Understanding Sharia Principles in Risk Management Practices Among Micro-Business Owners in Islamic Enterprises
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Abstract
This study explores how Sharia principles shape risk management practices among micro-business owners in Islamic enterprises. While Islamic business practices have gained attention, limited research investigates their practical implementation in risk management. This study employs a qualitative design using a descriptive phenomenological approach to uncover how business owners interpret and apply Sharia principles in daily decision-making. Data were collected through in-depth interviews with ten micro-business owners and analyzed using thematic analysis. The findings reveal three dominant themes: (1) the centrality of avoiding riba (usury), (2) the prioritization of halal compliance, and (3) the belief in divine accountability as a risk mitigation strategy. These themes illustrate that adherence to Sharia principles enhances ethical integrity while also providing a resilient foundation for financial sustainability. The study contributes practical insights into Islamic business ethics, offering implications for policy development and encouraging the adoption of faith-based risk management models in broader entrepreneurial contexts.
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