DETERMINANTS OF ATTITUDE TOWARD INTEREST-FREE BANKING AMONG SMALL AND MEDIUM BUSINESS OWNERS IN WERABE TOWN

ABSTRACT The purpose of the study is to examine the determinants of Attitude toward interest-free Banking among small and medium enterprise owners in werabe town by emphasizing the implementing IFB service in fully fledge banks in Werabe Town. The researcher was used both descriptive and explanatory research designs and also mixed types of research approaches. The study used primary and secondary data, the primary data was collected through a semi-structured questionnaire having the Likert Scale using a standardized questionnaire, while secondary data was collected from reports, directives, and working documents. In this study, two sampling technique are employed such as stratified random sampling for selection SMEs from various sectors and also purposive sampling for the selection of the final respondents. To meet the goal, data for this study was collected by distributing questionnaires to 316 respondents of SMEs in Werabe town from these 310 questionnaires were collected. Descriptive analysis was conducted by using percentage, frequencies, mean, standard deviation, and inferential statistics conducted by MLR through using SPSS software version 24, and questionnaire's reliability was estimated by calculating Cronbach’s Alpha. The findings of the study revealed that all By investigating factors such as awareness and knowledge, usage of interest-free banking products, socioeconomic and demographic characteristics, firm-specific factors, religious influences, and trust in the degree of Sharia compliance, The results would be useful for interest free banking sector in strategically addresses the demand of Interest Free Banking products and services on the target market. In addition, the concerned policy makers, regulators and other concerned stakeholders shall contribute for the growth of sector aiming towards promoting the enhancement of the market share of Interest Free Banking.