Author(s):
Wahab Fatai Kayode, kayodefatai7@gmail.com,
Abdulmajeed Tajudeen Idera, ,
Abstract:
The sustainability and growth of Small and Medium Enterprises (SMEs) are crucial to the
economic development every nation, particularly in developing economies like Nigeria, where
access to conventional financing is often limited. This study explores the potential of Musharakah,
a profit-sharing partnership model rooted in Islamic finance, as a viable funding solution for SMEs
in Nigeria. Through a comprehensive analysis of Musharakah's framework, the study
demonstrates how this model aligns with the financial needs and ethical considerations of SMEs
within the region's socio-economic context. By reviewing data collected from SME owners,
financial experts, and Islamic finance practitioners, the study assesses the potential impact of
Musharakah on SME growth, financial inclusion, and overall economic stability in Nigeria. The
findings indicate that Musharakah not only provides a flexible and ethical financing option but
also fosters a more collaborative relationship between financial institutions and entrepreneurs.
IWF