Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)

Abstract

Characteristics of Islamic Entrepreneurship and the Business Success of SMEs in Indonesia

Author(s): Amir Machmud, Yusuf Murtadlo Hidayat

This study aims to analyse the effect of Islamic entrepreneurship characteristics on the business success of SMEs in Indonesia. The variable characteristics of Islamic entrepreneurship are identified in the form of honesty, willingness to work hard, keep promises, orderly administration, always pray, pay zakat and alms, and have a leadership spirit.

The study method uses exploratory surveys with data collection techniques through questionnaires. The population in this study were 50 SMEs in West Java engaged in the halal industry. The collected data is then analysed using Multiple Regression Analysis.

The results showed that the variables of Islamic entrepreneurship characteristics together significantly influenced the success of SME businesses. Partially, the variables of honesty, willingness to work hard, keep promises, orderly administration, always praying, paying zakat and alms have no significant effect on business success, while the leadership variable partially significantly influences business success. This finding implies that in an Islamic perspective for business success, business actors must have good leadership.