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Financing of Entrepreneurs in India: a New Dimension under Islamic Finance

Fayaz Ahmad Lone


Financing is one of the basic requirements of a project which Entrepreneur needs to start. Project financing is both for short term and long term. The sources from which the Entrepreneur can meet their financial needs for their project vary from country to country. In some countries, Institutions dealing in providing finance to Entrepreneurs share profits and losses and in some countries (like India) only profits are shared and losses are transferred to entrepreneurs. The former is called Mudarabah financing, which is currently working in more than 300 institutions in the world. Under this type of financing, risk is also shared and not transferred to entrepreneurs. This type of financing has shown tremendous success as far as entrepreneurship is concerned. While taking the pros and cons of this type of financing, the paper provides a comprehensive detail about its prospects and problems, as far as Indian entrepreneurship is concerned. It is explained in the paper how entrepreneurs can be through Islamic finance. As there are six ways for financing the entrepreneurs and all are explained in this paper.


Islamic Finance, Entrepreneurship and Islamic Finance, Islamic Business, Indian Entrepreneurship

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