Micro Business Performance Measurement Based on Sharia Indicators: A Conceptual and Analytical Study

Abstract

Micro businesses represent a critical component of many developing economies, providing employment opportunities and supporting household income. Despite their socio-economic significance, traditional performance measurement frameworks often overlook values-based metrics that align with Islamic ethical principles. This study investigates the conceptual foundations and analytical implications of measuring micro business performance using sharia-compliant indicators. The objective of this research is to explore a framework rooted in Islamic law (sharia) that incorporates both financial and non-financial dimensions, including justice (ʿadl), mutual benefit (maslahah), and ethical conduct (akhlaq). This study evaluates how such indicators may offer a more holistic and spiritually grounded performance assessment for micro enterprises. The research employs a conceptual-analytical method, drawing on classical Islamic texts, contemporary sharia economic theory, and verified empirical literature published up to 2014. The findings reveal that integrating sharia indicators into micro business performance metrics enhances alignment with Islamic moral values, economic justice, and social welfare. The study provides a theoretical model that can support policymakers and practitioners in designing tools for evaluating micro enterprises within sharia jurisdictions. It contributes to the body of knowledge in Islamic economics by addressing the measurement gap between conventional performance models and sharia-based economic objectives.