CAPITAL MARKET FOR SMES; NAVIGATING CHALLENGES WITH THE ISLAMIC TURATH PARADIGM ON ADL WAL IHSAN

Abstract

Small and Medium Enterprises (SMEs) can access funding beyond traditional banks, like the capital market. While it was believed that accessing funds or being listed on the capital market was not feasible for small companies, this avenue is now open to a broader range of enterprises, offering SMEs opportunities to obtain capital. Various global capital markets offer this market, with Bursa Malaysia introducing the Leading Entrepreneur Accelerator Platform (LEAP) market specifically designed for SMEs. However, this market poses notable challenges. This study seeks to identify these challenges initially. Recommendations are then offered to overcome these challenges by leveraging the Islamic Turarth (classical Islamic text) as empowered in manhaj al-Azhari. To achieve this, this study qualitatively utilizes a descriptive method involving extensive document investigation and content analysis to first recognize the obstacles encountered in the LEAP market. These obstacles include inactive and illiquid markets, concerns regarding appeal resulting in delisting, and competition from other platforms. Subsequently, the study incorporates these challenges into a comprehensive discourse articulated with recommendations for improvements in the LEAP market, benefitting from the classical Islamic economic text on Adl wal Ihsan. The Islamic Turath offers valuable insights for addressing contemporary challenges.