This document summarizes an academic paper presented on entrepreneurship as a means to create an Islamic economy. It discusses the current socioeconomic situation of the global Muslim community, noting that most Muslims represent the bottom 20% economically. It advocates for the right type of education that can empower Muslims and "make a difference". The paper also outlines an Islamic model of entrepreneurship that converges Western ethics with Islamic principles such as permissible and prohibited economic activities. It argues that implementing this model can help develop an Islamic economy.
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Entrepreneurship as a means to create islamic economy
1. Entrepreneurship as a means to
create Islamic Economy
Mohd. Murray Hunter
University Malaysia Perlis (Unimap)
Paper presented to the 6th Annual Muslin World Conference,
Chowpraya Park Hotel, Bangkok, Thailand, 22nd May 2013.
2. • Current Global and Regional Situation of
the Ummah
• Not Just Education – the right education
needed to “make a difference”
• The Islamic “entrepreneurship model “
& western ethics converging with Islamic
principles
• Applying and implementing the model to
develop Islamic economy
• Conclusion
9. True Empowerment only comes from
economic development rather than
political means
The Kadazan/Dusun People in Sabah, Borneo
10. December 26 2004
More than
180,000
Indonesians are
killed and over
600,000 listed
as missing and
homeless after a
massive undersea
earthquake off
Sumatra triggers
a series of
tsunami
11. February 21 2005:
A landslide
sweeps through
two West Java
villages near a
garbage dump on
the outskirts
of
Bandung, killin
g 96 people
12. March 28, 2005:
More than 900
people are
killed after a
quake of
magnitude 8.7
hits Nias on the
coast of
northern
Sumatra. Around
500 more are
injured and
2,000 left
homeless
13. July 20, 2005:
Indonesia
confirms its
first deaths
from bird flu.
Tests on a
father and his
two young
daughters, who
lived in
Tangerang on the
outskirts of
Jakarta, show
they contracted
the killer virus
36. The Major Blocks to Development
• The current “psych” of farmers
• Growing rural unemployment
• Unbalanced affluence (town-rural)
The Probable Causes
37. Lack of Ideas
Lack of education and skills
Narrow mindset
Feeling of powerlessness – lack of
access to markets
Lack of resources
Lack of will
38. Economic, social, and spiritual
Poverty is contributing to
ignorance, anti-social behaviour,
Crime, apathy, amorality, and
even terrorism
39. The World is progressing with the
exception of the majority of the
Ummah
46. Diversified Halal Farms
Farmers’ markets
COOP Market
Home Delivery
Gerai Delivery
Restaurant & Hotel Delivery
Many small
suppliers that
are customer
orientated
48. Organic Herbicides
Product Reported Results*
Control O
Round Up
Pro[i]
10
All-Down
Organic[ii]
Range 0.5 – 3.8
[i] Registered Trademark of Monsanto.
[ii] http://alldownherbicide.com/
Before
After
49. Swiftlet Farming
3 Ft
3 Ft
6 Feet
5Feet
9Feet
23Feet
End View
14Feet
8Feet1Ft
9Feet
23Feet
SideView
TopView(Reinforcements)
By developing novel applications of technology
60. Need for an Islamic Model
The nature of man
The amoral society
The underdevelopment of
Islamic societies
61. Al ‘Qu’ran is presented in a business
paradigm and all of Islam’s prophets
were entrepreneurs in their own right.
62. Islam Espouses a Market Economy
“He who brings goods to the market is blessed
with bounty,
he who withholds them is cursed.”
(Ibn Majah & Al Hakim)
63. A Market Mechanism Is Espoused
“Do not chase after those who
are going to the market before
they reach the place.”
(Al-Bukhari & Muslim)
64. Islam also prohibits price manipulation
“Anyone who withholds goods until
the price rises is a sinner.”
(Muslim).
66. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Faith in one God and a commitment in the teachings
revealed by God and His Messengers. Iman affects our
world view and daily practices.
67. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Knowledge. Three sources based on Iman, a) intellect
(‘aql), experiences and revelations (wahy). Guided by
Iman.
68. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Work and deeds, pious practice, orientated to Allah, turning
away from all weakness and evil. Amal is based and guided by
Iman and Ilmu.
69. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
An individual’s obligation to
perform one’s religious duties.
70. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
A collective responsibility for both social and
spiritual development
71. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
A holistic life where one looks after worldly
comforts and also prepare for the hereafter.
72. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
The path shown by Allah (SWT). The divine law.
73. Toyyibaan & Halal
• This day are (all) things good and pure made lawful
unto you. The food of the people of the Book is
lawful unto you and yours is lawful unto them. … If
anyone rejects Faith, fruitless is his work, and in the
Hereafter he will be in the ranks of those who have
lost (all spiritual good).
Al-Ma’idah 5:5
74. • O you people! Eat of what is on earth, lawful
and good; and do not follow the footsteps of
the evil one, for he is to you an avowed
enemy.
Al-Baqarah 2:168
75. • From the land that is clean and good, by the
Will of its Cherisher, springs up
produce, (rich) after its kind; but from the
land that is bad, springs up nothing but that
which is niggardly: thus do we explain the
Signs by various (symbols) to those who are
grateful.
Al-A’raf 7:58
76. • O ye who believe! Eat of the good things that
We have provided for you, and be grateful to
God, if it is Him ye worship.
Al-Baqarah 2:172
77. Haram
(Those things prohibited by
Allah in the Al Qu’ran)
HACCP
GMP
Sustainable
environment, community
& business
Community
Benefit
Toyyibaan
Clean
Healthy
Non-exploitive
Traceable
Supply
Chain
Ethical
78. Haram
(Those things prohibited by
Allah in the Al Qu’ran)
HACCP
GMP
Sustainable
environment, community
& business
Community
Benefit
Toyyibaan
Clean
Healthy
Non-exploitive
Traceable
Supply
Chain
Ethical
Permitted by Allah in the
Al-Qur’an
79. Haram
(Those things prohibited by
Allah in the Al Qu’ran)
HACCP
GMP
Sustainable
environment, community
& business
Community
Benefit
Toyyibaan
Clean
Healthy
Non-exploitive
Traceable
Supply
Chain
Ethical
Prohibited by
Allah in the Al-
Qur’an
80. Haram
(Those things prohibited by
Allah in the Al Qu’ran)
HACCP
GMP
Sustainable
environment, community
& business
Community
Benefit
Toyyibaan
Clean
Healthy
Non-exploitive
Traceable
Supply
Chain
Ethical
Substances and deeds that are good, healthy, pure,
clean and lawful.
81. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
A business partnership;a) Shirkah: where two
or more individuals pool financial resources
and share profit and loss on an agreed ratio
and held liable to the extent of their
capital,b) Syari’ah: each partner is able to
operate other businesses, independent of
the principal businessc)
Mudarabah:Partnership where one manages
the partnership and another supplies the
financial resources.
85. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Recognition of the right and proper place and station,
condition in life and to self discipline in positive and
willing participation in enacting one’s role in
accordance with that recognition and
acknowledgement. Its occurrence in one and society as
a whole reflects the condition of justice.
86. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Trust by God in man in the all encompassing
concept of nature (tabi’ah)
88. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
The concept of Al-Falah requires Muslims
to win and be successful in both this world
and the hereafter.
90. Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
A relationship with
Allah which excludes a relationship with anyone
else.
The focus of all man’s reverence and gratitude,
the only source of value, where what
Allah desires for man becomes value to him.
Man who commits his will to Allah,
recognises no other authority other than His.
Comprises Iman, Ilmu and Amal.
91.
92.
93.
94. •Be proactive as this will develop the ability to control one’s environment,
rather than be controlled by it, as is generally the case.
•Begin tasks with the end result in mind, avoid distractions
and concentrate only on relevant activities,
which will make you much more productive,
•Organise correctly and undertake the most
important tasks first in a step by step approach,
•Look for win-win strategies so that all benefit,
•Listen to people first and understand them before you
try to make them understand you, which will assist in
maintaining positive relationships with people,
•Look to develop synergy between people which will
develop a better outcome, greater than what individuals
can achieve working by themselves, and
•Continually seek self-renewal, spiritually, mentally,
emotionally, socially and physically.
100. Aveda The Body Shop Thursday
Plantation
HPA Malaysia Hain Celestial
Group
Est. Sales USD120million
(1996)[i]
USD619mil (2006)
USD1.5Billion
(2006)[ii]
USD85Million
(2006)[iii]
USD40Mil[iv] USD738Mil[v]
(2006)
Location USA UK Australia Malaysia USA
Established 1978 1976 1976 1999 1926
Products Personal Care Personal Care Personal Care Herbs Organic food
and cosmetics
Basic Philosophy To sustain the
environment and
give back to
communities
Social
humanitarianism
activism on many
issues
Natural tea
tree
products/natur
al medicines
Halal &
Toyyibaan
Free of artificial
ingredients,
Kosher foods
Ethics Yes
Green Yes Yes Yes
Natural Yes Yes Yes Yes
Organic Yes Yes Yes
Community Yes Yes Yes
Cultural
Religious/Spiritual Yes Yes
Mode of Distribution Direct
Marketing/Salon
Retail and e-
Commerce
Direct and
through
distributors
Direct
Marketing
General
distribution
Owner Estée Lauder
Companies Inc.
Loreal Chris Dean &
Family
Private
Ownership
Listed company
102. How to implement
• Community Emphasis
• Development of a sustainable environment &
Ummah
• Social equity
• Enlightened teaching techniques
• mentoring
108. The elements of innovation
Culture Ego
Strategic
Thinking
Innovation
Focus
Creativity
Interpersonal
Interactions
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha
Model of Innovation
Tempera -
ment
Ability
Skills
Learning
110. Positive Negative
Innovate ----------------------------Avoid mistakes
Think long term--------------------Live for today
Spend for the future----------------Spend for today
Work as a group------------------- Work by oneself
Be flexible---------------------------Follow rules and norms
Collaborate--------------------------Compete
Make joint decisions---------------Make your own decisions
Paradigm Change
126. Attribute Small Business Entrepreneurial Business
Risk Risk is to be avoided by undertaking a business
activity that is already proven to be
successful. Therefore business models will
not be novel.
Ideas and opportunities are always risks. Every
village and every person is unique and will
have different ideas that suit them.
Need to Achieve A small business is totally orientated towards a
financial return.
Financial return may not be the prime motivator.
Individuals and groups may want to produce
something they like and have pride in.
Creativity An enterprise will fit into a proven model so not
much creativity is needed.
The enterprise from the first idea may be driven
by many types of creativity, and creativity
itself may be a source of satisfaction.
Flexibility A small business is a business operated through
a disciplined routine in most cases.
Individuals and groups may be looking for
maximum flexibility in an enterprise, so it
can fit in with their life, rather than they
have to fit in with the small business.
Change Small businesses rely on little environmental
change for success.
Change in the environment may suit individuals
and groups as they don’t want to get locked
into routine, and change prototes their
creativity.
Independence Financial independence is the objective. We are already independent and don’t want a
business to lock us into a strict routine.
Foresight A daily, weekly, monthly or seasonal cycle that
is predictable.
We may have to keep coming up with new things
to keep the enterprise going.
Initiative There are very tight resources to have much
initiative.
We rely on initiative to keep going, and all
initiatives are considered.
Control of destiny The future is controlled by sales in the
marketplace.
The future is in our hands of what we want to be.
Commitment Total commitment. I want to be committed on my terms.
Leadership I am the leader and do all tasks. Leadership is defined by tasks.
135. Local University -
Research & Outreach Mosque as a community
centre
Knowledge transfer
Savings
cooperative
Entrepreneurs
Entrepreneurs
supplying raw
materials
Local markets
Local goods
manufacture
Local stores
137. Conclusion
• Enhance the position of the Ummah according
to how the Qu’ran prescribes
• Entrepreneurship education will direct tackle
community problems
• Ummah needs focus and leadership in this
area
• Entrepreneurship education is a most
important priority for the Ummah
138. An-Nur (24:38)
That Allah may reward them according to
the best of their deeds, and add even more
for them out of his grace for Allah does provide
for those whom He will, without measure.
139. Al ‘Anabut (29:7)
Those who believe and work righteous deeds-
from them shall We blot out all evil (that may be)
in them, and We shall reward them according to
the best of their deeds.
140. God does not change the conditions of
a people until they change their inner shelves
Qur’an 13:11