IDENTIFICATION OF INFLUENCING FACTOR ISLAMIC BASED VALUE ENTREPRENEURSHIP TOWARDS BUSINESS PERFORMANCE: A STUDY CASE IN BANDUNG

• Main Author: Ramadhani Sanjaya, M
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75640
• Institution: Institut Teknologi Bandung

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