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An Islamic finance model for the small and medium-sized enterprises in France

The dominant effect of the global financial shockwaves ravaging the whole of Europe is becoming proverbial in the history of world economic crises. This has been largely due to untoward economic policies that have negatively impacted most economies in Europe. The recent European sovereign debt crisi...

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Main Authors:	Oseni, Umar Aimhanosi, Hassan, M. Kabir, Matri, Dorsaf
Format:	Article
Language:	English English
Published:	King Abdulaziz University Scientific Publishing Center 2013
Subjects:	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship K Law (General) KBP Islamic Law KZ Law of Nations
Online Access:	http://irep.iium.edu.my/35154/1/Paper_on_SMEs_in_France.pdf http://irep.iium.edu.my/35154/4/35154_an_Islamic_finance_model_scopus.pdf http://irep.iium.edu.my/35154/ http://iei.kau.edu.sa/Pages-VOL-26-02.aspx
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spelling	my.iium.irep.351542016-04-17T16:34:17Z http://irep.iium.edu.my/35154/ An Islamic finance model for the small and medium-sized enterprises in France Oseni, Umar Aimhanosi Hassan, M. Kabir Matri, Dorsaf HB522 Income. Factor shares.Interest.Profit.Entrepreneurship K Law (General) KBP Islamic Law KZ Law of Nations The dominant effect of the global financial shockwaves ravaging the whole of Europe is becoming proverbial in the history of world economic crises. This has been largely due to untoward economic policies that have negatively impacted most economies in Europe. The recent European sovereign debt crisis experienced more in Greece, Italy, Spain and Portugal, and the most recent downgrade of France’s credit rating by Standard and Poor’s call for a rethinking of the existing economic policies. The need to foster innovation in Small and Medium-sized Enterprises (SMEs) and sustainably support the existing ones has remained a major challenge in France. With over 2.5 million SMEs in France, the recent report of the Institut Nationale de la Statistiqueet des Etudes Economiques [INSEE] reveals that one in every two new business fails in the long run. This paper examines the need to find credible alternatives for French SMEs to the collateral-based debt financing. Built on ethical business models, the Islamic SMEs and microfinance models are expected to foster innovation and sustainability to smaller economic players. Although, loans remain SMEs’ main source of financing, banks require more collateral from entrepreneurs, and now provide lower financing compared to the period before the financial crisis. In this context of financial difficulties for SMEs, considering alternative models of financing such as Islamic financial products based on the profit and loss sharing has increased the interest of many European countries. While focusing on the econo-legal issues underlying any of such proposals, the paper considers the feasibility of Islamic venture capital as a credible alternative to bank’s loans for SMEs within the existing French legal and regulatory framework. King Abdulaziz University Scientific Publishing Center 2013 Article REM application/pdf en http://irep.iium.edu.my/35154/1/Paper_on_SMEs_in_France.pdf application/pdf en http://irep.iium.edu.my/35154/4/35154_an_Islamic_finance_model_scopus.pdf Oseni, Umar Aimhanosi and Hassan, M. Kabir and Matri, Dorsaf (2013) An Islamic finance model for the small and medium-sized enterprises in France. Journal of King Abdulaziz University: Islamic Economics , 26 (2). pp. 153-180. ISSN 16584244 (P), 73831018 9 (O) http://iei.kau.edu.sa/Pages-VOL-26-02.aspx 10.4197 / Islec. 26-2.5
institution	Universiti Islam Antarabangsa Malaysia
building	IIUM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	International Islamic University Malaysia
content_source	IIUM Repository (IREP)
url_provider	http://irep.iium.edu.my/
language	English English
topic	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship K Law (General) KBP Islamic Law KZ Law of Nations
spellingShingle	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship K Law (General) KBP Islamic Law KZ Law of Nations Oseni, Umar Aimhanosi Hassan, M. Kabir Matri, Dorsaf An Islamic finance model for the small and medium-sized enterprises in France
description	The dominant effect of the global financial shockwaves ravaging the whole of Europe is becoming proverbial in the history of world economic crises. This has been largely due to untoward economic policies that have negatively impacted most economies in Europe. The recent European sovereign debt crisis experienced more in Greece, Italy, Spain and Portugal, and the most recent downgrade of France’s credit rating by Standard and Poor’s call for a rethinking of the existing economic policies. The need to foster innovation in Small and Medium-sized Enterprises (SMEs) and sustainably support the existing ones has remained a major challenge in France. With over 2.5 million SMEs in France, the recent report of the Institut Nationale de la Statistiqueet des Etudes Economiques [INSEE] reveals that one in every two new business fails in the long run. This paper examines the need to find credible alternatives for French SMEs to the collateral-based debt financing. Built on ethical business models, the Islamic SMEs and microfinance models are expected to foster innovation and sustainability to smaller economic players. Although, loans remain SMEs’ main source of financing, banks require more collateral from entrepreneurs, and now provide lower financing compared to the period before the financial crisis. In this context of financial difficulties for SMEs, considering alternative models of financing such as Islamic financial products based on the profit and loss sharing has increased the interest of many European countries. While focusing on the econo-legal issues underlying any of such proposals, the paper considers the feasibility of Islamic venture capital as a credible alternative to bank’s loans for SMEs within the existing French legal and regulatory framework.
format	Article
author	Oseni, Umar Aimhanosi Hassan, M. Kabir Matri, Dorsaf
author_facet	Oseni, Umar Aimhanosi Hassan, M. Kabir Matri, Dorsaf
author_sort	Oseni, Umar Aimhanosi
title	An Islamic finance model for the small and medium-sized enterprises in France
title_short	An Islamic finance model for the small and medium-sized enterprises in France
title_full	An Islamic finance model for the small and medium-sized enterprises in France
title_fullStr	An Islamic finance model for the small and medium-sized enterprises in France
title_full_unstemmed	An Islamic finance model for the small and medium-sized enterprises in France
title_sort	islamic finance model for the small and medium-sized enterprises in france
publisher	King Abdulaziz University Scientific Publishing Center
publishDate	2013
url	http://irep.iium.edu.my/35154/1/Paper_on_SMEs_in_France.pdf http://irep.iium.edu.my/35154/4/35154_an_Islamic_finance_model_scopus.pdf http://irep.iium.edu.my/35154/ http://iei.kau.edu.sa/Pages-VOL-26-02.aspx
_version_	1643610745861046272
score	13.211869

An Islamic finance model for the small and medium-sized enterprises in France

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