EFFICIENCY OF SMALL AND MEDIUM- SIZED BUSINESS FINANCING BASED ON MUSHARAKAH: AN ANALYSIS OF OPPORTUNITIES AND RISKS
DOI:
https://doi.org/10.5281/zenodo.22674856Abstract
This article examines the economic efficiency, opportunities, and key risks associated with Musharakah-based financing for small and medium-sized enterprises (SMEs). The study employs comparative analysis, financial modelling, scenario analysis, and risk systematization methods. Musharakah-based financing and conventional bank lending are compared under different profitability scenarios. The results demonstrate that the principal advantage of Musharakah lies not in the absolute cost of financing, but in its capacity to distribute profits and risks between the parties in accordance with business performance. At the same time, information asymmetry, moral hazard, agency problems, and monitoring costs are identified as the main factors that may influence the practical efficiency of Musharakah financing.Keywords
Musharakah, Islamic finance, small and medium-sized enterprises, SMEs, risk sharing, financing, information asymmetry, moral hazard, monitoring, economic efficiencyReferences
Asadov, A., Zayniddinov, R., & Yildirim, R. (2025). Exploring the Drivers of Entrepreneurial Intentions to Adopt Islamic Finance in Uzbekistan. Bilgi Ekonomisi ve Yönetimi Dergisi, 20(1), 29–41. https://doi.org/10.54860/beyder.1605916
Babanazarova, N. (2025). The Analysis of the Problems Connected with the Risk-Sharing Financing Mechanisms. Iqtisodiy taraqqiyot va tahlil.
Hajarabi, H., & Achibane, M. (2024). Mudarabah and Musharakah as a Solution to Financing SMEs: An ARDL Approach. Revue Française d’Economie et de Gestion, 5(2).
Martiana, A., Kassim, S., & Zakariyah, H. (2024). Asymmetric Information Issues in Micro-Business Financing of Baitul Maal wa Tamwil. Jurnal Ekonomi & Keuangan Islam, 10(1), 57–71. https://doi.org/10.20885/JEKI.vol10.iss1.art5
Martiana, A., Kassim, S., Zakariyah, H., & Raihanun, S. (2024). Qualitative Study on the Factors Affecting the Occurrence of Agency Problem in Microenterprise Financing in Baitul Maal wa Tamwil. Journal of Islamic Economic and Business Research, 4(2), 264–281. https://doi.org/10.18196/jiebr.v4i2.323
Mirzayeva, Y., & Mamatova, T. (2025). Islomiy moliya vositalaridan foydalanish tajribasi va amaliy tahlili. Iqtisodiy taraqqiyot va tahlil, (9), 143–148. https://doi.org/10.60078/2992-877X-2025-vol3-
Nazarov, N. N. (2025). Islamic Financing in Uzbekistan: Current Trends, Challenges and Prospects. Journal of Multidisciplinary Sciences and Innovations, 195–199.
Shomansurova, Z., & Abdumannopova, Sh. O. (2026). Structural Dynamics of Islamic Microfinance within Uzbekistan’s Dualistic Financial System. Aktuar moliya va buxgalteriya hisobi ilmiy jurnali, 6(3), 42–47.
Central Bank of the Republic of Uzbekistan. Islamic Financing Services Are Increasing in Volume [Electronic resource]. – Tashkent: Central Bank of the Republic of Uzbekistan, 2 June 2026.
National Statistics Committee of the Republic of Uzbekistan. Official Statistical Data on the Share of Small Business and Private Entrepreneurship in GDP and Employment, 2025–2026 [Electronic resource]. – Tashkent: National Statistics Committee of the Republic of Uzbekistan, 2025–2026.
World Bank. Uzbekistan: Financial Sector Assessment. – Washington, D.C.: World Bank, 2025.
, T. M. (2026). DEVELOPING A SMART AND SUSTAINABLE TOURISM RESOURCE MANAGEMENT MODEL FOR ENHANCING REGIONAL SERVICE SECTOR RESILIENCE: EVIDENCE FROM UZBEKISTAN. ECONOSCITECH INTEGRATION, 3(8), 583–589. https://doi.org/10.5281/zenodo.22295308
Bobobekov, E. A. (2026). GROWTH TRENDS IN ELECTRICITY CONSUMPTION IN UZBEKISTAN AND PROBLEMS OF MODERNIZING THE GRID INFRASTRUCTURE. ECONOSCITECH INTEGRATION, 3(9), 20–23. https://doi.org/10.5281/zenodo.22305619
Улугбеков, С. (2026). ВЛИЯНИЕ ФОРМИРОВАНИЯ КРЕАТИВНЫХ КЛАСТЕРОВ НА РЕГИОНАЛЬНОЕ ЭКОНОМИЧЕСКОЕ РАЗВИТИЕ. ECONOSCITECH INTEGRATION, 3(8), 575–582. https://doi.org/10.5281/zenodo.22269514
Turmanqulov, N. (2026). A COMPREHENSIVE SYSTEM OF CRITERIA FOR ASSESSING THE FACTORS AFFECTING THE EFFECTIVENESS OF INTERNAL AUDIT IN PRIVATE HIGHER EDUCATION INSTITUTIONS. ECONOSCITECH INTEGRATION, 3(8), 190–196. https://doi.org/10.5281/zenodo.21945671
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 ECONOSCITECH INTEGRATION
This work is licensed under a Creative Commons Attribution 4.0 International License.