Nur Suhaili Ramli,

University Of York, UK

Islamic Entrepreneurship: Islamic Economy

Islam is totally accepting business The Prophet urged (peace and blessings be upon him)

urged, “Be involved in business as nine out of ten sources of income lie in business” (Ihya)

Its role is defined in the Holy Koran and the Hadiths “ … whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein…” (Al-Baqarah 2:275)

This shows that it is contrast to communism/socialism which is strongly anti-capitalist.

Islam and business

In Islam the behaviour in business is set with conditions which it must not:

Be greedy Seek monopoly or manipulate the market Exploit the poor Trade in forbidden goods and services such as :

Alcohol / drugs / tobaccoPornography / gamblingDeal in pork productsEngage in ‘usury’ riba

Islam and business

Central to Islam is Tawhid Tawhid is the Islamic way of life , the fundamental of all

Islamic civilization, which is process, means and end together.

Tawhid is both the essence of the individual and the society he or she lives in.

Tawhid is acceptance of one creator and His divine guidance of humanity.

Tawhid implies both the mission and morality of humankind on both social and spiritual contexts.

Piety through business

Fall under two categories – fard’ain, and fard kifayah Fard’ain means that an individual’s obligation to perform

his or her religious studies. Fard kifayah means that an obligation for man to serve the

entire community through services to each other, necessary for the community to live safely and comfortably.

The obligation to improve the Muslim Ummah falls under Fard Kifayah, where undertaking business is the principal method of improving the economy and community.

Categories of Tawhid

Entrepreneurship in Islam – social justice derived through productive work, where equal opportunities exists for all, and everybody can utilize their abilities to work and gain just reward for their efforts.

Most countries adopted concepts of ‘Islamic socialism’ where references to Islam teachings and shariah were only cursory or cosmetic.

There are fifteen general principles of Islamic economy

The basic tenants of an Islamic economy

Islamic business framework

Islam provides a supportive value system where a person should seek to achieve economically as well as spiritually

People are expected to earn their own living, if possible.

The pursuit of wealth is legitimate, however moderation in lifestyle is espoused

Prices should be just, based upon competitive markets.

General Islamic economy principles

The inequality of income should not be allowed to become too wide, therefore the state should intervene to ensure that equality is maintained

The needy are protected by society through Zakat Land and capital are productive factors, only when

combined with labour. Therefore income should not just be derived from ownership.

Finance, leases, loans, etc. should be based on the sharing of risk as a basic principle of justice and equity

General Islamic economy principles

Islamic values from upon wasted resources, human skills and idleness.

Human are God’s custodians and only possess resources temporarily. So, they must ensure these resources are passed onto the next generation intact, consequently Muslims have a duty to protect the environment.

Private ownership is paramount within the economy, where the state should only interfere under exceptional circumstances.

General Islamic economy principles

Monetary policy should only be utilized to stabilized prices. Fiscal policy should only be used to preserve an

equilibrium between tax revenue and public expenditure. The state’s role is solely to provide sufficient

infrastructure for society to operate fairly and equitably. Antisocial practices that damage society are forbidden

where monopoly and hoarding and other market distortion are not permitted.

General Islamic economy principles

Islamic economics provides a way of creating equity within a community

Entrepreneurship is the preferred method of agency within an Islamic economy, where high levels of interdependency through clusters based on community are advocated.

Developing entrepreneurship based upon Tawhid principles is empowering to the Ummah and a way to integrate with the world without the need to compromise religious beliefs and values

The Al-Qur’an is not just a book of divinity, it is a practical book of empowerment, largely ignored for its potential in this regard

Conclusion

Retrieved reading from: http://www.eurasiareview.com/17052013-entrepreneurship-as-a-means-to-create-islamic-economy-analysis/

Al-Quran

References