A Case from a Developing Country: Why MSME Must Be Islamic Bank Clients

Abstract

This research is intended to create reasons that why Micro Small Medium Enterprises (MSME) have to make decision for becoming a customer of Islamic Banking. We used semi-structured interviews to collect data from top management staff of MSME. (1) Which main variables influence top MSME management to become Islamic banking clients and why? Qualitative research method is restricted by the study research question. The data was coded and grouped for analysis later as per procedure. There were six possible themes that influenced the decisions made. Studies show that deciding for MSME's management for using Islamic banks as a source of financing found to be better and lucrative.