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Entrepreneurship in Islam By: Mohd Shukor Harun
Theory of profit• Islam prohibits interest but allows profit. It promotes trade as an occupation and regards profit as a bounty from God. Mainstream economics too revolves around the notion of profit. Price theory the core of economics cannot stand firm without the assumption of profit maximization. In the practical affairs of trade, industry and commerce no concept is more pivotal than profit. Yet profit has remained one of the most neglected subjects in economic theory.
ISLAMIC ENTREPRENEURSHIP FOCUS ON EIGHT PRINCIPLES OF THOUGHTS :1.Entrepreneurship is an integral parts of Islamic religion.2.By virtue of human nature , the Moslem entrepreneurs are ‘khalifah’ and have the reponsibilities develop prosperity and sees business as part of ibadah or good deed.3.Motivation – success in Islam is not merely measured by the end result but also the way and means of achieving them.4.Ibadah – business activity is part of ibadah or “good deed”
5. Position of Entrepreneurship and business in Islam – Islam encouraged its ummah to venture into business . Prophet Muhammad S.A.W expounded that 9 out 10 source of rizque (reski) can be found in business.6. Islamic Economic System - Islamic Entrepreneurship should operate within the domain of Islamic Economic system and act as the vehicle towards global acceptance of Islamic Economic System.
7. Guiding Principles of Islamic Entrepreneurship is by the al-Quran and al-Hadith8. Entrepreneurial Ethics based on exemplary conducts of Prophet Muhammad S.A.W
MUSLIM ENTREPRENEURSHIP ETHICS To prevent laziness To eradicate fear To search for legitimate ventures To avoid forbidden sources of income and property To show gratitude and thankfulness ofwhatever has been acquired To grow and develop capital and profit To diversify business ventures To avoid greediness
SUCCESS FORMULA BY AL-QURTUBI• Halal – livelihood that are in accordance to what is being outlined by Allah SWT and syariah.• Qanaah – be pleased and thankful with one’s earning• Taufiq - Asking for the blessing of Allah in proportion to one’s expectation• Sa’adah- Spiritual happiness• Jannah – Worldly success should act as the bridge to the ultimate success in the life hereafter (paradise).
IBADAHIn Islam, involving in business is part of ibadah through the fulfilment of fardhu kifayah.
ISLAMIC ENTREPRENEURSHIP MODEL Islam Proposed (Business Venture) EE XX A Allah PreparedA MM (Facilities) PP LL Islam Outlined EE (Rules and Regulation) Allah Promised (Reward)
Assignment for next meeting:1) What does it means by Islamic entrepreneurship?2) Does it necessary for Muslim to open a business and become an entrepreneur for today business situation?3) What is the best solution to encourage Muslims to become a successful entrepreneur? What characteristics does they should have?* Please submit before 17 October 2011.