Islamic finance and its role in funding startups an analytical study of financing mechanisms and their role in supporting entrepreneurship

Abstract

This research aims to obtain alternative financing sources provided by Islamic banking products that can be utilized to finance startups with one of the current products in the form of debt-and-equity. Focusing on startups has become an absolute necessity due to their importance in economic growth and their crucial role as a breeding ground for new generations of entrepreneurs and businessmen. these enterprises play also a significant role in increasing the rate of economic activity and combating unemployment. Therefore, this research concludes that Islamic finance institutions must be supported with mechanisms that serve this type of startup, given the advantages they offer to the projects and to the economy in general. Moreover, Islamic institutions finance these ventures as part of their social responsibility, which stems from their inherent developmental role.