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Islam and early-stage entrepreneurial activity in Indonesia : religion is not the opium of entrepreneurship

Wijaya, Ibrahim Fatwa ; Moro, Andrea LU ; Belghitar, Yacine and Prabowo, Muhammad Agung (2025) In Journal of Small Business and Enterprise Development p.1-32
Abstract

Purpose – Our research examines the impact of Islamic religiosity, exploring the role of religious actors, religious ideas (knowledge-based religiosity) and religious practice, on the involvement in early-stage entrepreneurial activity at the provincial level in Indonesia. Design/methodology/approach – We rely on the survey conducted by Global Entrepreneurship Monitoring in Indonesia, spanning from 2013 to 2017. The dataset comprises responses from 21, 279 individuals. We use probit regression, and the main independent variable, Islamic religiosity, is measured using one factor that incorporates knowledge-based religiosity (extracted relying on Islamic schools, Mosques and Islamic seminaries) and practice-based religiosity (extracted... (More)

Purpose – Our research examines the impact of Islamic religiosity, exploring the role of religious actors, religious ideas (knowledge-based religiosity) and religious practice, on the involvement in early-stage entrepreneurial activity at the provincial level in Indonesia. Design/methodology/approach – We rely on the survey conducted by Global Entrepreneurship Monitoring in Indonesia, spanning from 2013 to 2017. The dataset comprises responses from 21, 279 individuals. We use probit regression, and the main independent variable, Islamic religiosity, is measured using one factor that incorporates knowledge-based religiosity (extracted relying on Islamic schools, Mosques and Islamic seminaries) and practice-based religiosity (extracted relying on Halal products and Hajj applications). To further explore the role of individual variables, we also estimate the probit regression entering religiosity variables one by one. Our results are robust to endogeneity issues. Findings – We find that areas characterised by stronger Islamic religiosity in terms of the presence of actors that disseminate religious ideas and in terms of religious practice have more people involved in early-stage entrepreneurial activity. Originality/value – Irrespective of the growing interest in exploring the impact of religiosity on entrepreneurship, there is limited discussion on the impact of Islamic religiosity on entrepreneurial activity.

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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
Entrepreneurial activity, Entrepreneurship, Indonesia, Islam, L26, Religiosity, Z12
in
Journal of Small Business and Enterprise Development
pages
32 pages
publisher
Emerald Group Publishing Limited
external identifiers
  • scopus:105018717448
ISSN
1462-6004
DOI
10.1108/JSBED-03-2024-0159
language
English
LU publication?
yes
additional info
Publisher Copyright: © 2025 Ibrahim Fatwa Wijaya, Andrea Moro, Yacine Belghitar and Muhammad Agung Prabowo
id
650d174e-cd29-4c3f-8a95-299d570c655f
date added to LUP
2026-01-22 15:08:34
date last changed
2026-01-22 15:09:32
@article{650d174e-cd29-4c3f-8a95-299d570c655f,
  abstract     = {{<p>Purpose – Our research examines the impact of Islamic religiosity, exploring the role of religious actors, religious ideas (knowledge-based religiosity) and religious practice, on the involvement in early-stage entrepreneurial activity at the provincial level in Indonesia. Design/methodology/approach – We rely on the survey conducted by Global Entrepreneurship Monitoring in Indonesia, spanning from 2013 to 2017. The dataset comprises responses from 21, 279 individuals. We use probit regression, and the main independent variable, Islamic religiosity, is measured using one factor that incorporates knowledge-based religiosity (extracted relying on Islamic schools, Mosques and Islamic seminaries) and practice-based religiosity (extracted relying on Halal products and Hajj applications). To further explore the role of individual variables, we also estimate the probit regression entering religiosity variables one by one. Our results are robust to endogeneity issues. Findings – We find that areas characterised by stronger Islamic religiosity in terms of the presence of actors that disseminate religious ideas and in terms of religious practice have more people involved in early-stage entrepreneurial activity. Originality/value – Irrespective of the growing interest in exploring the impact of religiosity on entrepreneurship, there is limited discussion on the impact of Islamic religiosity on entrepreneurial activity.</p>}},
  author       = {{Wijaya, Ibrahim Fatwa and Moro, Andrea and Belghitar, Yacine and Prabowo, Muhammad Agung}},
  issn         = {{1462-6004}},
  keywords     = {{Entrepreneurial activity; Entrepreneurship; Indonesia; Islam; L26; Religiosity; Z12}},
  language     = {{eng}},
  pages        = {{1--32}},
  publisher    = {{Emerald Group Publishing Limited}},
  series       = {{Journal of Small Business and Enterprise Development}},
  title        = {{Islam and early-stage entrepreneurial activity in Indonesia : religion is not the opium of entrepreneurship}},
  url          = {{http://dx.doi.org/10.1108/JSBED-03-2024-0159}},
  doi          = {{10.1108/JSBED-03-2024-0159}},
  year         = {{2025}},
}