Financial Exclusion and Moral Constraints as a Driver of Entrepreneurial Activities: A Case Study of Muslim Immigrants in Scotland

Khaleel, Fawad; Avdukic, Alija

Abstract

This paper explores the financial structures adopted by Muslim immigrant entrepreneurs in Scotland and the challenges they face in accessing state-driven financial support. The research investigates the effectiveness of different financing models for various groups of Muslim immigrants, considering the impact of religious values and moral concerns on their financial decisions. The study posits that the formal, top-down approach of state-driven financial support clashes with strong religious values, resulting in entrepreneurs seeking morally aligned alternatives in form of informal financing. Examining the context of Muslim immigrants and entrepreneurship, the paper discusses financial integration challenges faced by this group, emphasizing the distinctiveness of Muslim immigrant entrepreneurial activities driven by religious obligations. The paper focuses on the Scottish landscape, lack of opportunities for Muslim immigrants in cities like Aberdeen, Dundee, Edinburgh, and Glasgow, which is contributing to development of entrepreneurs. The financial services available for entrepreneurs in Scotland, including the Scottish Growth Scheme, are discussed, with a focus on their interest-based nature. Through in-depth interviews with 26 Muslim immigrant entrepreneurs in Scotland, the paper delves into the financial sources and challenges faced by these entrepreneurs. The findings reveal a reliance on informal financing sources and a reluctance to engage with conventional banks due to religious prohibitions. The impact of language barriers and the role of networking in accessing funds are also explored.

Citation

Khaleel, F., & Avdukic, A. (in press). Financial Exclusion and Moral Constraints as a Driver of Entrepreneurial Activities: A Case Study of Muslim Immigrants in Scotland. Global Policy,

• Journal Article Type: Article
• Conference Name: International conference on the Financial Environment for Refugees and Immigrant Communities
• Conference Location: Dundee
• Acceptance Date: Dec 5, 2023
• Deposit Date: Dec 5, 2023
• Print ISSN: 1758-5880
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Public URL: http://researchrepository.napier.ac.uk/Output/3404410
• Publisher URL: https://onlinelibrary.wiley.com/journal/17585899