A Conceptual Discourse on Islamic Finance Investment Modes for Established and Emerging Entrepreneurs: Tripartite Implications
Abstract
There is a lack of simplified resources for established and emerging entrepreneurs who have limited knowledge of Islamic finance and want to take advantage of the burgeoning opportunities in the Islamic economy. This conceptual discourse bridges the gap by addressing the various investment options available to entrepreneurs to provide a comprehensive understanding of Islamic finance as a viable option for financing needs. Using discourse analysis, the article examines conceptual issues and provides a simplified explanation of theological and governance frameworks, including Islamic financial investment modes. Methodologically, a qualitative secondary research approach was chosen, collecting data from academic papers and online resources. Using the critical literature review method, 40 relevant articles were carefully selected from databases such as Google Scholar and Web of Science. Three insights emerged from the discourse that provide a comprehensive understanding of Islamic financing as a viable option for entrepreneurs. First, the theological foundations and governance framework enshrined in the Qur'an and Hadith are highlighted. Secondly, fifteen (15) financing and investment opportunities in Islamic finance are identified as opportunities for entrepreneurs. Third, the specific benefits of Islamic finance for entrepreneurship and business include promoting financial stability, promoting friendly lending policies, providing unconventional financial services, financial inclusiveness, and infrastructure financing, as well as creating jobs and increasing tax revenues for the government. The discourse ends by discussing the practical implications for entrepreneurship, Islamic finance as a practice and the economy in general, without forgetting the limitations and further research directions.