Entrepreneurship Plus Model

Entrepreneurship from an Islamic and Quranic lens

How to do Tijarat (Business) to make it as an act of

Worship and seek the pleasure of Allah SWTA
Definition of Entrepreneurship
 Various lens to understand
Entrepreneurship
• The Management Lens (Causation) i.e. the
traditional model being used to teach
entrepreneurship

• The Effectuation lens: A new model

introduced by Henry, Sara and other

• The Quranic lens (Islamic lens, Ubudiyyah

lens)
 Entrepreneurship from the Management Lens

In general, in MBA programs across the world, students are taught

causal or predictive reasoning―in every functional area of business.
Causal rationality begins with a predetermined goal and a given set of
means, and seeks to identify the optimal―fastest, cheapest, most
efficient, and so on―alternative to achieve the given goal.
 Problems with the Management
(causation) lens of entrepreneurship
• Focus on Grand Vision • Encourages cut throat
• Frequent use of words competition
like state of the art, • Encourages spending
strategy beyond means
• Focus on planning • Pressure to deliver
• Arrogance • Very less learnings from
• More importance to failure
resources • Failure rate is very high
• Focus on scale • Measure of success is the
• Impatience, want to hurry “Bottom line”
• Considers resources are
finite
 Entrepreneurship: An effectual Lens

Effectuation begins with a given set of means and allows goals to emerge
contingently over time from the varied imagination and diverse aspirations of
the founders and the people they interact with.
Effectuation (create a effect with what
ever you have)
• Evolving Means (Means evolve with time,
reflection, experiments and action)
• New and Different Goals are identified during
the journey.
• Effectuation evokes creative and transformative
tactics
• heuristics (rule of thumb, intuitive, common
sense) used by expert entrepreneurs in new
venture creation.
 Problems with the Effectuation Lens
Pros
• Action oriented
• Start and focus on your bird in
hand
• Calculated risk
• Agile, Flexible
• Cooperation oriented
• Gives hope and courage
• Close to our natural instincts.
• Easy to apply and understand
• Measure of success is bottom
line
Cons
• Unclear on the purpose of life
• Utilitarian, selfish
• Limits on resources
• There is a limit on creativity
• No discussion on morality
• Environmentally, socially and
ethically sensitives
 Model being used at IBA Karachi
• Nobility & Service (Wa man Ahyaha faka
Self Awareness, Self Esteem,
annama
Perseverance, Humility, Gratitude,
• Mindset of Abundance and Cooperation
Respect of Humanity, Virtues &
Ayat on the maqsad of human beings • Importance of Human beings
Values, beyound
• Intrinsic strength, Sense of Direction
selfishness,Parsimony, Simplicity
• A life of purpose Trust in God
• Eschatological Pursuit
(Faith Based: Meta Physical)
• Redefining success
• Wa ma khalqatul Jannat
Entrepreneurial
Ayat on the ultimate
Values achievement one can have.
Many Verses in Quran on these virtues

Meaning / Nafs Mutmaina /

Many Verses in Quran on link between aamal and
Purpose Hayat Tayiba and Nafs Mutmainna
Hayat Tayyiba
In Life Meeting with Allah

Quran says that Taqwa leads

to opportunities and makes Entreprenurial • Purposeful activities
things easy • Environmentally, socially
Skills
and ethically sustainable
businesses
• Ultimate success
• Humility and Feels closer
• Where do ideas come from to God
• Bird in Hand [Who you are, what you know,
whom you know]
• Affordable loss [calculated risk taking]
• Leveraging surprises [Lemonade Principle]
• Collaborative mindset [Quilt]
• Action Orientation [Pilot in Plane] 10
• Creativity and Courage
 Entrepreneurship: Quranic Lens
• Entrepreneur is a steward
• Purpose is to submit to Allah SWTA will
• Role model is the Prophet Muhammad
• Source of wisdom Quran, Ahadith and observation and reflection
with this lens
• Source of ideas is Allah SWTA
• Resources are infinite
• Risk: Do easy things. As Iman increases the ability to take risks
increases. Momin has nothing to loose. He is anxious to meet Allah
SWTA.
• No competition (Only in good deeds). Emphasis on cooperation
• Open to surprises. Wa makaru wa Maka ru Llah.
• Focus on action
• The end result is Nafs Mutmainnah, Hayat Tayyiba
 Examples of Quranic lens
• The Prophets themselves
• The Prophet Muhammad PBUH him self
• His companions Hazrat Abubakr, Hazrat Umar
and Hazrat Usman and Hazrat Abdul Rehman
bin Auf)
• Thousands of examples in history
• Even numerous examples can be found in
these times as well.
 Some examples at the small level
• Micro entrepreneurship: IBA Karach has
helped around 5000 people start based on
this model in the following areas
– Agriculture based opportunities
– Livestock
– IT applications, Mobile apps
– Women entrepreneurship
– Science and Technology Entreprenurship
 Large examples
• Ghani Glass Pakistan
• ID Fresh India
• Ynna Holdings Morroco

The have the following in common

All are driven with a purpose of Ubbudiyah, to
please Allah. Do not use interest based loans,
Engage in halal activities, Started from very less
resources, respect of humanity and service of
mankind.
Ghani Glass Pakistan
Ghani Glass Industries Pakistan
• Islamic principles of entrepreneurship
• More than 5000 people, 78% pray five times a day without any
coercive techniques
• Highly motivated employees, Turn over rate is very low
• Frequent meetings and consultations take place
• The CEO spends 70% of his time in Tableegh, All activities are
embedded in spirituality
• Quick decision making, Simplicity
• Interest free business, Debt free business, Even avoids Islamic
finance
• The team was given a target to make the company self reliant and
make it zero debt.
• The current target is to make 100 % people five times praying by
Jun 2018. 72% are praying.
• Teams of 10-12 people are organized. The team lead is responsible
for the spiritual development and ensuring five times prayer
• Believe in social service, CSR, Vision statement is very unique,
Bribe free
ID Fresh India
 ID Fresh India
• Ethics and values closely linked to the religious faith founders
• Acting with benevolence and service to humanity
• Zero Interest
• Want to prove it is possible conduct business without taking
interest bearing loans. Dream is to take this message to the world.
• Steadfast to their ethics and values is more important that
profitable growth.
• Relationship with God. If you hold on your principles, you end up
always emerging as a winner in the eyes of God and the world.
• Refused to sell products to customers selling liquor
• Founders: Never had an ambition for a luxurious life.
• In 2011 ID Fresh was offered 1 Billion INR by Large companies
Ynna Holdings Morroco
Spiritual Leadership
 Miloud Chaabi - Morroco
• Net worth 3 Billion USD 6th richest man in Africa (Forbes Magazine)
• Strong stance against alcohol which is banned from both his hotel
chain and supermarkets.
• He remembers all work folders, managers, Humility, simplicity,
Delegation, Fosters continuous learning in the company
• He refuses to be the slave of the system.
• No plan to accept the position of prime minister. Doing an
important work of serving the nation through education and
economy
• Meaningful hard work is sacred
• There is no limit. Limits are only in your mind.
• Build mosques in all the residences constructed
• Encourages employees to pray during office hours