Equity Capital for Small and Medium‐Sized Enterprises in Malaysia: Venture Capital or Islamic Finance

This article seeks to explore whether there is a role for venture capital in the funding of small and medium‐sized enterprises (SMEs) within a developing economy, where there has not been an established culture of equity‐linked funding. In addition, the links between venture capital and the concepts of Islamic banking are examined. The Malaysian economy is taken as a case study as it allows a discussion of venture capital issues alongside the potential for Islamic finance.