DETERMINANTS OF DEMAND FOR MICRO TAKAFUL AMONG MICRO-ENTERPRENEURS

Abstract

The purpose of this study is to analyze the effect of knowledge and religious factors in predicting the tendency of micro entrepreneurs towards the use of micro takaful. The effect of knowledge and religious variables on the tendency of using micro takaful are analyzed using multiple linear regression analysis. This study employs a questionnaire instrument involving the participation of 135 micro entrepreneurs in Perak. The findings reveal that only knowledge has a significant positive effect on the tendency to use micro takaful. The implications of the study indicate that policy makers and takaful provider need to design various programs and promotions in order to enhance the level of knowledge, awareness and accessibility of these micro takaful products, thereby enhancing micro takaful participation among micro entrepreneurs especially in Perak.