Islamic finance: formation features and its possibility of financing small and medium enterprises

Abstract

The theme of the article is due to the need to consider the current state, as well as the
prospects for the development of small and medium businesses. The purpose of the study is a comprehensive,
reliable study of small and medium-sized businesses (SMEs), as one of the most important segments of
the economy, which ensures economic, social and political stability in the country, as well as obtaining
and putting into practice the recommendations of results and conclusions. The choice of the direction of
scientific research is associated with the leading role of small and medium-sized businesses in the transition
to an innovative-oriented economy. The study used the method of analysis, synthesis, observation and
collection of factual information that allowed studying the possibilities of Islamic finance both in parts
(analysis) and in general (synthesis).
The article discusses the possibilities of Islamic financing and the formation of small and mediumsized enterprises, which depend primarily on the macroeconomic situation in the country. It is obvious that
access to sources of financing is the main problem of the sector of small and medium businesses, especially
in the territory of Muslim countries. Small and medium enterprises either do not use traditional financing
options, or use limited funding, guided by religious considerations and feelings. The study of all the above
factors affecting SMEs formed the basis of this article. The results summed up in the work have practical
significance, and the study conducted revealed the main possibilities of Islamic finance in financing small
and medium-sized enterprises.