Purpose This study aims to investigate the factors affecting micro, small and medium entrepreneurs’ (MSMEs) behavioural intention to participate in takaful schemes in Sri Lanka. Design/methodology/approach This research adopted a quantitative approach using primary data from a questionnaire. Out of 470 questionnaires, 432 were collected (91.91%) from MSMEs in Kalmunai business region in Sri Lanka. The data obtained were analysed using partial least square-structural equation modelling. Findings This study revealed that the extension model of the theory of planned behaviour (TPB) can be effectively applied to behavioural intentions towards a takaful scheme by MSMEs. Out of eight hypotheses, seven were significant, including: attitude towards behavioural intention; subjective norm; perceived behavioural control; knowledge; religiosity; income; trust in takaful as a significant influence. However, awareness of intention was not found to be significant. Practical implications This study suggests advantages for takaful providers in Sri Lanka, especially marketing departments, for enhancing sale of products, refurbishing marketing strategies and understanding the purchasing motivation of business entrepreneurs. This study guides takaful companies as to where they should concentrate to enhance market penetration. Originality/value Previous studies have concentrated on only three factors which comprise TPB. This paper’s main contribution is on the uniqueness of the Muslim minority context in a pluralistic context, providing a marketing model for takaful operators based on the different relevant dimensions.

Purpose Takaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is to examine the factors that influence the behavioural intention of micro, small and medium-sized enterprises (MSMEs) entrepreneurs to participate in takaful in Sri Lanka. Design/methodology/approach This study is designed quantitatively with deductive approach using the theory of planned behaviour. A total of 432 MSMEs in Sri Lanka were surveyed using convenience sampling to measure the intention to participate in takaful as a risk mitigation. The collected data were analysed through partial least square-structural equational modelling. Findings Attitude, subjective norm and perceived behavioural control variables positively influenced the intention, with t-values of 3.216, 3.813 and 3.859, respectively. The influence of these variables exhibits not much difference. Research limitations/implications This study only focuses on MSMEs and a general takaful scheme. Future researchers may consider family takaful involvement among Sri Lankan business entrepreneurs. Practical implications Takaful practitioners should gain from the entrepreneurs’ intention to participate in takaful. Findings from this study could help marketing managers to revamp their strategies to further attract the entrepreneurs and make them to understand risk they are facing and, subsequently, participate in the takaful scheme. Originality/value This paper focuses on the context of Muslim minority among pluralism, where there is no regulation for Islamic financial products and services, and under the Islamic financial market crisis. This unleashes how business owners feel about takaful system on different dimensions.

Social security is a crucial part in human life, which is consisted pre-arrangements against risky life. Takaful is an essential approach which provides confidence and ethical guidlines in protecting assets. Takaful, is considering Shari’ah principles, also applies the same principles of insurance for its operation even though insurance consists of some prohibited elements in Islam. The objectives of this study are to analyse the governing principles of insurance and takaful and explain how Islam focuses on these principles and ethical aspects in takaful operation from Shariah perspective. The study is designed as documentary research which provides conceptual and theoretical knowledge, and it uses secondary sources such as journal articles, books, reports, as well as main sources of Islamic law. Findings of the study are that principles that are applied in takaful comply with shariah. Similarly, Shari’ah usually does not prohibit general guidelines which are created even in conventional institutions; however, it strictly prohibits the elements which are nocuous to the community. The advantage of takaful is making confidence and truth under religion, which is to be applied in transactions, social life to be free from fear, privation, and poverty. This research supports to takaful researchers and operators to be educated strongly on principles with shariah views and takaful’s importance.