Article Sidebar

Submitted
February 25, 2023
Accepted
March 26, 2023
Published
September 5, 2023
Download
Full text PDF
Statistic
Read Counter : 649 Download : 250

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – This study aims to examine the relationship and influence of the level of religiosity (obedience and piety) on stable business success for millennial Islam in Indonesia.
Methodology – This study uses multinomial logit qualitative response regression to estimate religiosity's impact on business success. This study uses 5,252 individuals who are Muslim and have their businesses in IFLS data. Religiosity is measured through the level of the piety of millennial Muslims, while business success is proxied by using profitability.
Findings – The results show that the religiosity of the millennial generation has a significant positive effect on the profitability of medium and low-class businesses. Meanwhile, the religiosity level of the millennial generation was also found to have a significant adverse effect on the profitability of upper-level businesses. On the other hand, a better level of millennial education and asset ownership also contributes to one's chances of getting a much higher profit than others. Finally, Muslims in urban areas get better profits than those in rural areas.
Implications – Most millennial Muslims in the upper-class profitability have lower religiosity than other classes. It indicates that more and more people are involved in businesses that have the potential to violate religious values and are sure to be less obedient to worship. It is highly correlated with the amount of acquisition he gets. Meanwhile, for other classes, for example, the profit obtained is much lower, correlated with the habit of worshiping and religious observance, but does not rule out daily work and business so that sustainability is still obtained.
Originality – No previous research has discussed the influence of the level of religiosity associated with business success among Muslim millennials.

Keywords

Stable business success profitability Islamic millennials worship

Article Details

License

Copyright (c) 2023 Moh Najikhul Fajri, Siti Munawaroh

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Fajri, M. N., & Munawaroh, S. (2023). The effect of religiosity level on entrepreneurial sustainability of Muslim millennials: A case study of the Indonesian family life survey. Review of Islamic Social Finance and Entrepreneurship, 2(2), 103–116. https://doi.org/10.20885/RISFE.vol2.iss2.art1
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Baharuddin, K., Kassim, N. A., Nordin, S. K., & Buyong, S. Z. (2015). Understanding the halal concept and the importance of information on halal food business needed by potential Malaysian entrepreneurs. International Journal of Academic Research in Business and Social Sciences, 5(2), 170–180. https://ideas.repec.org/a/hur/ijarbs/v5y2015i2p170-180.html
  2. Bassens, D., Derudder, B., & Witlox, F. (2012). “Gatekeepers” of Islamic financial circuits: Analysing urban geographies of the global shari’a elite. Entrepreneurship and Regional Development, 24(5–6), 337–355. https://doi.org/10.1080/08985626.2011.577820
  3. Bilic, I., Prka, A., & Vidovi, G. (2011). How does education influence entrepreneurship orientation ? Case study of Croatia. Management, 16(1), 115–128. https://www.proquest.com/openview/68715eec64479eeb072fd34e44677481/1?pq-origsite=gscholar&cbl=55100
  4. Carswell, P., & Rolland, D. (2007). Religion and entrepreneurship in New Zealand. Journal of Enterprising Communities: People and Places in the Global Economy, 1(2), 162–174. https://doi.org/10.1108/17506200710752584
  5. Chandrakumara, A., De Zoysa, A., & Manawaduge, A. (2011). Effects of the entrepreneurial and managerial orientations of owner-managers on company performance: An empirical test in Sri Lanka. International Journal of Management, 28(1), 139–158. https://www.proquest.com/openview/5565d428674b4ac8b1b468a2968d8e6f/1?pq-origsite=gscholar&cbl=5703
  6. Desiyanti, R., & Kassim, A. A. M. (2020). Financial literacy on business performance: The moderating effect of religiosity among SMEs in Sumatera, Indonesia. International Journal of Academic Research in Accounting, Finance and Management Sciences, 10(2), 87–99. https://doi.org/10.6007/ijarafms/v10-i2/7371
  7. DinarStandard. (2022). State of the Global Islamic Economy Report. https://salaamgateway.s3.us-east-2.amazonaws.com/special-coverage/sgie22/pdf/State of the Global Islamic Economy Report 2022 - Eng. Summary -.pdf
  8. Ertuna, Z. I., & Gurel, E. (2011). The moderating role of higher education on entrepreneurship. Education and Training, 53(5), 387–402). https://doi.org/10.1108/00400911111147703
  9. Fairlie, R. W., & Krashinsky, H. A. (2012). Liquidity constraints, household wealth, and entrepreneurship revisited. Review of Income and Wealth, 58(2). https://doi.org/10.1111/j.1475-4991.2011.00491.x
  10. Fauzan, F. (2014). Hubungan religiusitas dan kewirausahaan: Sebuah kajian empiris dalam perspektif Islam. Jurnal Ekonomi Modernisasi, 10(2), 147–157. https://ejournal.unikama.ac.id/index.php/JEKO/article/view/779/pdf_76
  11. Gursoy, D., Altinay, L., & Kenebayeva, A. (2017). Religiosity and entrepreneurship behaviours. International Journal of Hospitality Management, 67, 87–94. https://doi.org/10.1016/j.ijhm.2017.08.005
  12. Hoogendoorn, B., Rietveld, C. A., & van Stel, A. (2016). Belonging, believing, bonding, and behaving: the relationship between religion and business ownership at the country level. Journal of Evolutionary Economics, 26(3), 519–550. https://doi.org/10.1007/s00191-016-0447-7
  13. Hoque, N., Mamun, A., & Mohammad Ahshanul Mamun, A. (2014). Dynamics and traits of entrepreneurship: An Islamic approach. World Journal of Entrepreneurship, Management and Sustainable Development, 10(2), 128–142. https://doi.org/10.1108/wjemsd-04-2013-0027
  14. Hosmer, D. W., & Lemeshow, S. (2000). Applied Logistic Regression Second Edition. John Wiley & Sons, Inc. https://onlinelibrary.wiley.com/doi/book/10.1002/0471722146
  15. Kader, H. (2021). Human well-being, morality and the economy: An Islamic perspective. Islamic Economic Studies, 28(2). https://doi.org/10.1108/ies-07-2020-0026
  16. Kayed, R. N., & Hassan, M. K. (2010). Islamic entrepreneurship: A case study of Saudi Arabia. Journal of Developmental Entrepreneurship, 15(4), 379–413. https://doi.org/10.1142/S1084946710001634
  17. Khurana, I., Ghura, A. S., & Dutta, D. K. (2021). Religion and humane entrepreneurship: Insights for research, policy, and practice. Journal of the International Council for Small Business, 2(3), 1–10. https://doi.org/10.1080/26437015.2021.1906186
  18. Krasniqi, B. A. (2009). Personal, household and business environmental determinants of entrepreneurship. Journal of Small Business and Enterprise Development, 16(1), 146–166. https://doi.org/10.1108/14626000910932935
  19. Lerner, J. (2010). The future of public efforts to boost entrepreneurship and venture capital. Small Business Economics, 35(3), 255–264. https://doi.org/10.1007/s11187-010-9298-z
  20. Liu, J., Zhu, Y., Serapio, M., & Cavusgil, S. T. (2019). The new generation of millennial entrepreneurs: A review and call for research. International Business Review, 28(5), 101581. https://doi.org/10.1016/j.ibusrev.2019.05.001
  21. Ludin, I., Saleh, H. S., & Amruloh, D. A. G. (2018). Pengaruh kecerdasan intelektual, kecerdasan emosional, dan kecerdasan spiritual terhadap kinerja wirausaha Muslim di kabupaten Purwakarta. Eqien: Jurnal Ekonomi Dan Bisnis, 5(1). https://doi.org/10.34308/eqien.v5i1.10
  22. Mastercard. (2022). Crescentrating Global Muslim Travel Index 2022 Foreword By Fazal Bahardeen. https://www.crescentrating.com/magazine/all/4072/mastercard-crescentrating-global-muslim-travel-index-2022-foreword-by-fazal-bahardeen.html
  23. Matlay, H. (2008). The impact of entrepreneurship education on entrepreneurial outcomes. Journal of Small Business and Enterprise Development, 15(2), 382–396. https://doi.org/10.1108/14626000810871745
  24. McIntyre, N., Silva Quaye, E., Anning-Dorson, T., Lanivich, S., & Adomako, S. (2023). Investigating the impact of religiosity on entrepreneurial intentions. Journal of Business Research, 156, 113528. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.113528
  25. Mulyaningsih, H. D., & Ramadani, V. (2016). Social entrepreneurship in an Islamic context. Entrepreneurship and Management in an Islamic Context (pp. 143–158). https://doi.org/10.1007/978-3-319-39679-8_10
  26. Mustikowati, R. I., & Wilujeng, S. (2020). Religiusitas dan kewirausahaan: Faktor kritis dalam mencapai kinerja bisnis pada UKM di Kabupaten Malang. Jurnal Studi Manajemen dan Bisnis, 5(2), 102–113. https://doi.org/10.21107/jsmb.v5i2.6659
  27. Oosterbeek, H., van Praag, M., & Ijsselstein, A. (2010). The impact of entrepreneurship education on entrepreneurship skills and motivation. European Economic Review, 54(3), 442–454. https://doi.org/10.1016/j.euroecorev.2009.08.002
  28. Ramadani, V., Dana, L. P., Ratten, V., & Tahiri, S. (2015). The context of Islamic entrepreneurship and business: Concept, principles and perspectives. International Journal of Business and Globalisation, 15(3). https://doi.org/10.1504/IJBG.2015.071906
  29. RAND. (2018). RAND Indonesian family life survey (IFLS). In Rand. https://www.rand.org/well-being/social-and-behavioral-policy/data/FLS/IFLS.html
  30. Ratten, V., Ramadani, V., Dana, L. P., & Gerguri-Rashiti, S. (2016). Islamic entrepreneurship and management: Culture, religion and society. In Entrepreneurship and Management in an Islamic Context (pp. 7–17). https://doi.org/10.1007/978-3-319-39679-8_2
  31. Shane, S., & Delmar, F. (2004). Planning for the market: Business planning before marketing and the continuation of organizing efforts. Journal of Business Venturing, 19(6), 767–785. https://doi.org/10.1016/j.jbusvent.2003.11.001
  32. Shohib, M. (2020). Religiusitas dan entrepreneurship. Cognicia, 8(2). https://doi.org/10.22219/cognicia.vol8.no2.169-177
  33. Solesvik, M. Z., Westhead, P., Matlay, H., & Parsyak, V. N. (2013). Entrepreneurial assets and mindsets: Benefit from university entrepreneurship education investment. Education + Training, 55. https://doi.org/10.1108/ET-06-2013-0075
  34. Sriram, V., Mersha, T., & Herron, L. (2007). Drivers of urban entrepreneurship: An integrative model. International Journal of Entrepreneurial Behaviour and Research, 13(4). https://doi.org/10.1108/13552550710760012
  35. Tiliouine, H., Cummins, R., & Davern, M. (2009). Islamic religiosity, subjective well-being, and health. Mental Health, Religion and Culture, 12(1), 55–74. https://doi.org/10.1080/13674670802118099
  36. Trinugroho, I., Risfandy, T., Ariefianto, M. D., Prabowo, M. A., Purnomo, H., & Purwaningsih, Y. (2017). Does religiosity matter for Islamic banks’ performance? Evidence from Indonesia. International Journal of Economics and Management, 11(2), 419–435. https://www.researchgate.net/publication/322736979_Does_religiosity_matter_for_Islamic_banks’_performance_Evidence_from_Indonesia
  37. Urbig, D., Reif, K., Lengsfeld, S., & Procher, V. D. (2021). Promoting or preventing entrepreneurship? Employers’ perceptions of and reactions to employees’ entrepreneurial side jobs. Technological Forecasting and Social Change, 172. https://doi.org/10.1016/j.techfore.2021.121032
  38. Van Der Sluis, J., Van Praag, M., & Vijverberg, W. (2008). Education and entrepreneurship selection and performance: A review of the empirical literature. Journal of Economic Surveys 22(5), 795–841. https://doi.org/10.1111/j.1467-6419.2008.00550.x
  39. Wagner, J. (2007). What a difference a Y makes-female and male nascent entrepreneurs in Germany. Small Business Economics, 28(1), 1–27. https://doi.org/10.1007/s11187-005-0259-x
  40. Wibowo, F. W., & Sujono, R. I. (2021). Pengaruh religiusitas terhadap wirausaha Muslim muda (Studi kasus pondok pesantren di Yogyakarta). AL-INFAQ: Jurnal Ekonomi Islam, 12(2), 138–157. https://www.jurnalfai-uikabogor.org/index.php/alinfaq/article/view/867/601
  41. Wuri, W. W., Andriani, P., & Utama, R. Y. (2019). Does spirituality give an impact to well-being of entrepreneur? Jurnal Ekonomi & Studi Pembangunan, 20(2), 221–231. https://doi.org/10.18196/jesp.20.2.5026