KNOWLEDGE, ACCEPTANCE AND APPLICATION OF ISLAMIC FINANCIAL MANAGEMENT AMONG SMALL AND MEDIUM ENTERPRISES (SMEs) HALAL ENTREPRENEUR IN PENINSULAR OF MALAYSIA Mohd Daud Awang(a*), Junaina Muhammad(b), Muhamad Nur Aiman Mohd Noor(c), Dayang Shobihah Abang Abai(d), Amalina Abdullah(e), Amini Amir Abdullah(f), Norsazali Abdullah(g)
a)Assoc. Prof, Faculty of Human Ecology & Research Associate, Halal Products Research Institute, UPM, Serdang, Selangor.* amdaud[at]upm.edu.my b)Senior lecturer at Faculty of Economics and Management and IPPH. c)Msc candidate at Halal Product Research Institute. d)PhD candidate at Faculty of Human Ecology, UPM. e)Senior lecturer, Head of Dept Accounting & Finance, Faculty of Economics and Management, UPM, Serdang, Selangor. f)lecturer, Faculty of Human Ecology, UPM, Serdang, Selangor. g)Senior lecturer, Universiti Kuala Lumpur MIIT, Malaysia.
Abstract
An abstract is brief on Halal Industry in Malaysia has created employment opportunities especially among Small and Medium Enterprises (SMEs). High demand for Halal products especially from Islamic countries has put Halal industry as one of the national agenda priorities. In the Eleventh Malaysia Plan (11MP), the halal industry had been given special emphasis by the Prime Minister to ensuring the halal industry is highly and persistently competitive. In Asia, Malaysia has been considered as a leader in the development of the Halal hub center. However, halal industry is not only about halal food production, but also it covers Islamic finance services which prohibit interest (riba), uncertainties (gharar) and gambling (maysir). Islamic financial management is one of the important parts of Islamic finance because it plays a big role in providing Shariah compliant funds and investment opportunities especially for SMEs halal entrepreneur. The holistic approach to halal industry should also cover not only halal food production, but also Islamic financial management which includes activities such as how to create, increase, purify and to protect wealth from Islamic perspective. Therefore, this study examines the relationship between knowledge and acceptance of Islamic finance and the application of Islamic financial management among SMEs halal entrepreneur in Peninsular Malaysia. The findings of this study reveal that the knowledge and acceptance of Islamic finance is significantly correlated with the application of Islamic financial management among SMEs halal operator. This finding indicates in order to integrate the Halal industry with Islamic financial management activities, SMEs Halal entrepreneurs should be able to know and accept the Islamic finance principles. This relationship recognizes the importance of knowledge and acceptance of Islamic financial management among SMEs halal entrepreneur to promote halal products and services and to boost demand for Malaysian halal products image at the international level.
If your conference is listed in our system, please put our logo somewhere in your website.
Simply copy-paste the HTML code below to your website (ask your web admin):
