Social enterprises and their market entry barriers (A case study of Indonesia)

  • Krysler Adoe

    Student thesis: Professional Doctorate

    Abstract

    While previous research recognises the presence and relevance of social enterprises, there has been relatively little in-depth investigation of the motives, obstacles, and impacts that create the context of social enterprise in varied and dynamic emerging countries, for instance, Indonesia. Social enterprise has the potential to be an alternative technique for boosting economic and social development in Indonesian provinces, for example, East Nusa Tenggara, which is one of Indonesia's poorest provinces. The Indonesian government is seeking to improve the economic sector by providing micro, small and medium enterprise (MSMEs) and businesses with incentives/stimulus packages. Its efforts to advance the Indonesian economy through grants and financial support have had significant effects on the country's social enterprises. East Nusa Tenggara is confronted with issues such as a lack of infrastructure and human resources, which can obstruct effective governance and service delivery. Local governments in the surrounding area must tackle these challenges while also fostering socioeconomic growth and reducing poverty. Therefore, the objectives of this thesis are to investigate social enterprise market entry barriers and reveal how social enterprises in Indonesia overcome market entry barriers. This thesis strives to uncover the complex motives that drive social enterprise stakeholders in the context of Indonesia, and to analyse the problems they confront in pursuing their social goals, and to assess the wider effects of social enterprises on communities at large. By fulfilling knowledge gaps in the Indonesian social enterprise setting and achieving relevant goals, the study hopes to add useful insights into scholarly discourse as well as tangible implications for the discipline of social enterprise. Furthermore, the overarching research question is: How is it possible to establish strong social enterprises amid the social challenges in East Nusa Tenggara Province? The sub-questions are as follows:
    What is the motivation of social enterprises in The East Nusa Tenggara Province market? How do social enterprises operate in the market in East Nusa Tenggara? (Based on demand, stakeholders, and the barriers originating from social problems that exist) and how do they continue to operate while trying also to solve social issues?
    This study provides an understanding of social enterprises in terms of how the social ventures reach out in the rural areas to obtain their social objectives. The social ventures connect the local community with other stakeholders including local government as well as decentralized government agents. The research applied qualitative approaches. In-depth interviews with the owner/director/manager of social enterprises, stakeholders, and people in the community are used to obtain qualitative data. Thematic coding is used in the qualitative analysis to identify patterns and themes that emerge from the interview materials. The triangulation of findings helps to validate the data. The investigation uncovers a spectrum of motivation of social enterprises, which include internal motives to identify extrinsic factors like financial viability. Financial limitations, legal impediments, and cultural barriers are among the issues that social entrepreneurs encounter. Despite these obstacles, social companies make substantial contributions to poverty reduction, environmental protection, and community and cultural development.
    The thesis findings have consequences for both theory and practice. The study adds to the theoretical knowledge of social enterprises by giving detailed insights into the motives and obstacles experienced by the East Nusa Tenggara social enterprises in Indonesia. In practice, the study informs policymakers, support organisations, and social entrepreneurs about the key determinants impacting social company performance.
    While the study provides significant insights into the contextual contributions, it does have certain limitations. The number of participants is relatively small and may not represent every aspect of social enterprises in the East Nusa Tenggara province, Indonesia. Further, this research was carried out at a specific moment rather than over a longer period that may not reflect on the momentum of social enterprise aspects in current research settings. Furthermore, the study is based on data collected by the researcher, which may result in biases. Future study on this topic might look at the long-term phenomena of social companies, their growth and profitable models, and the significance of government regulations in cultivating a supporting environment. Comparative research across developing nations could shed light on cross-cultural differences in social enterprise.
    Date of Award2024
    Original languageEnglish
    SupervisorAbu SALEH (Supervisor), Yogi VIDYATTAMA (Supervisor) & Naomi DALE (Supervisor)

    Cite this

    '