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

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Creativity Paradigm

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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