Volume 30, Issue 1, 2021
DOI: 10.24205/03276716.2020.2087
Islamic social business: Choice for a Muslim Entrepreneurial career
Abstract
Social business has been described as a distinct business philosophy related to the creation of a sustainable benefit of a society adapted to the enduring profit or non-profit operating system to solve the social problems of disadvantaged people. The religious motivation of social business can be a choice that can contribute to the development of a prosperous society that serves the disadvantaged and helps them to abolish interest-based social business. A social enterprise's motivation and goal vary from micro to hybrid involvement when implementing traditional conceptual policies centered around an interest-based business model. Thus, the current study shows a philosophy of social business in Muslim countries that incorporate scientific skills in the light of Islamic values to solves social problems. Most Muslim countries use the Islamic banking system to explain and practice Islamic social business, which is the not perfect method to use social business. Social enterprises are independent, run by communities or individuals, and not governed by the state, with profits being distributed for societal benefit. Islamic social enterprise has received very little attention, but it has immense potential in the economy. This article explores the structure of Islamic social enterprises using Bangladesh as a reference point and observes Islamic social initiatives' effectiveness to improve economic growth. Based on other case studies, it has been concluded that the Government of Bangladesh should encourage Islamic social enterprises to expand and reach their scale with different legal and regulatory frameworks. Islamic social enterprises should work with micro-funding to eradicate interest-based social enterprises. Recent studies will help emerging Islamic social enterprises promote new forms with scholars' social business literature participation.
Keywords
Islamic social business; Islamic social enterprise; social capital; Islamic social enterprise regulation; Islamic finance observation