Social entrepreneurship and rural development in post-independence Indonesia

Abstract

Purpose This study aims to explore how social entrepreneurship initiatives and rural development address various socio-economic challenges in rural communities following Indonesia’s independence in 1945. Design/methodology/approach Adopting a pragmatic research philosophy, this study uses a historical review and thematic analysis, extending from the PRISMA method to analyse articles and reports concerning social entrepreneurship initiatives and rural development in post-independence Indonesia. Findings This study reveals that social entrepreneurship initiatives and rural development programs have advanced hand in hand since Indonesia's independence. Social entrepreneurship initiatives and rural development mutually reinforce each other, with social entrepreneurship prominently featured in many rural development projects, promoting socioeconomic changes in rural communities. Research limitations/implications While this review has covered the available literature in Indonesia's context and extends the social entrepreneurship concept by showcasing its impact in rural Indonesia, further theoretical models integrating social entrepreneurship and rural development are needed, especially with local or regional context and community-driven approaches to increase the research potential in the field. Practical implications This study is beneficial for policymakers in the field to consider the findings of this review on the strong association that social entrepreneurship has had with rural development in Indonesia. Social implications This study highlights the importance of local values and community participation in social entrepreneurship initiatives for rural development. It is also highlighted that social entrepreneurship initiatives enable rural women to participate in entrepreneurial activities. Originality/value This study concludes that prior studies consistently demonstrate a strong association between social entrepreneurship initiatives and rural development, with government policies and programs increasingly leveraging social entrepreneurial approaches to tackle rural challenges. Additionally, rural development strategies in Indonesia align with three strategic pillars established by the government’s entrepreneurship programs. These pillars, integral to rural development through the social entrepreneurship approach, are critical for the formulation and future action plans adjustable to the current trends, issues and circumstances.