CROWDFUNDING IN ISLAMIC FINANCE: A NEW MODEL FOR ENTREPRENEURIAL FINANCING
DOI:
https://doi.org/10.5281/zenodo.20507620Keywords:
Sharia Crowdfunding, Islamic Finance, Entrepreneurship Financing, Financial InclusionAbstract
The development of digital technology has driven a transformation in the global financial system, including in the realm of Islamic finance. One innovation that is gaining increasing attention is crowdfunding as an alternative financing option for businesses, particularly small and medium enterprises. This study aims to analyze the role of crowdfunding in Islamic finance as a new model of entrepreneurial financing using a literature review method. The study examines various academic sources, scientific journals, and related reports to understand the concept, mechanisms, and alignment of crowdfunding with Sharia principles, such as the prohibition of riba (usury), gharar (gharar), and maisir (gambling). The results indicate that crowdfunding in Islamic finance has significant potential to increase financial inclusion and expand access to financing for entrepreneurs who previously had difficulty obtaining funding from conventional financial institutions. This model also encourages transparency, community participation, and fairer risk distribution through profit-sharing schemes such as mudharabah and musyarakah. However, there are challenges that need to be addressed, such as the lack of uniform regulations, low levels of Islamic financial literacy, and the need for a robust oversight system to ensure compliance with Sharia principles. Thus, crowdfunding can be an innovative solution to support sustainable entrepreneurial growth in accordance with Islamic values.
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