THE HISTORY OF BUSINESS AND TRADE PRACTICED BY THE LAST MESENGGER OF ALLAH

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1 THE HISTORY OF BUSINESS AND TRADE PRACTICED BY THE LAST MESENGGER OF ALLAH Mohd Rafi, Mohammad Iqbal; Mohd Kamal, Mohd Fathullah; Gapar, Muhammad Akmal Hizami; Razak,Wan Zakwan Financial Mathematics Faculty of Science and Technology Universiti Sains Islam Malaysia Mohd Dali, Nuradli Ridzwan Shah Faculty of Economics and Muamalat Universiti Sains Islam Malaysia Keywords: Entrepreneur, Business, Honest, Mudharabah. Prophet Muhammad (pbuh) is the messenger of Allah who was sent to mankind to guide them to the guidance of Allah. God sent the prophet, Muhammad (pbuh) to call upon the humanity to the truth and abstain from doing all the bad things. This is the main purpose of Allah sending Prophet Muhammad (pbuh) to the world; but the truth is he is just an ordinary person just like us who still live a normal people life like eating, drinking, sleeping and many more. All the practices of the Prophet Muhammad (pbuh) are the Sunnah which may be followed by Muslims all over the world because every practice the Sunnah of the prophet Muhammad (pbuh) performed many benefits in our daily lives (Mohd Dali et al., 2008). One of the useful things that can be practiced in our daily lives is the nature of entrepreneurship and business conduct by Prophet Muhammad (pbuh). The history of business and trade practiced by Prophet Muhammad (pbuh) is divided into 3 sections. In the first section will explain about people involved in business together with Prophet Muhammad (pbuh). The second section will explain about place Prophet Muhammad (pbuh) starting doing a business and the last section will explain about moral values (akhlak) and strategies of the Prophet Muhammad (pbuh) doing business.

2 The first section will explain about the people involved in business together with Prophet Muhammad (pbuh). Prophet Muhammad (pbuh) had got involved in the business since the age of 12 years old. After the death of Prophet Muhammad's grandfather, Abdul Mutalib, he was reared by his uncle named Abu Talib. Abu Talib was a successful trader. Prophet Muhammad often follows his uncle's business up to Syria at that time. Abu Talib was the pioneer of Prophet Muhammad involvement in the business world (Sakijan, Hashim 2000). Business is an important thing in Islam, and even become a terminology that is often mentioned in the Qur'an which means: "Verily, those who recite the Book of Allah, establish regular prayers and spend out of what We have provided them, secretly and openly, hope for a commerce that they have nothing to lose" (Surah Fatir : 29). This verse is one of the proofs that the business is a good practice that sustains profits if one is willing to work hard and loud all right for a living and at the same time can be detrimental if do not have any encourage to work. Prophet Muhammad (pbuh) is a great businessman. On one occasion, at the time of trade, the Prophet has earned more profit from other entrepreneurs in the same mission. Therefore, because of the greatness of the Prophet Muhammad in the business, he met his wife, Siti Khadijah who is also an eminent entrepreneur at the age of 25 years old. At that time, Siti Khatijah very impressed with the way the prophet Muhammad trade and the good hospitality given to the customers until all the people interested in purchasing goods from the prophet Muhammad (pbuh)(yahya, 2005). One of the concepts of business carried on by the Prophet Muhammad and Siti Khadijah is based on Mudharabah model (profit sharing).this model is introduces so that it can be implemented in the agreement between entrepreneur which is Prophet Muhammad and the capital provider which is Siti Khadijah. The Mudharabah model is the common principle that already used in the Islamic business nowadays. By this principle, the entrepreneur will accept payment termed as capital from investor or providers. Within the contract, it is specifies how profit from business operation managed by the entrepreneur is to be shared, in accordance with the principle of Mudharabah, between the capital providers and the entrepreneur (Mohd Dali et al, 2010).

3 The second section will explain about place Prophet Muhammad (pbuh) starting doing a business. The second important thing in business is to choose an appropriate place to run a business. At the time of the Prophet Muhammad (pbuh) over 1400 years ago, the selection factor is emphasized by his very place. Markets around Mecca became his focus because that is where external traders gather and distribute goods. It was there that the Prophet Muhammad (pbuh) also established a network as much as possible with local and non-local merchants. In addition he emphasizes good relations with all his subscribers. Moreover, when Prophet Muhammad (pbuh) was still in his childhood, he has followed his uncle, Abu Talib to do business in Syam(Muhamad Endut, 2009). During that time, Syam was a very famous place for doing business for the Arabic tribe. As in the history, Prophet Muhammad (pbuh) is from the Quraish tribe, a tribe that saluted by other tribe and being honor because they are the one who hold the key of Kaaba. We can assume that, from his childhood, Prophet Muhammad (pbuh) has been exposed to do business(mohd Yusuf, 2006). After he becomes the prophet, he has told that 9 over 10 source of income are from doing business. Then, in Madinah, Prophet Muhammad (pbuh) has built a market for Muslim to do business and also to reduce the number of Jew that monopoly the economic at that time. He has applied all the Islamic value in doing business and as the result; the Muslim market in Medina has attract more people rather than the Jews market that has many corruption. Prophet Muhammad (pbuh) imply all the wahyu such as prohibiting the riba, honest while weighting product of business and others(rokhman, 2012). Hence, the action of Prophet Muhammad (pbuh) stressed for the Muslim to do business reflect that the Muslim should be the one that control the economic. It is easier, for example for food, it is easy to get if many Muslim produce food and it is prove halal rather than non-muslim making food, they might add something that haram in the food. Moreover, Muslim brotherhood can be strengthen if Muslim control the economic, because they will be paying zakat for business(ibrahim, 2008). The more Muslim doing business, the more zakat can be collected. This zakat can help other Muslim that poor or can also be the fund provider for other Muslim to participate in the market such as to start a new business. The last section will explain about moral values (akhlak) and strategies of the Prophet Muhammad (pbuh) doing business. He has prohibited some unfair strategies such strategies can burden the farmers in the village and also prospective customers. This can be understood more clearly with the hadith of the Muhammad Jabir:

4 "It is not allowed to residents of the intermediary business for people in the countryside. Let people earn a living God than others. " (Recorded by Muslim) There must be a very good strategy came out behind a success of an entrepreneurship. So do our holy prophet Muhammad PBUH. His entrepreneurship skills and strategy are well known all over the world, very inspiring, and should be an exemplary to us, entrepreneurs. Generally, almost all the key points to the prophet Muhammad (pbuh) success are related very closely to his own moral values (akhlak). There are a lot of beneficial points to take from the Prophet s business strategy. One of the most important one is the character itself. A lot have been said upon the Prophet s character in conducting business. First of all, he is well known for his good-looking appearance. Of course appearance is one of the important aspects in business strategy, and that is a lovely gift from Allah SAW to his beloved prophet. And also, Muhammad (pbuh) also was one of the richest with smile (Ahmad Afiq, 2013). It was a good extra, since smiling is his habit. With a handsome face and a warm smile, of course they never wanted to miss the chance dealing with him. But that character is not all in Muhammad (pbuh) strategy in handling business. Aside of the gift from Allah with his handsome face, the Prophet Muhammad (pbuh) is also very good in handling his words. He showed great character like inferiority and trust to fulfil the assigned responsibilities. He has a very high moral value in himself, virtuous and capable in doing business branding. He is also very sincere and honest with his words. That sincerity and honesty is actually one the biggest factor in a business success. Muhammad (pbuh) has proved that words play, honest and sincerity play a big role in attracting customer. He s done that very well. For example, when he first assigned as one of the worker in Siti Khadijah RA business team, Muhammad (pbuh) had fast become popular in the business area with his character and sincerity which surprised everybody including Siti Khadijah RA (Laode M. Kamaluddin, 2006). This evidences clearly showed us how big is the impact of having sincerity and honesty in conducting business. Surely there are a lot more to study on the Prophet Muhammad (pbuh) strategy in entrepreneurship, especially the way he deals with his customer. In conducting his business, our Prophet Muhammad (pbuh) He always put the customers number one in his business. Prophet Muhammad (pbuh) is a very emphasize to the price of his merchandise. In the process of pricing, the Prophet has adopted some concepts that can be

5 understood in the hadith of Abdullah bin Umar:. "Do not compete (as unhealthy) sale of own brother" (Recorded by Bukhari & Muslim) As we examined the above hadith, unhealthy competition as extreme price war is prohibited. Nevertheless, he strongly recommended healthy competitions that emphasize product s quality and customer. He also prohibited some illegal concept in business such as the riba, maisir and gharar that can burden his customers. The lesson from Noble Qur'an: Those who eat Riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: "Trading is only like Riba (usury)," whereas Allah has permitted trading and forbidden Riba (usury). So whosoever receives an admonition from his Lord and stops eating Riba (usury) shall not be punished for the past; his case is for Allâh (to judge); but whoever returns [to Riba (usury)], such are the dwellers of the Fire - they will abide therein. (Surah Al-Baqarah: 275) In the nutshell, a lot of lessons can be taken by only looking at the Prophet Muhammad (pbuh) daily life routine. In every single word spoken, every actions taken, he had never done it without missing the precious moral values (akhlak). How holy the Prophet Muhammad (pbuh) is, to be remembered and exemplified wholly and thoroughly. This phenomenon never is a doubt or a mistake, since the Prophet s wife also depicting Muhammad (pbuh) very highly. When she was asked by Sa d bin Hisham bin Amir RA about his husband s moral values (akhlak), she answered it by saying that the akhlak of the Prophet Muhammad (pbuh) is the Holy Quran (narrated by Muslim). Indeed, having Muhammad PBUH as our prophet is a blessing bless.

6 References Al-Quran Ibrahim, Patmawati 2008 Pembangunan Ekonomi Melalui Agihan Zakat:Tinjauan Empirikal Shariah Journal, Vol. 16, No. 2 (2008) Laode M. Kamaluddin, Ph.D, Empat belas bagaimana Rasulullah saw. membangun kerajaan bisnis, Penerbit Republika, 2006, ISSBN , Selamat bin hashim, Zainal bin Sakijan 2000 Pendidikan Muamalat darjah khas, Johor Bharu: Jabatan Agama Johor: Synergymate Sdn Bhd. Ibrahim, P. (2008). PEMBANGUNAN EKONOMI MELALUI AGIHAN ZAKAT :TINJAUAN EMPIRIKAL. Shariah Journal, Vol. 16, No. 2 (2008) Mohd Dali, N. R. S., Marzuki, A., Sabri, H., Muhammad, I., Zainuddin, M. T., Basah, M. Y. A.,... Shafii, Z. (2008). Introduction to Muamalat. Kuala Lumpur: MacGraw Hill (Asia). Mohd Yusuf, Z., Noor Naemah Abd. Rahman. (2006). Biografi Muhammad Bin Abdullah: PTS Islamika. Muhamad Endut, J. S. M. A. (2009). Pendidikan Islam: Pelangi Publishing Group Bhd. Rokhman, I. S. B. W. (Producer). (2012). Retrieved from ijrah-dan-transformasi-ekonomi&catid=8:kajian-ekonomi&itemid=60 yahya, K. A. b. D. Z. b. (2005). Pendidikan Sirah darjah Khas.

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