In this research, we present a framework for blended Islamic finance for impactful small and medium enterprises (SMEs) to achieve sustainable development goals (SDGs). The blend results from discussing the pertinent perspectives that underlie the motives of philanthropy, private sector activities and public sector facilitation. The consensus of these three stakeholders on the impact criteria is an essential precondition for the blend to happen. Therefore, we first developed the consensus-based impact criteria for SMEs, namely, 4Zeros & SS (zero-waste, zero-emissions, zero-interest, zero-foreclosures and service to society). After that, we adopted a financial engineering approach to design products by blending the three motives. Financial contracts could be incentive compatible and effective if these three motivations are recognized and brought together. The purpose of our research is to offer such incentive-compatible structures that can mobilize funding for impactful SMEs, save cost as well as generate revenue for self-sustainability. In the contract design, the private sector provides finance, the philanthropist pays the costs of funds, the public sector facilitates, and the impactful SME gets subsidized financing. Since the blended nature of the contract provides a social subsidy to fund the cost element of the financing, the proposed structure creates a win–win result for the blending parties. While financial institutions expand into the SMEs sector for profitability, blended Islamic finance will attract additional resources toward enhancing development impact. Through the philanthropic component, SMEs, on the other hand, will access the source of social subsidy that will relieve the burden of the exorbitant commercial rates. The funding structure will reduce risk perception and spur growth. Consequently, this collaborative and innovative contract design will contribute to achieving multidimensional human development, as enshrined in the Maqasid al-Shariah, and the SDGs. Impactful businesses must integrate environmental, social and governance best practices as well as national development goals. Hence, the proposal offers several benefits and prospects of extended use for other consensus-based purposes such as low-cost housing, solar panelling, health, education, etc.

中文翻译：

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循环经济的伊斯兰混合金融有影响力的中小企业实现可持续发展目标

在这项研究中，我们为有影响力的中小企业 (SME) 提出了一个混合伊斯兰金融框架，以实现可持续发展目标 (SDG)。混合的结果是讨论了慈善、私营部门活动和公共部门便利化动机的相关观点。这三个利益相关者就影响标准达成共识是实现混合的必要前提。因此，我们首先制定了基于共识的中小企业影响标准，即 4Zeros & SS（零浪费、零排放、零利息、零止赎和服务社会）。之后，我们采用金融工程的方法，通过融合三种动机来设计产品。如果这三个动机被识别并结合在一起，金融合同可以是激励兼容和有效的。我们研究的目的是提供这种激励兼容的结构，可以为有影响力的中小企业筹集资金，节省成本并为自我可持续发展创造收入。在合同设计中，私营部门提供资金，慈善家支付资金成本，公共部门提供便利，有影响力的中小企业获得补贴融资。由于合同的混合性质为融资成本要素提供了社会补贴，拟议的结构为混合各方创造了双赢的结果。虽然金融机构为了盈利而向中小企业领域扩张，但混合伊斯兰金融将吸引更多资源来增强发展影响。另一方面，通过慈善活动，中小企业将获得社会补贴的来源，从而减轻高昂的商业费率的负担。融资结构将降低风险认知并刺激增长。因此，这种协作和创新的合同设计将有助于实现多维人类发展，正如《公约》所载伊斯兰教法，以及可持续发展目标。有影响力的企业必须整合环境、社会和治理最佳实践以及国家发展目标。因此，该提案为其他基于共识的目的（如低成本住房、太阳能电池板、健康、教育等）提供了一些好处和扩展使用的前景。