A Critical Exploration of Business Finance Options in Bangladesh: Strategic Use of Islamic Finance Instruments for Higher Financial Inclusion

Purpose ‒ The aim of the study is to explore available business finance options in Bangladesh and primary challenges toward inclusion and to come up with strategic solution using Islamic finance instruments.
Design/Methodology/Approach ‒ The paper used sequential mixed method approach with multiphase design framework for the research.
Findings ‒ The research found pattern for supporting established and large businesses rather than new entrants. It also empirically proves Islamic finance’s relation toward higher inclusion and its growing acceptance in BD market, and based on the findings it proposes a conceptual model that can be implemented to streamline financing for higher financial inclusion in the country.
Originality/Value ‒ The study promotes the idea that like large conglomerates and corporations, CMSMEs and young entrepreneurs should have easy and affordable access to finance for pursuing their goals and dreams. The business finance landscape along with their features, the empirical evidence (produced from credible Grey Literatures) and the proposed model can be used by the public regulatory bodies or by private entities for solving the missing-middle situation.
Practical Implications ‒ First the paper summarizes the business financing landscape, their key features and primary challenges. Second, it empirically proves the effectivity of Islamic finance for driving higher financial inclusion. Finally, the proposed evidence-based model can be used to solve business financing issues prevalent (specially for the CMSMEs) in the country.

Business Finance Options, Financial Inclusion, Challenges of Business Finance, Islamic Finance, Islamic Venture Capital

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