Sharia Entrepreneurship Model as a Concept for Culture Formation and Entrepreneurship Empowerment in Islamic Boarding Schools

Unemployment is a social problem currently being faced by the Indonesian nation, so it requires serious attention to handle it. One way that can be done to overcome the number of unemployed is to increase the number of entrepreneurs. It is believed that educational institutions can play an important role in increasing the number of unemployed people and reducing the unemployment rate. Islamic boarding schools are Islamic educational institutions spread across all provinces of Indonesia, with a total of 28,984 Islamic boarding schools and 4,290,626 students. Religious teaching alone causes alumni from Islamic boarding schools to be unable to compete in society and are unemployed. The Sharia entrepreneurship model as a concept for cultural formation and entrepreneurial empowerment in Islamic boarding schools is believed to be able to increase students’ interest, culture, and independence in entrepreneurship. Data collection used the Focus Group Discussion (FGD) method. Analyzed qualitatively and described in descriptive form with stages of data analysis, namely data reduction, data display, and conclusion drawing/verification. The selection of informants in this study used purposive sampling. The informants in this research consisted of school principals, teachers, students, and involved lecturers. The results of this research reveal that the Sharia entrepreneurship model as an empowerment concept can increase entrepreneurial culture, interest, and independence. The model must include three criteria, namely character, Concepts, and skills. Meanwhile, the concept of empowerment can be carried out by identifying business potential and capital capacity and improving management in Islamic boarding schools.

Introduction

Unemployment is a social problem currently being faced by Indonesia, so serious attention is required to handle it. The Central Statistics Agency noted that the number of unemployed people in Indonesia reached 8.42 million people in August 2022 (Statistik, 2011). This number has increased compared to February 2022, which was 8.40 million people; this increase is still very large when compared to the total workforce in force. of 143.72 million people, the open unemployment rate (TPT) in Indonesia was observed at 5.86% in August 2022. This figure increased by 0.03% points compared to February 2022, which was 5.83%.

One way that can be done to overcome the number of unemployed is by increasing the number of entrepreneurs. A country can be said to be advanced and can reduce the number of unemployed if there are at least 2% of entrepreneurs from the total population. Meanwhile, the number of Indonesian entrepreneurs was only around 3.1% of its 252 million population in 2018. Indonesia is still behind neighboring countries such as Malaysia, Singapore, and Thailand, which have reached more than 4%. This means that Indonesia needs to accelerate in reaching the standard of an entrepreneurial population so that it can be said to be a developed country.

Indonesia can increase the entrepreneurship ratio with support from all parties, namely, with the government collaborating with institutions that can support developing entrepreneurial interests. Therefore, to encourage the younger generation to play an active role in the field of entrepreneurship, educational institutions, and the government are collaborating with the Ministry of Manpower, Ministry of Cooperatives, and SMEs to play an active role in developing the entrepreneurial interest of the younger generation. The younger generation is seen as having a great opportunity to develop the entrepreneurial sector because they feel they have a more creative spirit and are able to create innovations that suit the needs of society today. Besides that, they are also considered a technology-savvy generation.

It is believed that educational institutions can play an important role in forming entrepreneurial motivation and culture in the younger generation. With entrepreneurship education and training provided in educational institutions, the younger generation can be motivated and participate in entrepreneurship. In Indonesia, according to data, the highest number of unemployed people is from the educated unemployed, and the highest unemployment rate is in the General High School/SMU educational strata (Statistik, 2022).

Islamic boarding school is an educational institution with a unique and distinctive culture in Indonesian society. The provision of education in Islamic boarding schools still mostly prioritizes religious and moral material, but there are few good skills, material hard skills, or soft skills (Maftuhah & Suratman, 2015). This results in many Islamic boarding school graduates often stuttering when they return to society. It is difficult to find work, and if they work, most of them become non-professional workers; there are also many Islamic boarding school alumni who are unemployed. In fact, like other children, Islamic boarding school students will also face challenges that are no less complex in this era of global competition (Hendayanaet al., 2017).

Faced with such phenomena, education entrepreneurship become one of the concrete solutions to further empower Islamic boarding schools. Data from the Ministry of Religion until 2021 shows that in Indonesia, there are 33,218 Islamic boarding schools (Suwito & Tarigan, 2022). Seeing the large number of existing Islamic boarding schools, of course, this further supports the potential of Islamic boarding schools as a means for development (Hset al., 2021).

Interest in entrepreneurship does not just appear but grows and develops according to the factors that influence it (Oukil, 2013). According to the approach of Entrepreneurial Intention-Based Models, Factors that influence a person’s interest in entrepreneurship are self-efficacy, entrepreneurial knowledge, and family environment (Kurniawan & Yun, 2018). Entrepreneurial Intention-Based Models is a model designed to detect factors that influence entrepreneurial intentions using an educational approach. This model was designed by Francisco Linan from the University of Sevilla, Spain. Besides that, the Theory of Planned Behavior (TPB), which was initiated by Maftuhah and Suratman (2015), states that to measure a person’s interests where these interests are determined or influenced by entrepreneurial knowledge, family environment, and self-efficacy, meaning that the stronger (positive) the influence on individual interests, the stronger the individual’s desires. to work independently or run their own business (Ajzen, 2011).

The link between entrepreneurship and religion has also been analyzed by many researchers. Atiningsih and Kristanto (2020) found that the individual elements that form the entrepreneur’s belief matrix influence the entrepreneurial process. Reviewing the literature from the past century and defining religion as a store of values, religion is an explanatory variable for entrepreneurship and innovation. According to Dodd and Gotsis (2007) explained in the United States, with a larger number of individuals who claim to be Christians, they score higher in terms of productive entrepreneurship and lower in terms of unproductive entrepreneurship. So, the research is interested in conducting research on the Islamic entrepreneurship education model as an empowerment effort to increase cultural interest and entrepreneurial independence in Islamic boarding schools.

Starting from this fact, all components of the country must pay more attention to providing education that does not only emphasize cognitive aspects but also prioritizes character. National character is formed on a solid foundation of morality and moral teachings. Educational institutions are one of the three pillars of family and community overseas education, which play an important role in developing student character because it cannot be denied that in the current era of globalization, Indonesian people must be able to compete globally if they do not want to become a backward nation.

Literature Review

Islamic boarding school is an Islamic educational institution that is well known to the Indonesian people. The word Islamic boarding school in Indonesian means room, hut, or small space, which is used to emphasize the meaning of the simplicity of the building. Islamic boarding school consists of two words, namely cottage and Islamic boarding school. The term hut comes from the Arabic word fundus, which means a sleeping area or guest house for students (Ajzen, 2011). Islamic boarding school also means a place available for students to receive Islamic religious lessons as well as a gathering place and residence for students (Ziemeket al., 1986).

The objectives of Islamic boarding schools according to Qomar (2002) are divided into two, namely general objectives and special objectives. In general, Islamic boarding schools have the aim of guiding students to become human beings with Islamic personalities who are able, with their religious knowledge, to become preachers in society with their knowledge and charity. Meanwhile, the specific aim of Islamic boarding schools is to prepare students to become pious people in the religious knowledge taught by Kyai and practice it in community life.

Islamic boarding schools are traditional educational institutions where students live together and study under the guidance of teachers, better known as Kyai, and have dormitories where the students can stay. Among the aims and functions of Islamic boarding schools is as an institution for the spread of the Islamic religion so that in that place and around it, it can be influenced in such a way that people who previously did not or have never accepted the teachings of the Islamic religion can change and accept it and even become devout followers of the Islamic religion. Meanwhile, Islamic boarding schools are places to study the Islamic religion, where the main activity is studying and deepening Islamic religious knowledge (Dhofier, 1982). In Islamic boarding schools, there are basic elements, which include the cottage, mosque, classical book teaching, Students, and kyai.

Entrepreneurship is an innovative activity to exploit business opportunities (Schumpeter, 2017). Entrepreneurship is the skills and innovation that a person uses to take the initiative to engage in productive efforts to achieve their goals (Chowdhury, 2008). An entrepreneur is someone who starts their own business. An entrepreneur is a person who has the ability and mentality to start a business either to produce goods or provide services so as to generate profits (Machmudet al., 2018).

Research Methods

Data collection in this research used the Focus Group Discussion (FGD) method. The selection of informants in this study used purposive sampling. The informants in this research consisted of school principals, teachers, students, and involved lecturers. The analysis technique used in this research is qualitative and is described in descriptive form using the theory of Huberman (2014), namely that activities in qualitative research are carried out interactively and continue continuously until completion until the data is saturated. Activities in data analysis are data reduction, data display, and conclusion drawing/verification.

Research Results and Discussion

Sharia Entrepreneurship Model

The application of the Sharia entrepreneurship model in Islamic boarding schools is based on the empirical reality that many school graduates are unemployed, have difficulty finding work, and sometimes become a social problem in the environment. The Sharia entrepreneurship model is the right model to overcome existing problems, such as the difficulty of cultivating interest, culture, and independence, which causes many graduates to be unemployed. The formulation of the entrepreneurial as to increase interest, culture, and independence in creating new entrepreneurs (Fig. 1):

1. Entrepreneurial Character: Character education is the first and most basic thing given to students to increase their interest and culture in entrepreneurship from an early age. This character education is included in education soft skills, which are the foundation that an entrepreneur must have when running a business. The following character principles include:

• Transparency: The principle of openness and honesty in entrepreneurship is the key to success. Whatever the context, honesty remains the main principle today. Transparency towards consumers is when an entrepreneur is open about quality, quantity, composition, chemical elements, and others so as not to endanger or harm consumers. The principles of openness, honesty, and creating long working relationships due to mutual trust between work partners or consumers.

• Customer Oriented: In entrepreneurship, a person must apply customer-oriented principles, namely entrepreneurial principles that always maintain customer satisfaction (Rahman, 1979). To implement these principles, apply honesty, fairness and trust in carrying out business contracts. If there is a difference of opinion, it is resolved peacefully and fairly without any elements of fraud that could harm either party. The benefit of the principles applied is that customers never feel disadvantaged. There are no complaints about the promises made because none of the items agreed upon in the contract have been manipulated or reduced; all are in accordance with the contract. The customer-oriented principle also gives consumers the right to Khiyar (continue or cancel the transaction) if there are indications of fraud or they feel disadvantaged. This Khiyar concept can be a factor in strengthening the position of consumers in the eyes of producers so that producers or any company cannot do anything to their customers.

• Fairness: An entrepreneur must have the principle of justice in entrepreneurship. Taking care of each other so that other people’s rights are not disturbed is always emphasized in maintaining relationships between one another as a form of justice. Fairness in entrepreneurship towards consumers by not committing fraud and causing losses to consumers. The manifestation of justice for employees is providing fair wages to employees, not exploiting them, and protecting their rights. Apart from that, a form of justice in business is that the business carried out is free from elements of usury because usury results in the exploitation of the rich by the poor.

• Healthy Competition: Sharia principles in carrying out entrepreneurial activities prohibit free competition, which justifies any means to gain profit because it is contrary to the principles of Islamic economics, in the sense that competition is no longer meant as an effort to kill other competitors but is carried out to provide the best for one’s business.

2. Entrepreneurship Concept: The scope of the concept is the learning material taught covering the basic concepts of entrepreneurship and business. Basic concepts need to be given to students so that they understand the concepts and philosophy of entrepreneurship.

• Siddiq (True and Honest): Shiddiq means telling the truth and being honest. An entrepreneur must be able to imitate the characteristics of the Prophet Muhammad, namely saying the right thing, acting rightly or remaining silent (if he is unable to say and act rightly). This means that both leaders and employees involved in entrepreneurship must be able to behave correctly and honestly in every decision and action and be honest with consumers and competitors so that the business being run is managed with the principles of truth and honesty. Honest in matters relating to transactions with customers, prioritizing the truth of information, and explaining the superiority of goods. If there are weaknesses or defects in the product, they are conveyed to potential buyers.

• Trustworthy (Trustworthy): Trustworthiness is the quality of trust both internally and externally. Trustworthiness and responsibility are the keys to success in running an entrepreneur. Having the characteristic of trust will form high credibility and a responsible attitude in every Muslim (Hendayanaet al., 2017). Trustworthiness plays a fundamental role in economics and business because without credibility and responsibility, economic and business life will be destroyed.

• Tabligh (Argumentative/Communicative): Tabligh is the ability to convey, the ability to communicate effectively. Effective entrepreneurship is the ability to convey communication. Entrepreneurs must be able to train themselves in conveying their business ideas and products, must be able to convey and promote product advantages in an interesting and targeted manner, and be able to communicate them accurately and easily understood by anyone who listens. The most important thing is to be able to bridge between the company and the customer.

• Fathonah (Intelligent): Fathonah’s characteristic is intelligence in business. In this case, an intelligent entrepreneur is an entrepreneur who is able to understand, appreciate, and recognize his business duties and responsibilities very well. In Sharia-based entrepreneurship, Allah wants humans to be intelligent when dealing with life. In entrepreneurship, all activities in a company must be carried out with intelligence by utilizing the existing potential of reason and thought to achieve goals. Being honest, truthful, and responsible is not enough to manage a business professionally. Entrepreneurs must also have fathonah (intelligent) characteristics, namely intelligent, astute, and wise characteristics so that their businesses are more effective and efficient.

3. Islamic Entrepreneurship Skills: The scope of skills is adjusted to existing potential and developing various business units; of course, technical skills in the field of managed business units such as agriculture and other business management are the material presented in the learning. Wahyudin (2012) stated that the entrepreneurship training model curriculum at least includes the subject introduction to entrepreneurship, creativity in business, entrepreneurial life skills, entrepreneurial (project-based) learning, and principles of entrepreneurship:

• Technology (on farm): Skills education taught in Islamic boarding schools is education and training oriented towards developing work skills that suit your needs so that you have competence in certain skill areas, which can be proven with a competency certificate to work and be absorbed

• in the business world. This entrepreneurship practicum can be carried out directly in the business unit. The aim is to train students so that they have the skills to be independent entrepreneurs and can be absorbed by the job market.

• Production (off-farm): The scope of skills provided is adjusted to the business and business potential managed by the school and school collaboration. The school develops cooperatives and agriculture; of course, technical skills in the field of agricultural cultivation are the material presented in learning. The skills taught start from the beginning to the production process and produce production products directly,

• Marketing: The scope of marketing skills given to students at Islamic boarding schools is adjusted to the business and business potential of the Islamic boarding school. Being taught various forms of marketing directly includes skills in communication, Social Media Marketing Skills, the Ability to Create Content Strategy, Problem-solving, SEO and SEM Skills, and Graphic Design.

Fig. 1. Scope of entrepreneurship education (Widodo & Nugroho, 2014).

Entrepreneurship Empowerment Concept

Empowerment has been carried out in various ways to develop an entrepreneurial culture. However, there are several shortcomings, one of which is the incubation process, which does not run well. Entrepreneurship education and training can run well, but it does not guarantee the sustainability of the business run by students after completing their education (Hidayat & Yusuf, 2011). Most entrepreneurship development patterns are carried out through skills training models, especially technical skills (Cahyono, 2016). The implementation of a comprehensive entrepreneurship education model has not yet resulted in many failures.

The formulation of the format for village community empowerment efforts must be based on two basic principles of approach. The first is how to create opportunities for the community and increase the ability and independence of the community to take advantage of these opportunities. Village empowerment efforts should not be carried out based on a grand scenario because such things are never able to provide the expected results. Institutional empowerment requires operational changes to three institutional pillars, namely: traditional local institutions that live and exist in the community (voluntary sector), market institutions (private sector) inspired by the ideology of an open economy, political system institutions or decision-making at the public level (public sector) (Nasrul, 2012).

Empowerment stages (Fig. 2):

1. Identify the type of business: Empowerment is directed at developing the potential that exists in the community. In developing an entrepreneurial culture, consider the potential that exists in society. This consideration was taken because of the ease of developing business models, which will later become a means of learning and practicing entrepreneurship for students. This type of business will be very location-specific, according to existing potential. Potential empowerment will be very different in rural and urban areas or other areas. The method that can be used in business identification is using the PRA technique (Participatory Rural Appraisal). PRA is a set of approach methods for studying rural conditions and life from, with, and by village communities (Chambers, 1996). There are various techniques that can be selected according to needs. However, some techniques include (1) seasonal calendar, (2) changes and trends, and (3) ranking matrix, which can be used. Apart from that, it is also necessary to consider aspects of land suitability, climate, topography, and aspects related to nature if the type of business planned is in the agricultural sector.

2. Capitalization of capital: However, capital is a problem that often arises in the empowerment process. The role of all stakeholders is important. If we look, there are many opportunities for Islamic boarding schools to obtain capital, one of which is from the community. Alumni networks can be used to raise capital, either through aid schemes or revolving loans. The government and private sector should be considered. Various government programs that provide capital assistance can be accessed. Since 1991, the government, through the Ministry of Agriculture, initiated the LM3 program (Independent Institutions Rooted in Community), and it continues to run to this day. Meanwhile, the private sector, according to Law 25/2007 and Law 40/2007, is required to carry out CSR (Corporate Social Responsibility). Several companies have implemented CSR in schools with various programs, it is hoped that they will be able to establish good cooperation with the government and the private sector.

3. Increased management capacity: Islamic boarding schools need to increase their institutional capacity, one of which is by preparing human resources, namely managers, caregivers, or teachers. The development of this entrepreneurial culture is through a business incubation model so that there are business units developed within the Islamic boarding school environment. This business unit will later become a learning tool for students in terms of technical skills. Therefore, it is necessary to increase the ability of managers and caregivers to manage aspects, develop technical business skills, and develop entrepreneurial learning methods. Assistance from universities is very necessary, especially if we look at the roles and responsibilities of universities through their tri dharma. Increasing human resource capacity is expected to use the Training of Trainer (TOT) scheme.

Fig. 2. Islamic entrepreneurship education model.

Conclusion

Islamic boarding schools have potential, with the number of Islamic boarding schools reaching more than 27 thousand and having a number of students of more than 3 million people, which is a resource that should be taken into account to be developed and empowered through cultural development. The Sharia entrepreneurship model in Islamic boarding schools can effectively increase cultural interest and independence, including three criteria: (i) character, (ii) concept, and (iii) skills. The entrepreneurial values that are instilled in students include independence, courage to take risks, responsibility, honesty, hard work, and being smart or creative, and innovative. Students learn entrepreneurship from training conducted by students and administrators who are more experienced and have good skills in entrepreneurship. Empowerment is carried out for business sustainability, involving all stakeholders and structured and systematic stages, including (i) identification of business potential, (ii) capitalization of capital, (iii) increasing management capacity, and (iv) entrepreneurship education.

Recommendation

The large number of Islamic boarding schools spread across all provinces in Indonesia 28,984 Islamic boarding schools and 4,290,626 Students constitutes a very strategic potential for the life of the Indonesian nation. There are at least three (3) things that are strategic forums for Islamic boarding schools, namely: (1) Religious Institutions, (2) Educational Institutions, and (3) Social Institutions. These three (3) institutions will develop and grow Islamic boarding schools in Indonesia.

Therefore. In supporting the strategic potential of Islamic boarding schools, there needs to be support from the central and regional governments in increasing their institutional capacity by preparing human resources, namely qualified managers, caregivers, or teachers, so that they are able to improve their institutions and can prepare quality human resources that can compete.