INFLUENCE OF ENTREPRENEURSHIP BASED ON ISLAMIC VALUE TOWARDS BUSINESS PERFORMANCE

• Main Author: Ramadhani Sanjaya (19014037), M.
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29043
• Institution: Institut Teknologi Bandung

The spirit of entrepreneurship in Indonesia in last year is increasing. The ratio of Indonesian entrepreneurs <br /> <br /> which in 2013/2014 is still 1.67 percent now, based on BPS data has risen to 3.1 percent. Indonesia is the <br /> <br /> largest muslim population of the world. According to BPS (Badan Pusat Statistik) sensus in 2010, the <br /> <br /> percentage of Muslim in Indonesia is 87,18% and from that amount some of them has profession as <br /> <br /> entrepreneur. It can be assumed that there is a business concept based on Islam. An Islamic company <br /> <br /> stands not only for worldly (dunyawi) purpose.Islam is the religion which provide comprehensive and <br /> <br /> integrative system of life, Islam offer the concept of economic and business value that written in the <br /> <br /> Quran and what Messenger Muhammad said and do in his business activity. Islam is not the religion that <br /> <br /> prohibit its member (ummat) to be rich or to has wealthy life. Prophet Muhammad is the role model. He <br /> <br /> spent most of his life as an entrepreneur. Therefore, is important to know how the Islamic value affect the <br /> <br /> entrepreneur spirit and mindset of muslim entrepreneur in Indonesia <br /> <br /> The objectives of this research are to know the concept of Islamic entrepreneurship, the implementation <br /> <br /> of Islamic value on the business activity of Muslim entrepreneur and to know the impact of that Islamic <br /> <br /> value on the performance of business. <br /> <br /> This study used qualitative approach as research methodology. This research categorized as explanatory <br /> <br /> research for a problem which was not well researched before, demands priorities, generates operational <br /> <br /> definitions that aim to explain theory and reality. The research approach that was followed for the <br /> <br /> purposes of this research was the inductive one. The method of data collection is purposive sampling by <br /> <br /> choosing muslim entrepreneur in some criteria that expected to represent the data. Observation and <br /> <br /> interview used to gain data from the respondent. <br /> <br /> Islamic value in business are integrity, transparency, fairness, target orientation that are derived from <br /> <br /> quran and real-life history of Muhammad SAW. The research concludes that Islamic intrepretation on <br /> <br /> entrepreneurship activity are align with modern theory of entrepreneurship. The main purpose of business <br /> <br /> in Islam is to spread benefit to society as the manifestation of worship (ibadah) to gain blessing from god. <br /> <br /> The study find that some of muslim entrepreneur in Indonesia, know and implement that value in their <br /> <br /> business activity whereas some of them are not and still stick to conventional method, because of the <br /> <br /> incorrectness between theology belief and practice. The implementation of Islamic value give positive <br /> <br /> correlation and strengthen business performance, but in requirement that business strategy is designed <br /> <br /> well first, spirituality aspect and ritual only act as enhancement to performance, while the most important <br /> <br /> thing is how the management itself. This proving that the concept of Islamic entrepreneurship is fit with <br /> <br /> the theory of modern entrepreneurship, therefore it really recommended for all muslim entrepreneur to <br /> <br /> implement this value in their business.