The effect of Maqasid Al-Shariah towards youth motivation to become entrepreneur in Indonesia

https://doi.org/10.35912/ijfam.v6i4.2598
Published: Apr 9, 2025

Abstract:

Purpose: The article emphasizes the role of maqasid al-shariah as youth motivation towards the intention to be an entrepreneur.

Method: This study is a quantitative research that collects data from 556 students across Indonesia and analyzes it through the Smart PLS statistical program to obtain results in both factor/indicator measurement and path analysis measurement.

Results: The study found that maqasid al-shariah significantly affects the youth’s intention to become entrepreneurs. The sequence of the five maqasid al-shariah indicators, from the most dominant influence, is progeny, wealth, intellect, soul, and faith.

Conclusions: This research provides valuable insight into the impact of Islamic principles, especially the Maqasid al-Shariah framework, on shaping entrepreneurial interests among university students. The emphasis on progeny and wealth reflects a dual commitment to maintaining family financial stability and contributing to community welfare through charitable efforts.

Limitations: This study focuses solely on university students in Indonesia, potentially limiting the generalizability of the findings to other demographic groups. Additionally, reliance on self-reported data may introduce response or social desirability biases. Future research should adopt longitudinal approaches and more diverse samples to improve external validity.

Contribution: This study enriches research on maqasid al-shariah as a framework shaping religious motivation for entrepreneurship, an area that has not been widely explored. The findings also have implications for public policy and education, suggesting the integration of Islamic values into university curricula to enhance entrepreneurial character.

Keywords:
1. Maqasid al-syariah
2. intention
3. youth
4. entrepreneurs
5. University
Authors:
1 . Gunawan Baharuddin
Universitas Pancasila, Indonesia
2 . Dian Riskarini
Universitas Pancasila, Indonesia
3 . Sri Widyastuti
Universitas Pancasila, Indonesia
4 . Fatima Azzahra
Universitas Pancasila, Indonesia
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How to Cite
Baharuddin, G., Riskarini, D., Widyastuti, S., & Azzahra, F. (2025). The effect of Maqasid Al-Shariah towards youth motivation to become entrepreneur in Indonesia. International Journal of Financial, Accounting, and Management, 6(4), 525–537. https://doi.org/10.35912/ijfam.v6i4.2598
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Issue & Section
Vol. 6 No. 4 (2025): March
Articles
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References

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    Chapra, M. U. (2001). Islamic economic thought and the new global economy. Islamic Economic Studies, 9(1).

    Cheung, T. S., & Yeo-chi king, A. (2004). Righteousness and profitableness: The moral choices of contemporary Confucian entrepreneurs. Journal of business ethics, 54, 245-260. doi:https://doi.org/10.1007/s10551-004-6405-6

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    Hudayati, A., & Tohirin, A. (2019). A Maqasid and Shariah Enterprises Theory-Based Performance Measurement for Zakat Institution. International Journal of Zakat, 4(2), 101-110. doi:https://doi.org/10.37706/ijaz.v4i2.192

    Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal, 20(2), 195-204. doi:https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7

    Kader, H. (2021). Human well-being, morality and the economy: an Islamic perspective. Islamic Economic Studies, 28(2), 102-123. doi:https://doi.org/10.1108/IES-07-2020-0026

    Kayed, R. N., & Hassan, M. K. (2013). Islamic entrepreneurship: Routledge.

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    Kholid, M. N., & Bachtiar, A. (2015). Good corporate governance dan kinerja maqasid syariah bank syariah di Indonesia. Jurnal Akuntansi dan Auditing Indonesia, 19(2), 126-136. doi:https://doi.org/10.20885/jaai.vol19.iss2.art4

    Krueger Jr, N. F., Reilly, M. D., & Carsrud, A. L. (2000). Competing models of entrepreneurial intentions. Journal of business venturing, 15(5-6), 411-432. doi:https://doi.org/10.1016/S0883-9026(98)00033-0

    Kunhibava, S., Muneeza, A., Khalid, M. B., Mustapha, Z., & Sen, T. M. (2024). Islamic Social Finance from the Quran and Sunnah Islamic Social Finance: Law and Practice in Malaysia (pp. 1-21): Springer.

    Lareyre, O., Gourlan, M., Stoebner-Delbarre, A., & Cousson-Gélie, F. (2021). Characteristics and impact of theory of planned behavior interventions on smoking behavior: a systematic review of the literature. Preventive Medicine, 143, 106327. doi:https://doi.org/10.1016/j.ypmed.2020.106327

    Liñán, F., & Chen, Y. W. (2009). Development and cross–cultural application of a specific instrument to measure entrepreneurial intentions. Entrepreneurship theory and practice, 33(3), 593-617. doi:https://doi.org/10.1111/j.1540-6520.2009.00318.x

    Lombana Bermudez, A., Cortesi, S., Fieseler, C., Gasser, U., Hasse, A., Newlands, G., & Wu, S. (2020). Youth and the digital economy: Exploring youth practices, motivations, skills, pathways, and value creation.

    Mir, A. A., Hassan, S., & Khan, S. J. (2023). Understanding digital entrepreneurial intentions: A capital theory perspective. International Journal of Emerging Markets, 18(12), 6165-6191. doi:https://doi.org/10.1108/IJOEM-05-2021-0687

    Mohsin, M. I. A. (2020). A fresh view on zakah as a socio-financial tool to promote ethics, eliminate Riba and reduce poverty. International Journal of Management and Applied Research, 7(1), 55-71.

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    Salimath, M. S., & Cullen, J. B. (2010). Formal and informal institutional effects on entrepreneurship: a synthesis of nation?level research. International Journal of Organizational Analysis, 18(3), 358-385. doi:https://doi.org/10.1108/19348831011062175

    Sarif, S. M., Ismail, Y., & Azlan, Z. (2017). Effects of Maqasid Al-Shariah for ethical decision making among social entrepreneurs. Journal of Islamic Management Studies, 1(1), 1-14.

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    Sun, X., Xu, H., Köseoglu, M. A., & Okumus, F. (2020). How do lifestyle hospitality and tourism entrepreneurs manage their work-life balance? International Journal of Hospitality Management, 85, 102359. doi:https://doi.org/10.1016/j.ijhm.2019.102359

    Tung, L. C. (2011). The impact of entrepreneurship education on entrepreneurial intention of engineering students. City University of Hongkong: Run Run Shaw Library, 11(1), 67-86.

    Wibowo, B. (2017). Religiosity and entrepreneurial intention. ETIKONOMI, 16(2), 187-206.

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    Zamrudi, Z., & Yulianti, F. (2020). Sculpting factors of entrepreneurship among university students in Indonesia. Entrepreneurial Business and Economics Review, 8(1), 33-49.

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  2. Albayati, H., Alistarbadi, N., & Rho, J. J. (2023). Assessing engagement decisions in NFT Metaverse based on the Theory of Planned Behavior (TPB). Telematics and Informatics Reports, 10, 100045. doi:https://doi.org/10.1016/j.teler.2023.10004
  3. Ali, N., Nakayama, S., & Yamaguchi, H. (2023). Using the extensions of the theory of planned behavior (TPB) for behavioral intentions to use public transport (PT) in Kanazawa, Japan. Transportation Research Interdisciplinary Perspectives, 17, 100742. doi:https://doi.org/10.1016/j.trip.2022.100742
  4. Anoke, A. F. (2023). Microfinance services and the growth of women entrepreneurial businesses in North Central Nigeria. International Journal of Financial, Accounting, and Management, 4(4), 379-393. doi:https://doi.org/10.35912/ijfam.v4i4.1106
  5. Astrachan, J. H., Binz Astrachan, C., Campopiano, G., & Baù, M. (2020). Values, spirituality and religion: Family business and the roots of sustainable ethical behavior. Journal of business ethics, 163(4), 637-645. doi:https://doi.org/10.1007/s10551-019-04392-5
  6. Baharuddin, G., & Ab Rahman, A. (2021). What is the most effective antecedent for developing entrepreneurial intention among Muslim youth in Indonesia? Entrepreneurial Business and Economics Review, 9(1), 75-88.
  7. Baharuddin, G., & Possumah, B. T. (2022). Blended Finance and the Role of Waqf Bank: Shaping the SDGs in Indonesia Wealth Management and Investment in Islamic Settings: Opportunities and Challenges (pp. 357-365): Springer.
  8. BPS. (2018). Statistics of Indonesian Youth 2017. Retrieved from https://www.bps.go.id/en/publication/2018/04/13/040941963dd0c2fe89ffcee6/statistics-of-indonesian-youth-2017.html
  9. Brieger, S. A., De Clercq, D., & Meynhardt, T. (2021). Doing good, feeling good? Entrepreneurs’ social value creation beliefs and work-related well-being. Journal of business ethics, 172, 707-725. doi:https://doi.org/10.1007/s10551-020-04512-6
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  11. Campante, F., & Yanagizawa-Drott, D. (2015). Does religion affect economic growth and happiness? Evidence from Ramadan. The Quarterly Journal of Economics, 130(2), 615-658. doi:https://doi.org/10.1093/qje/qjv002
  12. Chapra, M. U. (2001). Islamic economic thought and the new global economy. Islamic Economic Studies, 9(1).
  13. Cheung, T. S., & Yeo-chi king, A. (2004). Righteousness and profitableness: The moral choices of contemporary Confucian entrepreneurs. Journal of business ethics, 54, 245-260. doi:https://doi.org/10.1007/s10551-004-6405-6
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  19. Harizan, S. H. M., & Mustafa, M. S. (2020). Islamic entrepreneurship: analysis of research trend. Islamiyyat, 42(2), 71-84. doi:https://doi.org/10.17576/islamiyyat-2020-4202-07
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  22. Hudaefi, F. A., & Noordin, K. (2019). Harmonizing and constructing an integrated maq??id al-Shar??ah index for measuring the performance of Islamic banks. ISRA International Journal of Islamic Finance, 11(2), 282-302. doi:https://doi.org/10.1108/IJIF-01-2018-0003
  23. Hudayati, A., & Tohirin, A. (2019). A Maqasid and Shariah Enterprises Theory-Based Performance Measurement for Zakat Institution. International Journal of Zakat, 4(2), 101-110. doi:https://doi.org/10.37706/ijaz.v4i2.192
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  30. Kunhibava, S., Muneeza, A., Khalid, M. B., Mustapha, Z., & Sen, T. M. (2024). Islamic Social Finance from the Quran and Sunnah Islamic Social Finance: Law and Practice in Malaysia (pp. 1-21): Springer.
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  32. Liñán, F., & Chen, Y. W. (2009). Development and cross–cultural application of a specific instrument to measure entrepreneurial intentions. Entrepreneurship theory and practice, 33(3), 593-617. doi:https://doi.org/10.1111/j.1540-6520.2009.00318.x
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  34. Mir, A. A., Hassan, S., & Khan, S. J. (2023). Understanding digital entrepreneurial intentions: A capital theory perspective. International Journal of Emerging Markets, 18(12), 6165-6191. doi:https://doi.org/10.1108/IJOEM-05-2021-0687
  35. Mohsin, M. I. A. (2020). A fresh view on zakah as a socio-financial tool to promote ethics, eliminate Riba and reduce poverty. International Journal of Management and Applied Research, 7(1), 55-71.
  36. Ramayah, T., Cheah, J., Chuah, F., Ting, H., & Memon, M. A. (2018). Partial least squares structural equation modeling (PLS-SEM) using smartPLS 3.0. An updated guide and practical guide to statistical analysis, 967-978.
  37. Salimath, M. S., & Cullen, J. B. (2010). Formal and informal institutional effects on entrepreneurship: a synthesis of nation?level research. International Journal of Organizational Analysis, 18(3), 358-385. doi:https://doi.org/10.1108/19348831011062175
  38. Sarif, S. M., Ismail, Y., & Azlan, Z. (2017). Effects of Maqasid Al-Shariah for ethical decision making among social entrepreneurs. Journal of Islamic Management Studies, 1(1), 1-14.
  39. Sulung, L. A. K., Putri, N. I. S., Robbani, M. M., & Ririh, K. R. (2020). Religion, attitude, and entrepreneurship intention in Indonesia. The South East Asian Journal of Management, 14(1), 3. doi:https://doi.org/10.21002/seam.v14i1.10898
  40. Sun, X., Xu, H., Köseoglu, M. A., & Okumus, F. (2020). How do lifestyle hospitality and tourism entrepreneurs manage their work-life balance? International Journal of Hospitality Management, 85, 102359. doi:https://doi.org/10.1016/j.ijhm.2019.102359
  41. Tung, L. C. (2011). The impact of entrepreneurship education on entrepreneurial intention of engineering students. City University of Hongkong: Run Run Shaw Library, 11(1), 67-86.
  42. Wibowo, B. (2017). Religiosity and entrepreneurial intention. ETIKONOMI, 16(2), 187-206.
  43. Yasin, M. Z., Noor, M. A., Bibi, A., & Fakhar, A. (2024). The Purposeful Life: An Exploration of Life's Priorities According to the Objectives of Islamic Shariah. Remittances Review, 9(2), 574-593.
  44. Zamrudi, Z., & Yulianti, F. (2020). Sculpting factors of entrepreneurship among university students in Indonesia. Entrepreneurial Business and Economics Review, 8(1), 33-49.