Designing a Social Banking Model for Developing Micro Enterprises Using a System Dynamics Approach

Document Type : Original Article

Authors

1 Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Department of Management, Se.C., Islamic Azad University, Semnan, Iran

Abstract

This study aims to design a social banking model for the development of micro and home businesses using the system dynamics method, addressing the lack of banking models that guarantee financial interests for both businesses and banks in Iran. The research employs a combination of quantitative (10 years of financial data from Qarz-ol-Hasanah Resalat Bank, 2013-2023) and qualitative (interviews with 15 banking and industry experts) data sources. The system dynamics modeling approach is applied to analyze key variables and relationships in social banking. The results indicate that developing social banking can shift banks away from non-productive investments and business ownership toward financing micro and home businesses. This shift enhances job creation, poverty reduction, sustainable value, and trust in the banking system while strengthening banks through increased public investment. While prior research has examined liquidity issues in manufacturing enterprises, this study uniquely focuses on the role of banks in supporting micro and home businesses through a dynamic social banking model, contributing to both theory and practice in sustainable finance. The proposed social banking model provides a practical framework for banks to reallocate resources from non-productive sectors toward micro and home businesses, fostering job creation, poverty reduction, and sustainable economic growth while enhancing trust in the banking system.

Keywords

Main Subjects

References

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Journal of Data Analytics and Intelligent Decision-making
Volume 1, Issue 2 - Serial Number 1
September 2025
Pages 23-41

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