Entrepreneurial initiative in Islamic economics – the role of gender. A multi-country analysis

Abstract

Purpose The entrepreneurial initiative is believed as being a prosperity engine. Islamic organizations are presently committed to promoting entrepreneurship to generate economic growth, provide job opportunities, reduce government centrality, enhance innovation and sustainable development. The purpose of this paper is to identify which factors affect Islamic entrepreneurial endeavors with particular emphasis on the role of gender. Additionally, how education, age, moral constraints, self-perception and social support will affect those entrepreneurial intentions based on Islamic principles. Once identified, policy actions will help to overcome extant gaps, reinforcing the entrepreneurial ecosystem. Design/methodology/approach Determinants of the entrepreneurial initiative will be appraised in the set Islamic countries present in the Global Entrepreneurship Monitor (GEM) data set from 2016. Following the Organization of Islamic Cooperation list, 14 countries were identified establishing a total sample of 36,407 individuals. Using a set of predictors included in the theoretical framework a statistical analysis was performed followed by logit estimations. The significance of explanatory variables such as gender, age and social context toward entrepreneurial propensity reinforced the importance of specific tools rather than broad policies. Findings An entrepreneurial propensity is affected by three branches of factors: individual characteristics, individual behavior and individual perceptions along with the economic environment. The analysis shows that holding equal conditions, Islamic women in the sample are less prone to start a business compared to their male counterparts. Knowing other entrepreneurial endeavors enhance the entrepreneurial initiative. Fearing failure unconstraint entrepreneurial projects, but the self-perception of skills strongly triggers these initiatives. Research limitations/implications The empirical analysis relates to the GEM database, and, as a consequence, only 14 countries were considered, but it covers 36,407 individuals whose representativeness cannot be statistically proved, however, due to sample dimension the robustness is granted. Second, the sample is sectional covering the 2016 year, as a consequence results may be classified as exceptional.Finally, other factors such as institutional and behavioral determinants were not considered, despite their theoretical importance, due to their absence in the database. Still, the empirical results reinforce the theoretical debate and offer robust evidence to build a policy package, adapted to the Islamic singularities. Practical implications Still, the empirical results reinforce the theoretical debate and offer robust evidence to build a policy package, adapted to the Islamic singularities. Originality/value The paper identifies gender differences in entrepreneurial propensity among Islamic economics. The potential enhancers of the entrepreneurial initiative are first put in theoretical terms followed by an empirical analysis, encompassing descriptive analysis and econometric estimations. The results allow identification of gender gaps, as well as other individual and context characteristics affecting entrepreneurial endeavors. Empirical evidence casts light on policymakers elaborating accurate policy packages fostering gender equality in entrepreneurship in Islamic economics, aiming to increase overall entrepreneurial activity and leveraging socio-economic development. Finally, the study addresses recommendations to overcome gender differences relating to entrepreneurial activity considering the singularities of the context.

Does Islamic values matter for Indonesian students’ entrepreneurial intention? The mediating role of entrepreneurial inspiration and attitude

“…As mentioned previously, it can be seen that Islamic values can affect entrepreneurial intentions through inspiration, mindset, self-efficacy and entrepreneurial attitudes (Sigalow et al , 2012; Turkina and Thai, 2015). Recent work by Costa and Pita (2021) believes that Islam promotes innovation by engaging consensus and analogy, an essential element in Islamic teachings. For instance, Islamic teachings present the accession and alteration of knowledge, driving creativity and skills for business (Omri and Afi, 2020).…”

Islamic Entrepreneurship among Nonimmigrant Muslims in Small Venture Creation

“…The progress of individuals from their homes to dissimilar host countries has not only caught the attention but has likewise involved scholars from dissimilar disciplines (Costa & Pita, 2021;Dheer, 2018).…”

“…Entrepreneurship is an inherent part of the Islamic religion, and entrepreneurs are prosperity agents leading their businesses toward the endorsement of social welfare and prosperity for all (Costa & Pita, 2021). As so, Muslim entrepreneurs that follow truth and ethical actions have a notable recognition for stimulating continuing entrepreneurial conduct.…”

“…In this study, nonimmigrant Muslims comprehend entrepreneurship to be a religious as well as an economic activity to encounter their financial duties and contribute to the welfare of society, entrepreneurship since an economic perspective may impose an impact on individuals' income and the economic prosperity of a country (Costa & Pita, 2021). However, this study opens up many more research questions about nonimmigrant Muslims in small venture creation, such as the influence of gender related to the impact of the decision to establish a business; in terms of raising finance, location of supply chains, and finding a marketplace for their goods and services; specifically, its level of human development is significant (Dheer, 2018).…”

“…However, this study opens up many more research questions about nonimmigrant Muslims in small venture creation, such as the influence of gender related to the impact of the decision to establish a business; in terms of raising finance, location of supply chains, and finding a marketplace for their goods and services; specifically, its level of human development is significant (Dheer, 2018). Therefore, Islamic entrepreneurship must be disseminated by utilizing related approaches sensitive to each society's social, economic, and cultural uniqueness because entrepreneurs face countless risks during the entrepreneurial journey, as new business opportunities embed high levels of uncertainty (Costa & Pita, 2021). Jiang et al (2016) stress that businesses likewise suffer from disadvantages such as the liability of smallness, newness, and foreignness, which negatively affect their survival.…”