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Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia

Purpose - In line with the wide acceptance of the microfinance industry globally, Islamic microfinance has also evolved rapidly in the past years to cater for the demand for Shariah-compliant microfinancing schemes. Despite this, the industry is facing various issues and challenges from both the...

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Main Authors: Che Mohd Salleh, Marhanum, Kassim, Salina, Kassim, Siti Nadhirah
Format: Conference or Workshop Item
Language:English
Published: KnE Publishing 2019
Subjects:
H Social Sciences (General)
H10 Societies
Online Access:http://irep.iium.edu.my/73446/7/73446%20Does%20Socio-demographic%20Variables%20Matter.pdf
http://irep.iium.edu.my/73446/
https://knepublishing.com/index.php/Kne-Social/article/view/4253/8736
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spelling my.iium.irep.734462019-07-31T01:47:01Z http://irep.iium.edu.my/73446/ Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia Che Mohd Salleh, Marhanum Kassim, Salina Kassim, Siti Nadhirah H Social Sciences (General) H10 Societies Purpose - In line with the wide acceptance of the microfinance industry globally, Islamic microfinance has also evolved rapidly in the past years to cater for the demand for Shariah-compliant microfinancing schemes. Despite this, the industry is facing various issues and challenges from both the clients and microfinance institutions. This study aims to identify the issues and challenges faced by different demographic background of microentrepreneurs receiving Islamic microfinancing from Amanah Ikhtiar Malaysia (AIM). Methodology- It adopts the quantitative research methodology where primary data is collected using survey questionnaires administered on 393 women entrepreneurs who are currently clients of AIM’s Islamic microfinance scheme located in Selangor. The descriptive and cross-tabulation analyses are applied in efforts to understand the influence of socio-demographic factors (age, education level, duration with AIM, and times of receiving financing) on the following issues: cost of repayment, financing period, amount of financing, distance to AIM center, group lending mechanism, discipline among members, problematic group members, and consultation services. Findings - The study finds that clients with different socio-demographic factors perceived the issues differently, suggesting an influential role of clients’ demographic factors on the microfinance intervention. Practical implications - These findings have important implications to the microfinance industry in terms of further improving their products that are tailor-made to the socio-demographic characteristics of their clients. Originality – This research taken views of AIM’s microfinance recipients which were woman entrepreneurs in Selangor directly through a survey. Results of the research would be useful to AIM to enhance their products and services in future. KnE Publishing 2019-03-28 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/73446/7/73446%20Does%20Socio-demographic%20Variables%20Matter.pdf Che Mohd Salleh, Marhanum and Kassim, Salina and Kassim, Siti Nadhirah (2019) Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia. In: The 2nd International Conference on Islamic Economics, Business, and Philanthropy (2nd ICIEBP), 28th March 2019, Surabaya, East Java, Indonesia. https://knepublishing.com/index.php/Kne-Social/article/view/4253/8736 10.18502/kss.v3i13.4253
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
topic H Social Sciences (General)
H10 Societies
spellingShingle H Social Sciences (General)
H10 Societies
Che Mohd Salleh, Marhanum
Kassim, Salina
Kassim, Siti Nadhirah
Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia
description Purpose - In line with the wide acceptance of the microfinance industry globally, Islamic microfinance has also evolved rapidly in the past years to cater for the demand for Shariah-compliant microfinancing schemes. Despite this, the industry is facing various issues and challenges from both the clients and microfinance institutions. This study aims to identify the issues and challenges faced by different demographic background of microentrepreneurs receiving Islamic microfinancing from Amanah Ikhtiar Malaysia (AIM). Methodology- It adopts the quantitative research methodology where primary data is collected using survey questionnaires administered on 393 women entrepreneurs who are currently clients of AIM’s Islamic microfinance scheme located in Selangor. The descriptive and cross-tabulation analyses are applied in efforts to understand the influence of socio-demographic factors (age, education level, duration with AIM, and times of receiving financing) on the following issues: cost of repayment, financing period, amount of financing, distance to AIM center, group lending mechanism, discipline among members, problematic group members, and consultation services. Findings - The study finds that clients with different socio-demographic factors perceived the issues differently, suggesting an influential role of clients’ demographic factors on the microfinance intervention. Practical implications - These findings have important implications to the microfinance industry in terms of further improving their products that are tailor-made to the socio-demographic characteristics of their clients. Originality – This research taken views of AIM’s microfinance recipients which were woman entrepreneurs in Selangor directly through a survey. Results of the research would be useful to AIM to enhance their products and services in future.
format Conference or Workshop Item
author Che Mohd Salleh, Marhanum
Kassim, Salina
Kassim, Siti Nadhirah
author_facet Che Mohd Salleh, Marhanum
Kassim, Salina
Kassim, Siti Nadhirah
author_sort Che Mohd Salleh, Marhanum
title Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia
title_short Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia
title_full Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia
title_fullStr Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia
title_full_unstemmed Does socio-demographic variables matter in explaining issues and challenges in Islamic microfinance? Evidence from Malaysia
title_sort does socio-demographic variables matter in explaining issues and challenges in islamic microfinance? evidence from malaysia
publisher KnE Publishing
publishDate 2019
url http://irep.iium.edu.my/73446/7/73446%20Does%20Socio-demographic%20Variables%20Matter.pdf
http://irep.iium.edu.my/73446/
https://knepublishing.com/index.php/Kne-Social/article/view/4253/8736
_version_ 1643620327225294848
score 13.211869

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