Micro-entrepreneurs’ intention to use Islamic micro-investment model (IMIM) in Bangladesh

The aim of this paper is to propose and verify a structured model for Islamic micro-finance in Bangladesh. The Islamic micro-investment model (IMIM) aims to harness the role of the Waqf/philanthropic sector to empower micro-entrepreneurs.

The researchers use the survey technique to investigate the micro-entrepreneurs’ intention to adopt the model. A total of 400 questionnaires are distributed with 207 responses being returned (51.75 per cent). In this study, a structural model is tested to examine the relationship of the behavioural intention to adopt Islamic micro-investment with the attitude towards behaviour, subjective norm, normative belief and behavioural belief.

The findings of the research show that, overall, the model fits the data and can be used to advance Islamic micro-finance in Bangladesh. However, out of the four hypotheses tested, only two are accepted vis-à-vis the influence of behavioural belief and normative belief on attitude and subjective norm, respectively.

The research suggests the need for an awareness programme on Islamic micro-finance and the role of Waqf in the economic empowerment of the populace.

The IMIM aims to harness the role of the Waqf/philanthropic sector to empower micro-entrepreneurs.

The model of Islamic micro-finance may empower poor micro-entrepreneurs and harnesses the potential of Waqf for socio-economic development, thereby, among others, reducing the cost of capital.

Only a few studies have been conducted on micro-finance from an Islamic perspective in Bangladesh. The IMIM, which has been developed by Muhammad (2012) and tested in Nigeria, is the first to be validated through an empirical study in Bangladesh. Thus, testing the viability of IMIM in the Bangladesh context will certainly add value for the clients, institutions and policymakers in Islamic micro-finance.