The Effects of Interest Free Banking on Entrepreneurial Performance in Ethiopia:
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Date
2021-10
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A..A.U
Abstract
Even though, Islamic financing system is very debating and controversy phenomenon,it is expanding continuously beyond Organizations of Islamic Countries. However, there is no empirical evidence that point to the effects of Interest Free Banking on the key economic drivers such as Entrepreneurship, small and medium enterprises particularly in Ethiopia. Hence, this paper examined the effects of Interest Free Banking on entrepreneurial performance in the case of Commercial bank of Ethiopia “CBE NOOR”. The study explores seven independent variables (awareness, flexibility, support, Islamic
bank business ethics, entrepreneurial orientation and competitiveness and the dependent variable is entrepreneurial performance). The research was employed descriptive survey mixed approach and primary data gathered through questionnaire and semi-structured interviewed. Respondents were selected purposive sampling technique from Entrepreneurs who have business relationship with commercial bank of Ethiopia Interest Free Banking dedicated windows and staffs delivering Interest free banking services. There were 150 questionnaires distributed to Entrepreneurs and information gathered from seven Interests free banking service delivering staffs
through semi-structured Interview. Analysis measured by Multinomial logistic
regression and reliability tested by spearman correlation test. The finding statistically shows that awareness, support, entrepreneurial orientation, Islamic business ethics has strong positive relationship between entrepreneurial performance in Ethiopia context.
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Keywords
Interest free bank, Shariah principle, Islamic entrepreneurs, Islamic business ethics