IEF 411 - Islamic Microfinance & SME's

This class is designed to provide students with fundamental knowledge on Microfinance and Small and Medium Enterprises (SME’s). The goal is to illustrate the Islamic perspective on the subject and the Islamic practice of Microfinance. The plan is to present the two main dimensions of interest-free microfinance, interest-free microfinance for the poor and interest-free microfinance for SMEs. Furthermore, we will cover topics that include determinants of SME development, the drivers and constraints of development, and SME credit risk. We will also cover venture capital as mechanisms of financing as well as crowdfunding. The class will also discuss the Islamic SME development and venture capital as a fundamental topics in this class. 

Week 1:

• Introduction to class
• Book overview
  • Please read the forward, preface, and skim the book for general knowledge
  • Mohammed Obaidullah, “Introduction to Islamic Microfinance,” (2008),  https://www.researchgate.net/publication/228201195_Introduction_to_Islamic_Microfinance
• Students are instructed to select microfinance institutions

Week 2:

• Chapter 1: Microfinance & Poverty Alleviation
  • Mohammed Obaidullah, “Introduction to Islamic Microfinance,” (2008),  https://www.researchgate.net/publication/228201195_Introduction_to_Islamic_Microfinance
• Students select a microfinance institution and give a brief in class

Week 3:

• Chapter 2: An Islamic Aproach to poverty Alleviation  
• Chapter 3: Charity-Based and Not-For-Profit Modules
  • Mohammed Obaidullah, “Introduction to Islamic Microfinance,” (2008),  https://www.researchgate.net/publication/228201195_Introduction_to_Islamic_Microfinance
• Student assignment (present a summary of one of the Islamic Microfinance institutions in one of the Muslim countries – end of CHAPTER 4)

Week 4:

• Chapter 3: Charity-Based and Not-For-Profit Modules
• Chapter 4: Market-Based and For-Profit Modes
  • Mohammed Obaidullah, “Introduction to Islamic Microfinance,” (2008),  https://www.researchgate.net/publication/228201195_Introduction_to_Islamic_Microfinance

Week 5:

• Chapter 2: An Introduction to the Small Business Sector
  • Mansoor Durrani and Grahame Boocock, (2006) Book on: “Venture Capital”
• Determinants of SME Development (PG 2-12) 
  • Mace Abdullah (N.A) “Small and medium Sized Enterprises (SME) Development, Constraints, Credit Risk and Islamic Banking Solutions” (Ph.D. Thesis) INCEIF.

Week 6:

• Chapter 3: Barriers to Growth in SME’s
  • Mansoor Durrani and Grahame Boocock, (2006) Book on: “Venture Capital” 
• Drivers of SME Development (PG 12-27)
  • Mace Abdullah (N.A) “Small and medium Sized Enterprises (SME) Development, Constraints, Credit Risk and Islamic Banking Solutions” (Ph.D. Thesis) INCEIF.

Week 7:

• Constraints of SME Development (PG 27-33)
  • Mace Abdullah (N.A) “Small and medium Sized Enterprises (SME) Development, Constraints, Credit Risk and Islamic Banking Solutions” (Ph.D. Thesis) INCEIF.
• SME Credit Risk (PG 33-40)
  • Mace Abdullah (N.A) “Small and medium Sized Enterprises (SME) Development, Constraints, Credit Risk and Islamic Banking Solutions” (Ph.D. Thesis) INCEIF.
• Guest lecturer, (to be announced)
• Review for the Midterm Exam

Week 8:

• Midterm Exam

Week 9: 

• Chapter 4: An introduction to venture capital
  • Mansoor Durrani and Grahame Boocock, (2006) Book on: “Venture Capital” 
• Chapter 5: Venture Capital: Theoretical Foundations for Research
  • Mansoor Durrani and Grahame Boocock, (2006) Book on: “Venture Capital” 
• Guest lecturer (to be announced)

Week 10:

• Continue from previous week
• Chapter 9: Business Ethics and Venture Capital in Islam.
  • Mansoor Durrani and Grahame Boocock, (2006) Book on: “Venture Capital” 
• Islamic Finance and SME Development (PG40-62)
  • Mace Abdullah (N.A) “Small and medium Sized Enterprises (SME) Development, Constraints, Credit Risk and Islamic Banking Solutions” (Ph.D. Thesis) INCEIF.

Week 11:

• Real examples of Islamic microfinance and Venture capital
• Guest lecturer 2 (to be announced)

Week 12:

• Chapter 4 Book: Financial Inclusion and Poverty Alleviation: Perspectives from Islamic Institutions and Instruments (2017)
  • (Financial Inclusion and Poverty Alleviation in Muslim-majority Countries: The Role of Islamic Finance and Qard Hassan - Amin Mohseni-Cheraghlou)

Week 13:

• Chapter 17 Book: RF IB&F (RF approach to handling troubled and nonperforming credits (loans)) (PG463)
  • Examples of how Islamic banks handle troubled borrowers
• Example of SME microfinance in Turkey / other countries
  • Student Presentations

Week 14:

• Example of SME microfinance in Turkey / other countries
  • Student Presentations
• Revision for the final

Week 15:

• Final exam