Principles of Islamic Entrepreneurship and their Application in Modern Age: A Study with Special Reference to Seerah of Holy Prophet PBUH

Abstract

Entrepreneurship is a process of designing, launching and running a new business, which is often initially a small business. It enhances the growth of social welfare, creates job opportunities, brings Innovations, leaves impact on community development, creates political and economic integration of outsiders, improves standard of living as well as promotes research and development. Due to its long-lasting multidimensional effects, our Holy Prophet PBUH encouraged the believers to launch and run the business. This academic work aimed at addressing the principles of Islamic entrepreneurship and their usability in contemporary era. The research was conducted by keeping in view the entrepreneurial practices of Holy Prophet PBUH. For comprehensive understanding of underlying theme, the article was divided into three sections. The first section dealt with the introduction to entrepreneurship and its essential elements, the second section addressed the Islamic principals of entrepreneurship with respect to Seerah, and the third section suggested a theoretical framework for the application of these principles. The systematic review of literature revealed that our Holy Prophet PBUH provided detailed guidelines about innovating, risk taking, launching, and managing the business. The most common principles of his entrepreneurship were faith, trust in Allah Almighty, appropriate utilization of resources, production of legal products, sincerity in efforts, honesty in dealings, care for society and environment, transparency in all affairs, and consultation with shareholders in making decisions. These principles increased the profit, promoted social welfare, and played a significant role in economic stability. In the light of cited literature, the research recommended to take guidance from Prophetic principles in order to promote peace and prosperity on individual and collective level. Qualitative research approach was employed for the collection, demonstration and analysis of data.