Performance Measurement in Sharia-Based Microbusinesses: Theoretical Practical Framework

Abstract

This study explores performance measurement in sharia-based microbusinesses, integrating Islamic ethical and spiritual values with modern evaluative frameworks. While conventional tools prioritize financial outcomes, Islamic entrepreneurship calls for multidimensional assessment rooted in maqāṣid al-sharī‘ah—the higher objectives of Islamic law. Through qualitative analysis of literature, Islamic economic texts, and institutional practices, this study develops a holistic model encompassing financial, ethical, and spiritual performance. Key findings show conventional metrics are insufficient to capture the full scope of success in sharia-compliant enterprises. Ethical governance, spiritual alignment, and stakeholder-centered evaluation shape sustainable performance. The proposed framework connects Islamic jurisprudence with management theory, offering theoretical contributions and practical tools for microenterprises, policymakers, and Islamic financial institutions. Centering on divine accountability and communal welfare, the model supports a principled, resilient entrepreneurial ecosystem. This research refines Islamic economic paradigms and expands Islamic performance measurement’s applicability in real-world practice.