Awareness of Islamic financing among small firms in the Malaysia Industrial Estate Limited (MIEL) Lundang Industrial Area

Small firms often have limited access to information and resources regarding Islamic finance due to a lack of targeted educational initiatives or campaigns. Many small business owners may not have been exposed to Islamic financial principles or instruments, which can lead to a significant knowledge gap (Balushi, Yasmeen Al, et al., 2019). This research examines the awareness and adoption of Islamic financing among small businesses in the MIEL Lundang Industrial Area. Despite the growing awareness of Islamic finance, there is a significant variation in the depth of understanding among business owners. The study explores the factors influencing this awareness, including business owners’ age, professional background, and access to educational resources. Data was collected through interviews to evaluate the perceptions of business owners regarding Islamic finance and to identify key barriers to its adoption. The findings reveal that limited understanding of Islamic finance principles, misconceptions regarding costs and complexity, and unequal access to Islamic financial products pose significant challenges to adoption. Furthermore, the study highlights the need for a more strategic approach to educating business owners, simplifying Islamic financial products, and improving access to qualified experts. The research underscores the importance of a comprehensive approach that integrates education, product innovation, and improved accessibility to enhance the adoption of Islamic financing in the MIEL Lundang Industrial Area. The study aims to contribute to the enhancement of Islamic financing practices and policies for small businesses in the region.