PHILOSOPHY OF GREENDEEN-PRENEUR

(Case of muslimherbal entrepreneurs)

SalamahWahyuni

IntanNovela Q.A.

SuryandariIstiqomah

Abstract

This study has the purpose of creating understanding concerning the concept of green-deen entrepreneurship, which is the perfection of both entrepreneurship and eco-preneurship. Using a descriptive-qualitative research approach, we seek to discover the philosophy that becomes basis choice as entrepreneur, business choice in herbal, business purposes, and the basic guidelines used in running their businesses.

The results show that muslimherbal entrepreneurs always show actual steps in realizing their compliance to the commands and recommendation given by The All-Powerful through Al Qur’an and As-Sunnah (records of the examples of the Prophet Muhammad), i.e. in terms of the philosophy of “independence” in life, community welfare, and filial piety. For muslimherbal entrepreneurs, economic aspects are also important, but not the basic foundation.

It is this philosophy of bringing the tenets of Al Qur’an and As-Sunnah down to Earth through herbal business that is unique, that differentiates muslimherbal entrepreneurs from entrepreneurs in general. Even though both entrepreneurs’businesses are related to medicine, other entrepreneurs are generally more oriented to economic aspects, such as career choice, business opportunities, and forms of capability actualization (Krueger et al., 2000). Through herbal business, they want to show that everything that is found in Al Qur’an and As-Sunnah are true. Finally, the philosophy of hayyatantoyyiban, a good life that is beneficial to others, is the philosophy for achieving life’s purpose i.e. falah, the joy of victory after making the best effort.

Keywords:eco-preneurship, philosophy, green-deen-preneurship, herbal entrepreneur

Introduction

So far, businessmen or entrepreneurs are considered to have important role in developing a country. Countries become poor not because of insufficient resources, but because they lack good entrepreneurs (Gupta and Srinivasan, 1992). This is because entrepreneurs have various characteristics that can develop the economy or industry of a country because they are innovators, reliable organizers, great decision-makers, smart catchers of opportunity, and able users of technology (Azim, 2011). According to Sadri (2010) entrepreneurship is not only the trigger of economic development, but also a consequence of development itself.

Further development shows that relying entrepreneur to develop the country is not enough. Increased entrepreneurial activities not only improved the economy, but also increased environmental pollution, especially as a consequence of industrial activity. Even though climate change may be caused by a natural variation, scientists conclude that the main cause of climate change is anthropogenic or human behaviour (National Research Council: Swim et al., in Robertson and Barling, 2012).

Organization considered as the most significant contributor to climate change (Dilchert and Ones, 2012). In fact, according to the results of Hillary’s research (in Vasilenko and Arbačiauskas, 2012), small and medium industry also contributes greatly to environmental pollution. This condition puts environmental issues in the agenda for corporations, government, and NGO in the past few years.

Currently, policy makers and organization in the world further focus on the concept “triple bottom line,” which recognizes the relation between economic performance (profits), people (social performance), and environmental performance (Dilchert and Ones, 2012). If earlier environmental concerns were considered as a waste of money, the current trend of global warming and its impacts renders eco-preneurship or green industry a business opportunity that has an attractive sales value in the eyes of consumers. Currently, consumers have also started to care about global warming and avoid products that are not environmentally-friendly and choose a “back to nature” lifestyle. Therefore, it is natural if environmentally-friendly products currently have sufficiently high competitiveness and desired in both local and international markets.

In the business world, there is a currently developing concept called eco-preneurship. The term “eco-preneurship” is the combination of two words, “ecology” ('eco') and “entrepreneurship”. Therefore, eco-preneurship may be defined roughly as “entrepreneurship viewed through environmental lens”. Eco-preneurship is a concept that refers to the process wherein the entrepreneur introduces eco-friendly products and processes (environmentally-friendly, or at least relatively more environmentally-friendly) to the market (Pastakia, 2002).

Eco-preneurs are entrepreneurs that not only care for their business profits, but also manages with more concern to the values that base the “green” concept, while ordinary entrepreneurs do not have such concerns. A feature that differentiates eco-preneurs from ordinary entrepreneur is their strong ethical consideration to the environment (Linnanen, 2002). Even though ethical reasons are frequently not the only reason to develop business, but perhaps it is the only main difference between the motivation of eco-preneurs and entrepreneur in general (Kirkwood and Walton, 2010).

In developed countries, the demand for saving the Earth from excessive damage has become quite strict. Therefore, more global communities are much more appreciative of products that are more environmentally-friendly and more concerned with the preserving of ecosystem. It is not only that Earth and its environment that are threatened by the consequences of excessive waste and the uncontrolled use of chemicals, but this has also highly impact the health of humans who are exposed, whether directly or indirectly. Therefore, the factors that establish eco-preneurship become necessary for growing environmentally-oriented businesses.

Further developments show that simple eco-preneurship is not enough. Many studies find that religious values have an important role in entrepreneurial success. According to various researches, religious values are shown to have the potential to positively affect individuals in many aspects, especially in relation with the moral aspect (Wimalasari and Abdul, 1996), honestty (Kotey and Meredith, 1997). Similarly, researches show that there is significant relation between religious values and entrepreneurial business performance (Kotey and Meredith, 1997). Therefore, Matin (2012) generated the concept of green-deen to complement the insufficiency.

Matin’s concept based on the tenets of Islam that provides direction for green-deen-preneur in becoming entrepreneurs with environmental views guided by Al Qur’an and Hadith. Islam has universal views to the condition of Nature or the Earth. Islam is religious belief that really cares about the environment. This is obvious when various arguments explained and construed from texts and tenets. Many verses of Al-Quran and sayings of the Hadith explain about the environment or nature (kauniyah), and note that damage to the Earth is caused by human greed. Islam is not only concerned about spiritual issues and interactions with fellow mankind, but also inspire the ummah(adherents) to care for nature. Al-Quran refers to mankind as “khalifah” or the representative of God who executes His will on Earth, including protecting and taking care of the Earth.

This study attempts to understand the implementation of the green-deen-preneur concept to muslimherbal entrepreneurs in Central Java. Currently, many muslim entrepreneurs run the herbal business. These entrepreneurs are unique. According toImamal-Ghazali(Salwa, Azahari, and Tamkin, 2013), there are values in the tenets of Islam that are performed by entrepreneurs because they are embedded in the very act ofentrepreneurship.

This balance of values is comprised of all possible ways that allow for the achievement of greatness, both in this world and in the hereafter. The first consideration in the tenets of Islam is to base the intent of performing entrepreneurial activities to realize faith to Allah. This idea would encourage the entrepreneur to be involved only in halal (religiously right or proper) activities. This is based on the fact that the tenets of Islamprohibit entrepreneurs from being involved inactivities that violate the law.

Otherwise, decisions in relation with the production of goods and services must be based on the satisfaction of fardlukifayah (absolute or mandatory obligations) requirements, i.e. to complementcommunity needs. In terms of the main intent in doing business, business success according to muslim entrepreneurs would be different from the definition made by entrepreneurs in general. The meaning of success and the journey entrepreneur towards success is unique, wherein worldly success must act as bridge for primary success in the afterlife (reaching heaven). Therefore business success according to Islam includes both this world and the hereafter.

Furthermore, research concerning business success relating to the religious values of eco-preneurs, especially those who run herbal business in Indonesia still limited. (Schaper, 2002) opines that “green management” is a relatively new phenomenon. Thus it is insufficiently known, insufficiently researched, and insufficiently understood from an entrepreneurial point of view. The limited number of studies concerning environmental issues in small companies also means that the difference between eco-preneurs and conventional entrepreneurs is still insufficiently known. Similarly with studies concerning spiritually-based eco-preneurship: it is still not yet researched much.

Literature Research

Eco-preneurship/Green-preneurship

The term “eco-preneurship” is the combination of two words, “ecology” ('eco') and “entrepreneurship”, which means “innovative creation”. Eco-preneurship is also called “green” entrepreneurship(Schaper, 2002). (Schaltegger, 2002) defines “eco-preneurship” as a company that supplies environmentally-friendly products and services, i.e. “entrepreneurship through the lens of the environment”. Eco-preneurs are moved to enter environmentally-friendly market not only to seek profit, but because they have strong “green” values. Eco-preneurs are entrepreneurs who found their businesses based on the principle of sustainability (Kirkwood and Walton, 2010). Eco-preneursis a sub-set of entrepreneurs who may be different in their way of starting their business, especially intheirmotivation for becoming entrepreneurs.

Green-deen Concept in Islamic perspective

The harmony and balance of nature must be maintained. If the divine or natural law (sunnatullah) of order is disturbed, natural disasters would occur. Nature was created in an orderly manner. Therefore, Al-Qur’an always emphasizes the need for harmony. Ecological crisis is caused by prolonged excessive use of natural wealth, which will cause disasters. Such excess is highly conflicting with the tenets of Islam. As a samawi (divine or heavenly) religious belief, Islam has major role in order of preventing and mitigating such natural crises. Green-deen is an effort to reduce the current occurrence of ecological crises.

According to Matin (2012), green-deen is a religious belief that demands mankind to implement Islam while emphasizing the integral relationship between faith and the environment (the entire universe). Green-deen is built upon six mutually related principles, i.e.:

  • The first principle understands the unity God and His creation (tawheed). This means that in living our life, we must continuously understand that everything originates from Allah.
  • The second principle is the ability to see the ayat (signs) of God’s presence throughout the universe. This principle means that all mankind must see that everything in nature is signs of the greatness of the Creator.
  • The third principle is becoming the khalifah (guardian or steward) of the Earth. This principle means that mankind must understand that in everything they do, they must protecting, guard, and manage all of the blessings to be found in nature.
  • The fourth principle is to appreciate and execute the amanah (trust) given by God to the ummah or mankind as protector of the Earth. This is means that mankind is entrusted by God to act as the protector of nature.
  • The fifth is to fight for ‘adl (fairness). Mankind must understand that it must bear the negative effects of environmental pollution and damage.
  • The sixth is to live life harmoniously with nature (mizan). Everything was created in perfect balance (mizan).

Protecting this balance can be done by first viewing the Earth as a great mosque. There are laws and regulations in Islam whose purpose is for protecting this balance. The sixth principle is the guideline that directs us to preserve the environment. The green-deen principle is a concept that proves that Al-Qur’an teaches love of the environment. Loving the environment is the same as loving ourselves, and of course in the end it means loving Allah. The green-deen principle becomes mankind’s foundation in its involvement to the prevention of environmental crisis based on Al-Qur’an.

Islamic Entrepreneurship

Entrepreneurship in Islam is based on the view that an individual is a religious being, one who practices what s/he learns and know, people who have good heart (ihsan) and who depend only on The All-Powerful, who consider their duty as ibadah (worship) and who take the role of responsible leaders (Radiniz, 2007). Entrepreneurship in Islam focuses in eight principles or ideas:

  • First, entrepreneurship is an integral part of Islamic religious belief as a comprehensive lifestyle. There is no separation between business and religious belief.
  • Second,muslim entrepreneurs are “khalifah” and have the responsibility to develop welfare and to see their business as part of their ibadah and/or good deeds.
  • Third, motivation of success in Islam is not only measured with net income, but also the ways and means of obtaining the income.
  • Fourth, business activity is part of ibadah or “good deeds”.
  • Fifth, Islam encourages its adherents to explore in their business.
  • Sixth, the guiding principles of entrepreneurship are found in Al-Quran and Al-Hadith.
  • Seven, the principle of entrepreneurship in Islam is in the domain of Islamic economy.
  • Eighth, entrepreneurial ethics is based on the exemplary behaviour of our Prophet Muhammad SAW (Radiniz, 2007).

Conceptual Framework

The concept of green-deen and entrepreneurship in Islamic perspective as explained above result in in-depth review of the meaning of green-deen-entrepreneurship, which in this study uses the case of muslimherbal entrepreneurs. In line with the base of faith in Islam, the source of all guidelines is Al Qur’an and As-Sunnah. All intent, will, activity, behaviour, and various types of decisions are made according to the guidelines in Al Qur’an and As-Sunnah (deen or spiritual faith).

This study finds information concerning the philosophy herbal business originating from Al Qur’an and As-Sunnah (deen), as well as the physical and social implementation of this philosophy in maintaining the environment, as related to the operation of business policies and activities (Figure 1). The start of choosing to be an entrepreneur was based on the commands of Allah SWT expressed in the holy verses of Al Qur’an and holy sayings of As-Sunnah. Similarly, when choosing the herbal business, it was not just because there is the economic opportunity, but also to show their compliance to the guidance of Allah SWT (green). Managing the business afterwards would naturally contain both joys and sorrows. The solution to all problems is sought by reviewing Al Qur’an and As-Sunnah (entrepreneurship).

Figure 1

Conception of Green-Deen-Entrepreneurship

Research Method

This study was performed using qualitative in-field research with grounded theory approach. In the field research stage, interviews were performed with key and supporting informants, supplemented with observation of documents and other supporting data. This generates information concerning the characteristics herbal entrepreneur and the creation of instruments for novelty results.

The population in this study is muslimherbal entrepreneurs in Central Java, who have ran their businesses for a year or more. Sampling was done using purposive sampling. This study required both primary and secondary data.

Secondary data was obtained from various media, such as websites, forums, facebook and twitter accounts, newspapers, and books. Primary data primer was taken using interview, observation, and focus group discussion. There are two types of informant who were interviewed deeply, i.e.:

  1. Key informants, i.e. muslim managers or owners herbal businesses who determine the business strategies of the herbal business.
  2. Supporting informants, i.e. employees or consumers who are related with the information given by the key informants.

Results and Discussion

  1. Business Philosophy of Muslim Herbal Entrepreneurs

For muslimherbal entrepreneurs, becoming an entrepreneur is an actual step in realizing their compliance of the commands and recommendation given by The All-Powerful through Al Qur’an and As-Sunnah, i.e. “independence” in life. All muslims must attempt to achieve independence in satisfying their their economic needs.

“It has been told to us that Ibrahim ‘ibn Musa has been informed by Isa ‘ibnYunus, who was informed by Tsaur, by Khalid ‘ibnMa’dan, by Al Miqdam RA, by Rasulullah SAW: “'There is nobody who can eat any better food than the food resulting from his own work, and in truth Allah’s Prophet, Daud AS, ate food from the results of his own efforts.””(Hadith Sahih al-Bukhari 1930).

“The truth is, if we have the ability, all muslims want to become entrepreneurs, because that is what is recommended….” (Entrepreneur 2)

This sense of independence can occur spontaneously from the time one enters the working world (such as in the case of Entrepreneur 2), and it can also come through a moving experience. Entrepreneur 1, a Bachelor in Education, was originally a teacher in State Vocational High School 8 in Surakarta. Sharing knowledge with his students was the original noble desire to help mankind become better, but if the pay received was insufficient as what he obtained, it would pollute the initial intent, because he become not ikhlas (sincere). In order to keep holding on to his noble intention, he realized that business independence is the way to realize this intention. There is no other way than as entrepreneur if he wants to seek livelihood, while keeping on teaching as his field of ibadah to improve the quality of the ummah.

“My background is education. I was teaching at State Vocational High School 8. Aaa...when I was in education, my heart felt uneasy with how rekoso (miserable) these educators really are. I think there was an unhappy financial disturbance at the school at the time. Then from there I have an azam (resolution) that if I educate like this, I should not have financial expectations, but for me, educating is wanting to change to become better, so I don’t want to be paid, so…aaa…I have such a strong azam that I must be rich. At the time I tried…aaa…the ready-made cloth products business at first, we took bed sheets from factories, then we marketed it, Alhamdulillah (praised be Allah) the results were good.” (Entrepreneur 1)