Abstract
Entrepreneurship agenda is an important agenda and one of the areas that can generate a country's economy. Previous study of entrepreneurship focuses on economic, psychological, cultural and social perspectives. However, entrepreneurship in a religious perspective still gives less emphasis. Therefore, this study will fill the gap by exploring the phenomenon of entrepreneurship from a religious perspective based on the hadith of Prophet PBUH. The specific goals are 1) to identify and collect the entrepreneurship substance in al-Kutub al-Tis’ah; 2) to explore the relation between selected substance and entrepreneurship phenomenon; 3) to segregate those substance into relevant disciplines in entrepreneurship. Qualitative research will be employed to achieve the mentioned objective. The narratives that explained the phenomenon were sought from the stories text hadith which also helped to increase the understanding of the entrepreneurship phenomenon. This also includes a model conceptual framework of entrepreneurship based on the relationship between individual, society, environment and Allah. This study is expected to fill up the gap in entrepreneurship from the perspective of Islam. In addition to being a catalyst for entrepreneurial development towards complementing and enriching existing theories and practices.
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Keywords
1 Introduction
The concept of entrepreneurship has a very broad meaning and discussion if viewed from various perspectives of figures and disciplines of knowledge. The debate in current entrepreneurial, notes that it began with the use of the term entrepreneur associated with economic activity by Richard Cantillon (1680-1734M). Subsequently, the concept and theory of entrepreneurship continues to evolve to this day, according to the needs and scope of discussion in many aspects of human life whether in the context of economics, psychology, sociology and culture (Rosli et al. 2010; Norita et al. 2010).
Ratten et al. (2017) acknowledge that religion is an important phenomenon in research business management that should be acknowledged and discussed in more detail. In fact, religion influences economic and business performance because of its embedded role in society (Pistrui and Fahed-Sreih 2010). This means that Islamic entrepreneurship and religious behavior are important because they play a role in influencing behavioral decisions and choices. The impact of religion on business stems from religious beliefs, which are influenced by cultural values associated with entrepreneurship (Dana 2009). This means that Islamic entrepreneurial desires are influenced by the religious attitudes of individuals and society (Ratten et al. 2017). Thus, on this basis, the entrepreneurial phenomenon not only depends on how one views the phenomenon, but is also influenced by interactions between individuals, society and the environment (Hansen et al. 2007).
Furthermore, entrepreneurship has become an important phenomenon around the world as it is the main driving force behind the economic growth and development of a country, especially in the current covid-19 pandemic season (Harian 2020). Past studies have focused heavily on entrepreneurship from economic, psychological, cultural and social perspectives. However, entrepreneurship in a religious perspective is still being given less emphasis (Dana 2010). It is undeniable that there has been an increase in the number of studies related to religion and entrepreneurship, but research on Islam and entrepreneurship is more difficult, especially the empirical relationship between Islam and entrepreneurship (Balog et al. 2014).
This research will fill in the gaps by looking at the phenomenon of entrepreneurship through the lens of religion. The role of Islam in entrepreneurship is based on the interlinkage between the textual sources and contextual setting. Therefore, the question is 1) Which of the hadiths that narrate and illustrate the entrepreneurship substance? 2) How does the selected substance above relates to the existing entrepreneurship phenomenon 3) How to segregate those substances into relevant entrepreneurship theories. Qualitative research will be employed to address the question. Other qualitative researchers have employed interview and observation approaches in the past, but this study will use narrative analysis. Because this narrative style has a thickness and depth that is specific to the area, and it highlights the setting's personal and significant elements (Burg et al. 2020).
2 Literature Reviews
2.1 Review on Entrepreneurship Theoretical Background
Mohanty (2005) has shown that the phenomenon of entrepreneurship can be supported by the background of theories such as sociology theory, psychological theory, cultural theory, economic theory, and possibly newer theories such as expert opinions on entrepreneurship. According to Rengiah (2013), there are four main entrepreneurial perspectives discussed which are economic, psychological, social and cultural perspectives.
Economic Perspective
Economic theory suggests that entrepreneurship and economics are interdependent, and economic incentives are key drivers for growth in entrepreneurial activity. The economy creates business opportunities and in turn generates entrepreneurship. The increased demand for goods and services is reflected in the likelihood that a person will seize the opportunity to embark on an entrepreneurial career (Aldrich et al. 1986; Birley 1986). Among the theories from this economic perspective are Schumpeter's (1934) theory of innovation, Leibenstein's (1978) theory that developed the concept of competitiveness theory through the development of x-Efficiency theory, Kizner's (1973) theory that prioritizes profit elements and Marshall's (1946) theory that defines entrepreneurship as an evolutionary process that is the life of a business from the initial stage until it continues to disappear from the market.
Sociological Perspectives
Sociological perspective, among others, argues that the following theories will explain how sociological factors accelerate the growth of entrepreneurship, namely the theory of religious belief and the theory of social change. Theory of religious belief states that entrepreneurship is a function of religious beliefs and the effect of religion will shape the culture of entrepreneurship in individuals (Weber 2009). Meanwhile, Hagen (1963) in his theory of social change, has submitted that creativity as a key element of social transformation and economic growth in the field of entrepreneurship. Scholars found sociological and psychological factors to be linked with entrepreneurs behavior (Carlsson et al. 2013; Nesselroade and Molenaar 2016).
Psychology Perspective
Psychological theory focuses on the characteristics of an individuals in a society in which it supplies entrepreneurship to society. Some believe that entrepreneurs have unique values and attitudes toward work and life, and this requires a drive for individuals to behave in a certain way. Characteristics include: a tendency to take risks (Begley and Boyd 1987), high achievement (McClelland 1965), or internal locus of control (Brockhaus and Horwitz 1986), and having qualities such as innovation leaders and catalysts, initiating economic growth and development (Berger 1991). Acccording to Sulaiman (2019), one of the ways entrepreneurs choose in dealing with this difficulties and challenges in their entrepreneurial journey is to resort to religious believe. Religion has been shown to have a significant effect on emotion regulations, motivation and behavior. Religion, as of the most important sources of values, is full of emotions that connect people to God and other created beings. The cognition, imbued with religious values, interacts with emotions, might be transformed into energized religious motivation leading to certain form of entrepreneurial behavior. In other words, emotions from being religious strengthen the motivation for a particular course of action.
Culture Perspective
Cultural theory claims that entrepreneurship is a cultural product of a society. Cultural values shape entrepreneurial talent in individuals and are embedded in society. Personalities, behaviors, firms, economic conditions and socio -political systems are all embedded in the culture from which they originate (Berger 1991). Some countries have yet to experience a cultural shift to a paradigm that supports entrepreneurial behavior.
Overall, previous research has elaborated on the phenomenon of entrepreneurship from a variety of perspectives. Psychology, sociology, social psychology, and religion are the perspectives used in the field of social science. However, the phenomenon of entrepreneurship from a religious perspective is still under-emphasized (Dana 2010). This is because religious perspectives on entrepreneurship are different, as they usually encompass narratives and contain specific and detailed practices from specific scriptural sources and different metaphysical objectives. Therefore, there is a need for a holistic approach to entrepreneurial research that incorporates religion to complement and enrich existing entrepreneurial theories and practices (Gümüsay 2015). It is hoped that this study can fill the gap in the knowledge of entrepreneurship with the use of religious perspective in explaining the phenomenon of entrepreneurship.
2.2 Religious and Entrepreneurship
Previously, it has been mentioned that the theory of religious believe has been used to explain the phenomenon of entrepreneurship. This theory states that entrepreneurship is a function of religious beliefs and the effect of religion will shape the entrepreneurial culture in an individual (Weber 2009). This theory is a combination of psychological and religious perspectives grounded in non -Muslim perspectives. In this regard, non -Muslim perspectives discuss moral values and do not focus on the belief in one God as a guide to their practices. Whereas, the Islamic perspective shows that the practices derived from the actions of individuals should be based on the Quran and hadith.
In order to form the framework of Islamic entrepreneurship, they must rely on one another and interact in accordance with Islamic law. According to Rahman (2015), combining social psychological and religious perspectives into the definition of knowledge will result in a more holistic understanding. This is because social psychological researchers argue that a person's actions are based on knowledge gained from multi-level analysis generated by individual and societal interactions, and that they are interdependent (Rogers 2003; Hewitt 2007; Hollway 2007). Individuals’ thoughts, feelings, and behaviours are also influenced by their membership in social groups and social institutions (Rogers 2003; Hewitt 2007). Finally, it should be combined with a religious perspective based on a religion's moral values.
Islam is a religion which is a complete way of life. Thus, this shows that the Qur'an and hadith are very important as a guide in every action of individuals and society. The hadith of the Prophet PBUH is the second source of reference for Muslims after the Qur'an. Hadith means the narration of the sayings, doings or approvals (taqrir) of Muhammad (peace be upon him). As is well known, the Prophet Muhammad PBUH is the best idol for human life and an example of a successful entrepreneur (Mubarak 2016). It contains the provisions and narration of everything that happens. Therefore, this study will explore the relationship of the collected hadiths and the phenomenon of entrepreneurship and isolate and explain it into the discipline of knowledge in the field of entrepreneurship whether it is relevant or not.
2.3 Islamic Entrepreneurship
Entrepreneurship is an activity that is highly encouraged in Islam. Entrepreneurial activities belong to the pursuit of wealth or generally the pursuit of halal livelihood (Rosli et al. 2010). This can be seen in firman Allah SWT in Surah al-Jumu'ah verse 10 which means: “And when the prayer has been concluded, disperse within the land and seek from the bounty of Allah, and remember Allah often that you may succeed”. This verse illustrates how Islam encourages its ummah to seek the blessings of Allah SWT who possesses all the treasures of dunia and akhirat (Al-Tabari 2000) after fulfilling his obligations or worshipping Him. Allah's gift is everywhere as long as people want to work and work together there is farming, farming, business and trading and all kinds of jobs for halal sustenance (Hamka 1987).
The entrepreneurship is an important agenda and one of the areas that can contribute significant to the growth of the economy for Muslims. It is stated by (Gholami and Al Tahoo 2021; Gunnarsson and Malin 2010) that entrepreneurship has been found to influence the personal growth, social relationships and family life of entrepreneurs. According to the Islamic view, the implementation and its achievements through business activities are bound to sharia (Shariah) and manners based on al-Quran and al-Sunnah in principle, which not only emphasizes the material achievement but also the pleasure of Allah SWT. However, the words entrepreneurship and entrepreneur are generally not used directly in the Islamic scientific tradition. The term is different from the terms business, trader and trading (al-Tijarah, tajir and al-Bay’) as for debated in Fiqh al-Tijarah and Islamic economics. The term has also been mentioned directly in the Qur’an and Sunnah in relation to its position and encouragement in Islam, morals, as well as practices related to business or economics in principle as well as in practice (Mubarak 2016).
The latest findings by Block et al. (2020) shows that the topics most frequently discussed in research related to religion and entrepreneurship in 2014 to 2019 are concerning (a) women and social entrepreneurship, (b) religious, values and spirituality, (c) ethnicity, payables and comms, (d) Culture and social capital and (e) microfinance, economic development etc. The article on entrepreneurship in an Islamic perspective, most frequently referred by researchers is the article by Gümüsay (2015). His article answers about Islam as a religion of entrepreneurship and its role. Gumusay (2015) also comments that the Islamic entrepreneurial perspective is a complex and contested concept based on three interlinking pillars: the entrepreneurial, socio-economic/ethical and religio-spiritual.
There are also studies on Islamic social entrepreneurship such as the studies of Rahman (2015) and Nawi (2015). Meanwhile, other studies focus on intention, values, traits and attitude and behavior, for example the study of Ratten et al. (2017), Fozia (2016), Safar (2016), Hoque et al. (2014), Dean (2014), and Davis (2013). In terms of research methods, most of other past articles are conceptual studies (Gümüsay 2015; Iman and Mohammad 2017; Ramadani et al. 2018; Kabir et al. 2014) and case studies (Kayed and Hassan 2010). There are also articles that use a qualitative approach through observation and interview techniques Sidek et al. (2018), as well as there are also quantitative studies that use questionnaires and secondary data (Rabderson. 2017; Mohd et al. 2015).
However, from an Islamic point of view, the phenomenon of entrepreneurship is still under-emphasized. According to Ratten et al. (2017), there is a need for a study on the development of the history of Islamic entrepreneurship because religious entrepreneurship research is still in its early stages when compared to other types of entrepreneurial research. This could lead to a discovery that is more robust than the others. It is obvious that research is required to collect, filter, analyse, and consolidate data. Entrepreneurship from an Islamic perspective, on the other hand, contains its own methodology to achieve its understanding. It needs to be understood and analyzed holistically containing entrepreneurial activities, religious values, Islamic religious obligations, societal influences, scriptural sources and ecosystem movers, and institutions that provide interpretations in the context of religious spirituality (Gümüsay 2015; Aminova et al. 2020).
Therefore, there is a need for a holistic study in exploring the phenomenon of entrepreneurship in a religious perspective. According to Garud et al. (2014), entrepreneurship scholars who seek to capture the features of such unique phenomena should provide a “thick” narrative description of the entrepreneurial processes involved, either at the individual or at the level of more general entrepreneurial processes (Gartner 2007). This type of narrative has a thickness and depth that is unique to the context and displays the setting's personal and important aspects. Later on, more specialised narrative bracketing and storying approaches can be employed to describe a general series of events in a more analytical way and to replace a rich empirical description with a full-bodied narrative explanation (Burg et al. 2020).
In this case, Muslims are endowed with a very valuable source of reference that is the holy book of the Quran and hadith as a guide in every aspect of life to achieve well-being to individuals, communities and countries. As mentioned in the words of the Prophet PBUH which means: “I leave behind me two things, you will not go astray as long as you adhere to both, (namely) the kitab (al-Qur’an) and my sunnah”. (Narrated by al-Hakim, Hadith No. 318). The Qur'an and sunnah are the main sources of reference that are valuable for all Muslims in every aspect of life, including business and buying and selling. However, these two sources have not been fully used in the daily lives of Muslims, especially in the field of entrepreneurship, which is a framework of worship that is closely related to the relationship with Allah SWT and also fellow human beings. To understand more about the phenomena of entrepreneurship, researchers will apply thematic analysis and narrative analysis, as opposed to other studies, by focusing on text hadith. Therefore, it is clear that to know the true Islamic entrepreneurship must be guided by the essence found in the Qur’an and hadith. Furthermore, from these two main sources, researchers are able to understand an entrepreneurial phenomenon that occurs through interactions between individuals, society and the environment.
3 Research Methodology
This study uses a qualitative approach appropriate to the purpose of the study to explore and understand more deeply about the field studied and be able to provide a detailed understanding of the phenomena studied (Creswell 2014). Accordingly, researchers need a procedure for data collection. At the initial stage, the researcher needs to collect data relevant to the study and understand the data as a whole (Elo and Kyngas 2007). Therefore, this study will use the main secondary data that is the hadith along with syarah. Meanwhile, general secondary data is from the point of view of Muslim and non-Muslim scholars in journal articles, proceedings, sirah (history), scholarly books and newspaper or magazine.
As it is known that the function of hadith to the Qur'an is as an explanation and reinforcement of the laws contained in the Qur'an. Therefore, one of the efforts of the previous scholars to preserve the hadith of the Prophet PBUH is to write and record it. Through the hadith texts there are messages that contain the deeds practiced by the Prophet PBUH in his daily life. Business is one of the activities undertaken by Prophet PBUH. Therefore, the phenomenon of entrepreneurship can be collected from the hadith texts found in the famous hadith books. Thus, to identify and collect the entrepreneurship substance, this study going to choose famous hadith books such as al-Kutub al-Tis’ah (Sahih al-Bukhari, Sahih Muslim, Sunan Abu Daud, Sunan At-Tirmidzi, Sunan An-Nasa’i, Sunan Ibnu Majah, Musnad Ahmad, Muwatta’ Malik and Sunan Ad-Darimi).
At the beginning of the hadith search, researchers use the method of searching hadith through the index of traditional hadiths by referring to the book al-Mu’jam al-Mufahras li al-Alfaz al-Hadith al-Nabawi by Wensink (1936). Wensink (1936) contains an index of hadiths from the nine books of hadith (al-Kutub al-Tis’ah). At the same time, researchers will also use the modern method of searching hadith using the software al-Maktabah al-Shamilah. Thus, the researchers combine these two methods to avoid the probability of dropping the hadith during the hadith collection process.
After identifying the hadith, researchers will refer to the book of syarah hadith to know and understand the meaning more clearly from the text of the hadith. The researchers choose only one book of syarah for each of the above books of hadith because it is the most famous and the explanation includes all other books of syarah. In addition, researchers also take the opinions of scholars of Islamic and non-Islamic scholars in journal articles, proceedings, scientific books, sirah notes and related newspaper articles. The researchers take into account the opinions of islamic and non-Muslim scholars to ensure that the results of this study are in line with contemporary studies. Figure 1 shows the process of data collection more clearly.
The process of analyzing the data of this study will use a thematic approach which is one way of analyzing the data to identify patterns or to find themes through the data that has been collected (Braun and Clarke 2006). Thematic Framework Analysis starts with familiarisation, identifying the thematic framework and emerging themes, indexing, charting and mapping, and interpretation. This method is a very effective method for exploring in detail qualitative data to find the relationship of patterns in a phenomenon and explain the extent to which a phenomenon occurs through the glasses of researchers (Fereday and Muir-Cochrane 2006).
Unit of analysis is the specific parameters of what was the subject for study (Hart 2003). The unit of analysis in this study was the Prophet PBUH and al-Sahabah experiences that were narrated their stories through text hadith (Hansen et al. 2007). As we know that the Prophet Muhammad PBUH and al-Sahabah were icons of successful entrepreneurs (Mubarak 2016). Therefore, researcher will analyze the hadith texts collected using narrative analysis techniques. Narrative analysis will also be used to analyze hadith texts that explain the phenomenon of entrepreneurship and its relation to existing entrepreneurial theories. Whether they have similarities or differences in terms of strategy, management, creativity and innovation or from other angles. Narrative analysis occurs when hadith narrators are involved in sharing and recounting and experiences or events. This analysis focuses on the surroundings or those directed at individuals, groups, communities and cultures (Blaike 2010).
At the same time, researchers should simplify the process of constructing meanings and explain what and how meanings are contained in selected hadith text (Kayed and Hassan 2010). In this case, Blumer (Sidek et al. 2018) warned that interpretation should not be considered an easy meaning to express but it is an influential process in which the meaning is used and should be reviewed as an instrument for the guide and formation of actions. Therefore, in this study, the meaning of entrepreneurship phenomenon is obtained through Arabic as a medium for understanding this knowledge. Arabic language from hadith texts will be taken as a window to understand the phenomenon of entrepreneurship based on the interaction between individuals, society, environment and Allah SWT.
4 A Proposed Conceptual Model
The entrepreneurship substance will be collected using symbolic interactionism theoretical background. The theoretical background is important to researcher since it enables for framing of analysis in order to make it more structural and understandable (Blaike 2010). Therefore, in accordance with the second objective of this study to explore the phenomenon of entrepreneurship, then the theory of symbolic interaction is suitable for the framework of the study. This is because it answers the question of how individuals and society are interconnected (Hewitt 2007) which can explain the phenomenon of entrepreneurship. The phenomenon of entrepreneurship does not only depend on how one views the phenomenon, but is also influenced by interactions between individuals, society and the environment (Hansen et al. 2007). The background of this theory is also in line with the Islamic perspective which encourages believers to maintain the relationship between muslim and Allah SWT (see Fig. 2).
Proposition 1: Based on the text hadiths acquired, entrepreneurship activities will be identified through interaction between the Prophets PBUH, Sahabah, Arab society, and environment.
Proposition 2: The prophets’ and sahabah's entrepreneurial activity will show how religion motivates people to be creative and innovative entrepreneurs.
Proposition 3: This research will develop a model that can explain the phenomenon of entrepreneurship through interactions between individuals, society, and the environment, while also maintaining the relationship between Muslims and Allah SWT in all entrepreneurial activities.
5 Conclusion
Due to lack of studies on above addressed problem in religious perspective, attempts were made to identify hadiths from al-Kutub al-Tis'ah. The interaction between the Prophet PBUH, the Sahabah, the Arab community, and the environment as stated in the hadith text will be used to identify entrepreneurial activities that occur. We believe that there are also elements of entrepreneurship in the hadiths of the Prophet PBUH as the Prophet PBUH is the best example of examples for Muslims to follow. Which is where all the behaviors and actions of the Prophet PBUH became a sunnah and also followed by the Companions of The Prophet PBUH in the past until now. If the phenomenon of entrepreneurship can be explored from the hadiths of the Prophet Muhammad PBUH, it can further strengthen the existing theories and entrepreneurial activities and help the development of Islamic entrepreneurship in Malaysia. In addition, it can form knowledgeable entrepreneurs among the Malaysian community. As well as inculcating Islamic values in every entrepreneurial activity to achieve the blessings of Allah SWT. In turn, it can help the development of Islamic entrepreneurship in Malaysia and the country's economy to continue to develop and develop in accordance with Islamic shariah as Malaysia is known as ‘Halal Hub Business’. This study's data are limited to the al-Kutub al-Tis'ah and Syarah hadith books in the Arabic language. Future research should include more reference sources from other hadith books.
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Hilaluddin, K., Muhayiddin, M.N., Muhammad, M.Z., Ab Rahman, A.A. (2022). Exploring Entrepreneurship Theories Within Religious Perspective Based on al-Kutub al-Tis’ah: A Proposed Model. In: Alareeni, B., Hamdan, A. (eds) Financial Technology (FinTech), Entrepreneurship, and Business Development. ICBT 2021. Lecture Notes in Networks and Systems, vol 486. Springer, Cham. https://doi.org/10.1007/978-3-031-08087-6_69
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