Oxford Fajar Polytechnic Series

ENTREPRENEURSH
IP
2nd Edition

Sarimah Hanim Aman Shah Abdul Rashid Mohd Ali

CHAPTER 01;

ISLAMIC ENTREPRENEURSHIP

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Goal of Islamic Entrepreneurship
Is o achieve success; assoc with falaha, aflaha, faza
fauzan
Success- to achieve what is desired, happines wordly &
hereafter, prosperity, freedom from worries, difficulties
or mental anguish
Success achieved by the guidance from GOD

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Goal of Islamic Entrepreneurship
(cont.)
Aqidah
(faith/belief)

ISLAMIC
ENTREPRENEURSHIP

Akhlak
Syariah
(Muslim
(Guidelines
conduct &
for Human)
behavior)

MUHAMMAD FIRDAUS MUHAMMAD SABRI

 Goal of Islamic Entrepreneurship
(cont.)
Success formula by Al Qurtubi;

i. Halal (lawful)
ii. Qanaah (pleased & thankful with earning)
iii. Taufiq (blessings of Allah)
iv. Sa’adah (happiness)
v. Jannah (heaven)

MUHAMMAD FIRDAUS MUHAMMAD SABRI

 Goal of Islamic Entrepreneurship
(cont.)
Success formula by Al Ghazali (Minhajul
‘Abidin);

i. Knowledge & gnosis (ma’rifat)

ii. Repentance (taubat)
iii. Temptation
iv. Obstacles
v. Motivation
vi. Imperfections
vii. Praise & thankfulness (syukur)
MUHAMMAD FIRDAUS MUHAMMAD SABRI
Basic Concepts of Islamic
Entrepreneurship
Rizq Seeking

Wealth Creating
i. Ultimately, GOD owns them
ii. Wealth created by GOD is plentiful & more than
enough for everyone
iii. Wealth is created for man
iv. Wealth is entrusted (Amanah) to man

Value Enhancing
MUHAMMAD FIRDAUS MUHAMMAD SABRI
Significance of Islamic
Entrepreneurship
Islamic entrepreneurship is based on benefiting
humanity while maintaning GOD’s order
Perform business not only for profit, but also to fulfill
the fardhu kifayah or compulsory knowledge or skills
required for society to function
Prosper community through donation, taxes, zakat &
sadaqah.

MUHAMMAD FIRDAUS MUHAMMAD SABRI

MUHAMMAD FIRDAUS MUHAMMAD SABRI
Types of Businesses in Islamic
Entrepreneurship
Safekeeping
Agency (Wakalah)
(Wadiah)

Profit Sharing Benevolent Loan

(Mudharabah) (Qardhul Hassan)

Joint Venture Types of Businesses Hire Purchase

(Musyarakah) (Ijarah Thumma Al Bai)

Cost Plus Sale & Buy Back Agreement

(Murabahah) (Bai’ Al-Inah)

Deferred Payment Sale Gifts

(Bai’ Bithaman Ajil) (Hibah)

MUHAMMAD FIRDAUS MUHAMMAD SABRI

The Concept of Halal & Haram in
Business Transactions
•Allowed or lawful
HALAL •Thing/conduct that permissible stated in Quran
•Obligatory to every Muslim

MUHAMMAD FIRDAUS MUHAMMAD SABRI

The Concept of Halal & Haram in
Business Transactions
•Prohibited or unlawful
HARAM •Things/activities which ALLAH absolutely prohibited
•Anyone engage in it – punishment in world & hereafter

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Haram in Business Transaction
Sale of Al-Gharar

i. Uncertainty of a good/services
ii. Strictly prohibited – quality is not known to the buyer
iii. Ex. – in womb of female camel, bird in the air etc.

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Haram in Business Transaction
(cont.)
Hoarding of food

i. Or ihtikar – storing food/withholding them in

expectation that price will rise
ii. Ex; - Store the rice with the objective of selling it later
at the time of scarcity
iii. Consumers left with no choice but to purchase the item
iv. Unjust practice & a clear case of exploitation –
condemned by ISLAM

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Haram in Business Transaction
(cont.)
Exploitation of market condition

i. Local trader persuade newcomer to transfer all the

goods to him
ii. Local trader obtains commodities at a lower price than
the market price & sell at higher price

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Haram in Business Transaction
(cont.)
Cheating & fraud in business transaction

i. Traders/businessmen motivate customers by adopting

fraudulent business practices
ii. Known as Al-Ghashash
iii. Prophet Muhammad (p.b.u.h) commanded not to
indulge in cheating & fraudulent in business
iv. Sale of dead animals, dubious, vague transaction,
manipulating prices, false writing, concealment of
defects etc

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Haram in Business Transaction
(cont.)
False swearing

i. Swearing the items sold are in good quality which are

not
ii. Claim qualities in merchandise which do not exist
iii. Persuade buyer to buy by invoking ALLAH’s name

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Haram in Business Transaction
(cont.)
Giving short measures

i. Manipulate weights & measures

ii. Act of taking full measures from others & giving them
short measures in return
iii. Ex – community of Prophet Shuaib

MUHAMMAD FIRDAUS MUHAMMAD SABRI

Haram in Business Transaction
(cont.)
Dealing in stolen goods

i. ALLAH declared theft as an unlawful act

ii. Stolen items are neither to be bought nor sold by those
who know the truth of the stolen items
iii. Prophet Muhammad (p.b.u.h) made the person who
knowingly bought a stolen commodity a partner to the
crime

MUHAMMAD FIRDAUS MUHAMMAD SABRI