Indonesia's Social Enterprise: Policy Challenges and Support Needs
Main Article Content
Sebastian Billy Anggara
Irma Tsuraya Choirinnida
This research investigates the policy landscape surrounding social entrepreneurship in Indonesia, encompassing legal and regulatory frameworks, government initiatives, and institutional support for social enterprises. The study is crucial as it addresses an understudied area, aiming to inform policymakers, foster collaboration, stimulate economic development, and promote sustainable growth. The methodology involved qualitative interviews with eight social entrepreneurs across Indonesia. Collected data was analyzed using content analysis techniques, facilitated by the MAXQDA platform. Findings indicate that despite social entrepreneurship being an emerging field in Indonesia, there is a notable lack of effective policies and regulations. Six of eight respondents perceived inadequate current regulatory support, and half cited financial challenges as a significant issue. Conversely, seven respondents acknowledged existing government assistance, suggesting a willingness to support the sector. Based on these results, key recommendations for the government to foster a supportive ecosystem include developing non-overlapping policies, implementing substantive policy changes, promoting useful policies, simplifying bureaucracy, and engaging in direct dialogue with social entrepreneurs. The research concludes that addressing these areas can empower social entrepreneurs to create lasting social impact. This study uniquely fills a gap by directly engaging social entrepreneurs, though future research should include government representatives for broader perspectives.
Ahmad, Shabir & Bajwa, Ishtiaq. (2021). The role of social entrepreneurship in socio-economic development: a meta-analysis of the nascent field. Journal of Entrepreneurship in Emerging Economies. ahead-of-print. 10.1108/JEEE-04-2021-0165.
Chan, Chee Hon, Cheryl Hiu‐Kwan Chui, Kristy Shuk Ting Chan, and Paul Siu Fai Yip. “The Role of the Social Innovation and Entrepreneurship Development Fund in Fostering Social Entrepreneurship in Hong Kong: A Study on Public Policy Innovation.” Social Policy & Administration 53, no. 6 (November 2019): 903–19. https://doi.org/10.1111/spol.12524.
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4th ed.). SAGE Publications.
Idris, A., & Hati, S. R. H. (2013). Social Entrepreneurship in Indonesia: Lessons from the Past. Journal of Social Entrepreneurship, 4(3), 277-301. https://doi.org/10.1080/19420676.2013.820778
Jamil, Ishtiaq, Salahuddin M. Aminuzzaman, and Sk. Tawfique M. Haque. “Introduction: Governance in South, Southeast, and East Asia.” Public Organization Review 13, no. 4 (December 2013): 341–47. https://doi.org/10.1007/s11115-013-0256-5.
Keech, William R, Michael C Munger, and Carl Simon. “Market Failure and Government Failure,” 2012.
Moskovskaya, A. A., and I. V. Soboleva. “Social Entrepreneurship in the System of Social Policy: International Experience and Prospects of Russia.” Studies on Russian Economic Development 27, no. 6 (November 2016): 683–88. https://doi.org/10.1134/S1075700716060113.
OECD. Social Protection System Review of Indonesia. OECD Development Pathways. OECD, 2019. https://doi.org/10.1787/788e9d71-en.
Sahabuddin, R., Rauf, D. I., Putri, R. M. A., Mufida, L., Nurfadilah, A. D., & Rifani, A. (2023). Managerial ability of the management influence on employee performance of the republic of Indonesia employee cooperative (KPRI) Pengayoman City Makassar. International Journal of Applied Finance and Business Studies, 11(3), 607-611.
Terziev, Venelin and Georgiev, Marin, Social Entrepreneurship: Support for Social Enterprises in Bulgaria (2019). IJASOS- International E-Journal of Advances in Social Sciences, Vol. V, Issue 14, August 2019, Available at SSRN: https://ssrn.com/abstract=3449938 or http://dx.doi.org/10.2139/ssrn.3449938
Tjornbo, Ola, and Frances R. Westley. “Game Changers: The Big Green Challenge and the Role of Challenge Grants in Social Innovation.”Journal of Social Entrepreneurship 3, no. 2 (October 2012): 166–83. https://doi.org/10.1080/19420676.2012.726007.