Measuring small firm entrepreneur's performance based on Al-Falah

This paper aims to investigate the performance measure of Muslimprenuers' al-falah. Al-falah is conceptualized as the human resources' performance based on Muslims' values, ethics and belief. Two main theories surrounding entrepreneurial success and Islamic religiosity are used as the underpinning theories in explaining the Al-falah. Five independent variables are delineated from the respective theories for developing a multivariate performance model. The variables include Islamic business practices, Islamic work ethics, Muslim worldview, Muslim personal help and Muslim practices used as independent variables, while the dependent variable is the entrepreneurs' al-falah. The proposed hypotheses test the relationship between the 5 variables and entrepreneurs' al-falah. The sample size is represented by 271 small firms' owner-managers that were randomly selected from four regions in North Sumatera Province, Indonesia. The measurements' justifications are in compliance with shariah principles. The findings conclude that all the five variables are positively related to the entrepreneurs' al-falah. Using the multivariate regression tools, both theories of entrepreneurial success and Islamic religiosity have confirmed to have delineated the al-falah concept. This states that al-falah constitutes comprehensive performance measures in the Islamic business concept. � IDOSI Publications, 2014.