Darwan Effendi, Fitri Lestari, Gracia Gabrienda

The Impact of Sustainable Social Entrepreneurship on Economic Inclusivity in Rural Areas in Indonesia

Introduction

The impact of sustainable social entrepreneurship on economic inclusivity in rural areas in indonesia. Discover how sustainable social entrepreneurship drives economic inclusivity in rural Indonesia. This study shows its significant impact through resource access, opportunities, and income distribution.

Abstract

This study investigates the impact of sustainable social entrepreneurship on economic inclusivity in rural areas of Indonesia, using a quantitative analysis with 125 respondents and data processed through Structural Equation Modeling - Partial Least Squares (SEM-PLS). The findings reveal that sustainable social entrepreneurship significantly influences economic inclusivity through key factors, including access to resources, equitable opportunities, participation in economic activities, and income distribution. The model explains 68% of the variance in economic inclusivity, indicating strong predictive power. These results emphasize the transformative potential of social entrepreneurship in addressing socio-economic disparities and fostering equitable growth in rural Indonesia. The study contributes to the theoretical understanding of inclusive development and provides actionable insights for policymakers and practitioners aiming to promote sustainable rural economies.

Review

This study rigorously investigates the critical impact of sustainable social entrepreneurship on economic inclusivity within rural areas of Indonesia, a highly relevant and timely topic given global development goals. Employing a quantitative analysis with 125 respondents and utilizing Structural Equation Modeling - Partial Least Squares (SEM-PLS), the research adeptly identifies and quantifies the pathways through which social entrepreneurship contributes to inclusivity. The core finding—that sustainable social entrepreneurship significantly fosters economic inclusivity via improved access to resources, equitable opportunities, enhanced participation in economic activities, and better income distribution—is clearly articulated. The impressive explanatory power of the model, accounting for 68% of the variance in economic inclusivity, lends considerable statistical weight to these conclusions. The paper makes a valuable contribution by empirically substantiating the transformative potential of sustainable social entrepreneurship in addressing socio-economic disparities and promoting equitable growth, particularly within the challenging context of rural Indonesia. Its theoretical contribution to the understanding of inclusive development is notable, moving beyond conceptual frameworks to offer data-driven insights. Furthermore, the study's findings are presented as actionable for policymakers and practitioners, providing a strong evidence base for designing and implementing interventions aimed at fostering sustainable rural economies. The chosen methodology of SEM-PLS is well-suited for exploring complex multivariate relationships and provides a robust analytical framework for the proposed hypotheses. While the quantitative approach offers clear statistical evidence, a modest sample size of 125 respondents, particularly for SEM-PLS, might be a point for discussion regarding the generalizability of findings across the highly diverse rural landscape of Indonesia. The abstract, while comprehensive in its findings, could benefit from a brief mention of the specific types of sustainable social entrepreneurship initiatives examined or a more detailed operationalization of the economic inclusivity factors to enhance practical understanding. Future research could explore these aspects in greater depth, perhaps through qualitative case studies to provide richer contextual understanding, or expand the sample size and geographic scope to further validate these important findings. Despite these minor considerations, this study provides a robust and insightful analysis, offering a valuable foundation for understanding and promoting the critical role of sustainable social entrepreneurship in fostering inclusive economic development.

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