Economic Empowerment through Entrepreneurial Ventures: A Holistic Study of Socio-Economic Transformation and Business Creation

Authors

  • Tienni Mariana Simanjorang Universitas Pattimura
  • Indriana Universitas Ichsan Gorontalo
  • Imam Hanafi Universitas Brawijaya
  • Eva Desembrianita Universitas Muhammadiyah Gresik
  • Eva Yuniarti Utami Universitas Sebelas Maret

DOI:

https://doi.org/10.31002/rekomen.v6i2.1036

Keywords:

Resource, Opportunities, Government, Economic, Empowerment, Socio-Economic, Transformation, Entrepreneurial

Abstract

This research study examines the dynamic relationships between entrepreneurial resources, opportunities, government policies, economic empowerment, and socio-economic transformation in the context of entrepreneurial ventures in West Java, Indonesia. Using a quantitative approach, this study employs quantitative analysis through Structural Equation Modeling (SEM) with SMART-PLS 4 to assess these relationships and their implications for economic development. The sample comprised 300 entrepreneurial firms from various sectors, representing micro, small, and medium enterprises. Data collected through a structured questionnaire explored respondents' perceptions regarding entrepreneurial resources, opportunities, government policies, economic empowerment, and socio-economic transformation. The data was analyzed, and the proposed hypotheses were tested using descriptive statistics, reliability analysis, confirmatory factor analysis, and path analysis. The study’s results demonstrate a noteworthy and favorable correlation between entrepreneurial resources, opportunities, government policies, and economic empowerment. Furthermore, it is worth noting that economic empowerment has a significant and good impact on socio economic transformation. The fit index of the structural model suggests a satisfactory alignment between the hypothesized model and the empirical data. The findings highlight the significance of available resources, favorable opportunities, and supporting government policies in facilitating economic empowerment inside entrepreneurial enterprises. Furthermore, the results also underscore the importance of economic empowerment in reducing broader socio-economic changes within the region. This study aims to enhance comprehension of the interplay between entrepreneurship, policy, and socio-economic results in West Java.

References

Aaram, G., & Shakespear, H. 2005. Youth Capacity Building in Indigenisation and Economic Empowerment in Zimbabwe : Making a Case for Business Incubation. International Journal of Research in Humanities and Social Studies. 2(6): 1–9.

Adesokan, O., Adebowale, L., & Oyekunle, O. 2021. Dimensional Entrepreneurial Deployment of Information and Communication Technology for Economic Empowerment in Nigeria. International Journal of Sustainable Entrepreneurship and Corporate Social Responsibility (IJSECSR), 6(1): 1–18.

Anatan, L., & Nur, N. 2022. A Review of MSME’s Competitiveness in Indonesia. Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021: 1-8.

Anderson, B. S., & Eshima, Y. 2013. The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs. Journal of Business Venturing, 28(3): 413–429. doi: 10.1016/j.jbusvent.2011.10.001

Baloyi, F., & Khanyile, M. B. 2022. Innovative mechanisms to improve access to funding for the black-owned small and medium enterprises in South Africa. Southern African Journal of Entrepreneurship and Small Business Management, 14(1): 1–14.

Bellia, C., Pilato, M., & Seraphin, H. 2017. The value of intangible resources as a differentiation strategy for enterprises: the case of PGI table grape of Mazzarrone. Calitatea, 18(S2): 61–68.

Boza, P., & Evgeniou, T. (2021). Implementing Ai Principles: Frameworks, Processes, And Tools: 1-32.

Cho, J., Chun, H., Kim, H., & Lee, Y. 2017. Job creation and destruction: New evidence on the role of small versus young firms in Korea. The Japanese Economic Review, 68: 173–187. doi: 10.1111/jere.12133.

Corsi, C., & Prencipe, A. 2019. High-tech entrepreneurial firms’ innovation in different institutional settings. Do venture capital and private equity have complementary or substitute effects? Industry and Innovation, 26(9): 1023–1074. doi: 10.1080/13662716.2018.1561358.

Cumming, D., Deloof, M., Manigart, S., & Wright, M. 2019. New directions in entrepreneurial finance. Journal of Banking & Finance, 100(C): 252–260. doi: 10.1016/j.jbankfin.2019.02.008.

Datta, P. B., & Gailey, R. 2012. Empowering women through social entrepreneurship: Case study of a women’s cooperative in India. Entrepreneurship Theory and Practice. 36(3): 569-587. https://doi.org/10.1111/j.1540-6520.2012.00505.x

Denes, M., Wang, X., & Xu, T. 2019. Financing entrepreneurship: Tax incentives for early-stage investors. Available at SSRN, 3454633: 1-77.

Dyer, J. H., Gregersen, H. B., & Christensen, C. 2008. Entrepreneur behaviors, opportunity recognition, and the origins of innovative ventures. Strategic Entrepreneurship Journal, 2(4), 317–338. doi: 10.1002/sej.59

Febriansyah, H., Watson, C. W., & Gkikas, A. 2020. The entrepreneurial role of Indonesian universities in the economic development of rural communities: in search of empowerment. Research Handbook on Entrepreneurship in Emerging Economies: A Contextualized Approach, 160.

Fkun, E., Yusuf, M., Rukmana, A. Y., Putri, Z. F., & Harahap, M. A. K. 2023. Entrepreneurial Ecosystem: Interaction between Government Policy, Funding and Networks (Study on Entrepreneurship in West Java). Jurnal Ekonomi Dan Kewirausahaan West Science, 1(02), 77–88. doi: 10.58812/jekws.v1i02.248.

Galdino, K. M., Rezende, S. F. L., & Lamont, B. T. 2019. Market and internationalization knowledge in entrepreneurial internationalization processes. International Journal of Entrepreneurial Behavior & Research, 25(7): 1580–1600. doi: 10.1108/IJEBR-11-2018-0762

Han, Y.-J., Kwon, S. J., Chung, J. Y., & Son, J. S. 2017. The effects of the innovation types of venture firms and government support on firm performance and new job creation: Evidence from South Korea. Academy of Strategic Management Journal, 16(2), 1–14.

Huggins, R., & Williams, N. 2009. Enterprise And Public Policy: The Role And Progression Of Policy: Entrepreneurship & Regional Development. 23(9): 907-932. doi: 10.1080/08985626.2011.577818

Indarti, S., & Efni, Y. 2018. Comparative study: The role of corporate social responsibility towards the development of entrepreneurial attitude and small medium-sized enterprises income, Pekanbaru, Indonesia. International Journal of Law and Management, 60(2): 311–324. doi: 10.1108/IJLMA-12-2016-0160

Jakubczak, J. 2016. Young people terminal and instrumental values impact on youth entrepreneurship. Managing Innovation and Diversity in Knowledge Society Through Turbulent Time: Proceedings of the MakeLearn and TIIM Joint International Conference 2016, 915.

Jamaludin, N. A., Senik, Z. C., Abd Hamid, H., & Muhamad, N. S. 2020. Opportunity recognition in immigrant entrepreneurship through social capital and geographical proximity: A conceptual framework. Geografia, 16(3).

Kourilsky, M. L., Walstad, W. B., & Thomas, A. 2007. The entrepreneur in youth: An untapped resource for economic growth, social entrepreneurship, and education. Edward Elgar Publishing.

Latif, I. N., Heriyanto, H., Mardiana, M., & Dewi, C. K. 2023. Analysis of Financial Management in Economic Empowerment of MSMEs: A Case in a Tourism Village. Journal of Nonformal Education, 9(1): 151-159. doi: 10.15294/jne.v9i1.42717.

Lengnick‐Hall, M. L., Gaunt, P. M., & Kulkarni, M. 2008. Overlooked and underutilized: People with disabilities are an untapped human resource. Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in Alliance with the Society of Human Resources Management, 47(2), 255–273.

Madsen, E. L., Alsos, G. A., Borch, O.-J., Ljunggren, E., & Brastad, B. 2007. Developing entrepreneurial orientation: the role of dynamic capabilities and intangible resources. Regional Frontiers of Interpreneurship Research 2007. 94-105.

Maqbool, S., Parveen, Q., & Yousuf, M. I. 2021. Economic Empowerment of Women through Entrepreneurial Education in Pakistan: Issues and Challenges. Pakistan Social Sciences Review, 5(2): 143–154. doi: 10.35484/pssr.2021(5-II)12

Mitariani, N., Yasa, N., Giantari, I., & Setiawan, P. 2023. Improving export performance trough innovation capability during COVID-19 pandemic: The mediation role of aesthetic-utilitarian value and positional advantage. Uncertain Supply Chain Management, 11(1), 361–374.

Ogbari, M. E., Esho, E., Olokundun, M. A., Ogunnaike, O. O., & Atolagbe, T. M. 2017. Technology Entrepreneurship: Pathway to Industry-University Engagement. Covenant Journal of Entrepreneurship. 1(2), 59-71.

Ozkazanc-Pan, B., & Clark Muntean, S. 2018. Networking towards (in)equality: Women entrepreneurs in technology. Gender, Work and Organization, 25(4), 379–400. https://doi.org/10.1111/gwao.12225

Patton, D., & Marlow, S. (2011). University technology business incubators: helping new entrepreneurial firms to learn to grow. Environment and Planning C: Government and Policy, 29(5), 911–926.

Pereira, Y. V., Moraes, W. F. A. de, & Salazar, V. S. 2017. Competitive resources in international entrepreneurship: a qualitative analysis of export enterprises. Gestão & Produção, 24(3), 477–487.

Pitoyo, D., Yuniarsih, T., Ahman, E., & Suparno, S. 2019. Model of employee empowerment and organizational performance at National Strategic Manufacturing Companies in West Java. 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018), 201–205.

Purbasari, R., Muhyi, H. A., & Sukoco, I. 2020. Actors and their roles in entrepreneurial ecosystem: a network theory perspective: cooperative study in Sukabumi, West Java. Review of Integrative Business and Economics Research, 9(3): 240–253.

Ray, S., & Leandre, D. Y. 2021. How entrepreneurial university model is changing the Indian COVID–19 Fight? Путеводитель Предпринимателя, 14(3), 153–162.

Renko, A.-M. 2008. The role of market knowledge in recognizing and exploiting entrepreneurial opportunities in technology intensive firms. Florida International University.

Riyanti, B. P. D., & Suwartono, C. (2018). Psychometric evaluation of newly developed self-assessment of entrepreneurial competencies. Journal of Applied Business & International Management, 3(1), 5-13.

Roopchund, R. 2020. SMEs in Mauritius: economic growth, employment and entrepreneurial culture. International Journal of Entrepreneurship and Small Business, 39(4), 585–596.

Sari, S., Septiowati, R., & Saputri, S. 2021. The Effect of Entrepreneurship Characteristics and Personal Characteristics on the Growth of Sustainable Waste Bank Management Business (Case: Waste Management Entrepreneur in Sawangan Depok, West Java Province). INCEESS 2020: Proceedings of the 1st International Conference on Economics Engineering and Social Science, 409: 1-7.

Senou, M. M., & Manda, J. 2022. Access to finance and rural youth entrepreneurship in Benin: Is there a gender gap? African Development Review, 34(1), 29–41.

Shanmuga Priya, S., & Sakthi, D. 2015. „Social media a tool for economic empowerment of women‟. International Journal of Applied Research, 1(5), 157–160.

Sharma, P., Sieger, P., Nason, R. S., González, A. C., & Ramachandran, K. 2013. Exploring transgenerational entrepreneurship: The role of resources and capabilities. Edward Elgar Publishing.

Teignier, M., & Cuberes, D. 2014. Aggregate costs of gender gaps in the labor market: A quantitative estimate.

Temouri, Y., Pereira, V., Muschert, G. W., Ramiah, V., & Babula, M. 2021. How does cluster location and intellectual capital impact entrepreneurial success within high-growth firms? Journal of Intellectual Capital, 22(1), 171–189.

Waseem, A., Rashid, Y., & Akbar, A. A. 2021. Role of government initiatives in shaping entrepreneurial intentions: A canonical correlation analysis. Business Review, 16(1), 13–29.

Wei, Y. 2022. Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective. Research Policy, 51(1). doi: 10.1016/j.respol.2021.104380.

Wiklund, J., & Shepherd, D. 2003. Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses. Strategic Management Journal, 24(13): 1307–1314. doi: 10.1002/smj.360

Williams, E. M., Väisänen, H., & Padmadas, S. S. 2022. Women’s economic empowerment in sub-Saharan Africa. Demographic Research, 47, 415–452. doi: 10.4054/DemRes.2022.47.15

Yoon, B. K., Tae, H., Jackman, J. A., Guha, S., Kagan, C. R., Margenot, A. J., Rowland, D. L., Weiss, P. S., & Cho, N.-J. 2021. Entrepreneurial Talent Building For 21st Century Agricultural Innovation. ACS Publications. 15(7): 10748-10758. doi: 10.1021/acsnano.1c05980.

Zabelina, E., Deyneka, O., & Tsiring, D. 2019. Entrepreneurial attitudes in the structure of students’ economic minds. International Journal of Entrepreneurial Behavior & Research, 25(8): 1621–1633. doi: 10.1108/IJEBR-04-2018-0224

Downloads

Published

2023-10-31