THE ROLE OF ISLAMIC BANKING SERVICES IN PROMOTING SMALL SCALE ENTREPRISES IN KANO STATE (A CASE STUDY OF JAIZ BANK PLC, KANO)

ABSTRACT This study is aimed at assessing the role of Islamic banking services in promoting the activities of small scale enterprises in Nigeria. Islamic Banking is a system that works or functions according to al Qur’an and Sunnah, which gives or provides benefits to both Muslims and non-Muslims. Data was collected from primary and secondary source, also questionnaire was administered and distributed among the respondent which was analyzed. From the data collected, results showed that: Islamic banks services contribute significantly to development of small scale industries entrepreneurs in Kano state. If small scale entrepreneurs in Kano state can be educated about Islamic banking products, it may solve their business financing needs. Religious beliefs of the people of Kano State encourage them to patronize Islamic banking services because of the perceived benefits and compliance to ethical considerations. Amongst several recommendations were the following: The research recommends that existing providers of Islamic banks (full pledged and windows) should enlighten the entrepreneur more about their operations and the benefits it has compared to conventional banks. As full pledged Islamic bank in Nigeria is only one for now having only three branches it is recommended that more banks should upon a window (unit) that will be providing Islamic financing as is obtainable in Nigeria. .