This document discusses Islamic entrepreneurship and proposes a model for measuring it. It notes that current quality management models from Western perspectives lack religio-spiritual elements. The author proposes adding the five pillars of Islam (faith, prayer, charity, fasting, pilgrimage) to measurement indicators to create an Islamic entrepreneurship model. A new model is presented that integrates religio-spiritual traits like fear of Allah with Deming's quality improvement principles to establish Islamic entrepreneurship as continuous quality improvement guided by pillars of Islam.

1. Fahrul Riza
Universitas Bunda Mulia
Jakarta

2.  Unethical Entrepreneur  Unethical Business
Practice Environmental damage & Harmful
product and service to consumer  Halal or
haram?
 Sustainability to our next generation?
 Islamic entrepreneurship as a solution
 Muslim entrepreneurs ≠ Islamic Entrepreneurship
 As the largest Muslim country, is a blessing for
Indonesia where the majority of the population
and the government is embraced Islam.

3.  Indicator for measure Islamic
entrepreneurship still vague
 Develop a concept to measure the degree of
Islamic Entrepreneurship from the quality
management perspective and five pillars of
Islam.
 Proposed an alternative model of Islamic
entrepreneurship from Hoque et al. (2014) as
well suggest it’s measurement indicators.

4.  Desciptive study
 Secondary material (library research)

5.  Entrepreneurship development model is a series
of activities starting from compiling inputs,
transformation processing, generating outputs
and reaching the goals, where such activities
should be supported by Governments and Non
Governments Organization (Chowdhury, 2008).
 Islamic Entrepreneur: Muslims that doing
business are required to run the business in
accordance with the guidance in the Qur'an and
Sunnah
 Profit making is not the utmost goal of business
(such as part of worship to Allah the Almighty,
social welfare, creating jobs and support a
national programme are the motivating forces of
such entrepreneurship)

6.  Entrepreneurship from Western Perpectives
 Entrepreneurship from Islamic Perpectives

7.  Drucker (1985: 28) define the entrepreneur as people who
always search for change and respond to it and regard it
as opportunity.
 Brener (1987: 6) entrepreneur is person who has unique
ideas and bet on those ideas by tries to implement them.
 McClelland (1976: 65) defined entrepreneur as someone
who have control over the production and he produces a
products more than he need in order to get income from
sell them to others
 Entrepreneurship as the skills and innovativeness owned
by people, which those things utilized for manufacture and
market products or services for achieving their objectives
(Chowdhury, 2008)

8.  Business objectives based on human desires
 Business ethics is seen as rules that should
be met
 violation of business ethics will get social
sanction

9.  Process of starting a business to produce goods
or services which are halal as a major concern
and gaining a profit on the basis of an
agreement between producers and consumers.
 Ensure for halal status across the value chain
 Activities which fail to ensure consumer rights,
social responsibilities, ethical values and healthy
business practices are prohibited to carries
(Hoque et al 2014).

10. KNOWLEDGE INITIATIVES RISK TAKING
CUSTOMER
ORIENTATION
EMPLOYEE
INVOLVEMENT
STRATEGIC THINKING
EXCELLENCEINOVATIVENENSS HARD WORKING
OPTIMISMVISIONPATIENCE
SOCIAL WELLFARE
HONESTY AND
TRUTHFULNESS
HALAL EARING
FEAR OF ALLAHECONOMICALLYMORALITY

11. PREPATORY AND
AWARENESS
DEVELOPING
SUPPORTIVE AND
MOTIVATION
ISLAMIC
ENTREPRENEURSHI
P
FEED BACK

12.  The concept suggested by Hoque et al. (2014) inclined at
macro level.
 Many activities have to be developed thoughtfully and
delicately to prepare the Islamic entrepreneurs. (education
in all levels (schools, colleges, universities and madrasas)
so that every single student can acquire sufficient traits
(knowledge, skills, honesty and values, etc.) to establish,
operate and manage business enterprise efficiently and
effectively from Islamic perspectives.
 That process must be done through a continuous and
rigorous process. This model adapted Plan-Do-Check-Act
which is part of the Total Quality Management (Heizer and
Render, 2009)

13.  Total Quality Management (TQM) is one of an
important management concept used in the value
chain TQM is a set of activities aimed at
achieving customer satisfaction, commitment
among employees, revenue growth and cost
reductions (Walaz, 2010, p. 148).
 Comprehensive quality requires delegating
responsibility to the lowest level of the
organization, or involving all employees of the
enterprise.

14.  TQM is to follow some set of rules that relate to,
inter alia: enterprise orientation on results,
customer orientation, leadership, process
management, development and commitment of
human resources, continuous learning,
innovation and improvement to maximize the
performance of an organization, development of
partnership, system approach to management,
decision-making based on facts,mutually
beneficial relationships with suppliers, bearing
social responsibility, etc. (Walaz, 2015).

15.  W. Edwards Deming used 14 points to
indicate how TQM concept is applied. These
points are then developed into seven effective
TQM concept: six sigma, employee
involvement, benchmarking, just-in time,
taguchi and TQM tools (Heizer and Render,
2009).

16. Vision Establish consistent goal
Initiatives, inovativeness Lead to make change
Excellence, Economical Building superior product quality,
reduce reliance on supervisory
Excellence Build long-term relationships on
the basis of performance, instead
of the price
Customer orientation Improve the quality of products
and services on an ongoing basis
Knowledge Training
Morality Emphasized on Leadership
Risk Taking No Fear

17. Strategic thinking Breaking the boundaries between
groups
Employe involvement, Patience Avoid criticizing workers
excessively
Hard working Support, assist and improve
Strategic thinking, employee
involvemen
Emphasizes on team work
Knowledge, Strategic thinking Established strong and
independently education program
Hard working, optimism Encourages everyone to be ready
to work in the transformation
process

18.  Current practices of the quality management
from western perspective have set social
goals as part of the quality management. but
the main pillar which is religio-spiritual and
links people to God with the ultimate
objective of pleasing Allah was never involved
and discused in the western entrepreneurship
perspective

19.  The advantages of Islamic priciples do not
regard any matters in the social goals.
Further, Islam has taught how to create
sustainability and safety for human beings in
the natural world and the hereafter., Then,
the five pillars of Islam (Rukun Islam) should
be added as falsifies to create Islamic
Entrepreneurship. Table below prensent
measurement indicators for religio spiritual
salient traits.

20. Fear of Allah
(Five Pilars of Islam)
Economically,
Morality, Halal
Earning, Honesty
and Truthfulness
Deming’s Quality
Improvement
RELIGIO SPIRITUAL
ETHICAL/ SOCIO
CULTURAL
QUALITY
MANAGEMENT
ISLAMIC
ENTREPRENEURSHIP

21.  Islamic Entrepreneurship is condition in which
the management obliging undergo pillars of
Islam to all members of the company and
make continous quality improvements in the
company. Quality improvement is not just
aimed at the existing processes in the
company itself, but improvements were
made also on the quality of taqwa
(Godfearing) of everyone in the company in
running the pillars of Islam.