The role of local community enterprise towards economic recovery of disaster-affected community in Indonesia

This research helps to understand how local entrepreneurship drives economic recovery in a post-disaster community. The Kampung Sablon Association is an entrepreneurial association working to empower small traditional clothes printing entrepreneurs which was formed in Pandes Wedi Village (the Klaten Regency) in Indonesia after an earthquake disaster. This study aimed to examine the association’s effort in recovering their business and reestablishing economic conditions and analyze the enabling factors. We used a qualitative approach with data collection, namely, literature and document studies, observations, in-depth interviews, and focus group discussions. Government or NGO entrepreneurship programs were often ineffective in recovering communities’ economic conditions, whereas entrepreneurial efforts made by local community often succeeded quickly due to its strong social capital which generated bonding and bridging within the community. Local entrepreneurial efforts were supported not only by strong social capital but also by the implementation of community organizing and people-centered development. This study presented that the role of community members in local entrepreneurial associations, along with the power of social capital, community organizing, and people-centered development, was effective in recovering socio-economic conditions of the community after catastrophic damage from a natural disaster.