Title: Islamic financing sources of entrepreneurial ventures in a non-Islamic country: challenges and benefits

Authors: Gadaf Rexhepi; Nadire Ramadani

Addresses: Faculty of Business and Economics, South East European University, Macedonia ' Municipality of Tetovo, Macedonia

Abstract: Islamic banks offer new resources, products, and new ideologies. The research introduces the main sources of Islamic financial principles, the main boards and, regulatory institutions that are the foundation for Islamic financing practices. One of the main aims of this chapter is to understand and give a summary of what actually Islamic financial system means, what are the principles and the framework on which this system is based, and how it works in practice in financing entrepreneurial ventures. Generally, the benefits with an Islamic financial system stand in few directions, which means that the entrepreneur, will have the opportunity to use products and services according to Sharia'h. The most important is the ethical and moral value; the entrepreneurs will have peace of mind dealing with a financial system that is in compliance with Sharia'h and ethical values. Entrepreneurs can chose from different forms of investment in establishing new ventures and also finance the existing one, with much more favourable condition. These forms of financing are not attracting just Muslim entrepreneurs but all entrepreneurs because of favourable condition related mainly with risk sharing.

Keywords: Islamic finance; Islamic banking; Islamic products; entrepreneurial ventures; entrepreneurship; Macedonia; risk sharing; non-Islamic countries.

DOI: 10.1504/IJBG.2015.071915

International Journal of Business and Globalisation, 2015 Vol.15 No.3, pp.349 - 374

Received: 21 Apr 2015
Accepted: 19 May 2015

Published online: 23 Sep 2015 *

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