It has already been established that Islamic partnership finance has potential for SME financing, even though some outstanding problems have to be solved if it is to be widely adopted. The methods of musharaka
(Islamic partnership finance) may also be of interest to conventional financial institutions, however, since there are only a few differences between musharaka and conventional partnership arrangements.
This article describes the principles and methods of musharaka, and the problems encountered in its application. It is argued that if the profit-and-loss sharing formula of musharaka is taken as one form
of venture capital, rather than an ideological concept, it may have a great deal of universal application, especially as a supplement to interest-based credit financing of SMEs.

Handbook of Research on Theory and Practice of Global Islamic Finance

Interest-Free Micro-Finance Without Any Religious Connotation

Ibrahim, Badr El Din A.

2020

https://doi.org/10.4018/978-1-7998-0218-1.ch011 [Citations: 1]

Exploration of the equilibrium level of Musharaka financing in full-fledged Islamic banks

Arshed, Noman

Kalim, Rukhsana

Journal of Islamic Accounting and Business Research, Vol. 12 (2021), Iss. 3 P.340

https://doi.org/10.1108/JIABR-02-2020-0048 [Citations: 1]

The implication of using profit and loss sharing modes of finance in the banking system, with a particular reference to equity participation (partnership) method in Sudan

Abdalla Ahmed, Gaffar

Humanomics, Vol. 24 (2008), Iss. 3 P.182

https://doi.org/10.1108/08288660810899359 [Citations: 7]