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Characteristics Displayed by a Muslim Entrepreneur, According to Research - Muslim Insiders
In Islam, businesses are done based on ethical Islamic laws and regulations. These businesses are usually labelled as halal or Sharia-compliant. This includes treating employees fairly, being open about finances, and avoiding actions forbidden in Islam. Following these rules builds trust and integrity, which are key for the business to run well and align with Islamic values.
According to research by USIM, there are several characteristics displayed by a Muslim entrepreneur that are portrayed in the Quran and Hadis.
Putting Taqwa as a Guideline Business leaders who have taqwa, or God-consciousness, display traits like patience, honesty, integrity, and being mindful of ethical values. They stay strong and determined when facing difficulties, always sticking to doing what’s right. Their choices are influenced by a strong sense of duty to their employees, customers, and society, aiming for fairness and justice in everything they do. With taqwa guiding them, they value honesty, openness, and taking responsibility, which helps build trust within their organizations. These leaders know that success isn’t just about making money but also about making a positive impact, and they follow Islamic principles to ensure their businesses grow in a sustainable and ethical way.
Practice Moral Values Leaders who grasp the significance of moral values recognize that these principles not only shape their identity as Muslims before their Creator but also influence their relationships within the organization and with customers. Moral values include refraining from engaging in ‘riba’ (interest or usury) within business practices. Riba, or interest, is harmful because it makes borrowers take on more financial risks and creates unfair income distribution. It means those with money make more money without necessarily working for it, widening the gap between rich and poor.
Prioritize Halal A leader who prioritizes halal in business operations ensures that all aspects of the business comply with Islamic ethical guidelines. They ensure that products and services are produced and delivered in accordance with halal principles, gain halal certifications and avoid any practices that contradict Islamic teachings. This type of leader creates an environment of integrity and trust among employees, customers, and stakeholders, promoting the values of fairness, honesty, and responsibility in all business dealings.
Is Trustworthy What makes someone a good leader is someone who is trustworthy, so that their teams will follow their lead. They also possess traits such as integrity, honesty, and reliability. With these traits, they demonstrate transparency in their actions and decisions, maintaining open communication with their team members. This will build trust among the team, which will instinctively make customers trust the business. This goes well with the saying, “The customer’s perception is the company’s reality.”
Not Being Wasteful Islam prohibits wasteful actions. Therefore, a leader will ensure their businesses reduce waste. For example, some halal restaurants and food establishments may implement strategies such as portion control, proper inventory management, the donation of excess food to those in need, and utilizing food scraps creatively to minimize waste. Muslim business leaders could also find initiatives within the Muslim community to promote awareness about reducing food waste and encouraging environmentally sustainable practices in food-related businesses.
Concern for the Welfare A Muslim leader who addresses deep welfare issues is another trait they displayed. These Muslim entrepreneurs often integrate principles of social responsibility and ethical business practices into their ventures. Examples of efforts could be providing employment opportunities for marginalized communities, promoting fair labor practices, or supporting environmentally sustainable initiatives. Also, others may allocate a portion of their profits towards charitable causes.
Have Knowledge Leaders with the knowledge trait prioritize learning and wisdom, which helps them make smart decisions for their business. They keep improving their understanding of different areas and stay humble about what they know. This commitment to knowledge helps them lead effectively and ethically, leading to the success of their ventures based on Islamic teachings.
Care for Society and Environment Leaders who care for society and the environment, as depicted in the Quran and Hadith, prioritize helping others and protecting nature. They focus on doing good for their communities and being responsible stewards of the environment.
Therefore, Muslim entrepreneurs stand out for their commitment to ethical business practices that are rooted in Islamic values. They prioritize fairness, honesty, and responsibility in their actions. They also care deeply about helping others and protecting the environment. By following these principles, they could build trust and make a positive impact within their organization and on society.
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