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Islamic Entrepreneurship Pedagogy
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Entrepreneurship Pedagogy for Muslim Communities: Unique Opportunities for Integration
Mohd. Murray HunterUniversity Malaysia Perlis (Unimap)
Presentation to the 1st AMRON International Conference “ASEAN Islamic Education: Change from within through Education” 2-3rd October 2010
• Current Global and Regional Situation of the Ummah
• Not Just Education – the right education needed to “make a difference”
• The Islamic “entrepreneurship model “ & western ethics converging with Islamic
principals
• Applying and implementing the model
• Conclusion
Current Global and Regional Situation of the Ummah
The World Ummah represents the bottom 20% of the World’s population in socio-
economic terms. Opportunity is an aversion to most.
GDP % share of GDPrank country country pop % GDP World Islam
1 Indonesia 866 88.0 761.7 1.3 13.92 Turkey 572 99.8 570.9 0.9 10.43 Iran 562 98.0 550.4 0.9 10.14 India 3,611 13.4 483.9 0.8 8.95 Pakistan 393 97.0 381.6 0.6 7.06 Saudi Arabia 338 100.0 338.0 0.6 6.27 Egypt 304 90.0 273.2 0.4 5.08 Bangladesh 304 83.0 252.6 0.4 4.69 Algeria 233 99.0 230.9 0.4 4.2
10 Russia 1,589 12.5 198.6 0.3 3.611 Malaysia 290 55.0 159.6 0.3 2.912 Morocco 138 98.7 136.5 0.2 2.513 France 1,816 7.5 136.2 0.2 2.514 China 8,859 1.5 132.9 0.2 2.415 US 12,360 1.0 123.6 0.2 2.316 UAE 111 96.0 106.8 0.2 2.0
Muslim
The top Islamic economies
Images of Islam
The Islamic world today
True Empowerment only comes from economic development rather than
political meansThe Kadazan/Dusun People in Sabah, Borneo
December 26 2004 More than 180,000 Indonesians are killed and over 600,000 listed as missing and homeless after a massive undersea earthquake off Sumatra triggers a series of tsunami
February 21 2005: A landslide sweeps through two West Java villages near a garbage dump on the outskirts of Bandung, killing 96 people
March 28, 2005: More than 900 people are killed after a quake of magnitude 8.7 hits Nias on the coast of northern Sumatra. Around 500 more are injured and 2,000 left homeless
July 20, 2005: Indonesia confirms its first deaths from bird flu. Tests on a father and his two young daughters, who lived in Tangerang on the outskirts of Jakarta, show they contracted the killer virus
Sept 2005 – February 2006 More than 200 people killed in Flash floods and Landslides
January 2007
More than five
hundred people die in ferry
disaster
February 2007 – Heavy rains cause major flooding in Jakarta more than 50 people die over 300,000 have to move from their homes
December 2007/January 2008 Floods and mud-slides in Central Java leave 130+ dead, thousands homeless
The Major Blocks to Development
• The current “psych” of farmers
• Growing rural unemployment
• Unbalanced affluence (town-rural)
The Probable Causes
Lack of Ideas
Lack of education and skills
Narrow mindset
Feeling of powerlessness – lack of access to markets
Lack of resources
Lack of will
Economic, social, and spiritual Poverty is contributing to
ignorance, anti-social behaviour, Crime, apathy, amorality, and
even terrorism
The World is progressing with the exception of the majority of the Ummah
Not Just Education – the right education needed to “make a difference”
The question here
is what knowledge
and education is most
valuable to the Ummah?
Tissue Culture
Branding
Organic (Halal) Farming
Diversified Halal Farms
Farmers’ marketsCOOP Market
Home Delivery
Gerai Delivery
Restaurant & Hotel Delivery
Many small suppliers that are customer
orientated
Existing Thai Organic Products
Organic Herbicides
Product Reported Results*
Control O
Round Up Pro[i]
10
All-Down Organic[ii]
Range 0.5 – 3.8
[i] Registered Trademark of Monsanto.[ii] http://alldownherbicide.com/
Before
After
Swiftlet Farming
3 Ft 3 Ft
6 Feet
5 Feet
9 Feet
23 Feet
End View
14 Feet
8 Feet 1 Ft
9 Feet
23 Feet
Side View
Top V
iew (R
einfo
rcemen
ts)
By developing novel applications of technology
Pharmaceuticals
Organic Agro-Chemicals
Community entrepreneurship
development should be project and mentor based.
The Islamic “entrepreneurship model “ & western ethics converging with Islamic
principals
Need for an Islamic Model
The nature of man
The amoral society
The underdevelopment of Islamic societies
Al ‘Qu’ran is presented in a business paradigm and all of Islam’s prophets
were entrepreneurs in their own right.
Islam Espouses a Market Economy
“He who brings goods to the market is blessed with bounty,
he who withholds them is cursed.”
(Ibn Majah & Al Hakim)
A Market Mechanism Is Espoused
“Do not chase after those who are going to the market before
they reach the place.”
(Al-Bukhari & Muslim)
Islam also prohibits price manipulation
“Anyone who withholds goods until the price rises is a sinner.”
(Muslim).
Ad-Din
Al-Ilm
Al-Iman
Al-Amal
Syar’iah
Fard’ain
Fard Kifayah
Halal Toyyibat
Tahwid
Ibadah
Amanah Al-Falah Ummah
Musharakah Al-Ta’awun
Al-Fasad
Shu’ra
Adab
Faith in one God and a commitment in the teachings revealed by God and His Messengers. Iman affects our
world view and daily practices.
Knowledge. Three sources based on Iman, a) intellect (‘aql), experiences and revelations (wahy). Guided by
Iman. Work and deeds, pious practice, orientated to Allah, turning
away from all weakness and evil. Amal is based and guided by Iman and Ilmu.
The path shown by Allah (SWT). The divine law.
A holistic life where one looks after worldly comforts and also prepare for the hereafter. An individual’s obligation to
perform one’s religious duties.
A collective responsibility for both social and spiritual development
Toyyibaan & Halal
• This day are (all) things good and pure made lawful unto you. The food of the people of the Book is lawful unto you and yours is lawful unto them. … If anyone rejects Faith, fruitless is his work, and in the Hereafter he will be in the ranks of those who have lost (all spiritual good).
Al-Ma’idah 5:5
• O you people! Eat of what is on earth, lawful and good; and do not follow the footsteps of the evil one, for he is to you an avowed enemy.
Al-Baqarah 2:168
• From the land that is clean and good, by the Will of its Cherisher, springs up produce, (rich) after its kind; but from the land that is bad, springs up nothing but that which is niggardly: thus do we explain the Signs by various (symbols) to those who are grateful.
Al-A’raf 7:58
• O ye who believe! Eat of the good things that We have provided for you, and be grateful to God, if it is Him ye worship.
Al-Baqarah 2:172
Clean
Healthy
Non Exploitive
No Najis/Haram
Sustainable
Community Benefit
Toyyibaan
Substances and deeds that are good, healthy, pure, clean and lawful.
Prohibited by Allah in the Al-
Qur’an
Permitted by Allah in the Al-Qur’an
Ad-Din
Al-Ilm
Al-Iman
Al-Amal
Syar’iah
Fard’ain
Fard Kifayah
Halal Toyyibat
Tahwid
Ibadah
Amanah Al-Falah Ummah
Musharakah Al-Ta’awun
Al-Fasad
Shu’ra
Adab
Mutual consent
A business partnership;a) Shirkah: where two or more individuals pool financial resources and share profit and loss on an agreed ratio
and held liable to the extent of their capital,b) Syari’ah: each partner is able to operate other businesses, independent of
the principal businessc) Mudarabah:Partnership where one manages
the partnership and another supplies the financial resources.
Worship. Relates man to Allah through spiritual acts. The
manifestation of Amal salih (pious actions).
Piety
Recognition of the right and proper place and station, condition in life and to self discipline in positive and
willing participation in enacting one’s role in accordance with that recognition and
acknowledgement. Its occurrence in one and society as a whole reflects the condition of justice.
Trust by God in man in the all encompassing concept of nature (tabi’ah)
Inclination towards destruction
The concept of Al-Falah requires Muslims to win and be successful in both this world
and the hereafter. Islamic community
A relationship with Allah which excludes a relationship with anyone else.
The focus of all man’s reverence and gratitude, the only source of value, where what
Allah desires for man becomes value to him. Man who commits his will to Allah,
recognises no other authority other than His. Comprises Iman, Ilmu and Amal.
•Be proactive as this will develop the ability to control one’s environment, rather than be controlled by it, as is generally the case.•Begin tasks with the end result in mind, avoid distractions and concentrate only on relevant activities, which will make you much more productive,•Organise correctly and undertake the most important tasks first in a step by step approach,•Look for win-win strategies so that all benefit,•Listen to people first and understand them before you try to make them understand you, which will assist in maintaining positive relationships with people,•Look to develop synergy between people which will develop a better outcome, greater than what individuals can achieve working by themselves, and•Continually seek self-renewal, spiritually, mentally, emotionally, socially and physically.
Overseas Halal Food Product
Organic Farming Concept
From the soil to market
Food Miles – Local Community
Aveda The Body Shop Thursday Plantation
Sureco Hain CelestialGroup
Est. Sales USD120million (1996)[i] USD619mil
(2006)
USD1.5Billion (2006)[ii]
USD85Million (2006)[iii]
USD40Mil[iv] USD738Mil[v] (2006)
Location USA UK Australia Malaysia USA
Established 1978 1976 1976 1999 1926
Products Personal Care Personal Care Personal Care Herbs Organic food and cosmetics
Basic Philosophy To sustain the environment and
give back to communities
Social humanitarianism activism on many
issues
Natural tea tree
products/natural medicines
Halal & Toyyibaan
Free of artificial ingredients,
Kosher foods
Ethics Yes
Green Yes Yes Yes
Natural Yes Yes Yes Yes
Organic Yes Yes Yes
Community Yes Yes Yes
Cultural
Religious/Spiritual Yes Yes
Mode of Distribution Direct Marketing/Salon
Retail and e-Commerce
Direct and through
distributors
Direct Marketing
General distribution
Owner Estée Lauder Companies Inc.
Loreal Chris Dean & Family
Private Ownership
Listed company
Applying and implementing the model
How to implement
• Community Emphasis• Development of a sustainable environment &
Ummah• Social equity• Enlightened teaching techniques• mentoring
Culture
Leadership
Theories in action verses Espoused
Norms and group behaviour Organisational
learning (single or double looped
Productivity &
effectiveness
Stories, myths, heroes, artifacts, informal behaviours
Negative Attributes
Positive Attributes
Destruction
Growth
The Cultural Dialectic
Cultural Paradigm
Pee
r g
rou
ps m
en
tors
, s
oc
iety
Chance & Fate
Paradigm Personality Paradigm
Strategic Paradigm
Creativity Paradigm
Action Paradigm
Interpersonal Paradigm
Skills Paradigm
Infl
ue
nce o
n o
the
r p
ara
dig
ms
Co
mm
itm
en
t a
nd
eth
ics
So
cia
l &
Ed
uca
tio
nal
Bac
kg
rou
nd
Ide
nti
fy a
nd
ex
plo
it
op
po
rtu
nit
ies
Res
ou
rce g
ath
eri
ng
Cu
sto
me
r o
rien
tate
d
Sen
se o
f ac
hie
ve
men
t
Mo
tiv
ati
on
&
dete
rmin
ati
on
Ad
ve
rsit
y t
o r
isk t
akin
g
See
k &
id
en
tify
o
pp
ort
un
itie
s
Inn
ov
ati
ve
In c
on
tro
l o
f th
e
bu
sin
es
s
Ab
le t
o in
sp
ire
peo
ple
Ab
ilit
y t
o w
ork
w
ith
pe
op
le
Netw
ork
ing
Exp
eri
en
ce
Tec
hn
ica
l s
kil
ls
So
ft s
kil
ls
Tale
nts
& a
bil
itie
s
He
alt
h,
pe
rso
nal e
ne
rgy,
fo
cu
s,
tim
e o
rie
nta
tio
n,
ori
en
tati
on
to
gett
ing
th
ing
s
do
ne
, o
rie
nta
tio
n t
ow
ard
s
ge
ttin
g t
he
rig
ht
thin
gs
do
ne
Lo
ok
ing
fo
r b
en
efi
ts,
eff
ec
tive
pe
rfo
rma
nc
e,
ab
le t
o s
ec
ure
re
so
urc
es
, o
ve
rall
vis
ion
, a
ble
to
w
eig
h t
hin
gs
up
in
s
tra
teg
ic w
ay
En
viro
nm
en
t, tr
igg
ers
, in
sp
ira
tio
n,
late
ral
&
se
ria
l th
ink
ing
, te
ch
nic
al
sk
ills
, id
ea
s,
op
po
rtu
nit
ies
, so
luti
on
fi
nd
ing
En
vir
on
men
t, p
eers
, fa
mil
y,
cu
ltu
re, re
ali
ties, m
oti
vati
on
, d
ed
icati
on
, self
assu
ran
ce,
self
perc
ep
tio
n, m
ora
lity
, re
sp
on
sib
ilit
y,
acco
unta
bilit
y, a
dvers
ity t
o
risk t
akin
g (
co
ura
ge), sta
nd
o
n b
eli
efs
, le
vel o
f co
mfo
rt
Sele
cti
ng
th
e r
igh
t p
eo
ple
, te
am
/in
div
idu
al
ori
en
tati
on
, vie
w o
f o
uts
ide e
xp
ert
ise,
netw
ork
ing
, in
terp
ers
on
al
ou
tlo
oks, m
an
ag
em
en
t sty
le,
lead
ers
hip
, d
om
inan
ce/s
ub
mis
siv
en
ess
Up
bri
ng
ing
an
d f
am
ily
ba
ck
gro
un
d,
ed
uc
ati
on
an
d
life
exp
eri
en
ce
s, s
tre
ss
ful
un
ex
pec
ted
eve
nts
, fa
te
So
cie
ty &
fa
mil
y,
pe
ers
&
role
mo
de
ls, a
ss
um
pti
on
s,
va
lue
s,
be
lie
fs, le
arn
ing
, m
en
tors
, p
erc
ep
tio
ns
Po
sit
ive
& n
eg
ati
ve
e
xp
eri
en
ce
s, s
ucc
ess
&
fail
ure
, e
du
ca
tio
n &
s
kil
ls, s
oft
sk
ills
, ta
len
ts
an
d a
bilit
ies
Attributes of the Entrepreneur
Creativity
Lateral thinking
Serial Thinking
GroupEducation
Culture
Strategic Thinking
Personality
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
The elements of innovation
Creativity
InterpersonalInteractions
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
Tempera -ment
Ability
Skills
Learning
A
B
C
D
Visual Holistic Intuitive Innovative Conceptual Imaginative
Conservative Structured Sequential Organised Detailed Planned
Interpersonal Kinesthetic Emotional Spiritual Sensory Feeling
Logical Factual Critical Technical Analytical Quantitative
Number Crunchers Human Machines Achievement Orientated Performance-Driven
Administrators Bureaucrats Production-Orientated Task-Driven
Teachers Social Workers Feeling-Orientated Value-Driven
Entrepreneurs Explorers Future-Orientated Risk-Driven
Avoid mistakes -------------------------- InnovateLive for today ------------------- Think long termSave money----------------Spend for the futureWork by oneself---------------Work as a groupFollow rules and norms ------------ Be flexibleCompete -------------------------------Collaborate
Make your own decisions---Make joint decisions
Paradigm Change
Peer based Education
Opportunity is a Construct
Ability to make linkages Anchoring a source of innovation
Having the right Skills
Networks
Resources
Product/MarketStrategy
VisionPlatform
Dream, ego, aspiration, greed, survival, education
ExperienceReference & Benchmark
Cognitive, hemispherial & field Perception
Source Explanation Examples
The unexpected success, failure or
external occurrence
Success of a revolutionary product or the application of technology from one industry to another, sudden or unnoticed demographic changes caused by wars, insurgencies, migration, etc.
Apple computerRapid decline of Proton’s market share
An incongruity between reality as it actually is and
what it ought to be
A change that is already occurring or can be made to occur within an industry. It may be visible to those inside the industry, often overlooked or taken for granted.
Sugar free products and sugar replacements due to concern for healthIncreasing demand for travel and holidays due to increasing incomes and leisure time
Inadequacy of an existing
technology or business process
An improvement in process that makes consumers more satisfied based on an improvement or change in technology.
Caffeine free productsMicrowave ovensMobile phones
Changes in industry or market
structure
New ways and means of undertaking business based on identified opportunities or gradual shifting of the nature of the industry.
Health care industryEducation industry – private education
Perceptual changes
Changes in peoples awareness founded on new knowledge and/or values or growing affluence leading to new fashions and tastes
Leisure and exercise industry aerobics & gyms
Demographic changes
Gradual shift of demographics in population by age, income groups or ethnic groups, etc
Establishment of more retirement homes
New knowledge New knowledge or application of existing theoretical knowledge into an existing industry that can create new products not previously in existence
Video and VCD industryRoboticsBiotechnology
Attribute Small Business Entrepreneurial Business
Risk Risk is to be avoided by undertaking a business activity that is already proven to be successful. Therefore business models will not be novel.
Ideas and opportunities are always risks. Every village and every person is unique and will have different ideas that suit them.
Need to Achieve A small business is totally orientated towards a financial return.
Financial return may not be the prime motivator. Individuals and groups may want to produce something they like and have pride in.
Creativity An enterprise will fit into a proven model so not much creativity is needed.
The enterprise from the first idea may be driven by many types of creativity, and creativity itself may be a source of satisfaction.
Flexibility A small business is a business operated through a disciplined routine in most cases.
Individuals and groups may be looking for maximum flexibility in an enterprise, so it can fit in with their life, rather than they have to fit in with the small business.
Change Small businesses rely on little environmental change for success.
Change in the environment may suit individuals and groups as they don’t want to get locked into routine, and change prototes their creativity.
Independence Financial independence is the objective. We are already independent and don’t want a business to lock us into a strict routine.
Foresight A daily, weekly, monthly or seasonal cycle that is predictable.
We may have to keep coming up with new things to keep the enterprise going.
Initiative There are very tight resources to have much initiative.
We rely on initiative to keep going, and all initiatives are considered.
Control of destiny The future is controlled by sales in the marketplace.
The future is in our hands of what we want to be.
Commitment Total commitment. I want to be committed on my terms.
Leadership I am the leader and do all tasks. Leadership is defined by tasks.
Conclusion
Conclusion
• Enhance the position of the Ummah according to how the Qu’ran prescribes
• Entrepreneurship education will direct tackle community problems
• Ummah needs focus and leadership in this area
• Entrepreneurship education is a most important priority for the Ummah
An-Nur (24:38)
That Allah may reward them according to the best of their deeds, and add even more
for them out of his grace for Allah does provide for those whom He will, without measure.
Al ‘Anabut (29:7)
Those who believe and work righteous deeds- from them shall We blot out all evil (that may be) in them, and We shall reward them according to
the best of their deeds.
God does not change the conditions of a people until they change their inner shelves
Qur’an 13:11
Thank You
Let our noble jihad continue