Islamic Entrepreneurship and Innovation in Indonesia: Models for Ethical and Sustainable Development

Abstract

Entrepreneurship and innovation have become central to economic development in both conventional and Islamic perspectives. In Indonesia, the rise of Islamic creative startups signifies a transformation in how entrepreneurship is practiced, merging ethical values with technological progress. This paper explores the theoretical intersections of entrepreneurship and innovation through an Islamic lens, focusing on selected Indonesian creative startups that apply Islamic values in business operations. Drawing from literature analysis and case studies such as HijUp, PT Badr Interactive, and pesantren-based creative enterprises, the paper highlights how Islamic ethics shape innovative processes, governance, and market strategies. The study demonstrates that value-based entrepreneurship rooted in maqasid al-shariah principles justice, welfare, and balance can sustain both economic growth and spiritual fulfillment. The findings emphasize that integrating faith, creativity, and innovation provides a model for sustainable entrepreneurship in Muslim-majority contexts.