Islamic Laws Regarding Business

Islam has permitted and in fact encouraged business. The Quran states:

"Allah has made business lawful for you" (2 : 275).

The early Muslims were not only engaged in trade but they went to distant lands in connection with business. Islam in fact reached East and West Africa, East Asia through the business people.
Islam has given detail laws of business. Islam has not permitted selling and purchasing of goods which are prohibited in Islamic law.

The Prophet of Islam has said:
"When Allah prohibits a thing He prohibits (giving and receiving) the price of it as well." (reported in the books of tradition of Ahmad and Abu Daud)

Islam has also prohibited any kind of transaction involving uncertainty (Garar) as this could lead to quarrel or litigation. The Prophet of Islam has forbidden transaction involving unspecified quantity, acceptance of money for fish in the river or bird in the air as there is element of uncertainty. Similarly the Prophet of Islam has prohibited sale of fruit till they are ripened. (Chapter on Transactions involving uncertainty Garar in the book of tradition of Muslim).

However; if the element of uncertainty is very small, the transactions are permissible. For example, it is permissible to sell root vegetables while they are still on the ground. It is primarily because of the element of perishability of the harvested commodity that will result in loss to the former.

Freedom of trade and operation of market forces are allowed in Islam subject to the limits set by Shari'ah. Islam, however, condemns hoarding to make high profit at the cost of public interest. Islam does not allow making profit by withholding the commodity from the market so that it becomes scarce. The Prophet of Islam has said,

"If any one withholds goods until the price rises he is a sinner" (Tradition of Muslim).

"The withholding of grain for 40 days out of a desire of high price is prohibited in Islam" (Tradition of Ahmad, Hakim etc).

Islam, however; allows normal trade - buying and selling of goods again and again at a reasonable profit.

Islamic law has prescribed measures to prevent manipulation of market, exploitation of seller or buyer and fraud. The prophet of Islam prohibited people from going out of town to buy -merchandise which was on its way to city market.

The reason for this prohibition is that the market place, where the forces of demand and supply determine prices, is the best place for trading transactions. In the situation of buying on way to market, the seller may not know the real market price and he may be deprived of legitimate price.

Islam prohibits fraud in business dealings. The Prophet (Sm) has said:
"It is not permissible to sell an article without making everything clear nor is it permissible for anyone who knows (about its defects) to refrain from mentioning them" (Baihaqi).
The Prophet of Islam has also said:
"Sell the good and bad separately. He who deceives is not of us" (Muslim, Ahmad).
The sin of fraud is greater if the seller supports it by swearing falsely. The Prophet has said,
"Swearing produces ready sale but blots out blessing" (Bukhari).

In the same manner deceiving others by withholding full measure is also prohibited. The Qur’an has emphasized the giving of full measure. It says,
"And give full measure and (full) weight in justice" (6:1 52).

Islam has prohibited business transactions on interest. The Quran is explicit about it and says,
"Allah- has permitted for you trade and prohibited interest"(2 : 275).

In the Muslim world, in the last decade a chain of Islamic Banks has come up to avoid interest in trade.Islam has permitted and encouraged business subject to aforesaid principles and restrictions. If these principles are followed, the economy will be greatly purified from injurious practices.

Article from jemaat.org

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Road to Happiness

As believers in God alone, our priority in this life should be to fulfill God's expectation of us. We should live a life that will please God. What pleases God is not our utterances, but our actual intentions or actions to carry out His commandments. When pleasing God becomes the most important aspect of one's life, God will make every thing wonderful for him or her:

God promises those among you who believe and lead righteous life, that He will make them sovereigns on earth, as He did for those before them, and will establish for them the religion He has chosen for them, and will substitute peace and security for them in place of fear. All this because they worship Me alone, without setting up any idols besides Me. Those who disbelieve after this are the truly wicked" (24:55).

If you want to become a "king" or a "queen" on earth, then, you have to examine yourself sincerely at every opportunity. Anytime you have a problem in any aspect of your life -money, health, relationships, any problem-you must search for the lesson. As soon as you understand the lesson, everything will be all right. The problem will simply go away, and, more importantly, God will make it up to you. All bad effects of the past will be wiped out.

If you are sincere, God will perfect your relationship with Him, by putting you through tests, based on your weaknesses (3:14,8:28). For example, if you hold anything to be more important than God, He might take it away from you, in order to test you. Therefore, one must ask himself, "What is the most important thing in my life?" If your job is the most important thing, it may be taken away. If your children are the most important aspect of your life, they may be taken away.

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Business in Islam

Since the development of man’s earthly life, business in the form of exchanging or bartering essential commodities has been an integral aspect of the daily lives of human beings.Their very subsistence depended upon this form of trade and exchange. Almighty Allah, the Creator and

Provider of man’s needs, established the principle of interdependence in man’s life. The basic, essential needs of man are food, drink, clothing and shelter. These primary needs, which are crucial to man’s survival on earth as well as to the improvement of his living conditions, are only obtainable through the institution of business and trade.

It is virtually impossible for one person to satisfy all these needs alone by producing them or manufacturing them himself. Man is, therefore, forced to purchase these items of need from the various individuals or companies who produce them, and this results in the practice of buying and selling on a very expansive scale. Islam has, therefore, attached great importance to trade and commerce as the relevant citations appearing further on shall conclusively indicate.

Had there been no means of buying items essential to one’s existence, people would then have been compelled out of desperation to acquire these through force and violence, thus leading to murder and bloodshed. In this manner the entire world order as set up by Almighty Allah would have been severely disrupted.

Establishing a system of trade is one thing, ensuring that it runs smoothly and efficiently is another. Over the passing of time man’s needs increased tremendously. This meant an escalation in the volume and rate of business. Initially man concentrated on needs only. Then came the wants or secondary needs.

As the means of acquiring needs and wants became more simplified and convenient, man began yearning for luxuries and comforts. Moreover, as mankind produced and reproduced, populations increased rapidly. All this meant more needs, higher standards of living, and, needless to say, greatly increased business activity.

Furthermore, Almighty Allah has incorporated into man’s spiritual being both good and bad qualities, as the Holy Quran clearly states:

“So He introduced into it (the soul) its good and evil.”(Surah Shams)

As society became more affluent, spiritual and moral degradation generally increased. Man’s high standard of worldly life began eroding his Rooh or spiritual self. From a mere means of fulfilling needs and wants, business, and more accurately, the accumulation of wealth and riches, now became an end in itself. And all this violently conflicts with what Islam taught and desired for its followers. As far as Islam is concerned business fulfilled a need, and had to be kept as such.
In view of increased business activity and an on-going decline in man’s spiritual life and morality there were bound to be problems. To encounter and overcome these problems Islam, through the Holy Quran and Hadeeth, had devised an elaborate set of laws governing trade and commerce. These laws were to fulfil a variety of objectives:

· To counter man’s greed and consequent abuse of the rights of others;

· To ensure that the earnings of man are halaal and pure;

· To create a harmonious atmosphere among people, something which can be utterly destroyed by man’s desire for wealth and position.

Among these, the second factor is vitally important to the Muslim individual, since the acceptance of all man’s ibadat and service is largely dependent upon the consumption of Halaal food and the utilisation of Halaal goods and products.

There is definitely an integral link between man’s earnings, which entail business dealings, and his ibadat unto Allah Ta’ala. This one factor alone underscores in no uncertain terms the significance and emphasis Islam has laid on correct and valid business dealings.

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3 Steps to Burn Out Your Entrepreneurial Spirit

The realization you are in the wrong career does not hit like a lightning bolt. Rather, it festers within you for a long time, slowly worming its way into your consciousness, until one day you realize you have known it all along.

It’s romantic to think the heavens will offer up a sign letting you know when the time is right to unleash your entrepreneurial spirit and start your dream business. Unfortunately, reality often doesn’t work that way. Launching a business is risky, and those risks can easily overwhelm your senses and weaken your confidence. The fear of failure pervades your psyche, and when the safety and security of your family is on the line, happiness seems like a selfish luxury you can’t afford to indulge.

Many people live their entire lives this way. For others, their work frustration grows a little every day until they realize their need for happiness is suddenly greater than the fear that comes with making that change. Once fear can be overcome – or at least overwhelmed – that’s when great things can happen.

However, merely conquering your fears is not nearly enough to ensure success in starting your own business. You might have all the desire and motivation in the world, but there are still many steps that need to be taken, and many questions that need to be answered. So once the desire outweighs the fear…then what?

1. Start Researching
Starting a new business demands acquiring a vast amount of information that literally no one can figure out entirely on his or her own. Luckily, our modern world is packed with resources and assistance for dedicated and passionate entrepreneurs. If you’re willing to take the time, you’ll find the facts you need.

• The Internet – As recently as ten years ago, compiling information on a given topic would mean an exhaustive process of scouring books in a library and talking to strangers on the phone. Luckily for entrepreneurs, the Internet has blown it all wide open. It is the entrepreneur’s best friend. The business you are considering might be new to you, but it’s important to realize that it’s not for others. Get on the Internet and find everything you possibly can on your newly chosen field. Read it all, take notes, and write down questions that arise. Any piece of information you can get is one tiny step closer to being ready for your big change. But don’t get stuck in online analysis paralysis. At some point, it’s time to take the next step toward becoming an entrepreneur.

• A Mentor – There are people who work in your dream business who are willing to help you on your journey. You may need to find them in another city and may even have to sign off on a non-compete clause to get their advice, but they are there for you. Find several people who work in your newly chosen field, and initiate discussions with them. Tell them you admire what they do, and ask if you could learn from them as you look to make a career change. When someone agrees to be a mentor, schedule a visit to their workplace where you can observe the process in action, take copious notes on all you see and hear, and ask a ton of questions. When starting a new business, there are absolutely no better lessons than those taught from someone within the field. They’ll tell you everything you want to know, plus much more you need to know.

2. Raise Money
One of the reasons why people so often fail to leave unpleasant work situations is the money; they simply earn too much in the job they hate, and fear a dream business of their own wouldn’t provide the same level of security. This is a legitimate fear, but there are things that can be done to mitigate the risk until the income matches the level of happiness and desired lifestyle.

• Save Up – Change doesn’t have to happen all at once. Merely planning for the switch can improve the situation in the short term. Put money aside out of every paycheck so you’ll have a nest egg for when you finally decide to take the plunge.

• Find Outside Funding – No matter how much money you’re able to save, it might not be enough to get a business off the ground. Luckily, there are other avenues for raising the needed capital. Look into finding government grants, private investors, but never look at bank loans, riba is the problem you will get for sure.

• Set Some Limits – No matter how strongly you believe in your new business and your ability to make it work, you don’t want to throw all your eggs into that basket. Be careful about putting up your personal assets as collateral. Keep some of your assets – be it your home, your pension, your 401K, etc. – off the table. Don’t invest your entire net worth into your business. In the event that something goes wrong, it will be a HUGE comfort to know some of your assets are protected.

3. Get to Work
Once the research is done and the money is raised, it’s time to get to work. New businesses take an extraordinary amount of time and effort if they’re going to make it. Don’t be afraid of the hours, and don’t shy away from the commitment. Remember: eighty hours in a job you love is still FAR more rewarding than forty in one you hate. There will, of course, be obstacles along the way, but with enough passion, dedication and foresight, anything can be overcome.

Keep reminding yourself that as long as you do the business with the right way, as according to Holy Quran & Sunnah. Hence, Allah SWT will help you, insyaAllah.

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9 Tips to Avoid Failure on Our Business

According To Small Business Administration, more than 50% natural small industry failure in first year and 95% experiencing failure in five first year. This finding is supported by Harlan Platt, writer " Why Company Fail", which claiming that every hour there is one failure business in America. These are statistical picture, but represent fact for many new entrepreneurs. Its amount do not be meant to intimidate you to postpone your business, but to underestimate how hard to start and run business is one of the biggest resistance which faced by new entrepreneur. Business tends to fail because they have:

1. Unrealistic Strategy plan.

Many new entrepreneurs unsuccessful to develop strong strategy plan or realistic business target. Ascertaining to make specific target, which include deadline and plan to reach it. Repeat your evaluation business plan periodically

2. Bad Customer Service
Customer serves is not a benefit anymore. This is expectation. Failure to give strong focus at customer service can ruin your business. Have time to educate and train your worker to give good customer service

3. Inadequate Marketing.
Advertisement, promotion, and sell to potential consumer are going concern commitment. Marketing and advertisement have to done often to be effective.

4. Insufficient on training employees.
Staff that is not train good will gets the consumer disappointed. Disappointed consumer will walk off you. Invest your time and source to train your staff.

5. Too Much Expenditure.
Evaluate your expenditure and ask yourself some hard questions. For example, do you need to buy newest equipments or choose the secondhand? Consider to develop some operation system to trace and monitor your expenditure.

6. Bad Monetary record keeping.
It is your responsibilities as owner of the business to know how much income in your operational and how much the expenditure. By looking after detail record-keeping and financial statement, it is important for your business. Always update and make detail record.

7. No cash reserve or working capital.
When your business in a good condition, casting aside your profit as reserve. Thereby, you can use it at any times needed.

8. Problem of Lease.
Do you wish it or not, you remain have to pay for Lease. So, follow the rule and pay on schedule. Otherwise, it amount will be very much

9. Lack of knowledge of business.

Running business entangle more than simply good customer service and good sale. As entrepreneur, you owe yourself to have adequate knowledge to run business. Invest your time to read book, courses, and look for professional adviser if needed.

Ascertaining you pay attention to this business advice so the business you run does not end easily.

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The Way of Muslim Entrepreneur

Mastering market, success to extend the network, and get very high profit reaching tens of million, representing successfulness form of an entrepreneur

But that's not the way of muslim. In the world of "Muslim Entrepreneur" successfulness standard tied with rule of the game and process. Even entrepreneurship very related to value, Muslim law orders and norm - which also referred as Islamic Syariah

Avoiding product manipulation, do not monopolize market which harming other small entrepreneur, and then do not permit all the way to conquer the consumer so that hurt other business friends, those are the character of Muslim entrepreneur.

Therefore, a muslim entrepreneur should not has any different with other muslim. As a muslim, obeying the Islamic Syariah is a must. Any muslim entrepreneur who want to be success in this world and hereafter, should have to know what must he choose for his way of life, and also the way of entrepreneur. .

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