Management and Financing of Small Businesses from The Perspective of the Sunnah of the Prophet

Abstract

One of the most devastating economic challenges facing the Muslim world is the increasing rate of unemployment, which has devastated the youth and has become alarming. The phenomenon of unemployment has reached level that threatens the future of this generation which is seen as the pillar and key factor for the growth of the entire Ummah. There are many ways to curb the disease of unemployment; however, the discussion in this research focuses on the role of small business due to its global merits and achievement in reducing and eliminating unemployment. The paper would approach it in a new dimension stressing more on the role of the Prophetic (Sunnah) tradition in the administration and financing of small businesses. The paper initiates its discussion with a theory which states that: there are some acts reported in the Sunnah that can contribute to reduction of unemployment and can be harnessed to finance and administer small businesses. This research aims at compiling hadith related to administration of small business and ways to financing it. It also derives fundamental basis which can be easily neglected in contemporary deals. The paper also attempts to proffer practicable proposal to guide small business in light of Sunnah. In order to actualise the very of objectives of the paper and to address its challenges, it has been categorised into three, namely: small projects, Sunnah guidance for employers, financing of small projects/businesses in line with Prophetic requirements. The research finds multiple results among which are: the Prophet (May Allah bless him) (Sunnah Amaliyyah) gives directions in his tradition on strategies for financing small businesses as means to combat unemployment.