Factors Affecting Financing Decisions By Kuwaiti Islamic Banks Toward Establishing Small And Medium Enterprises

International Journal of Business Society, Vol. 6, Issue 2
Yausef AlremaidhiAzman Mohd NoorAbdulmajid Obaid Hasan Saleh
Economic feasibility studyGuarantees offeredproducts qualityThe experiences of the project ownersSmall and Medium Enterprises Financing Decisions
PDFRegular IssueDOI: 10.30566/ijo-bs/2022.02.81
6Volume
2Issue

Abstract

This study focuses on four main requirements: the economic feasibility study, the provision of guarantees, the types of products, and the necessary experience from the founders. This study followed the descriptive and analytical approach. The questionnaire tool was used in this study to collect data from a sample of (200) employees. The sample of this study was collected from six Kuwaiti Islamic banks. In processing the data emanating from the field studies of the sample community, the researcher relied on the statistical program for the social sciences (SPSS, so statistical methods were used to analyse measures of central tendency, descriptive statistics, Cronbach’s alpha test, linear regression analysis, and simple linear regression analysis). The result of this study confirmed that the contents of the economic feasibility study help obtain financing from the Islamic bank. There is also a statistically significant impact of the requirements for establishing small and medium enterprises from the economic feasibility study, the guarantees provided, the types of products and the experiences of project owners on the decisions to finance these projects from Islamic banks in Kuwait. This study recommends that Kuwaiti Islamic banks pay attention to economic feasibility studies of small and medium enterprises to determine the possibility of their success in the future and reduce the guarantees required for their financing by these banks.

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Article Information

Article Details
Volume & IssueVol. 6, Iss. 2
Publication DateFeb 24, 2022
Authors
Yausef Alremaidhi
Azman Mohd Noor
Abdulmajid Obaid Hasan Saleh
DOI
10.30566/ijo-bs/2022.02.81
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Factors Affecting Financing Decisions By Kuwaiti Islamic Banks Toward Establishing Small And Medium Enterprises | International Journal of Business Society