Towards Conceptualising Islamic Community-Based Enterprise: Examination of Some Underlying Principles

Abstract

This study attempts to conceptualize an Islamic community-based enterprise by touching on the fundamental aspects that separate the understanding of capitalism and Islam, thus giving birth to a holistic community-based enterprise concept that emanates from Islamic values. It is a conceptual paper in nature. In turn, this study is designed to utilize an exploratory approach. Literature related to this topic are used as the method to analyze the content found. Based on examining three fundamental concepts in CBE: social entrepreneurship (S.E.), social capital (S.C.), and development concept. We have argued that these three fundamental concepts deserve to be reviewed from an Islamic perspective. The three fundamental concepts in conventional community-based enterprise literature contain entrenched capitalism thinking. These thoughts have deficiencies that have not been resolved in conventional literature, thus we came out with an alternative way that offers a comprehensive Islamic perspective to thoughts about the concept of Islamic community-based enterprise that can answer the challenges of local development. Further studies are required to explore the concept through systematic investigations empirically. Additionally, measuring this concept by a designed means is appreciated. The concept provides the map and alternative tool of Islamic entrepreneurship to determine the process of development which can appropriate their local conditions. In addition, it also allows stakeholders and policymakers to consider local community economic development. This study initiates a foundational contribution for an early sequence of research.