The impact of access to financing awareness and affordability on Ar Rahnu financial selection: a study of micro-entrepreneurs in Klang Valley

This study investigates the role of Ar Rahnu, an Islamic pawn-broking service, based on the previous studies' issues in transparent transaction and low-cost short-term cash borrowing scheme is much preferred by the pawning customers. Besides that, the cost of borrowing analysis in enhancing financial access and selection among micro-entrepreneurs in the Klang Valley region of Malaysia. The research aims to fill gaps in existing literature regarding the contributions of lslamic financial products to the financial services landscape for small business owners. Utilizing a quantitative research design, the study employs structured questionnaires to gather data from a sample of 200 micro-entrepreneurs, focusing on their awareness, accessibility, and affordability of Ar Rahnu services. The findings reveal that Ar Rahnu significantly influences financial selection, providing essential support to micro-entrepreneurs in navigating financial challenges. The study highlights the importance of understanding the dynamics of Islamic finance in fostering economic empowerment and offers insights into the operationalization of financial services tailored to the needs of micro-entrepreneurs. Ultimately, this research contributes to the broader discourse on financial selection and the effectiveness of Islamic financial instruments in promoting entrepreneurship.