Towards developing an integrated cash-waqf microenterprise support for refugees model to enhance their livelihood and self-reliance

Abstract

The plight of refugees forms an important focus of current international discourse. The solutions proposed by UNHCR to address the unfortunate circumstances of refugees have been proven ineffective, insufficient and inaccessible for the majority of refugees. The alternative solution of economic engaging refugees is also beyond the reach for the vast majority of refugees. Cash waqf has gained a great deal of interest among academics and practitioners in the field of socio-economic development. This increasing interest in cash waqf is due to its various advantages in resource mobilisation. This research has developed an Integrated Cash Waqf Micro Enterprise Support for Refugees (CWMES-R) Model to address challenges of supporting microenterprises for refugees. In addition to the proposed training and marketing assistance, the model has incorporated interest free modes of financing to comply with the religious beliefs of Muslim refugees. This study has used the mixed-method approach (interview and survey) to answer the research questions. Accordingly, six experts from humanitarian and relief NGOs have been interviewed, and over 400 refugees from the refugee camps in Turkey have been surveyed. The results of the interviews were consistent with the main challenges of supporting microenterprises (MEs) among refugees. Some minor challenges have also been raised by the experts including the lack of access to markets, the uncertainty associated with being displaced, language barrier, lack of experienced institutions, lack of human capital and the high credit risk related to micro-financing projects. The CWMES-R Model has received positive feedback from the interviewed experts as a potential model to assist in addressing the key challenges, particular by providing an affordable interest free financing and marketing assistance. Similar acceptability is found in the survey findings as reflected in the high score of attitude towards the proposed model and intention of the refugees to participate and support the model; both scored four out of five. Additionally, the survey showed the untapped potential of refugee micro-entrepreneurs and their willingness to engage in microenterprises. In regard to the theory of planned behaviour (TPB) that has been used to anticipate the intentional behaviour of refugees to participate and support the CWMES-R Model, the survey has shown a significant and positive relationship between the refugees’ attitude towards the CWMES-R Model and their behavioural intention to interact and participate. Likewise the findings of the survey have shown a similar positive relationship between the refugees (perceived control (PC)) ability to participate in CWMES-R Model and their behavioural intention to interact and participate. However, the results of this survey have failed to support the third hypothesis concerning the relationship between subjective norms of refugees and their behavioural intention to participate in the CWMES-R Model which suggests that unlike populations in normal situations, refugees give little concern to social pressure groups including family members, relatives, friends, neighbours and co-workers. This finding could be attributed to the special situation of refugees, particularly in refugee camps.