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Islamic Entrepreneurship Model

Islamic Entrepreneurship Model. Islam Propagates (Business Venture). Allah Prepared (Facilities). EXAMPLE. EXAMPLE. Islam Provides (Guidelines & Procedures). Allah Promised (Rewards). Department of Sharia Entrepreneurship JMME Faculty of Economics and Business Gadjah Mada University.

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Islamic Entrepreneurship Model

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  1. Islamic Entrepreneurship Model Islam Propagates (Business Venture) Allah Prepared (Facilities) EXAMPLE EXAMPLE Islam Provides (Guidelines & Procedures) Allah Promised (Rewards) Department of Sharia Entrepreneurship JMME Faculty of Economics and Business GadjahMada University

  2. Pendahuluan • Dengankesadarandankeinsyafanyangsepenuh-penuhnya, bahwatiap-tiap manusiaterhinggapiolehsalahdankelirukurang dancela, maka kami mengharapkankepadasekalianpenggunayangarif-budiman. Jikatampakadakekeliruan ataukesalahan di dalamwadahini, sudi kiranya dengan segera “lillah” suka menyampaikannya kepadakamidenganketerangandanpeneranganyangcukup, kuat dansah. • Harapandandoadaripadakami, mudah-mudahantanda-baktikami kepadaAllah AzzawaDjalla” yangberupa wadahkeilmuansekecilini, dapatlahmenjadibantuan tambahannya ‘Ilmudan ‘amalsalihyangsempurna. • Aamiin

  3. Definition of an Entrepreneur • “An entrepreneur is a person who undertakes to do a job”. The term entrepreneur originated from a French word “entreprendre” was first coined by Richard Cantillon (1755). • In Indonesia, the term “wiraswasta” is used to mean entrepreneur. • Entrepreneurship involves not only the process that leads to the setting-up of a business entity but also the expansion and development of an going concern. • The study of entrepreneurship is concerned with the entrepreneurial behavior, the dynamics of business set-up and expansion or development of an entrepreneurial organization.

  4. Islamic Entrepreneurship • Discussion on Islamic entrepreneurship is based on the following main topics: • Integration • Human nature • Motivation • Islamic business and entrepreneurs • Islamic economic system • Guidelines • Exemplary conducts

  5. The Concept of Integration • Islam is a complete way of life. There is no separation between business and religion. • Islamic entrepreneurship is part of the way of life. • Muslims are encouraged to get involve in business activities. (9/10 rezekiadalahdalamperniagaan – HadisNabi)

  6. Human Nature • It is part of human nature to follow the teachings of their religion. • In Islam, Muslims are required to fulfil two important duties, “ibadah” and “khalifah”. • In Islamic entrepreneurship, Muslims are able to perform both duties. • Maximizing profit is not the ultimate aim of Muslim entrepreneurs. • “Islamic Man” versus “Economic Man”

  7. Motivation • Following the sunnah of ambiya and the companion of Rasulullah saw. • Islamic entrepreneurship leads to the path of success both in this world and the hereafter. • Success in Islam is not measured by the end result but also the means and ways of achieving them.

  8. Possession of Wealth • In Islam, possession of wealth is allowed based on the following principles: • Allah s.w.t. is the absolute owner of wealth • Allah s.w.t. has created wealth in abundance (melimpahruah) and sufficient (mencukupi) for all • Allah s.w.t. has created wealth for mankind • Wealth is entrusted to mankind

  9. Entrepreneurship as Ibadah • Muslim entrepreneurs involvement in business is to fulfill an obligation known as “fardhukifayah” • Fardhukifayah~ Unless and until there is an entrepreneur in a community, the entire community is deemed to be sinful. • Muslim entrepreneurs bear the responsibility to provide goods and services primarily to the Muslim community and to others

  10. Islamic Economic System • Islamic entrepreneurship is part of the framework of the Islamic Economic System. • Islamic economic system involves: • Islamic banking • Islamic insurance (takaful) • Islamic capital markets • Islamic economic system is based on Islamic jurisprudence.

  11. Guidelines and Procedures • Islam has provided an extensive guidelines for Islamic entrepreneurship activities. • Among others: • The principle of buying and selling • The permissible types of business • The principle of “zakat” in business • Business ethics

  12. Entrepreneurial Ethics • Prevent laziness • Eradicate fear/shyness • Search for legitimate ventures • Avoid unlawful sources of income • Show gratitude and thankfulness • Grow and develop wealth • Diversify business ventures • Avoid greediness

  13. Entrepreneurial Ethics • Avoid malicious behavior • Avoid squandering (Hindari membazir) • Avoid stinginess • Pay zakat and alms (sedekah) • Be trustworthy • Pray consistently • Tawakkal • Patience • Qanaah

  14. Recommended Read • Forbes • Bisnis Indonesia • The Edge • Financial Times

  15. Recommended Movie • The Apprentice • http://www.nbc.com/the-apprentice/ • The Firm • http://www.ntv7.com.my/thefirm/ Scr : Wan Nurhamizah Wan Zakaria, Theories & Concepts of Entrepreneurship

  16. Continue… • http://islamic.economicscholar.com

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