Musharaka partnership financing – an approach to venture capital for microenterprise
The charging of interest on loans to small businesses is condemned under Islam, but in many Muslim countries alternative financing schemes have arisen. Musharaka is a form of partnership financing not very far in principle from venture capital, and it has been used in the Sudanto finance small businesses and even microenterprises. In situations where there is trust and understanding between bank staff and the local business community musharaka often provides reasonable returns for the investment of both parties, and an option that can lead to self-sustainable
banking.
to finance small businesses and even microenterprises. In situations where there is trust and understanding between bank staff and the local business community musharaka often provides reasonable returns for the investment of both parties, and an option that can lead to self-sustainable
banking.
Microfinance for Entrepreneurial Development
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