• Home
  • Posts RSS
  • Comments RSS
  • Edit
  • Theories and Concept of Entrepreneurship

    Wednesday, December 8
    Theories and Concept of Entrepreneurship by "Makhluk Genius" Perspective

    Definition of Entrepreneur
    An entrepreneur is a person who undertakes to do a job - Richard Cantillon (1755)

    Definition of Entrepreneurship
    Involves not only the process that leads to the setting up of a business entity but also the expansion and development of an on going concern (entrepreneurial behavior, the dynamic of business set up, the expansion, and development).

    Evolution of Entrepreneurship Theory

    Adam Smith (1776)
    Person who acts as agent in transferring demand into supply 

    Jean Babtiste Say (1803)
    A person who shifts resources from an area of low productivity to high   productivity 

    John Stuart Mill (1848)
    Prime mover in the private enterprise

    Joseph Aloysius Schumpeter (1934)
    An entrepreneur is an innovator

    Ibn Khaldun
    Knowledgeable individual and its instrumental in the development of a city-state where enterprise will emerge

    However, entrepreneurship is more than mere creation of business. It is subjective, as my lecturer said, "Since your ideas is logic, you can define the word of 'entrepreneur or entrepreneurship' as you like".

    For Muslim, we are entrepreneur. We have our own company, own business. For sure, we have a good investment if we realize that the business is between us and Allah, the al Khaliq. This is very important business because it is the determination for here after. You are the successful entrepreneur when you have a good deal with Allah while it is so pitiable if you are the bankrupt entrepreneur. 

    Allah says in the Quran:

    "O You who believe! Shall I guide you to a trade that will save you from a painful torment?"

    (QS As Saff, 61:10)

    Islamic entrepreneurship focus on eight principles of thoughts:
    (Please look for both physically and spiritually side)
    • Entrepreneurship is an integral parts of Islamic religion
    • By virtue of human nature, each of us is khalifah and we have responsibilities develop prosperities
    • Motivation - success in Islam is not merely measured by the end result but also the way and means of achieving them
    • Ibadah or good deed
    • 9 of 10 source of rezki can be found in business
    • Operate within the domain of Islamic (economic) System and act as vehicles towards global acceptance
    • Guided by al Quran and al Hadith
    • Exemplery conducts of Prophet Muhammad SAW

    If you think the 8 principles that list before is not enough, this is the formula of success by al Qurtubi:
    • Halal: Livelihood that are in accordance to what is being outlined by Allah
    • Qanaah: Pleased and thankful to Allah
    • Taufiq: Asking for the blessing of Allah
    • Sa'adah: Spiritual happiness
    • Jannah: Paradise

    According to Imam al Ghazali, these are the seven steps towards a success in life:

    • Level of knowledge
    • Level of taubat or repentence
    • Level of temptation
    • Level of obstacles
    • Level of motivation
    • Level of handicap
    • Level of praise and thankfullness

    Muslim entrepreneurship ethics:
    • Prevent laziness
    • Avoid greediness
    • Eradicate fear to do a good deed
    • Show gratitude and thankfulness of whatever has been acquired

    Ethical behavior of Muslim entrepreneurship:
    • Avoid malicious behavior
    • Avoid squandering
    • Avoid stinginess
    • Pray consistently
    • Tawakkal
    • Patience
    • Qanaah

    Allah is the absolute owner of wealth and he create wealth in abundance and sufficient for all. Normally, entrepreneur have to compete with other competitors but for the business with Allah, all of us can be the primary mover in a good deed. No one will lose in the business since he or she still in the right track of syariah. Allah as the investor, investing so much for us. He give us a chance of enjoyable time, health, money, age, and the most important thing is the life. Hopefully, we will use the chance as the method to be a successful entrepreneur in dunya and akhirat.

    *Almost all of the facts is from ETR300 notes
    *This note suitable for the new entrepreneurs either the entrepreneur in this real world or hereafter.
    *The writer is not the lecturer nor the ustazah BUT the writer is same with you as the entrepreneur who work and try to get the good investment from Allah. 


    Post a Comment

    Related Posts Plugin for WordPress, Blogger...