Knowledge, Acceptance and Application of Islamic Financial Management among Small and Medium Enterprises (SMEs) Halal Entrepreneurs in Peninsular of Malaysia

Mohd   Daud Awang; Junaina Muhammad; Muhamad   Nur Aiman Mohd Noor; Amalina   Abdullah; Amini  Amir Abdullah; Norsazali Abdullah; Dayang  Shobihah Abang Abai

Article Details

Knowledge, Acceptance and Application of Islamic Financial Management among Small and Medium Enterprises (SMEs) Halal Entrepreneurs in Peninsular of Malaysia

Authors:

Mohd Daud Awang | Junaina Muhammad | Muhamad Nur Aiman Mohd Noor | Amalina Abdullah | Amini Amir Abdullah | Norsazali Abdullah | Dayang Shobihah Abang Abai

Publisher:

KnE Social Sciences

Journal:

KnE Social Sciences Vol.4 Issue 9, pp.216-226

Document Type:

Article

Publication Date:

7/2020

Document Language:

English

Document ID (Org No.):

2001518387

pISSN:

2518-668X

Keywords:

Abstract:

 The Halal industry in Malaysia has created employment opportunities especially among Small and Medium Enterprises (SMEs). High demand for Halal products especially from Islamic countries has transformed the development of this sector into a national priority. In the Eleventh Malaysia Plan (11MP), the competitiveness of the Halal industry was given special emphasis by the Prime Minister. In Asia, Malaysia has long been considered as a leader in the development of the Halal sector.  However, the Halal industry is not only about Halal food production, but also covers Islamic finance services which prohibit interest (riba), uncertainties (gharar) and gambling (maysir). Islamic financial management is one of the important parts of Islamic finance because it plays a big role in providing Shariah-compliant funds and investment opportunities especially for the SME Halal entrepreneur. The holistic approach to the Halal industry should also cover not only food production but also Islamic financial management which includes activities such as how to create, increase, purify and to protect wealth from an Islamic perspective. Therefore, this study examines the relationship between the knowledge and acceptance of Islamic finance, and the application of Islamic financial management among halal entrepreneurs in Peninsular Malaysia. The findings of this study reveal that the knowledge and acceptance of Islamic finance is significantly correlated with the application of Islamic financial management among halal operators of SMEs. This indicates that to integrate the Halal industry with Islamic financial management activities, Halal entrepreneurs should be able to know and accept the Islamic finance principles. This will, in turn, facilitate the promotion of Malaysia’s Halal industries on the global stage.

Article Details

Knowledge, Acceptance and Application of Islamic Financial Management among Small and Medium Enterprises (SMEs) Halal Entrepreneurs in Peninsular of Malaysia

Authors:

Mohd Daud Awang | Junaina Muhammad | Muhamad Nur Aiman Mohd Noor | Amalina Abdullah | Amini Amir Abdullah | Norsazali Abdullah | Dayang Shobihah Abang Abai

Publisher:

KnE Social Sciences

Journal:

KnE Social Sciences Vol.4 Issue 9, pp.216-226

Document Type:

Article

Publication Date:

7/2020

Document Language:

English

Document ID (Org No.):

2001518387

pISSN:

2518-668X

Halal Industry

SMEs Halal entrepreneur

Islamic Financial Management

Issues

Article Details

Knowledge, Acceptance and Application of Islamic Financial Management among Small and Medium Enterprises (SMEs) Halal Entrepreneurs in Peninsular of Malaysia

Authors: Mohd Daud Awang | Junaina Muhammad | Muhamad Nur Aiman Mohd Noor | Amalina Abdullah | Amini Amir Abdullah | Norsazali Abdullah | Dayang Shobihah Abang Abai

Publisher: KnE Social Sciences

Journal: KnE Social Sciences Vol.4 Issue 9, pp.216-226

Document Type: Article

Publication Date: 7/2020

Document Language: English

Document ID (Org No.): 2001518387

pISSN: 2518-668X

Halal Industry

SMEs Halal entrepreneur

Islamic Financial Management

Issues

Authors:

Mohd Daud Awang | Junaina Muhammad | Muhamad Nur Aiman Mohd Noor | Amalina Abdullah | Amini Amir Abdullah | Norsazali Abdullah | Dayang Shobihah Abang Abai

Publisher:

KnE Social Sciences

Journal:

KnE Social Sciences Vol.4 Issue 9, pp.216-226

Document Type:

Article

Publication Date:

7/2020

Document Language:

English

Document ID (Org No.):

2001518387

pISSN:

2518-668X