PERCEPTIONS OF SME OWNERS TOWARD ISLAMIC BANKING IN PAKISTAN

Authors

  • Shahid Hussain PhD Scholar, Department of Business Administration, Iqra National University, Peshawar, Khyber Pakhtunkhwa, Pakistan.
  • Muhammad Ismail Assistant Professor (Finance), Department of Business Administration, Iqra National University, Peshawar, Khyber Pakhtunkhwa, Pakistan
  • Asad ullah Assistant Professor (Finance), Department of Business Administration, Iqra National University, Peshawar, Khyber Pakhtunkhwa, Pakistan.

DOI:

https://doi.org/10.64105/jbmr.04.03.493

Abstract

This study explores the perceptions of small and medium-sized enterprise (SME) owners in Pakistan—specifically in Khyber Pakhtunkhwa—toward Islamic banking. Drawing on Strong Structuration Theory, the research investigates how internal (e.g., personal values, financial literacy, Shariah knowledge) and external (e.g., bank policies, regulatory frameworks, media, government) factors influence SME owners' engagement with Islamic finance. Semi-structured interviews with SME owners, Islamic bank managers, and a Shariah board member reveal both enthusiasm and skepticism toward Islamic financial services. The paper identifies key barriers such as limited product awareness, lack of collateral, complex processes, and insufficient regulatory support, while also highlighting opportunities for improved outreach and policy reforms to enhance SME access to Islamic finance.

Keywords: Islamic Banking, SMEs, Pakistan, Perception, Structuration Theory, Shariah Compliance

Downloads

Published

2025-07-31

Issue

Vol. 4 No. 3 (2025): Journal of Business and Management Research (JBMR)

Section

Articles

How to Cite

PERCEPTIONS OF SME OWNERS TOWARD ISLAMIC BANKING IN PAKISTAN. (2025). Journal of Business and Management Research, 4(3), 320-332. https://doi.org/10.64105/jbmr.04.03.493