Economic System of Islam and Its Effect on Growth and Development of Entrepreneurship
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VII. Conclusions
Islam is founded upon the notion of Tawhid, a total commitment to the will of God. Total compliance with God’s vision of how man should regulate his relation to Himself, other men, and nature guides the Islamic man in every aspect of life, including the economic life. His vision is focused on both the material world and the hereafter. This double perspective obliges him to de- velop a very different outlook on life compared to his secular counterpart. The distinguishing element of an Islamic economy is that entrepreneurs act under the guidance of norms drawn from the traditional sources of Islam. They promote the avoidance of waste, extravagance and ostentation. They discourage activities that create harmful externalities. They stimulate generosity and work hard, charge fair prices, and pay others their dues. References 1. Birley, S. & P. Westhead. (1990). “The Growth and Performance Contrasts Between Types of Small Firms.” Strategic Management Journal. 11, 535-557. 2. Boyd, N. 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