THE PROPHET MUHAMMAD S.A.

W: LIFE AS A TRADER
AND ENTREPENEUR IN THE PERSPECTIVE OF BUSINESS
ETHICS.
Mohd Zahid, Nurhasanah;Bahaman, Nur Aliah; Sarman,
Shazana;Mohd Zainol, Nur Zhoriifah Sofea
Food Biotechnology Department

Faculty of Science and Technology

Universiti Sains Islam Malaysia

Mohd Dali, Nuradli Ridzwan Shah

Faculty of Economics and Muamalat

Universiti Sains Islam Malaysia

Keywords: Sunnah, History, Business, Ethics, Success

It is undeniable that Islam is a source of value and ethics in the whole aspect of human
life, including discourse of business. The ideal person that we can make him as a role model in
business is Prophet Muhammad S.A.W whom doing his business in thorough way and dealings
with good ethics with other person (Novrian, 2009). As Muslims, we must follow the standard of
ethics (Mohd Dali et al., 2008), not only in business but also in all aspects of life which showing
that both of business and ethics are connected to each other (Siddiqi, 2004). There is a reference
in the Qur’an that said:

“For you in the Messenger of Allah is a fine example to follow.”(Surah Al- Ahzab 33:21)

From his early age, he was involved in commerce. He had been involved with sheep
rearing since childhood. At the age of twelve, he lives with his uncle Abu Talib after his
grandfather Abdul Mutalib had died. His business journey starts when he participated in his
uncle Abu Talib trade trip to Sham (now Syria). That was his first time involved in
entrepreneurships. When Prophet Muhammad caravan camped at a site in Sham (now is Syria),

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Nasturaa, a monk, showed more than ordinary interest in Prophet Muhammad and declared that
according to their scriptures, Prophet Muhammad was the expected ‘Last Messenger’
(Sidmskhan, 2012).This meeting was a very famous story because even though he had been sent
nearly 30 years later, this is the first time anyone else saw the prophet hood of Rasulullah s.a.w.

Afriza Hanifa (2013) has mentioned that Afzalur Rahman has said in the book of
Muhammad as a Traders" Its extraordinary trading activity. He has a reputation as an honest and
trustworthy merchant since his young age”. Besides that, at the age of 25 years, the Prophet had
become a wealthy entrepreneur and trade abroad no less than 18 times.

Afriza Hanifa (2013) also mentioned in her article as Ippho Santosa Andalus in the book
of Muhammad as Traders Khalifah said "Just imagine, the young Muhammad trading range to
reach Yemen, Syria, Busra, Iraq, Jordan, Bahrain, and other trade node in the Arabian
Peninsula,". UIN Jakarta Islamic Economics expert, Agustianto in his article "Imitate Business
Management Prophet" says since Frederick W. Taylor (1856-1915) and Henry Fayol
management principles recognize as a discipline; the Prophet Muhammad has implemented
management values in life and business practices since long ago. The transactions and business
relationships processes with all elements of the business as well as the parties involved in it also
had been managed very well by Prophet Muhammad. (Hanifa, 2013)

Besides, Rasulullah S.A.W is the greatest among all the standards of human personalities.
Prophet Mohammed (PBUH) ranked as a first place for the most influential person in history in
the book written by Micheal H. Hart titled “The 100, A ranking of the most influential persons in
history” He says “…..He was the only man in History who was supremely successful on both
secular and religious levels” (Majelis Ilm, 2011).Moreover, Encyclopedia Britannica also says,
“Mohammed is the most successful of all Prophets and religious personalities.”(Majelis Ilm,
2011)

In the age of 25, Rasulullah met Hazrat Khadijah Khuwaylid. Khadijah R.A is a very rich
widow and have large area of business which her trade extended to the realms of Syria (Shaam),
Iraq and Yemen. She sent her nephew, Qatima to Prophet Muhammad to know if Prophet
Muhammad would accept her proposal as her trade agent as she was so overwhelmed with
Prophet Muhammad sublime character. Then, Prophet Muhammad accepted the proposition from

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the consultation with her uncle Abu Talib. She arranged a reasonable salary and Prophet
Muhammad set out on his second journey to Syria (Shaam), accompanied by Khadijah R.A with
her slave Maisarah and one of her relatives, Khazima-ibn-Hakim(Amanullah,2012).

When Prophet Muhammad came back he gave an account for every dirham. Khadijah
R.A was completely won over by his honesty and good manners. The trade mission to Syria
proved so profitable that Hazrat Khadijah was overcome with admiration for Prophet
Muhammad. Amanullah (2012) had said that in due course, he made several other trips to
Bahrain, Yemen and Syria each time returning with greater profit.

Amanullah (2012) had claimed that Muhammad (PBUH) the Prophet of Islam and the
greatest benefactor of mankind who has the nobles of personalities including his integrity, loyalty
and truthfulness gained great affection with the people of Makkah. He was noted for his honesty.
He was known as Al-Ameen (the trustworthy) because of the people of Makkah respected to him.
But Prophet Muhammad was intensely frustrated with the people doing illegal and prohibited
things around him and he often went to a cave called Hira. He sought the place that he could find
a peaceful and harmony. He spent his time there in the remembrance of Allah.

Prophet Muhammad pbuh consider deeply about venue before opening a business (Zahid
Isa, 2010). Venue is the one of the most important factor in attracting customers. Markets around
Makkah have become his center of attention because that is where external merchants assemble
since early in the 1400 (Zahidana, 2012). Since childhood, Rasulullah pbuh has been trying to
position itself among merchants around Makkah, especially in a larger market. Nowadays,
Makkah has been the largest place known as a center for business and trading (Mohammad,
2011). Besides that, the people visiting Makkah constantly to perform Umrah and Haj are the
biggest clients. That is why venue is the most important factor that contributes a successful trade
and business trading.

The Prophet also established a network as much as possible with locals and overseas
merchants at Makkah (Zahidana, 2012). In addition, he emphasizes good relationship with all of
them. In the book of Cerita Motivasi untuk Pemimpin, one incident where a trader named Saib
bin Ali Saib came to the Prophet.

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 As seeing Saib approach him, the Prophet Muhammad said, "Come, come. Welcome my
brothers, and my partner who never quarrel.” said the Prophet Muhammad pbuh

Saib responded by saying, "We have never quarrelled because your dealer is always
straight and accurate." (Kamsah and Ishak, 2004). As a summary, we ought to grip our
connection with the customers for long-term kinship by always be friendly and trustworthy.

Furthermore, Arifah Zin (2011) mentioned that the Prophet Muhammad pbuh has said
about the ownership of the property:

"The property is an admirable wealth but only for the righteous, because the righteous
will use their wealth wisely, not smudged too proud that removes blessings from God.”

We have to remember that all of the properties come from Allah. Thus, we ought to
always advise our heart and soul the purpose of the trade and business dealings because it is
reflected back to our intention. Hanif Abdul Bahar (2013) had said that Rasulullah pbuh is often
mistaken as poor man but he is actually a rich man because of the many trade and business
dealings. He only underwent his life moderately but we as modern people must have a bungalow
or 42 inch plasma TV or even a Porsche car. On the other hand, Rasulullah pbuh uses the wealth
in preparing for war, such as fighting because Islam is still new at that time (Mohammad, 2011).
Rasulullah pbuh invest his wealth by having the best armours, swords and war horses. Even the
Prophet has ties stones to his stomach to starve because he said the meaning of the entire
property is used to fight for Islam, not fattened his own stomach.

Indeed, those who recite the Book of Allah and establish prayer and spend [in His cause]
out of what We have provided them, secretly and publicly, can expect a profit that will never
perish. (Surah al-Fatir 35:29)

Business Ethics is the branch of ethics that examines ethical rules and principles within a
commercial context, the various moral or ethical problems that can arise in a business setting,
and any special duties or obligations that apply to persons engaged in commerce. (Dr.
Sabahuddin Azmi, 2010) Prophet Muhammad always practices a good ethics when running a
business. One of them, absolute honesty which is practiced by Prophet Muhammad requires that
all business transactions be based on the fundamental principle of mutual cooperation for the

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highest possible level of mutual benefit for both buyer and seller. (Islam and Business, 2002)
Any lying or cheating by seller therefore renders a business transaction unlawful because there is
no longer mutual consent. Prophet Muhammad warned: “Merchants, beware of lying”. (Al-
Tabrani)

Islam insists on absolute honesty in business because of the invaluable and totally
indispensable nature of business to the economic well-being and social harmony of any
community. Al-Ameen is one of the characteristics of Prophet Muhammad and well-known by
people. It is hardly suprising therefore that Prophet Muhammad assured honest businessmen of
Allah’s most generous rewards. (Islam and Business, 2002)

“An honest merchant will be with the martyrs on the Day of Resurrection”. (Ibn Majah
and Al-Hakim)

Next, Prophet is open-minded, creative and willing to make a change. He has a good
business plan and do it all out to success. He also expanded his business by collaborate with
others. For example he collaborated with Hazrat Khadijah and gain more profit. Besides that, the
Prophet Muhammad also a trustworthy person when doing a business. He has never cheating to
his clients and bluntly to them. (Islam and Business, 2002)

Other than that, Prophet Muhammad practiced a reasonable, fair and just profit in trading.
As a realistic and practical religion, Islam encourages reasonableness in every aspect of human
life. The Prophet stated:

“The best of any matter is what is moderate”. ( Bukhari )

In Islam, legitimate and blessed benefits are only truly achieved through some personal
sacrifice. For a businessman, a means of such sacrifices is in having as reasonable a profit as
possible. (Islam and Business, 2002)

Conclusion, as a muslim we must follow how the Prophet handling a business. Theres a
lots of good example that have been shown by Prophet Muhammad for his ummah especially in
business. In Islam, ummah is encourage to do business as 9 of 10 sustenance is come from
business. Business is also the most widespread and beneficial of all human economic activities.

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