 TO DEFINE, DESCRIBE AND DISCUSS:

◦ The origin of Islamic entrepreneurship

◦ The goal of Islamic entrepreneurship
◦ The basic concepts of Islamic entrepreneurship
◦ The significance of Islamic entrepreneurship
◦ The principles underlying Islamic entrepreneurship
◦ The concept of halal and haram in business
transactions
 Ninety percent of all rizq or provisions on earth come from
business activities
 Trade and commerce have always been a part of Islam
 After Islam was introduced, the entrepreneurship culture
continues in the holy city guided by the principles based
on the al-Quran and hadith.
 Islamic entrepreneurship then spreads to distant lands
through the involvement of Muslim traders at the domestic
and international levels.
 Entrepreneurship is based on aqidah, syariah and akhlaq.
◦ Aqidah – touches on faith and belief
◦ Syariah – focuses on the guidelines for human activities that
include muamalat, al-maliat, al-thoharat, and al-ibadat
◦ Akhlaq – emphasizes on Muslim conduct and behavior

 GOAL – TO ACHIEVE SUCCESS

◦ Success – to achieve what is desired, happiness in the worldly and
in the hereafter, prosperity and freedom from worries, difficulties
and mental anguish.
◦ Success in Islam is measured by end result and also the means
and ways in achieving it.
 THE SUCCESS FORMULA BY AL QURTUBI:
◦ Halal (lawful)
◦ Qanaah (pleased with one’s earnings)
◦ Taufiq (blessings of Allah)
◦ Sa’adah (happiness)
◦ Jannah (heaven)

 7 STAGES FOR SUCCESS (IMAM AL GHAZALI)

◦ Knowledge and gnosis stage
◦ Repentance stage
◦ Temptation stage
◦ Obstacles stage
◦ Motivation stage
◦ Imperfection stage
◦ Praise and thankfulness stage
 BASED ON BENEFITING HUMANITY WHILE OBSERVING THE RULES AND
ORDERS OF GOD
◦ 3 BASIC CONCEPTS:
1. RIZQ SEEKING
2. WEALTH CREATING
 The principles of wealth ownership in Islam:
 Ultimately, God owns them
 Wealth created by god is plentiful and more than enough
for everyone
 Wealth is created for man
 Wealth is entrusted (amanah) to man
3. VALUE ENHANCING
IT CAN BE DESCRIBED FROM THE BENEFITS AND POSITIVE
OUTCOMES THAT CAN BE REAPED FORM IT.

 Freedom of economic enterprises and wealth ownership

 Responsibility and accountability for one’s action
 Unity
 Justice
 LOVE FOR ALLAH COMES FIRST
 BE HONEST AND TRUSTWORTHY
 DO NOT DEAL IN FRAUD
 KEEP PROMISES
 BE HUMBLE
 USE MUTUAL CONSULTATION IN BUSINESS AFFAIRS
 DO NOT BRIBE
 DEAL JUSTLY
 BE GENEROUS AND LENIENT
 BASED ON ISLAMIC BANKING:
◦ Safekeeping (wadiah)
◦ Profit sharing (mudharabah)
◦ Joint venture (musyarakah)
◦ Cost plus (murabahah)
◦ Deferred payment sale (bai’bithaman ajil)
◦ Agency (wakalah)
◦ Benevolent loan or interest free loan (qardhul hassan)
◦ Hire purchase (ijarah thumma al bai’)
◦ Sale and buy back agreement (bai’al-inah)
◦ Gift (hibah)
 HALAL
◦ A quranic term which means allowed or lawful
◦ Refer to things or conducts that are permisible, as stated in
the quran and as taught by prophet muhammad (p.B.U.H)

 HARAM
◦ A quranic term which means prohibited or unlawful
◦ Describes things or activities that which allah has
absolutely prohibited.

 RELATED TO 3 ASPECTS OF LIFE:

◦ In edible things
◦ In financial matters
◦ In daily business
 HALAL AND HARAM - IN EDIBLE THINGS

◦ HALAL
 For a product to be halal or lawful for Muslim consumption, all
its ingredients should be lawful
 Complies with Islamic principles of hygiene, the humane
treatment of animals, and other rules involving the production
process mainly on food related products and services.

◦ HARAM
 Islam prohibits the consumption of the followings:
 pork and pork-based products,
 the flesh of an animal that has been killed or slaughtered in ways
other than the Islamic way,
 Carnivorous animals, birds that use claws to catch prey
 Animals without external ears – snakes and worms
 Alcoholic beverages, blood and its by-products
 Any food and drinks that contaminated with haram product
 HALAL AND HARAM – IN FINANCIAL MATTERS

◦ HALAL
 Conduct financial activities that are free from elements
of riba (interest) and consistent with Islamic principles
through Islamic economics.
 Halal income – clean money

◦ HARAM
 The practice of usury (interest) or riba is prohibited in
Islam.
 Traders is allowed to earn profits as long as it is
within lawful limits.
 Not encourage the practice of price-fixing
 HALAL AND HARAM IN DAILY BUSINESS

 HALAL
◦ Entrepreneur must conform to Islamic standards of
justice and equity
◦ The way of conduct in all aspects of life should be
for the betterment of society

 HARAM
◦ Illegal activities include:
 Gambling, fraud, bribery, theft, robbery, murder,
monopoly, and hoarding
◦ Illegal income include:
 The trading of stolen goods, alcohol, drughs, sexual
services and any kind of trade involving uncertainty
 Sale of al-gharar
 Hoarding of food
 Exploitation of market conditions
 Cheating and fraud in business transactions
 False swearing
 Giving short measures
 Dealing in stolen goods