Micro and small enterprises in the majority of Muslim countries are by and large excluded from the formal financial services industry because:

Question

Quizplus · Accepted Answer

Micro and small enterprises in many Muslim countries face exclusion from formal financial services for multiple reasons. These include not qualifying for financing from traditional sources due to their size and risk profile (A), religious beliefs that discourage or prohibit interest-bearing loans in adherence to Islamic finance principles (B), and banks' preference for lending to larger, more established businesses due to perceived lower risks and higher profitability (C).

Micro and Small Enterprises in the Majority of Muslim Countries