4.1. Study Findings

This research also proves that entrepreneurial orientation can significantly influence entrepreneurial resilience. That is, the stronger the entrepreneurial orientation of a Muslim entrepreneur, the more resilient he will be in facing crises. This result is in line with previous research. To strengthen entrepreneurial orientation, one thing that Muslim entrepreneurs can do is always to be the first to initiate change. Finally, this study found that religiosity can increase the effect of entrepreneurial orientation on entrepreneurial resilience, especially in Muslim entrepreneurs.

4.2. Theoretical Contribution

The COVID-19 pandemic demands resilience from entrepreneurs, including Muslims. Although this crisis differs from previous crises, often triggered by the economy, the pandemic is multifaceted. Consumer and producer movements are physically restricted, so normal business cannot be carried out. In contrast to the economic crisis, which affects consumers’ consumption capability, the COVID-19 pandemic affects both consumers and producers (SMEs). Consumers and producers cannot move physically and must confine themselves to their residences, limiting their interaction with anyone else. As a result, consumers’ consumption is automatically reduced. On the other hand, producers (SMEs) will face supply shortages, labour shortages, and other issues. As a result, the current crisis is unique from previous economic crises experienced by SMEs.

Some previous literature identifies the relationship between entrepreneurial traits and entrepreneurial resilience. Still, few have discussed the mediating role of entrepreneurial orientation, and none have focused on Muslim entrepreneurs’ resilience. There needs to be more literature on this subject applied to SMEs. The research’s key contribution is to measure the impact of entrepreneurial traits on entrepreneurial resilience by placing entrepreneurial orientation as a mediator. As per the prior research, several dimensions of entrepreneurial traits have been proven to significantly and positively affect entrepreneurial resilience.

This research proposes that negotiation skills needed for achievement, locus of control, and risk-taking predict entrepreneurial resilience. Furthermore, when mediated by entrepreneurial orientation, almost all indirect relationships increased significantly (except for risk-taking on the entrepreneurial trait when moderated by entrepreneurial orientation).

Based on this research, we propose that entrepreneurial religiosity is important in building entrepreneurial resilience. The association between several dimensions of entrepreneurial attributes and entrepreneurial resilience is moderated by the level of religiosity of SME owners (high or low). This discussion concludes that high religiosity increases the positive relationship between entrepreneurial orientation and entrepreneurial resilience.

The results of this study can also be used as a reference for teaching entrepreneurship in schools and universities, especially in countries/regions with large Muslim populations. Teachers and lecturers can add the importance of religiosity in the course syllabus as material when explaining entrepreneurial resilience.

4.3. Managerial Implications

This research bridges the gap between theory and practice by providing actionable insights that can be used in various domains. Economically and commercially, the findings can inform business development strategies and training programmes designed to enhance entrepreneurial resilience. In teaching, these insights can be integrated into entrepreneurship, ethics, and resilience curricula. The recommendations for supportive regulatory frameworks and educational programme can influence public policy. This study contributes to the body of knowledge on entrepreneurial resilience, particularly within the context of Islamic entrepreneurship.

This research presents an important lesson for Muslim SME owners to build resilience. First, entrepreneurs must increase the various dimensions of entrepreneurial personality and traits because this will increase resilience in a crisis. Second, Muslim entrepreneurs must improve their negotiation ability by increasing persuasiveness. In addition, achievement and locus of control are needed in times of crisis by increasing motivation to work hard and believe in being able to control one’s fate. A visionary entrepreneur can recognise what others cannot. They approach problems in unusual ways, thinking freely and imaginatively and questioning the status quo. They aspire to reshape the world through their product or business and will go to any length to achieve that goal. A successful entrepreneur must have a focal point and a dedication to their objective, where they produce inventive ideas, make decisions, invent products and services, and so on.

Second, entrepreneurs must also have a high entrepreneurial orientation. This is shown by creativity, innovation, and willingness to take measured risks. It would be very beneficial if Muslim entrepreneurs initiated the change. A proactive person sees opportunities and threats ahead of time and attempts to address them, whereas a reactive person merely reacts to them. It is always preferable to be proactive rather than reactive as an entrepreneur. In the post-COVID era, various problems will arise that require adaptability from the business world. This is an opportunity for Muslim entrepreneurs to become change agents and encourage other entrepreneurs to escape the crisis.

Finally, especially for Muslim entrepreneurs, it is very important to understand that religiosity is one of the building blocks of business robustness. This research encourages Muslim entrepreneurs not to separate their business activities from their religiosity. Religiosity is essential for businesspeople, especially as a “fence” of their activities. Interestingly, the results of this study are also in line with Islamic teachings. Islam allows business activities as long as they do not violate Allah’s commands. Prophet Muhammad (the greatest prophet in Islam) was also an entrepreneur. Furthermore, entrepreneurship activities can also be considered worship and are rewarded with “Pahala” (an Arabic word that means reward bestowed by Allah the Almighty to a Muslim man or woman when he or she does good deeds) if the business is conducted with good intentions and benefits others.

As for the government, the findings of this study can be used to consider implementing public policies to increase SME owners’ resilience. As previously mentioned, SMEs are the economic “backbone” of the economies of developing countries. For this reason, it is imperative to maintain the continuity of the SME business and must be prepared to withstand crises. Based on this research, the government can train entrepreneurs in various skills such as negotiation skills, risk-taking skills, motivational training, etc. With the improvement of these skills, it is hoped that entrepreneurs will become more resilient to crises. The government can also encourage Muslim entrepreneurs to increase their religiosity in running a business.

Supporting Muslim entrepreneurship has broader societal benefits, including job creation and social cohesion. By fostering an environment that encourages Muslim entrepreneurs, communities can benefit from increased economic activity and the promotion of ethical business practices. This support can lead to improved quality of life and a more inclusive society that values diversity in business.

Policymakers should recognise the importance of fostering an entrepreneurial orientation among Muslim entrepreneurs. This can be achieved by designing and implementing policies encouraging innovation, risk-taking, and proactive business strategies. Creating regulatory frameworks that support Shariah-compliant business practices will also facilitate the integration of Islamic principles in business.

In addition, there is a need for educational programmes that enhance entrepreneurial skills and traits among Muslim entrepreneurs. These programme should focus on negotiation skills, risk-taking, optimism, locus of control, and the need for achievement. By providing targeted training and development opportunities, policymakers can help entrepreneurs build the competencies necessary to thrive in challenging environments.

4.4. Limitations and Future Research

Various limitations in this study can be used as a starting point for further research. First, the dimensions of entrepreneurship and traits are very diverse, and this study only uses a few. Further, researchers can modify or combine various dimensions to fit their research context. It would be fascinating if the subsequent research used the factor analysis method by applying all the completed dimensions. Second, this study is the first to consider religiosity as one of the factors forming resilience. Subsequent studies should confirm this.

Furthermore, to measure entrepreneurial resilience, researchers use sales volume, profits, ROI, and market share as measurement items. However, this has limitations because these data are influenced by other variables, such as the industry in which the SME is involved. Further research should apply controls for these influences.

Although this study’s findings contribute to our understanding of entrepreneurial behaviour, placing them in the proper context is critical. First, the research was limited to a single geographical area (i.e., West Sumatera and Indonesia). Because there are other Muslim entrepreneurs in different places and cultures, the effects of religiosity on entrepreneurial behaviour can differ from religion to religion. More research is needed to understand the impact of religiosity on entrepreneurial behaviour in diverse geographic regions, cultures, and beliefs.

It is also essential to critically engage with this study’s limitations. One limitation is the focus on a specific geographic region, West Sumatra, which may not fully capture the experiences of Muslim entrepreneurs in other non-Muslim majority contexts. Additionally, the data were collected during the peak of the COVID-19 pandemic, which could influence the generalizability of the findings to different periods.

Another limitation is the reliance on self-reported data, which may be subject to biases such as social desirability or recall bias. Future studies should consider triangulating data sources to enhance the robustness of the findings. Additionally, exploring longitudinal designs could provide insights into how entrepreneurial resilience evolves.

Future research could also benefit from adopting a mixed-methods approach, combining quantitative survey data with qualitative interviews or case studies. This methodology would offer a more comprehensive understanding of Muslim entrepreneurs’ personal experiences and strategies during the pandemic, allowing for a deeper exploration of how they navigate challenges and leverage opportunities in non-Muslim majority contexts.