Publication:
Calculated and Uncalculated Risks of Financing for Agro Projects

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Abstract

Islamic financing in agriculture is aimed to finance agriculture-based projects and to prevent any involvement of haram elements by using banking and financing instruments which is Shariah-compliant among agro-entrepreneurs. However, there are several calculated and uncalculated risks that had to be faced by agro entrepreneurs in their agro projects which may force them to accommodate possible loss from effect of risks using the same funding. The methodology of this paper is through quantitative research based on questionnaires to identify patterns of agro entrepreneurs facing various types of risks. The general finding of this paper shows that agro-entrepreneurs faced various risks, which also shows there is a need to have proper Shariah -compliant financing for their agro projects through Islamic banks.

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International Conference on Business, Sociology and Applied Sciences (ICBSAS'14) March 26-27, 2014 Kuala Lumpur (Malaysia)

Keywords

Calculated Risks, Uncalculated Risks, Agro Projects, Agro-entrepreneurs, Islamic Financing

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