Impact assessment of Islamic microfinance on small and medium-sized enterprises in Mogadishu, Somalia

Small and medium-sized enterprises (SMEs) play an increasingly vital role in the economic advancement of nations. Nonetheless, these often face challenges accessing formal external funding channels. The emergence Islamic microfinance presents a potential solution to alleviate financial constraints confronting SMEs. Given primary mission institutions (MFIs) uplift socio-economic status underprivileged, it becomes imperative scrutinize their influence on SME growth. This study aims ascertain effects SMEs Mogadishu, Somalia. Employing systematic random sampling method, carefully selected sample 100 was determined. A structured survey framework developed collect data, data analysis conducted using Statistical Packages for Social Sciences (SPSS). reveals that micro-savings significantly contribute augmentation, with comparatively limited impact from micro-insurance. While many benefit microfinance, there is shortfall attainment required among beneficiaries. research sheds light concerns related borrower defaults, pre-financing screening deficiencies, resource inadequacy, absence governmental donor support institutions. implications extend future opportunities, emphasizing need stakeholder efforts streamline financing acquisition MFIs by relaxing collateral requirements borrowers.