Research Project: Islamic Microfinance Schemes in Sylhet, Bangladesh

This research project investigates Islamic microfinance schemes in the Sylhet region of Bangladesh. The methodology section outlines the research philosophy (interpretivism), approach (inductive), method (qualitative), and strategy (interviews) employed. The literature review explores entrepreneurial motivations for seeking Islamic microfinance as an alternative to conventional banking, key challenges faced by entrepreneurs, and the potential contributions of these schemes to sustainable development and poverty alleviation. The study utilizes secondary data collection methods and semi-structured interviews. The project also discusses sampling techniques and the time horizon for the research. The project aims to provide insights into the role of Islamic microfinance in fostering entrepreneurship and contributing to the socio-economic development of the region, particularly in addressing the financial needs of those excluded from conventional banking systems.

RESEARCH PROJECT

Table of Contents
Table of Contents
RESEARCH METHODOLOGY..................................................................................................1
Research philosophy..................................................................................................................1
Research approach.....................................................................................................................1
Research method........................................................................................................................2
Research strategy.......................................................................................................................3
Data collection...........................................................................................................................3
Type of Interview......................................................................................................................3
LITERATURE REVIEW..............................................................................................................5
To identify the entrepreneurial motivations in seeking Islamic Microfinance as an alternative
source of capital to the interest schemes in commercial banks in Bangladesh..........................5
To explore the key challenges entrepreneurs experience in seeking Islamic Microfinance
support within the Sylhet Region of Bangladesh......................................................................6
To examine how Islamic Microfinance schemes are possibly contributing in any way(s)
towards the sustainable development, through alleviation of poverty, in the Sylhet Region of
Bangladesh.................................................................................................................................7
REFERENCES..............................................................................................................................8

Title: Motivations and challenges of entrepreneurs seeking Islamic Microfinance schemes:
Experiences from the Sylhet Region of Bangladesh.
RESEARCH METHODOLOGY
It is an important section of undertaking research as it provides framework in which
investigator collect reliable data on the basis of specified research topic. Basically, it is a path by
which researcher needs to undertake an investigation in an appropriate manner. As it shows the
direction to investigator to formulate issues and objectives of specified research. By this,
researcher can easily acquire reliable data that assist in taking right and meaningful data. This
chapter discusses different research methods that were used at the time of executing research
activities (Daniel, 2018). Therefore, it is significant for investigator to select an appropriate
methods and technique to carry out the study so that valid conclusion can be easily attained and
also improve the possibilities of making it more reliable and successful in nature. There has been
research onion conducted as this was developed by Saunders et. al. (2007). Different layers
included in the research onion mention below:
Research philosophy
It is referring to the system that related with the researcher thoughts and knowledge that
assist in analysing the specified problem of an investigation. Basically, it is a belief and way in
which an investigator needs to gathered, evaluated and interpretation that assist in drawing a
valid conclusion at the end of the study. It is categorised into two methods including
interpretivism and positivism research philosophy (Dźwigoł and Dźwigoł-Barosz, 2018).
Justification: In order to execute current investigation, investigator will apply
interpretivism research philosophy in which investigator can acquire knowledge about human
interest. This can be assist in analysing the theoretical aspects to make an appropriate judgement
in an investigation (Fletcher, 2017).
Research approach
At the time of undertaking an investigation, it is significant for investigator to follow
proper plan and procedures because it consists various step on the basis broad assumption.
Mainly, it includes detailed methods of data collection, analysis and at the same time also
interpreted collected information towards the specified research topic and area (Kumar, 2018). In
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this context, it is divided into two types of approaches such as inductive and deductive research
approach.
Justification: As per current investigation, investigator will implement inductive
research as it starts with the proper observation and theories on the basis of particular research
topic. As a result, it provides positive and accurate results within the study. With the assistance
of this, research can analyse qualitative data to draw a meaningful conclusion to make overall
research valid in nature (Snyder, 2019).
Research method
This layer of the research onion seeks to inform regarding what data is gathered by using
the different sources. Its aim is to demonstrate the dedication to assure that data gathered kept
safe and use in responsible manner regarding research purposes. Qualitative and quantitative are
two different research methods (Mohajan, 2018). The quantitative research is process about
gathering as well as examining the numerical data. Its main focus on quantifying gathering the
relevant information and data regarding particular subject area. Other than this, qualitative
research mainly consists gathering the non- numerical data in order to understand the concepts
and opinions.
Justification: There will be qualitative research method used as it provides the detailed
understanding regarding the Entrepreneur’s Intention to Obtain Islamic Microfinance Schemes.
The qualitative research is mainly aimed at gaining the deep understanding of particular subject.
The main reason of using qualitative research method is that it gives the insight into issue or
develop the ideas for quantitative investigation.
Advantages Disadvantages
It provides the more flexible approach. The qualitative research method develops
subjective data.
The qualitative research method provides the
content that is effective for the practical
application.
This takes more time to gather data points.
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Research strategy
Research strategy is defined as the step by step action plan that provides the direction to
thoughts and efforts enabling to conduct an investigation systematically. Its main focus on
produce the quality outcomes and also detailed reporting. There are different research strategies
for an instance survey, interviews, case studies, observation and others (Zangirolami-Raimundo
Echeimberg and Leone, 2017).
Justification: In this, interview chose as the research strategy. The interview is
qualitative research technique that consists asking the open ended questions in order to converse
with the participants and gather elicit data regarding the subject. The main benefit of conducting
the interview is that it consists conducting the intensive interviews with small respondents to
examine their perspectives of specific area.
Data collection
Data collection is a process of gathering and collecting the information that are targeted
in relation to a particular project is known as data collection. This is important for research to
conduct the proper analysis and research for the purpose of collecting the right information.
Primary method is related to collecting data on primary basis by using the surveys, interviews,
and experiments (Dźwigoł and Dźwigoł-Barosz, 2018). In other words, when data is collected by
first hand research by making many efforts is primary data method. Secondary method is another
method of data collecting which uses to collect the information from other resources such as
books, journals, web pages, blogs and articles.
Justification: In this present investigation, there will be secondary method of data
collection using. Through using this method, it is easier to collect the detailed understanding
regarding the particular area.
Type of Interview
Semi- structure interview will be using to collect information. This is meeting under which
an interviewer does not follow formalised questions list. In this, there will be open ended
questions developing. Questions and sequence are identified in the advances with evolve as
interview proceeds.
Sampling
It is explained as the statistical analysis under which the predetermined observations
number are mainly taken from large population. This is used to sample from large population
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based on analysis that is being performed. There is probabilistic and non- probabilistic are two
different sampling methods (Khan and Mohomed, 2017). The probability sampling is technique
under which an investigator selects sample from large population using method based on
probability theory. On the other hand, non- probability is sampling method not all people have
equal chance to participating in study.
Justification: There will be purposive sampling used as it is main part of the non-
probabilistic sampling. This is mainly used in the qualitative research in order to determine and
selection of the information rich cases regarding phenomenon interest. Through the purposive
sampling, there will be 10 respondents chosen who are entrepreneurs seeking the Islamic micro
finance support within Sylhet region of the Bangladesh.
Time horizon
The time horizons are the period to conduct an investigation. There are two different type
of the time horizons such as Cross- sectional and Longitudinal. The cross- sectional time horizon
is related to particular time period. Other than this, longitudinal time horizon are repeated over
the extended period of time (VanKooten, 2019).
Justification: In conducting the present investigation, there will be cross- sectional time
horizon used. In this, it is easier for an investigator to conduct the research activities within
particular time period. It analyses the data of different variable gathered at single point cross the
sample population.
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LITERATURE REVIEW
Literature review is explained as discusses as well as analyse the published information
in specific subject field. This is more than summary of sources as literature review has
organisational pattern that combines synthesis and summary. Main focus of the academic
research is to support own arguments and summarise them. The literature review mainly consists
secondary sources such as books, articles, scholars, internet sources and many others. It provides
the detailed understanding regarding the Motivation and challenges of entrepreneurs seeking
Islamic micro finance Schemes: experiences from the Sylhet Region of Bangladesh. implications
To identify the entrepreneurial motivations in seeking Islamic Microfinance as an alternative
source of capital to the interest schemes in commercial banks in Bangladesh
According to Md Golzare Nabi and Md. Aminul Islam (2017), Entrepreneurship is wider
concept that is used to explain activity of one or more than one person to come up with idea as
well as implement it to benefit of community to enhance growth. Islamic banks give the financial
assistance to the people excluded from banking system. This complies with the Islam principle
and consists in Halal projects. Islamic Relief is improving the access regarding ethical Islamic
micro finance schemes in Bangladesh through developing the capacity and kills in financial
institutions of country. This has been estimate that around 72% of population living in the
Muslim countries do not use the financial services. Micro finance is mainly delineating
stipulation of the financial services and products to underprivileged community. Aligning similar
principle regarding the conventional micro- financing Islamic banks in the Bangladesh. In
context to this, aligning similar principle regarding the conventional micro- financing Islamic
Banks in the Bangladesh. It has been executing the banking facilities too poor to be alleviate
socio economic situation (Alam, 2019). Other than this, emergences of the Islamic Banking are
on the basis to promote the Islamic financing in order to make fundamental socio- economic
development of each citizen of community. The Islamic banks give financial assistance to the
people excluded from banking system. On the other hand, provided sufficient range of the short
term basis investment in Islamic money market, the Shariah-microfinance can use liquidity at
minimum cost to the finance firm in rural area.
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To explore the key challenges entrepreneurs experience in seeking Islamic Microfinance support
within the Sylhet Region of Bangladesh
On the basis of Mohammed Khaled (2021), an estimation of 72% people living in the
Muslim majority countries which do not use the formal financial services. These financial
services are easily available and some of the people view the conventional goods as incompatible
with financial principles set in the Islamic legislation. Funding the Islamic finance program is
main challenge. There is a requirement of more cash and with lack thereof, in context to failure
through several Islamic. It is necessary for the microfinance institutions to cover all costs with
profit margin from operations. In this, when the regulations allow, saving should be main
component of Islamic microfinance model of business. As in the conventional micro finance, this
is believed that more number of the Muslims to hold the bank accounts. Having the Shariah
complain saving account will assist to mobilize the deposits as well as instill savings culture. It
contributes towards the economic development. On the other hand, diversion regarding micro
consumption through borrowers is main reason that the credit default is conventional
microfinance. In relation to this, an integrated model may minimize chances regarding loan
default because inherent tendency regarding the poor borrowers use loan fund for the
consumption purpose.
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To examine how Islamic Microfinance schemes are possibly contributing in any way(s) towards
the sustainable development, through alleviation of poverty, in the Sylhet Region of
Bangladesh.
Dhaoui and Iyas (2015) Islamic microfinance comprises of four principles that are derived
from Shari-ah laws. These principles are- Prohibition of Interest, lenders will share profit and
losses of business which will they fund, prohibition of Gharar which means uncertainty which
are created due to lack of information or control in economic transactions and time-value of
money calculation. They act as central of economic growth and development of many societies
as they play key role in developing human resource.
Sustainable development in Sylhet Region of Bangladesh by Islamic Microfinance schemes.
 Schemes of Islamic microfinance provide financial assessment to poor people by
combining its social principles with microfinance power.
 By utilising financial instruments like Murabahah it helps in building IM institutes, this
not only spur Islamic sector but also increases Islamic fund.
 Islamic banking has open doors for Bangladesh of rapid expansion that fulfil demand
from all segments.
 It has provided investment facilities in Bangladesh for fixed income group in order to
make them purchase household articles.
 Islamic Microfinance has introduced many small investment schemes to educate
unemployed youth of Bangladesh and also to small entrepreneurs and businessmen.
 They have also contributed towards agriculture by providing power pumps, thresher
machines etc. and also help farmers in augmented production in agriculture sector.
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REFERENCES
Books & Journals
Alam, M. N., 2019. Islamic banking in Bangladesh: A case study of IBBL. International Journal
of Islamic Financial Services. 1(4). pp.10-29.
Daniel, B. K., 2018. Reimaging research methodology as data science. Big Data and Cognitive
Computing. 2(1). p.4.
Dźwigoł, H. and Dźwigoł-Barosz, M., 2018. Scientific research methodology in management
sciences. Financial and credit activity: problems of theory and practice. 2(25). pp.424-
437.
Fletcher, A. J., 2017. Applying critical realism in qualitative research: methodology meets
method. International journal of social research methodology. 20(2). pp.181-194.
Khan, T. and Mohomed, A. B. R. N., 2017. Ethical Banking and Islamic Banking: A Comparison
of Triodos Bank and Islami Bank Bangladesh Limited. Islamic Economic
Studies. 130(5377). pp.1-45.
Kumar, R., 2018. Research methodology: A step-by-step guide for beginners. Sage.
Mohajan, H. K., 2018. Qualitative research methodology in social sciences and related
subjects. Journal of Economic Development, Environment and People. 7(1). pp.23-48.
Snyder, H., 2019. Literature review as a research methodology: An overview and
guidelines. Journal of Business Research. 104. pp.333-339.
VanKooten, C., 2019. A research methodology of interdependence through video as
method. Computers and Composition. 54. p.102514.
Zangirolami-Raimundo, J., Echeimberg, J. D. O. and Leone, C., 2018. Research methodology
topics: Cross-sectional studies. Journal of Human Growth and Development. 28(3).
pp.356-360.
Online
Dhaoui, Iyad., 2015. The role of Islamic Microfinance in Poverty Alleviation: Lessons from
Bangladesh Experience. [Online]. Available through: <https://mpra.ub.uni-
muenchen.de/87358/1/MPRA_paper_87358.pdf>.
Inchauste, G. and Olivieri, S., 2021. Understanding Poverty Reduction in Bangladesh. [Online].
Available through: <https://www.jstor.org/stable/26538546?seq=1>.
Khaled, M., 2021. Islamic Microfinance Challenge: A Summary. [Online]. Available through:
<https://www.cgap.org/blog/islamic-microfinance-challenge-summary>.
Nabi, G. and Islam, A., 2017. Islamic Microfinance As a Tool of Financial Inclusion in
Bangladesh. [Online]. Available through:
<https://www.researchgate.net/publication/318361012_Islamic_Microfinance_As_a_Too
l_of_Financial_Inclusion_in_Bangladesh>.
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