The Benefit of Profit-Sharing Islamic Microfinance Models (Musharaka) in Expanding Financial Inclusion and Business Sustainability for B40 Women Micro-Entrepreneurs in Malaysia: A Literature Review

Abstract

Given the challenges that B40 women face to financial inclusion due to gender disparities, a lack of collateral, and insufficient financial literacy, Musharaka provides an efficient partnership-based method with shared advantages and disadvantages. This study intends to find out the effectiveness of Musharaka, a profit-sharing Islamic microfinance model, in empowering B40 women micro-entrepreneurs in Malaysia. Methods of this paper is a qualitative survey and identifies gaps in existing literature, emphasizing the need for context-specific research targeting B40 women entrepreneurs in Malaysia. As a result, it has the potential to raise financial inclusion and improve company sustainability throughout this group. Future research directions include empirical studies, quantitative research, comparative analyses with conventional financing options, and policy implications to enhance financial inclusion and sustainable business growth for B40 women micro-entrepreneurs.