Please follow this abstract when writing the paper.
The purpose of this paper is to examine innovative solutions to unlock Islamic finance and entrepreneurship. In recent years Islamic finance has enjoyed rapid growth, but several challenges remain. Data show significant unmet demand for shariah-compliant financial services, particularly among micro-small and medium-sized enterprises (MSMEs). Due to the higher systematic risk of MSMEs, concentrated interests in real estate, corporate, and government finance come with higher risks. To fill this financing gap, Shariah-compliant products currently offered to MSMEs are mostly leasing and asset resale arrangements, with very little application of profit and loss sharing contracts. This paper will look at innovative solutions uniting Islamic finance and entrepreneurship to unlock the potential of MSEMS. In addition, the emergence of Financial Technology (Fintech) has given the Islamic financial system an impetus to compete on an equal footing with the conventional system and prove itself. This study will examine the role of Islamic finance in recovery post-COVID-19 and how Fintech can be utilized to combat the economic repercussions that resulted from COVID-19. Among several other recommendations in the article were to increase awareness of innovative products and services, including Fintech, Crowdfunding, and adopting cultures of e-commerce. This paper suggests using modern technology to unlock the potential of Islamic finance in contributing to entrepreneurship. The findings of this study have significant implications for policymakers and governments, notably how to effectively apply FinTech and innovative Islamic financial services in an Entrepreneurship setup.
