Perceptions of Small and Medium Enterprises Actors on the Application of Islamic Management in Managing Business
Abstract
This study aims to describe the perceptions of micro, small and medium enterprises (MSMEs) on the application of Islamic Management in managing businesses. This study is part of research onIslamic micro enterprises. The main obstacle faced by MSME actors is the low ability to manage a business so that it has an impact on business development.The data collection process was carried out through a literature study and interviews with MSME managers.Islamic management is built on the basis of the Koran and hadith and maqashid sharia by applying 5 (five) management principles, namely: the principle of monotheism and organizational commitment, the principles of knowledge and organizational learning, the principles of morality and the personality of members of the organization, the principles of worship and work practices, and the principle of mardhatillah and performance. The results of the study show that MSME actors have implemented Islamic Management in managing their business but are still in general principles due to a lack of understanding of Islamic management and unsupportive external factors such as regulations and business competition. It is hoped that the results of this study canbe basicin formulating a management model with governanceentrepreneurial organization according to the Islamic paradigm.
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DOI: https://doi.org/10.30596/miceb.v1i0.332
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