them to fulfill their financing needs bearing in mind the interest of both parties involved in the transaction. Originality/value – This research will assist Islamic micro-enterprises to find out a Shariah-compliant financing facility from family, friends and any other private investors without entering into an equity relationship. The proposed model would be a Shariah-compliant alternative to interest-free loans and engaging in an equity relationship for the sake of getting benefits for both parties involved in the transaction.

Purpose: Despite being a Muslim-dominated country, Bangladesh has widely embraced traditional microfinance since its inception in the mid-1970s. However, Islamic microfinance, which has a lot to offer to the poor, is still in its infancy and has yet to gain momentum in the country. Therefore, the purpose of this study is to analyze the importance of Islamic microfinance and propose alternative Shariah-compliant microfinance models in Bangladesh. Design/methodology/approach: This study is based on the desk research method, which relies on existing literature to collect secondary data on key concerns of traditional microfinance programs. In addition, institutional-level secondary data were also collected from the Microcredit Regulatory Authority (MRA) of Bangladesh. Guided by the Maqasid-al-Shariah, this study then proposes several Islamic microfinance models to overcome selected challenges faced by the microfinance industry in Bangladesh. Findings: This study suggested three composite Shariah-compliant microfinance models, which are likely to help the underprivileged and thus ensure the achievement of the sustainable development goals in Bangladesh. The first model explained how the operational strategy of incumbent microfinance institutions (MFIs) could be restructured, while the second proposed the organizational strategies for establishing a new MFI. The third model used the notion of Sadaqah (charity) to address the multiple borrowing issues of the industry. Meanwhile, the successful transformation of the conventional microfinance industry to an Islamic one is dependent on the effective collaboration between the regulatory authorities, practitioners and MFIs. Originality/value: Albeit the paucity of literature on the topic, the findings of this study will guide policymakers/practitioners in designing relevant microfinance models to help transform conventional microfinance into Islamic microfinance in Bangladesh. [ABSTRACT FROM AUTHOR]

Islamic microfinance is a tool for promoting financial inclusion and reducing poverty levels. Countries such as Nigeria has scanty empirical investigations in this regard. This calls for a more robust analysis. This study, therefore, investigated the influence of the Islamic microfinance system on poverty alleviation in Kwara State, Nigeria. Nonprobability, purposive sampling was adopted to select traders and small business owners from the weekly-market setting of selected towns/villages in the three senatorial districts of Kwara State. Five (5) markets were selected from each of the three (3) senatorial districts. Data were collected with a structured questionnaire and analyzed with descriptive and inferential statistics. Ordered Logistic Regression was conducted. It was found that qard al hasan (0.91, p<0.05) murbah (0.72, p<0.01), mudharaba (0.51, p<0.1) musharaka (0.17, p<0.05) had a positive, significant effect on income level. It was also found that qard al hasan (0.38, p<0.05) murbaha (0.63, p<0.01), mudharaba (0.15, p<0.05) musharaka (0.59, p<0.01), zakat (0.45, p<0.01) and sadaqa (1.35, p<0.01) had a positive, significant effect on the productivity level. The study concluded that micro-credit, micro-equity and charity (social finance) products significantly influenced poverty alleviation. An adequate supply of shariah-compliant micro-credit, micro-equity and charity financial resources was recommended to boost the productivity and income levels of low-income earners and small business owners in the State. Also, the Central Bank of Nigeria (CBN) is encouraged to provide enabling environment for formal non-interest microfinance to promote financial inclusion and reduce poverty in the Country. [ABSTRACT FROM AUTHOR]

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Introduction: Waqf is one of the Islamic social financial instruments, having the distinctive characteristic that waqf assets are donated voluntarily by the wakif and are permanently designated for social benefits. Waqf can be used for productive or commercial activities to generate profits by Sharia law. Cash waqf can play a role in supporting the overall development process, both in human resource development, as well as in economic and social development. This study tries to explore the role of cash waqf for microfinance which can subsequently help the people's economy. Methods: The research method used in this research is quantitative research with bibliometric analysis. Data sources collected secondary data obtained from the Google Scholar database. Data were obtained using Publish or Perish (POP) software and analyzed using VOSviewer software. Results: The results of this research show that, from data searches using the keywords "cash waqf", "microfinance" and "sharia microfinance" by limiting 500 papers in the 2010-2024 time period, the words "microfinance institutions" are the most frequent keywords, indicated by a darker color than other keywords. Conclusion and suggestion: Based on the results and analysis, it can be concluded that, from year to year, research on the topic of cash waqf for microfinance is most often used. However, research on the topic of cash waqf for Sharia microfinance is still limited. Therefore, future research can be carried out regarding cash waqf for sharia microfinance. Cash waqf plays an important role in supporting the overall development process, both in human resource development, as well as in economic and social development. The potential of cash waqf can be used as a means of economic empowerment for lower-middle-class communities with the role played by microfinance institutions. [ABSTRACT FROM AUTHOR]

Introduction: Waqf is one of the Islamic social financial instruments, having the distinctive characteristic that waqf assets are donated voluntarily by the wakif and are permanently designated for social benefits. Waqf can be used for productive or commercial activities to generate profits by Sharia law. Cash waqf can play a role in supporting the overall development process, both in human resource development, as well as in economic and social development. This study tries to explore the role of cash waqf for microfinance which can subsequently help the people's economy. Methods: The research method used in this research is quantitative research with bibliometric analysis. Data sources collected secondary data obtained from the Google Scholar database. Data were obtained using Publish or Perish (POP) software and analyzed using VOSviewer software. Results: The results of this research show that, from data searches using the keywords "cash waqf", "microfinance" and "sharia microfinance" by limiting 500 papers in the 2010-2024 time period, the words "microfinance institutions" are the most frequent keywords, indicated by a darker color than other keywords. Conclusion and suggestion: Based on the results and analysis, it can be concluded that, from year to year, research on the topic of cash waqf for microfinance is most often used. However, research on the topic of cash waqf for Sharia microfinance is still limited. Therefore, future research can be carried out regarding cash waqf for sharia microfinance. Cash waqf plays an important role in supporting the overall development process, both in human resource development, as well as in economic and social development. The potential of cash waqf can be used as a means of economic empowerment for lower-middle-class communities with the role played by microfinance institutions.

Islamic microfinance is a tool for promoting financial inclusion and reducing poverty levels. Countries such as Nigeria has scanty empirical investigations in this regard. This calls for a more robust analysis. This study, therefore, investigated the influence of the Islamic microfinance system on poverty alleviation in Kwara State, Nigeria. Non-probability, purposive sampling was adopted to select traders and small business owners from the weekly-market setting of selected towns/villages in the three senatorial districts of Kwara State. Five (5) markets were selected from each of the three (3) senatorial districts. Data were collected with a structured questionnaire and analyzed with descriptive and inferential statistics. Ordered Logistic Regression was conducted. It was found that qard al hasan (0.91, p

The main objectives of this paper are three-fold. First, to identify the barriers to financial independence of female vegetable producers in the Gambia. Second, to assess the potential use of Islamic financing modes as enablers that can capacitate women in the Gambia’s horticultural sector. Finally, it proposes an inclusive financing mode to empower women in the country’s horticultural sector. To achieve these three objectives, different methodological approaches were used, drawing on various data collection techniques, including primary and secondary data collection methods. The results from the study indicate that lack of irrigation and storage facilities, access to markets and farming inputs (seeds, fertilisers) are the main challenges women encounter in their gardening activities. The study further found that the benefits of accessing and using microfinance services are impeded by these challenges, thereby preventing women vegetable producers from upscaling their horticultural activities. However, it is established in the paper that microfinance has great potential for promoting the financial independence of women in the Gambia, particularly women who engage in the horticultural sector. Based on these findings, the paper recommends using Parallel Salam Contract to tackle the problems of irrigation, storage facilities and market access. Murabahah/Musawamah contracts are also suggested to tackle the issue of the lack of farming inputs used by women in the horticultural sector. We further recommend that Islamic financial institutions educate the public about their business activities and for the regulators, including the Central Bank of the Gambia, to establish a Central Shari’ah Board to ensure the unification of fatwahs in the emerging Islamic finance sector in the Gambia, thereby ensuring transparency in the activities of the financial institutions participating in this sector and thus encourage more investors to partake in this burgeoning part of the Gambian economy.

This article provides a comprehensive analysis of the literature on Baitul Maal wat Tamwil (BMT) microfinance in Indonesia. The study identifies five research themes, including BMT engagement and establishment, external factors, theoretical and methodological issues, BMT microfinance impacts, and individual factors. The findings reveal that qualitative approaches dominate BMT research, and there is a need for BMTs to understand customer preferences and adapt to the competitive environment. The article also discusses the need for changes in legal entities and legal norms of BMTs and suggests future research directions. [Extracted from the article]

Islamic microfinance institutions (IMFIs) have had their roots in India originating as far back as 1918. It is founded on the principle which prohibits interest and hence is a form of non-interest microfinance to the poor. It also provides micro-credit services through Shari’ah compliant structures to small dealers and traders who have limited to no access to the formal financial services. Islamic microfinance offers a more sustainable and successful microfinance which not only creates financing but also blends in empathy for the poorest of the poor. In the Islamic perspective, poverty alleviation is more comprehensive than the conventional one. It flags equity and cooperation-based models in contrast to models that create and perpetuate debt. However, the past of IMFIs in India depicts an unfortunate tale. The IMFIs established during the eighties, rose and matured quickly. Nevertheless, over the course of time they encountered numerous hurdles that lead to their closure in many places. Therefore, it becomes vital to study the factors that caused the IMFIs downfall in India. The objective of this research is to know the challenges of Islamic microfinance in India and give suggestions and possible solutions to resolving the issues. This study adopts the quantitative approach. In this research the population is known and hence probability sampling or random sampling is selected. The data gathered from the303 responses received is analyzed using SPSS22 software. The findings of this research show that the majority agrees that there is lack of government support, no proper marketing of Islamic microfinance products, no effective Islamic microfinance products in India, lack of human capital in microfinance, high interest rates that make the poor financially unstable and lack of microfinance institutes in rural areas. This study offers robust recommendations on the challenges of Islamic microfinance in India and henceforth, it will be of interest to regulators, stakeholders, as well as the existing and potential customers. [ABSTRACT FROM AUTHOR]

The main objectives of this paper are three-fold. First, to identify the barriers to financial independence of female vegetable producers in the Gambia. Second, to assess the potential use of Islamic financing modes as enablers that can capacitate women in the Gambia's horticultural sector. Finally, it proposes an inclusive financing mode to empower women in the country's horticultural sector. To achieve these three objectives, different methodological approaches were used, drawing on various data collection techniques, including primary and secondary data collection methods. The results from the study indicate that lack of irrigation and storage facilities, access to markets and farming inputs (seeds, fertilisers) are the main challenges women encounter in their gardening activities. The study further found that the benefits of accessing and using microfinance services are impeded by these challenges, thereby preventing women vegetable producers from upscaling their horticultural activities. However, it is established in the paper that microfinance has great potential for promoting the financial independence of women in the Gambia, particularly women who engage in the horticultural sector. Based on these findings, the paper recommends using Parallel Salam Contract to tackle the problems of irrigation, storage facilities and market access. Murabahah/Musawamah contracts are also suggested to tackle the issue of the lack of farming inputs used by women in the horticultural sector. We further recommend that Islamic financial institutions educate the public about their business activities and for the regulators, including the Central Bank of the Gambia, to establish a Central Shari'ah Board to ensure the unification of fatwahs in the emerging Islamic finance sector in the Gambia, thereby ensuring transparency in the activities of the financial institutions participating in this sector and thus encourage more investors to partake in this burgeoning part of the Gambian economy. [ABSTRACT FROM AUTHOR]

This study aims to investigate the impact of Islamic microfinance on poverty alleviation. A case study has been conducted on the Akhuwat Islamic Microfinance institution to know its role in poverty alleviation. The sample comprises 250 Islamic microfinance clients, and respondents are selected through the convenience sample technique. The data are collected through a survey questionnaire from Islamic microfinance clients of Akhuwat Islamic microfinance institution. The regression analysis is carried out to analyze the impact of Islamic microfinance on poverty alleviation. The findings have shown the significant positive effect of Islamic microfinance on poverty alleviation. This research has implications for government, practitioners, and microfinance institutions. [ABSTRACT FROM AUTHOR]

Introduction: It is hoped that the presence of Islamic microfinance in Muslim countries will not only pursue each other and increase productivity to increase their assets. However, Islamic microfinance is hoped to be able to provide benefits to the whole community, especially in eradicating poverty. The phenomenon, it becomes the basis for research to measure the determinants of participation in the utilization of Islamic microfinance products using the TPB approach in Indonesia Islamic microfinance. Purpose: This research has a purpose to measure the determinants of participation in the utilization of Islamic microfinance products. The model hypothesized that three factors, attitude, subjective norms and Perceived Behavior Control influence customers participation in the utilization of Islamic microfinance products. Methodology: This research uses a descriptive-quantitative-analytic method or approach with several stages, namely testing hypotheses, measuring data, interpretation and description of results and making conclusions. This research using primary data by questionnaires distributed to customers of Islamic financing products in Islamic microfinance. Data collection method using simple random sampling and the data analysis technique uses Structural Equation Modeling (SEM) with the Smart PLS-3 application. Findings: The research results show that attitude directly has a significant positive effect on intentions in participation behavior in utilizing Islamic microfinance products at Islamic microfinance institutions. Meanwhile, indirectly attitudes are formed and influenced by awareness, compability, complexity and relative advantadge variables. This finding also confirms that subjective norms originating from a person's group and the perceived pressure from a person's reference to carry out targeted behavior can influence the intentions in participation behavior in utilizing Islamic microfinance products at Islamic microfinance institutions. Other findings that perceived behavioral control results is increased, when individuals feel they have more resources and confidence to perform. Perceived behavior control as measured by individual perceptions about the extent to which behavior performance is easy or difficult and considers facilitators and barriers to doing so has a significant effect on the intention to utilizing Islamic microfinance products. [ABSTRACT FROM AUTHOR]

This study analyzes the role of Islamic microfinance in empowering women. For this purpose, fifty female borrowers who invested the loan in an incomegenerating activity were interviewed. Research questions were asked to find whether it has any impact on the material condition of female borrowers after using the loan, and how access to credit contributes to the empowerment of female borrowers. The findings show that, using the loan for an income generating activity, made women able to spend money on household expenses, health and education of the family. It was observed that microfinance had no impact on women's mobility and awareness level. Access to credit cannot be expected to lead to women's empowerment unless it is accompanied by awareness of rights. The study highlights that the purpose of the loan should not only be to improve the material situation of women, but also to improve their status and position in society. [ABSTRACT FROM AUTHOR]

This study aims to investigate how Covid-19 has affected the microfinance institutions in Somalia. This study employed a qualitative descriptive approach by conducting a case study in Mogadishu and Hargeisa. The data of the study was collected through a questionnaire distributed to microfinance institutions in Somalia in 2021. The paper found that the number of MFIs that have been negatively affected by the epidemic was higher than the number affected positively or naturally. It also found that most MFIs witnessed high credit risks, and more than half of them have reduced lending to less than half due to Covid-19.

Abstract The literature gap in microfinance paradox of double bottom line (financial performance vs. outreach) has always been an interesting area of research. This paper proposes a theoretical model most suitable for Islamic Microfinance Institutions (MFIs) which enables Islamic MFIs’ to operate together with the existing financial models compliant with Islamic Shariah Law. This model is based on a distributed verification/decision-making process that might be realized (but not necessary) through blockchain. Among the available distributed verification techniques, blockchain technology is an attractive emerging computing paradigm due to its decentralized, immutable, shared, and secure data structure characteristics. This model proposes three significant propositions. First, sharing information through blockchain will allow a transparent network in MFI operations, which will raise confidence for donors resulting in a causal effect of a relatively lower profit rate to be charged by the MFIs. Second, the consensus mechanism will enable risk-sharing, a character of Islamic finance; thus, the MFIs will operate without any collateral for low-risk firms. Third, the double bottom line of MFIs' long-lasting paradox would be solved. As for practical implication of this proposed model, the causal impact of lower cost investment by the lenders would increase social welfare because of no collateral and no initial wealth requirement. The proposed model proposes a credit rationing approach where profit can be negative. No collateral will be used when calculating the creditworthiness of a borrower.

Microfinance organizations must prioritize both social and financial performance. Therefore, it is critical to determine how they affect one another. The purpose of this research is to examine the impact of social performance (SP) of global Islamic Microfinance Institutions (IMFIs) on their operational and financial self-sufficiency. Further, the study also checks the moderating role of institution size in this relationship. This research is based on unbalanced micro panel data. The Random Effect model is applied using Hausman test for the period 2015-2021 with 50 IMFIs sample. SP was measured through Number of Active Borrowers (NABO), Percentage of Female Borrowers (PFEB), and Gross Loan Portfolio (GLPF) as independent variables while Operational Self-sufficiency (OSS) and Financial Self-sufficiency (FSS) were the dependent variables. Other variables, Gross Domestic Product per Capita (GDPC), Consumer Price Index (CPIN) and Regulatory Quality (REQ) were used as control variables while Institution Size (IZ) was used as moderator. Results indicated that GLPF and PFEB have positive relationship with OSS while NABO has negative relationship with OSS. IZ has a negative relationship with OSS and it positively strengthens the relationship of PFEB and GLPF with OSS and negatively strengthens the relationship between NABO and OSS. GLPF has a positive relationship with FSS while NABO and PFEB have negative relationship with FSS. IZ has a positive relationship with FSS and it negatively strengthens the relationship between PFEB and GLPF and positively strengthens the relationship between NABO and OSS. [ABSTRACT FROM AUTHOR]

This study aims to investigate how Covid-19 has affected the microfinance institutions in Somalia. This study employed a qualitative descriptive approach by conducting a case study in Mogadishu and Hargeisa. The data of the study was collected through a questionnaire distributed to microfinance institutions in Somalia in 2021. The paper found that the number of MFIs that have been negatively affected by the epidemic was higher than the number affected positively or naturally. It also found that most MFIs witnessed high credit risks, and more than half of them have reduced lending to less than half due to Covid-19. [ABSTRACT FROM AUTHOR]

Purpose – Islamic microfinance is a substantial tool for poverty alleviation and economic empowerment. The paper aims at accessing the potential of Islamic microfinance for the purpose of achieving the economic empowerment in Tunisia. Design/methodology/approach – A structured questionnaire survey method is used. The method is intended for some of the beneficiaries of Zitouna Tamkeen (ZT), the only Islamic microfinance institution in Tunisia. Responses are analyzed using the statistical package for the social sciences program. Findings – The authors infer that though the Islamic and conventional microfinance have similar objectives, the methods are different. What is more, the economic empowerment requires not only financial inclusion and entrepreneurship, but also skill development. The results of the survey reveal that ZT has contributed to certain economic empowerment of most of ZT's beneficiaries. In addition, the authors bring to the fore that providing supportive infrastructure and investment is a prominent component of the economic empowerment process. Research limitations/implications – In the paper, the sample is limited. Practical implications – The authors have highlighted that some structural barriers to entrepreneurship – such as legal, operational and marketing challenges – need to be addressed in a practical way. Originality/value – This paper establishes the relationship between the Islamic microfinance and economic empowerment. The current paper is the first investigation in this field in Tunisia.

Microfinance is regarded as an effective technique of poverty alleviation since it provides access to financial resources that can assist in poverty reduction by increasing financial involvement and empowerment. However, despite the fact that microfinance banks account for the vast bulk of the market in Nigeria, with over 800, their contribution to the country’s economy is less than 1%. Additionally, the primary objective of poverty eradication has not been accomplished. Thus, existing research has positioned Islamic microfinance institutions as a viable tool for poverty alleviation in Nigeria. However, Islamic microfinance banks in Nigeria continue to witness minimal development. This research investigates the challenges hindering the development of Islamic microfinance banks in Nigeria. Semi-structured interviews were used to collect data for this study. In addition, data reduction, coding, integration, and visualisation steps are implemented to analyse data effectively. The finding shows that several regulatory issues, such as licence procedures requiring paid-up capital, are some challenges. Likewise, awareness, misconceptions, and acceptance remain significant hindrances faced by IMFBs in Nigeria. Additionally, IMFBs face some in-house challenges, such as a lack of Islamic fintech, convenient access to the unbanked community, and human capital. Consequently, the study recommends that stakeholders in the Nigerian financial system launch public awareness campaigns about the significance of Islamic microfinance banks in promoting financial inclusion and reducing poverty.