When COVID-19 locked down the world, millions of businesses collapsed. Supply chains broke. Customers disappeared. But a new scientific study from Indonesia reveals why some Muslim entrepreneurs not only survived – but found a path to thrive.
Researchers surveyed 452 Muslim small business owners in West Sumatra during the peak of the pandemic in 2021. The results, published in a major academic journal, identify exactly which traits and Islamic values build business resilience.
The Crisis Was Different This Time
Unlike previous economic crises, COVID-19 attacked both supply and demand simultaneously. “Consumers and producers cannot move physically,” the study authors explain. “Workers are unwell or need to care for children. Supply chains are interrupted. Customers have reduced income and heightened anxiety.”
For small and medium enterprises (SMEs) – the backbone of developing economies – this was catastrophic. But 452 Muslim entrepreneurs proved that resilience is not just luck. It can be measured, taught, and strengthened.
Entrepreneurial Traits That Build Resilience (Study Findings)
| Entrepreneurial Trait | What It Means | Effect on Resilience |
|---|---|---|
| Negotiation Skills | Ability to persuade, bargain, and reach agreements | Positive & significant |
| Need for Achievement | Strong motivation to succeed and accomplish goals | Positive & significant |
| Locus of Control | Belief that you control your own fate through effort | Positive & significant |
| Risk-Taking | Courage to take calculated, profitable risks | Positive & significant |
| Optimism | Belief that things will work out well | Not significant alone* |
*Optimism became significant when combined with entrepreneurial orientation
The Secret Weapon: Entrepreneurial Orientation
The study found that entrepreneurial traits work best when channeled through entrepreneurial orientation – a mindset of innovation, proactiveness, and risk-taking.
“Entrepreneurial orientation is the processes, practices, and activities that use product innovation, take risks, and try to beat competitors proactively,” the researchers explain.
In simple terms: having good traits is not enough. You must actively orient your business toward creativity and bold action. The study proved that entrepreneurial orientation acts as a bridge – connecting personal traits to real business resilience.
Direct vs. Indirect Effects of Entrepreneurial Traits on Resilience
| Entrepreneurial Trait | Direct Effect on Resilience | Indirect Effect (via Entrepreneurial Orientation) |
|---|---|---|
| Negotiation Skills | ✅ Significant | ✅ Significant (stronger) |
| Need for Achievement | ✅ Significant | ✅ Significant (stronger) |
| Locus of Control | ✅ Significant | ✅ Significant (stronger) |
| Risk-Taking | ✅ Significant | ❌ Not significant |
| Optimism | ❌ Not significant | ❌ Not significant |
Key insight: Entrepreneurial orientation strengthens most traits, especially negotiation skills, achievement drive, and internal locus of control.
The Islamic Foundation: Ikhtiar and Tawakkul
What makes Muslim entrepreneurs unique? The study highlights two powerful Islamic principles:
Ikhtiar (Effort): The obligation to work hard, plan carefully, and never give up. In Islam, business is not separate from worship. It is a form of devotion to Allah. “Muslim entrepreneurs believe business is part of worship (ibada),” the study states. “Therefore, Islamic values must be integrated into various business strategies.”
Tawakkul (Trust in Allah): After making maximum effort, trusting that Allah controls the outcome. This removes paralyzing fear and anxiety. “Tawakkul instills a sense of trust in Allah regarding the results of one’s endeavors, thereby mitigating stress and anxiety related to the uncertainty of business outcomes.”
The researchers explain the powerful combination: “Muslim entrepreneurs are encouraged to engage in persistent and ethically grounded efforts while trusting Allah’s divine wisdom. This dual approach fortifies their ability to address and overcome obstacles and fosters a constructive and optimistic perspective.”
The Surprising Finding About Religiosity
The study tested whether a Muslim entrepreneur’s level of religiosity (how seriously they practice their faith) makes a difference. The answer is a clear yes.
“Religiosity can increase the effect of entrepreneurial orientation on entrepreneurial resilience,” the study proves. In other words, the more a Muslim entrepreneur integrates their faith into business decisions, the more resilient they become during crises.
This makes sense. When you believe that Allah supervises everything you do, and that every sincere effort will be rewarded in this life and the next, you find strength that purely profit-driven entrepreneurs lack.
Why This Matters for You
If you are a Muslim business owner, the study offers clear, actionable lessons:
First, develop your entrepreneurial traits.
- Practice negotiation. Improve your ability to persuade and communicate.
- Set challenging goals. Cultivate a burning need to achieve.
- Believe that your effort controls your outcomes (locus of control).
- Take calculated risks. Don’t avoid uncertainty – manage it.
Second, build your entrepreneurial orientation.
- Be proactive. Initiate change before it is forced upon you.
- Innovate constantly. Look for new products, new processes, new channels.
- Use digital tools. The study notes that the pandemic accelerated digital engagement – consumers now expect it.
Third, strengthen your religiosity.
- Remember that business can be worship (ibadah) when done with good intentions.
- Practice ikhtiar: work hard, plan carefully, never give up.
- Practice tawakkul: after your best effort, trust Allah with the outcome.
The Prophet Muhammad (peace be upon him) was himself an entrepreneur. He conducted trade, managed contracts, and led with integrity. His example shows that business and faith are not opposing forces – they are partners.
For Governments and Educators
The study has broader implications. Policymakers in Muslim-majority countries should:
- Train SME owners in negotiation, risk management, and proactive planning.
- Create regulatory frameworks that support Shariah-compliant business practices.
- Integrate Islamic values into entrepreneurship education.
“Teachers and lecturers can add the importance of religiosity in the course syllabus as material when explaining entrepreneurial resilience,” the researchers recommend.
The Bottom Line
The COVID-19 pandemic was a brutal test. Many businesses failed. But 452 Muslim entrepreneurs in West Sumatra proved that resilience can be built – and Islamic values are a powerful foundation.
As one entrepreneur in the study demonstrated: survival is not about luck. It is about traits, orientation, and faith working together. Ikhtiar and tawakkul. Effort and trust.
The Prophet Muhammad (peace be upon him) said: “The strong believer is better and more beloved to Allah than the weak believer.” Strength includes business resilience. And this study proves that Muslim entrepreneurs – armed with their faith and the right skills – can face any crisis.
Reference: here
Other Articles:
