Halal Industry: The New Frontier for Business
The concept of entrepreneurship is not something new in Islam as it can be observed from history as a noble profession practiced by the Prophet (PBUH) and His companions. However, in recent times, scholars of the Islamic economy have introduced a new term, “Halal entrepreneurship” or “Halalpreneurship” to define and differentiate entrepreneurs in the Halal industry from the conventional entrepreneurs.
What is Halalpreneurship?
The Halal industry is defined as the entire system that supports the distribution and sale of Halal products. This includes the production of food items, food service establishments, the design of clothing, etc. These include the major Muslim-majority countries of the world as Indonesia, India, Egypt, Nigeria, Turkey, Malaysia, South Korea, China, Saudi Arabia, Bahrain, United Arab Emirates, and others. While Halal products and businesses are the key businesses driving this emerging global Muslim economy, the new business system and the new mindset that is redefining and leading the way are the Halalpreneurs. Halalpreneurs define themselves as entrepreneurs who are more concerned about a greater value-added role for Islam in their businesses.
What does the future hold for Halalpreneurs?
So what does the future hold for Halalpreneurs? Well, it depends on how entrepreneurs imbibe the market trends and develop the potential of the Halal industry. Entrepreneurs like Noor Khamis –CEO of The Halal Company – an online portal that has been named as the 2016 most successful entrepreneur under 30 by The Wall Street Journal, are paving the way for young Halalpreneurs. Through The Halal Company, Khamis is helping to build the Halal industry in India by connecting them to the various halal markets across the world and also by making it easy for the rest of the world to buy halal products. However, not every Halalpreneur will be able to do exactly what Khamis does as there are many factors that need to be understood.
Halalpreneurship and the Muslim Youth
The Halal industry is going through a revolution and many brands across the globe are responding to it by launching innovative products and services. Muslims are starting to consume more and more food and beverages, and are embracing new technologies. Muslim youth, in particular, are investing their time and energy in helping Muslim businesses by gaining knowledge and providing critical inputs to businesses. The investment climate of Muslim-majority countries has always been welcoming of business, but this is particularly the case for Halal business, which has gained popularity recently. According to figures from the Halal Certification Authority of the United Kingdom, Halal food and drinks account for about $1.5 trillion a year and it is predicted to reach $2 trillion by 2020.
Halalpreneurship and the Inflow of Private Capital
The Halal industry has emerged as the fastest-growing sector of the economy. “Halalpreneurship” can be defined as the phenomenon where entrepreneurs recognize the market gaps in the Halal industry and are using them as a stepping stone to capitalize on the market potential. This applies not only to the marketplace but also to innovation areas of the Halal industry. The prominent sectors which are currently being contributed by Halalpreneurs are Halal seafood, Halal Meat, Halal Software, and Halal FMCG. Within these sectors, it has been found that entrepreneurs are creating start-ups that have a clear roadmap for achieving objectives. This scenario can be explained by the scarcity of start-up ecosystems in the region, where the price of conventional or traditional products is very high.
Halalpreneurship and Reputation
Reputation and reputation play a very important role in the Halal industry as the Halal industry has its own reputation for a quality, safe, clean, ethical, efficient, economic, and efficient way of life. These perceptions determine the success of entrepreneurs in the halal industry. Furthermore, it also affects the marketing practices in the Halal industry. The companies or organizations involved in the Halal industry need to be more consistent in offering quality products and services which will result in a long-term positive outcome. Furthermore, to establish a brand name in the global market, it is important to provide a good customer experience through innovation.
Conclusion
The concept of entrepreneurship is not something new in Islam as it can be observed from history as a noble profession practiced by the Prophet (PBUH) and His companions. However, in recent times, scholars of the Islamic economy have introduced a new term, “Halal entrepreneurship” or “Halalpreneurship” to define and differentiate entrepreneurs in the Halal industry from the conventional entrepreneurs. With the massive innovations in technology, economy, energy, and globalization, the industry of halal products and services is booming to an extent that it has become a new lucrative frontier of business.
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