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Entrepreneurship and Islam: An Overview

Author

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  • M. Kabir Hassan
  • William J. Hippler, III

Abstract

Muslim entrepreneurs are compelled by religious laws to abstain from engaging in certain economic and financing activities, such as those involving gambling, usury, and speculation. Western entrepreneurs may choose to forgo certain business opportunities due to religious or moral laws as well; however, these limitations are voluntary and are often less restrictive than those of Shari’ah laws. Religious limitations help to explain differences in entrepreneurial outcomes between Western and Islamic economies. However, direct comparison of the two systems using purely financial benchmarks is inappropriate. Islamic laws argue that the limitations imposed on Muslim entrepreneurs eliminate inherently immoral and unjust economic practices, and their prohibition increases the social value of the economy. Understanding the differences between the motivations of Western and Islamic entrepreneurs is important in determining their relative success.

Suggested Citation

  • M. Kabir Hassan & William J. Hippler, III, 2014. "Entrepreneurship and Islam: An Overview," Econ Journal Watch, Econ Journal Watch, vol. 11(2), pages 170-178, May.
    • Handle: RePEc:ejw:journl:v:11:y:2014:i:2:p:170-178
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    References listed on IDEAS

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    1. Filipe Campante & David Yanagizawa-Drott, 2013. "Does Religion Affect Economic Growth and Happiness? Evidence from Ramadan," CID Working Papers 274, Center for International Development at Harvard University.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. M. Akbar, 1993. "Ideology, Environment and Entrepreneurship : Typologies from Islamic Texts and History," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 2(2), pages 135-154, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Irum khattak & Qadir Bakhsh Baloch & Gohar zaman, 2019. "Effect Of Academic & Personality Development Activities On Competitiveness Of Business Schools: An Empirical Study Through The Lens Of Islamic Perspective," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 15-12.
    2. Irum khattak & Qadir Bakhsh Baloch & Gohar zaman, 2019. "Effect Of Academic & Personality Development Activities On Competitiveness Of Business Schools: An Empirical Study Through The Lens Of Islamic Perspective," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 182-198.
    3. Asma Rauf & Yazid Abubakar & Ayesha Abrar & Madiha Gohar & Ly Slesman & Jay Mitra, 2022. "Islam, Entrepreneurship and Economic Development," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(2), pages 270-273, July.
    4. Dakung Reuel Johnmark & Tsenba Wummen Soemunti & Orobia Laura & John C. Munene & Waswa Balunywa, 2016. "Disabled students’ entrepreneurial action: The role of religious beliefs," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1252549-125, December.
    5. Chen, Naiwei & Liang, Hsin-Yu & Yu, Min-Teh, 2018. "Asset diversification and bank performance: Evidence from three Asian countries with a dual banking system," Pacific-Basin Finance Journal, Elsevier, vol. 52(C), pages 40-53.
    6. Reazul Islam & Rubi Ahmad, 2020. "Applicability of Mudarabah and Musharakah as Islamic Micro-equity Finance to Underprivileged Women in Malaysia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(1), pages 176-197, January.
    7. Ascarya & Siti Rahmawati, 2015. "Analysis The Determinants Of Micro Enterprises Graduation," Working Papers WP/1/2015, Bank Indonesia.
    8. Farida Mohammed Shehu & Al-Hasan Al-Aidaros, 2015. "Islamic Entrepreneurship in the Light of Maqasid Al-Shari’ah: A Critical Review," Journal of Social and Development Sciences, AMH International, vol. 6(4), pages 6-14.

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    More about this item

    Keywords

    Entrepreneurship; Islamic finance; Islamic entrepreneurship;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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