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Building A Model of Social Entrepreneurship As A Concept of Social Innovation For Economic Development
Building A Model of Social Entrepreneurship As A Concept of Social Innovation For Economic Development
economic development
This paper tries to give a literary overview of the concept of social entrepreneurship.
Social entrepreneurs differ from entrepreneurs in their mission. The role of social
entrepreneurship for society is also discussed in this paper. The final discussion will
focus on examples of people and organizations in Indonesia who have successfully
implemented this concept into their business activities and the potential impact of
social entrepreneurship on economic development.
According to data from the Central Statistics Agency (BPS) released data on the
situation of the labor force in Indonesia. The February 2015 Publication
Unemployment Rate (TPT) was 5.81%, up from the February 2014 tax return (5.70%).
The data shows that as of February 2015, the labor force with primary education and
below still accounts for 5.19%, while those with undergraduate education and above
are only 8.29%.
The high unemployment rate in Indonesia is also influenced by the poor quality of
work in Indonesia both in terms of qualifications and skills.
The development of human resources does not show promising results. The United
Nations Human Development Programme's Indonesia Human Development Index
ranks 110th out of 187 countries. Their record places Indonesia in the category of
moderate human development.
A fairly high unemployment rate can indeed create a social problem: poverty.
Several practical solutions are needed to overcome social problems due to high
unemployment due to limited employment opportunities.
This situation will be exacerbated by the situation of global competition (e.g. the
implementation of the ASEAN Economic Community/AEC) which allows Indonesian
university graduates to compete freely with foreign university graduates.
Therefore, graduates need to be guided and supported not only to find their
direction as job seekers, but also to prepare them to create jobs (Sharti and Sirine,
2009).
One way to overcome social problems that are currently the main concern of
developing countries, including Indonesia, is through entrepreneurship or social
development which is commonly called social entrepreneurship.
As a relatively new field develops, various conflicting opinions will emerge about
what social entrepreneurship is, and what is known as social entrepreneurship.
Problem Formulation
THEORETICAL REVIEW
This is in keeping with what Schumpeter discovered in Sledzik (2013), which shows
that an entrepreneur is a person who tries to break into an existing system by
introducing a new one. It is clear that social entrepreneurs also have the ability to
face challenges. Another definition is someone who dares to step outside the
established realm. In contrast to business entrepreneurship, the results achieved in
social entrepreneurship are not only profit, but also a positive impact on society.
Social entrepreneurs are agents of change, realizing the ideals of changing and
improving social values and can be the inventor of various opportunities for
improvement (Santosa, 2007).
Social entrepreneurs are always involved in the process of innovation, adaptation
and learning, acting continuously regardless of the obstacles or limitations they face,
and being accountable to society for the results they achieve.
- Civil Society. Social entrepreneurship generally arises from the initiative and
participation of civil society by optimizing the social capital that exists in society.
Social innovation is associated with the improvement of social relations and the
improvement of well-being (Moulaert et al., 2013).
Moulaert (2013) also argues that social innovation can begin anywhere in the
economy, not only in the non-profit sector, but also in the public and private sectors.
On the other hand, social innovation is not limited to welfare issues, but can also be
related to issues of environmental protection and sustainable development.
Social innovation is closely related to social entrepreneurship. Social innovation is
the basis of how social entrepreneurs conduct their business and activities in order
to improve systems, find new approaches, and find ways to create solutions for
better environmental change (Widiastusy, 2011).
A social entrepreneur seeks innovative ways to ensure that companies have access
to the necessary resources while creating social value (Mort and Weerawardena,
2003).
Mission is what an organization must achieve in order to realize its goals and become
successful. The mission is very important for employees and stakeholders involved in
the organization to know about the organization and its role, programs and
outcomes to be achieved in the future.
Social entrepreneurs face risks and challenges in realizing their mission and ideas.
Risk is an unexpected opportunity. Two elements unique to risk are, first, that risk
does not take into account its downside, so it can be defined as the possibility of an
unexpected event occurring. The second element of risk is the potential for
unintended outcomes to actually occur.
Therefore, in realizing his ideas and ideas, the social entrepreneur must take into
account everything that will come. Obstacles to social entrepreneurship can appear
unexpectedly.
Customer identification is very important because the customer is the market for
your goods and services.
In such cases, the donation plan should be carefully and realistically designed, since
any fund can fill such a void. Reasonable.
The challenge for social entrepreneurs is that they must be selective in planning cash
flow so that their activities remain in accordance with the mission that has been set.
Osterwalder and Pigneur (2010) define a business model as the reason for how an
organization creates and delivers value. A business model is a way of thinking about
how a company makes money. Business models and organizational forms have a
significant impact on a company's ability to grow and develop sustainably. As with
any business in general, social entrepreneurship opportunities need to be supported
by smart and realistic business models.
Social entrepreneurs can create new business models whose models can improve
the performance of social entrepreneurs. Some references to the business model of
social entrepreneurship suggest designing a business model of social
entrepreneurship, as shown in the diagram below (Grassl, 2012). The business it
builds can find value individually as an ecosystem or collectively as a whole.
Information received from customers about the changes taking place in the market
can be interpreted as dynamic signals of social entrepreneurship. The social
entrepreneur or community needs to assimilate and process this information
efficiently to generate the social value it seeks.
Since then, there has been a heated debate about social entrepreneurship, including
in Indonesia. Given Moh's success story, this makes sense. In fact, Yunus, who carries
the concept of Grammen Bank as an effort to solve social problems in his own
country, is not much different from the social problems that occur in Indonesia. The
concept of social entrepreneurship seems to be another way of thinking that can
solve complex social problems that occur in Indonesia.
The complexity of social problems faced in Indonesia has encouraged the growth of
various social entrepreneur communities, two of which are the Indonesian Social
Entrepreneurs Association (AKSI) and its equivalent in Indonesia.
Below are brief profiles of the two communities. national progress. Setara Indonesia
Foundation helps SMEs and cooperatives to access these opportunities and
opportunities, thus enabling them to grow and develop. Indonesia Setara's main
focus is on building capacity and network. Indonesia Setara opens access to
education, access to capital, access to resources and networks.
Through this movement initiated by Sandiaga Uno, people are expected to have a
fighting spirit to change their lives, starting from themselves, their families,
communities and communities.
The Indonesian Equality Movement focuses on empowering MSMEs. This is the main
key to increasing the chances of a country 'survival'. Indonesia Setara also actively
visits universities and organizations as a direct 'involvement' to invite people to make
changes towards equality.
AKSI is a forum or organization that attracts social entrepreneurs from all over
Indonesia with a vision to create an environment conducive to the growth of social
entrepreneurs in Indonesia. The ACTION missions are:
Create jobs, reduce homelessness, and improve the environment. The government
then reviewed the funds spent.
The government will review the benefits received from the project subject.
Many organizations have tried to build social entrepreneurship around the world,
such as Ashoka Fellows.
Tunas Mekar Women's Farmer Group: One of the Simantri administrators who has
been very successful in boosting the economy of farmers who are members of the
Integrated Farmer System (Simantri). Through our experiments and the results of
various searches on the Internet, we have produced various by-products of Ettawa
goat milk, including bars, liquid soap, and goat's milk crackers. At that time I was not
satisfied and started trying to make body scrubs and hand body lotions from goat's
milk. All of these products are combined with various agricultural products including
papaya, aloe vera, chocolate, coffee, lemongrass, mengkudu, and strawberries.
Marketing of these various products spread throughout Bali, from Banyuwangi to
Malang. The market share is still very open due to the ever-increasing demand.
On the other hand, by-products such as bio-urine, biogas, and fertilizers are effective
as long as kapokutan members make the most of them. Fertilizers and biourine are
used by farmers in managing the Robusta coffee plant covering an area of 110
hectares which is one of the region's leading agricultural products. Passion, hard
work, perseverance, innovation and creativity, as well as an entrepreneurial spirit are
the keys to the success of the Integrated Agriculture System (Simantri) in Bali.
2. Srini Maria: Ibu Buncis Merapi The concept developed by Srini is to apply the
planting pattern method to farmers, especially female farmers in Sengi Village,
Magelang. Because Sengi Village is a village that is very close to Mount Merapi, the
area is often called the KRB III area, and the Sengi area is ± 8 km from the top of
Mount Merapi, so it is a disaster-prone area. The livelihoods of the people in Sengi
Village include agriculture, plantations, animal husbandry and trade, some are self-
employed and working.
The following is the business development that Srini has done with her group
members: She planted peanut bushes on an area of 00 square meters.
From this area, exports can be started by sending 25-30 kilograms (kg) of red beans
to Singapore through Pitoyo, a farmer and vegetable collector from Semarang
Regency.
- Pioneer in the cultivation of beets for export. Beetroot, which is said to strengthen
blood, treat diabetes, and is used for natural food coloring, among other things, will
be exported to Singapore at an order value of Rs.. 000.
In this activity, the impact on the selling price of chickpeas for export is much higher
than in the domestic market. In addition to exports, Merapi Asri Group continues to
cooperate with vegetable collectors in Semarang Province to help distribute red
beans in the local market. The social entrepreneurship started by Srini encourages
women and all farmers to stay ahead of the market development. Therefore, farmers
are not always affected by the price of vegetables in the local market.
3. Baban Sarbana: Connecting orphans with the world through online networking for
a brighter future Baban Sarbana is the founder of the Foundation for Beneficial
Science Learning (ILNA)
. This foundation started Pondok Yatim Mandiri since March 2010 with a social
movement called YatimOnline. YatimOnline has been awarded as Aksi Inspiratif
KlikHati Award 2010, Ten Outstanding Young Person 2012 from Junior Chamber
International – Indonesia, Episode "The Champion" in
Forum, partnering with Dompet Dhuafa for the "Glorify Orphans" program,
partnered with BAZNAS for the establishment of Ciapus Smart Home. The focus of
YatimOnline's activities is in the fields of education, economics and health.
-In the Field of Education, YatimOnline established Ciapus Smart Home, Raudhatul
Athfal An- Nahlya (children's education), and Village Library; In addition to providing
scholarships to outstanding students. In the health sector, routinely carry out the
Dhuafa Orphan Family Doctor program, which is a free health service to residents
which is carried out every 3 months and RUTIL In the economic sector, forming a
Business Group called Yatim Dhuafa, which is a micro finance startup institution that
provides loans for Mothers of Yatim Dhuafa who have a business that is already
running and needs capital assistance, Taruna Wirausaha, work/business
opportunities for children who want to increase their income and start Sedawai
(Indonesian Entrepreneurial Village School).
This young man born in 1985 tried to seize opportunities in the property business
while helping the lower middle class of the economy to own a house. As a student of
Bogor Agricultural University, Elang is the president of Elang Group, a group of house
builders.
In 2007, Elang partnered with Bank Tabungan Negara (BTN) to provide Subsidized
Basic Home Ownership Loans (KPRS) to those with a monthly income of less than Rp
2.5 million. Prices start at Rp 25 million (type 21/60), 5% p.a. to Rp 55 million (type
36/72) for 7.5% p.a. Prices range from Rp25,000 to Rp90,000 per month. The
opening project of Griya Salak Endah housing complex was a success with more than
50 houses sold. The buyers are workers, dealers, tire mechanics and teachers.
Fajri Mulya Iresha: Zero Waste Indonesia, When Indonesia Targets Zero Waste From
educating the public about organic and non-organic waste collection to promoting
waste banks around Depok.
And Fajri's concern for the scavengers and marginalized people who participated in
this empowerment. The presence of Zero Waste Indonesia in one of the national
banks in Indonesia has succeeded in promoting around 25 waste banks, each
containing around 30 families, with a total of 500 to 500 waste banks followed by
750 people. Zero Waste empowers employees from scavengers, unemployed youth
and drug user backgrounds, and to date, Fajri has generated 200 kg of plastic waste
per day and has an average sales per unit of 30 million.
These results show that saving non-organic waste can increase people's income, and
part of the savings proceeds at the Waste Bank will be used to build environmental
infrastructure.
Zero Waste Indonesia raises public awareness about the disposal and choice of
household waste, empowering scavengers and former marginalized drug users who
work at Zero Waste Indonesia to reduce environmental damage caused by plastic
waste. problem. Zero Waste Indonesia activities have been introduced in several
regions such as Jambi and Pekanbaru. Zero Waste Indonesia's future development
plan aims to work with student volunteers to create crafts, recycled works such as
bags and decorations from recycled waste. From the above profiles, it is interesting
to note that there are similarities in: They are entrepreneurial, creative, innovative,
and socially conscious.
The country needs more people like him who can balance business and social
activities.
Of course, these social entrepreneurs still have a long way to go to prove that they
are true social entrepreneurs.
The role of social entrepreneurship can be important both internally and externally.
Internally, the role of the social entrepreneur is to break down the level of
dependence on others, create confidence and increase the attractiveness of the
author. From an outside perspective, entrepreneurship can play a role in providing
employment opportunities to people who do not have job opportunities.
In this way, entrepreneurship can help solve or eliminate the unemployment rate
and other social problems that have been weighing on people's minds.
Social capital, which consists of shared values, trust, and collaborative culture, is the
most important form of capital that can be created by social entrepreneurs
(Leadbeater in Santosa, 2007). The social capital cycle begins with social
entrepreneurs first accumulating social capital. In addition, a growing network of
trust and cooperation is built so that physical development, financial aspects and the
availability of human resources are built. When business units (organizational
capital) are formed and when social enterprises begin to profit, more social space is
built. Below is a description of the "virtues of social capital" put forward by
Leadbeater in Santosa (2007). d. Increased equity
One of the goals of economic development is the realization of equity and justice in
the welfare of society.
CONCLUSION
Although many people think that social entrepreneurship is just a social activity,
social entrepreneurship is basically a business. As a company, social
entrepreneurship is inseparable from the rules of business life in general, and social
entrepreneurship also requires measuring tools to attract investors for business
development. Further research and studies can use computer methodologies that
combine the interests of social entrepreneurs and investors through Social Return on
Investment (SROI). While SROI allows social entrepreneurs and investors to define
several parameters which are then quantified as components of investment
calculations.
Financial and institutional sustainability has always been the biggest challenge of
social entrepreneurship. Social entrepreneurship can develop two alternative
partnerships, namely partnerships with public institutions and partnerships with the
business world.