78.docx - ABSTRACT Saudi Arabia even as various could believe is a wealthy nation paradoxically has elevatedimplicit poverty problem Such poverty could

78.docx - ABSTRACT Saudi Arabia even as various could...

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ABSTRACT Saudi Arabia, even as various could believe is a wealthy nation paradoxically has elevated- implicit poverty problem. Such poverty could be related to a small degree of commercial interest also its conventional variance in phrases of a monetary guide. While currently being supported internationally, a successful little and middle companies (SMEs) have large possible to assist alleviates poverty. In Saudi Arabia, the SME area presently added much below forty% of the GDP with a financing diffusion rate of most effective 2%. To improve their presentation, these organizations ought to gain from the use of microfinance inventions. The primary goal of this research is to obtain the estimation of SME owners concerning Islamic Microfinance in Saudi Arabia and discover its possibilities closer to encouraging the commercial hobby and therefore poverty discount. Facts have been received from semi-structured interviews performed with four CEOs or high level management employees of various classes of MSMEs in Saudi Arabia. Based on a qualitative evaluation, this has a look at located that low get entry to finance is appropriate to unreasonable necessities, and that the interviewees are conscious of Islamic finance however not Islamic microfinance. The research shows higher courting among banks and MSMEs to supplement the trade and boom output. Ch 1: Introduction Background Microfinance is the source of financial services for entrepreneurs and small businesses lacking access to banking and related services. The term includes three things, namely microloans, micro-savings, and microinsurance. Dr. Mohammad Yunus, a noble prize winner, pioneered the concept in developing country Bangladesh to help the financially marginalized
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start a business by providing them the necessary capital and thereby allowing them to work towards financial independence. Dr. Yunus’s experiment stated with offering small loans, which he himself funded, to women in his country who were making furniture using bamboo as raw material. These women used to depend on loans from local lenders on unfair and predatory terms for financing the expenses of production. The loans being very small in amount were not honored by the traditional banks, but these loans made significant changes in the lives of these small entrepreneurs. Taking the initiative forward, Dr. Yunus established Grameen Bank in Bangladesh and brought opportunities and risk-management tools at the doorsteps of these poor people, most of them are women, who, when given a chance, not only repaid the loan but also created a viable business model. The Grameen Bank now serves more than seven million poor women in Bangladesh. A number of studies have shown that poverty persists due to the exclusion of the poor from the financial system. It is the financial exclusion that, in turn, prevents a large section of poor population from taking part in the development process. With no access to traditional
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  • Fall '17
  • Jeff Ratcliff

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