Purpose The primary method for providing interest-free financing to businesses owned by immigrant Muslim entrepreneurs relies on implicit and tacit knowledge. To better understand this, we analyse both formal and informal financing options, the reasons behind entrepreneurs' choices and the influence of religious values on their decision-making. Design/methodology/approach We collected data from Muslim immigrant entrepreneurs in four cities in Scotland and analysed it using descriptive, inferential and partial least squares structural equation modelling statistical techniques. Findings Our research reveals a prevalent dissatisfaction with formal financing, including Islamic finance, among immigrant Muslim entrepreneurs. This dissatisfaction highlights the need for alternative solutions, prompting the development of community-based informal financing options within the Muslim community. Practical implications This study highlights micro-level interest-free financing within the Muslim community, offering alternative solutions for interest-free financial support. Originality/value The primary method for providing interest-free financing to businesses owned by immigrant Muslim entrepreneurs is based on implicit and tacit knowledge. Previous literature has often overlooked how various factors influence these entrepreneurs' financing decisions. This study addresses that gap by empirically investigating the reasons behind their financing choices and how religious values impact their decision-making.
Avdukić et al. (Wed,) studied this question.