Empowering waqf (Islamic endowment) entrepreneurs: a study of the key motivational factors underlying waqf-based entrepreneurship in Indonesia

Abstract

Purpose

This study aims to examine the understudied topic of Islamic entrepreneurship by adapting the framework of waqf-based entrepreneurship to identify the crucial factors driving waqf-based entrepreneurs’ motivation.

Design/methodology/approach

A partial least squares structural equation model was used to validate the hypotheses, and in-depth interviews were conducted to gain deeper insights into the findings.

Findings

The key findings revealed that self-commitment, entrepreneurial skills and family support exert a significant and positive influence on waqfpreneurs’ motivation to engage in waqf-based entrepreneurship, with self-commitment playing a mediating role between self-actualisation and waqfpreneurial motivation. Additionally, the study proposes categorisations of waqfpreneurs based on the volume of waqf funds managed; their capacity to execute waqf-based entrepreneurship; and institutional performance metrics.

Research limitations/implications

The limited sample size restricts the generalisability of the study. Future research should use a larger sample to generate more broadly applicable results. In addition, the methodology can be replicated in other countries to identify new factors influencing waqfpreneurs’ motivation or to uncover aspects not explored in this research. Future studies could also use qualitative methodologies such as grounded theory, ethnography or case studies. This would allow for a deeper exploration of motivational factors not yet captured, directly from the lived experiences of waqfpreneurs/nazhirs.

Practical implications

The study provides evidence of the key factors that influence waqf-based entrepreneurship, contributing to the literature on entrepreneurship and waqf. It also offers valuable insights for the government and other stakeholders into strategies to motivate waqf-based entrepreneurs, ultimately fostering the development of waqf assets, value creation and sustainable waqf benefit distribution.

Originality/value

The study aims to address the lack of research on Islamic entrepreneurship by specifically modifying the framework of waqf-based entrepreneurship to investigate the key factors that influence individuals’ motivation to conduct waqf-based entrepreneurship and management activities.