TY - JOUR
T1 - A social enterprise approach to empowering micro, small and medium enterprises (SMEs) in Indonesia
AU - Maksum, Irfan Ridwan
AU - Sri Rahayu, Amy Yayuk
AU - Kusumawardhani, Dhian
N1 - Funding Information:
This research was funded by the Indonesian Institute of Sciences in collaboration with Public Administration Department, Faculty of Administrative Science, Universitas Indonesia. We thank to our colleagues from Universities in East Java and the Indonesian Institute of Sciences who were the participants of the Iptekda LIPI program. We also thank to the "anonymous" reviewers for their so-called insights.
Publisher Copyright:
© 2020 by the authors.
PY - 2020/9
Y1 - 2020/9
N2 - Micro-enterprises play a critical role in the Indonesian economy, in which they supply 99.8% of the country's employment and account for more than 95% of all enterprises in Indonesia. However, these firms experience many impediments, including a lack of capital, skills, and technology, which creates poor competitiveness. Although the Indonesian government has implemented many policies to deal with these problems, none have been adequate in improving the capacity and productivity of micro, small, and medium enterprises (SMEs). The empowerment program "Iptekda LIPI-Penerapan dan Pemanfaatan Ilmu Pengetahuan dan Teknologi di Daerah Lembaga Ilmu Pengetahuan Indonesia (LIPI)-The Technology for Region Program of the Indonesian Institute of Sciences" proposed a new approach using a social enterprise to solve this issue. This paper analyses the social-enterprise approach of Iptekda LIPI which incorporates market and social welfare to determine the problems experienced by SMEs. The researchers conducted in-depth interviews with the owners of SMEs in West and East Java to explore how this approach may contribute to their businesses and to analyze the challenges of the social enterprise approach in empowering SMEs.
AB - Micro-enterprises play a critical role in the Indonesian economy, in which they supply 99.8% of the country's employment and account for more than 95% of all enterprises in Indonesia. However, these firms experience many impediments, including a lack of capital, skills, and technology, which creates poor competitiveness. Although the Indonesian government has implemented many policies to deal with these problems, none have been adequate in improving the capacity and productivity of micro, small, and medium enterprises (SMEs). The empowerment program "Iptekda LIPI-Penerapan dan Pemanfaatan Ilmu Pengetahuan dan Teknologi di Daerah Lembaga Ilmu Pengetahuan Indonesia (LIPI)-The Technology for Region Program of the Indonesian Institute of Sciences" proposed a new approach using a social enterprise to solve this issue. This paper analyses the social-enterprise approach of Iptekda LIPI which incorporates market and social welfare to determine the problems experienced by SMEs. The researchers conducted in-depth interviews with the owners of SMEs in West and East Java to explore how this approach may contribute to their businesses and to analyze the challenges of the social enterprise approach in empowering SMEs.
KW - Micro-enterprise empowerment
KW - Social enterprise policy
KW - Technology for regions program
UR - http://www.scopus.com/inward/record.url?scp=85089521391&partnerID=8YFLogxK
U2 - 10.3390/JOITMC6030050
DO - 10.3390/JOITMC6030050
M3 - Article
AN - SCOPUS:85089521391
SN - 2199-8531
VL - 6
JO - Journal of Open Innovation: Technology, Market, and Complexity
JF - Journal of Open Innovation: Technology, Market, and Complexity
IS - 3
M1 - 30050
ER -
