A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF)
While access to finance is a key link between economic opportunity and economic outcome, it remains a major barrier for aspiring entrepreneurs. The current research aims to conduct an in-depth case study of Assadaqaat Community Finance (ACF), a unique UK-based community finance institution with the...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2022.2135202 |
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| author | Huda Mohammad Hagawe Asma Mobarek Akmal Hanuk Ahmad Jamal |
| author_facet | Huda Mohammad Hagawe Asma Mobarek Akmal Hanuk Ahmad Jamal |
| author_sort | Huda Mohammad Hagawe |
| collection | DOAJ |
| description | While access to finance is a key link between economic opportunity and economic outcome, it remains a major barrier for aspiring entrepreneurs. The current research aims to conduct an in-depth case study of Assadaqaat Community Finance (ACF), a unique UK-based community finance institution with the objectives of addressing the global challenges of financial exclusion and social and economic inequalities through entrepreneurship and self-employment. ACF offers free professional training using an innovative and ground-breaking financial model based on Islamic financial principles via the ACF Cycle of Shared Prosperity framework. Semi-structured interviews were conducted with 20 participants including beneficiaries, benefactors and founders to explore the impact of ACF training, advice and mentoring and access to interest-free and debt-free finance in helping participants overcome the challenges and develop feasible business plans for their micro, small and medium enterprises. The results suggest that the beneficiaries are happy and become financially independent within 3–6 months, resulting in the transformation of beneficiaries into benefactors as they are able to contribute back to ACF. We highlight the transformational nature of this unique institutional business model and its applicability for existing Islamic MFIs, allowing them to make a clear contribution to development of sustainable communities. We also argue that the ACF financial model offers a sustainable solution to overcome global challenges and contribute towards achieving the Sustainable Development Goals. |
| format | Article |
| id | doaj-art-85459e1db0234da88a9b6c0f65a6c2be |
| institution | DOAJ |
| issn | 2331-1975 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-85459e1db0234da88a9b6c0f65a6c2be2025-08-20T03:03:25ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2022.2135202A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF)Huda Mohammad Hagawe0Asma Mobarek1Akmal Hanuk2Ahmad Jamal3Cardiff Business School, Cardiff University, Cardiff, UKEconomics at Cardiff Business School, Cardiff University, Cardiff, UKUniversity Teacher at Cardiff Business School, Cardiff University, Cardiff, UKMarketing and Strategy at Cardiff Business School, Cardiff University, Cardiff, UKWhile access to finance is a key link between economic opportunity and economic outcome, it remains a major barrier for aspiring entrepreneurs. The current research aims to conduct an in-depth case study of Assadaqaat Community Finance (ACF), a unique UK-based community finance institution with the objectives of addressing the global challenges of financial exclusion and social and economic inequalities through entrepreneurship and self-employment. ACF offers free professional training using an innovative and ground-breaking financial model based on Islamic financial principles via the ACF Cycle of Shared Prosperity framework. Semi-structured interviews were conducted with 20 participants including beneficiaries, benefactors and founders to explore the impact of ACF training, advice and mentoring and access to interest-free and debt-free finance in helping participants overcome the challenges and develop feasible business plans for their micro, small and medium enterprises. The results suggest that the beneficiaries are happy and become financially independent within 3–6 months, resulting in the transformation of beneficiaries into benefactors as they are able to contribute back to ACF. We highlight the transformational nature of this unique institutional business model and its applicability for existing Islamic MFIs, allowing them to make a clear contribution to development of sustainable communities. We also argue that the ACF financial model offers a sustainable solution to overcome global challenges and contribute towards achieving the Sustainable Development Goals.https://www.tandfonline.com/doi/10.1080/23311975.2022.2135202financial inclusionsocial & economic inequalitiesinterest-free financemicrosmall & medium enterprisesentrepreneurship |
| spellingShingle | Huda Mohammad Hagawe Asma Mobarek Akmal Hanuk Ahmad Jamal A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF) Cogent Business & Management financial inclusion social & economic inequalities interest-free finance micro small & medium enterprises entrepreneurship |
| title | A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF) |
| title_full | A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF) |
| title_fullStr | A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF) |
| title_full_unstemmed | A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF) |
| title_short | A unique business model for microfinance institution: the case of Assadaqaat Community Finance (ACF) |
| title_sort | unique business model for microfinance institution the case of assadaqaat community finance acf |
| topic | financial inclusion social & economic inequalities interest-free finance micro small & medium enterprises entrepreneurship |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2022.2135202 |
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