Abstract: Economic development and growth are significantly
linked to the consistent and sustainable sector of small and medium
enterprises (SMEs). Banks are the frontrunners in financing and
advising SMEs. The main objective of the study is to assess the
tendency of SMEs to use the Islamic bank. Model was developed
using quantitative method with a hypothetical-deductive testing
approach. Model (N = 364) used primary data on the tendency of
SMEs to use Islamic banks gathered from questionnaire. It is found
by Mann-Whitney test that the tendency to use Islamic bank varies
between those firms which consider formal financing with the ones
relying on informal financing with the latter tends more to use
Islamic bank. This study can serve academic researchers, policy
makers, and developing countries as a model of SMEs’ desirability to
Islamic banking.
Abstract: The purpose of this paper is to examine the financing
practices of SMEs in Libya in two different phases of business life
cycle: start-up and matured stages. Moreover, SMEs- accessing bank
loan issues is also identified. The study was conducted by taking into
account the aspect of demand. The findings are based on a sample of
76 SMEs in Libya through the adoption of questionnaires. The results
have pinpointed several things- evidently, SMEs use informal
financing sources which prefer personal savings; SME owners are
willing to apply for bank loan, that the most pressing problem has
been identified, not to apply bank loan is loan with interest (religion
factor).