Poverty to prosperity

Entrepreneurial activity has become one of the tools for individuals who want to create and maintain a sustainable way of life as it not only supports the well-being of individual entrepreneurs but also contributes to the overall well-being of society by generating more job opportunities, driving economic growth and addressing social challenges.

As such, entrepreneurship provides the opportunity for people, especially asnaf, to liberate themselves from poverty and take steps towards economic stability and growth. ‘Asnaf’ refers to a group of people worthy of receiving zakat (an annual alms tax or poor rate that each Muslim is expected to pay as a religious duty). This includes the needy, the poor, zakat collectors, the muallaf (converts), the slaves to whom freedom is promised, the debtors, the distant travellers, and those who fight in the name of Allah.

While traditional entrepreneurship focuses on the profit motive, halal entrepreneurship integrates Islamic values into its business practices. The integration of entrepreneurship with Islamic principles reflects how halal entrepreneurs (halalpreneurs) operate their businesses.

Their emphasis is not solely driven by financial gain but rather a commitment to produce and consume halal (permissible) and toyyib (pure and wholesome) goods and services which may positively impact the people, as has been highlighted in the Quran:

“O you who have believed, eat from the good things which We have provided for you and be grateful to Allah if it is [indeed] Him that you worship.” (Quran, Al-Baqarah, 2:172)

For Muslims, halalpreneurs can also be seen as a khalifah (caliph, ruler, leader) who have a responsibility to develop prosperity and see their business as ibadah (worship).

SKILLS AND KNOWLEDGE

Knowledge and skills development are essential in shaping the success of a business among asnaf halalpreneurs. Specific skills such as marketing, digital literacy, and bookkeeping are critical in helping them to manage and grow their business effectively.

For example, IT skills can empower asnaf to promote its products using digital platforms and thus may overcome marketing challenges despite the limited budget.

Additionally, knowledge and skills in proper bookkeeping allow them to monitor the financial health of their business, thus making necessary adjustments to strengthen the weaker areas. The right skills and knowledge provide more confidence for Asnaf to run their business and make continuous improvements over time.

FINANCIAL SUPPORT

Access to financial resources is critical for establishing a new business venture. This is particularly important for microentrepreneurs like asnaf, who lack initial capital to start their business or expand existing operations.

In response to this, various institutions, including zakat institutions such as Lembaga Zakat Selangor (LZS), Majlis Agama Islam Wilayah Persekutuan (MAIWP), and Majlis Agama Islam Johor (MAIJ) provide financial assistance through multiple programmes to help asnaf start and grow their businesses.

Additionally, there are also initiatives from other institutions which include funding and training for entrepreneurs like RAKYATpreneur and UNIpreneur programmes by Bank Rakyat.

The Ministry of Entrepreneur and Cooperative Development (MEDAC) also introduces the AsnafPreneur Transformation Program (TAP) to support asnaf in starting a business by providing financial assistance, training and business equipment.

Microfinance institutions such as Amanah Ikhtiar Malaysia (AIM) and TEKUN Nasional also play an important role in helping asnaf halalpreneurs through their financing schemes that include capital for business development.

Alliance Islamic Banks also introduces zakat microfinancing programs (AZAM), cementing their commitment to support asnaf by providing more accessible and affordable financing opportunities.

All of these initiatives demonstrate growing attention and support from various parties to elevate the livelihood of asnaf through entrepreneurship towards a better quality of life.

ENTREPRENEURIAL MOTIVATIONS

Motivation plays a vital role in entrepreneurial success. It serves as a driving force for people to start and succeed in their businesses. For halalpreneurs, initial motivation must be self-driven to ensure that they are genuinely prepared to engage in the entrepreneurial journey that could be challenging.

Most entrepreneurs are motivated by economic goals which later become the driving factors to seek business profits and achieve strong business performance. Motivation serves as a source of strength for asnaf halalpreneurs to ensure they remain driven and consistent in their journey as entrepreneurs.

The journey of successful halalpreneurs has strong connections with spiritual values such as iman (faith in God), amanah (trustworthiness), perseverance, tawakkal (complete trust and reliance in Allah SWT) and ihsan (excellence in all deeds and relations).

Iman guides halalpreneurs to carry out their works with a strong sense of purpose and direction. Halalpreneurs who have a strong faith are likely to have a desire to create a positive change in society rather than only making profits. This is because the values and principles they hold help them to make ethical business decisions and develop sustainable businesses that will benefit society later.

A strong faith also helps halalpreneurs maintain a positive mindset, be more grateful and stay humble. This, in turn, allows them to stay focused on essential aspects of life rather than get distracted by focusing only on profit motives. Faith reminds us that true success and sustenance ultimately come from Allah SWT.

Another fundamental value is amanah or trustworthiness, which refers to the responsibility and integrity that an individual must hold, especially when they are given something valuable like financial assistance.

In this instance, the halalpreneurs must understand that the money they receive is not only about financial aid but also a trust that must be used for the intended purpose.

SPIRITUAL VALUES IN BUSINESS

The essence of trustworthiness shall ensure that halalpreneurs who receive financial assistance (from any institution) use the money wisely and ethically towards their business growth with the ultimate aim of enhancing their well-being and benefiting society at large.

Furthermore, perseverance empowers halalpreneurs not only to put extra effort into achieving their business goals but also to seek knowledge for improvement continuously. It involves a severe commitment to completing tasks where they are willing to give beyond what is expected or required from them.

For asnaf halalpreneurs, they may begin their entrepreneurship journey with limited resources, but the value of perseverance shall drive them to overcome all difficulties and challenges.

After all the best efforts made, halalpreneurs must put their trust in Allah SWT. This is where tawakkal takes place. Tawakkal teaches halalpreneurs to rely on Allah SWT in every situation, especially during difficulties, by seeking His guidance and help.

Having tawakkal in the entrepreneurship journey will provide halalpreneurs inner peace and confidence to face uncertainties and challenges, knowing that Allah will always help; many times, this help comes from unexpected sources and forms.

Finally, the value of ihsan will help halalpreneurs conduct their business with integrity, honesty, and sincere intention to please Allah SWT through their work. The concept of ihsan requires individuals to obtain perfection in worship, which can be achieved through obligatory and voluntary worship, such as consistently praying
on time, giving charity, and other voluntary acts.

All of these acts shall bring positive effects on their businesses. After all, doing business with sincere kindness and charity will bring more incredible blessings to wealth and income. For halalpreneurs, ihsan encourages them to pursue perfection not just in religious practices but also in business activities.

CONCLUSION

Halal entrepreneurship offers opportunities for asnaf to transform their lives while maintaining Islamic values in their business practices. To be a successful asnaf halalpreneur requires support from various parties and different forms of assistance, including financial aspects, motivation, necessary skills and knowledge.

Meanwhile, the spiritual values of iman, amanah, perseverance, tawakal and ihsan become a foundation to guide them in making ethical business decisions and remaining persistent in facing challenges. Empowering more asnaf to become halalpreneurs not only brings individual success but contributes to the nation’s economic growth and society’s well-being. – @Halal