Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)

Research Article: 2020 Vol: 23 Issue: 1

Utilization of Social Capital on the Rural Community Entrepreneurship Education

Entoh Tohani, Universitas Negeri Yogyakarta

Citation Information: Tohani, E. (2020). Utilization of social capital on the rural community entrepreneurship education. Journal of Entrepreneurship Education, 23(1).

Abstract

The objective of this research was to reveals the utilization of social capital on community entrepreneurship education (CEE). Success of the education determined by functionality of social capital utilized by the target groups. Social capital viewed as productive thing for business. This research used qualitative approach with case study. The unit of analysis is CEE formed as Desa Vokasi program, consisting of one pilot project and two program impacts. The finding reveals that utilization of social capital the attempt to improve the entrepreneurship could be performed by the subjects with the different level on its quality. The utilization produced benefits for the target groups include improvement of business network, knowledge and skills, legality and funding. Therefore, social capital as one successful determinant of the education implementation is necessary to be used in a sustainable and accountable ways.

Keywords

Social Capital, Education, Entrepreneurship, Empowerment.

Introduction

Community entrepreneurship education (CEE) formed on different kinds of educational activity is intended to build entrepreneurship capacity of community member both individually and community. Entrepreneurship capacity is urgent to be posed by member of community because by having this capacity, individual or community will be easy to find out many solutions of the living problems, encourage to develop, orientate to future, brave take a risk, and having positive responsibility. It is needed to build and developed because of rapid changing environment that demand adjustment of individual or community behaviour in order to they could be achieved prosperous living and enable they gain resources for survival of life. Therefore, many kinds of this education done by individual, community and/or government in the field of handicraft, agriculture, fishery, culinary, information and communication technology, beauty, etc.

The success of CEE determined by the ability to utilize the potential or capital owned by the community in which one of them is social capital, in addition to other required capital is human capital and cultural capital (Bourdieu, 1986). It means that the education beyond managing physical capital, financial capital and human capital needs to manage the social capital that can be useful by creating positive social relationships with stakeholders in its implementation. It is based on the premise that social capital is something that is productive and is a source of power, whether real or potential, that is gained of a relationship (Coleman, 1988).

Social capital have diverse dimensions. Coleman (1988) states that social capital is an aspect of a social structure and it facilitates the action of individuals role in social structure (Coleman, 1988). According to him, its aspects includes mutual trust relationship, information, norms of effective and appropriate social organization (Hauberer, 2011). Putnam (1994; 2000) states social capital as a characteristic of social life that consisting of networks, norms and trust that allows each individual to behave together effectively to achieve common goals. It is productive, making possible the achievement of certain objectives and it will not be achieved by its absence. While, Fukuyama (1997) states of social capital is a set of values and informal norms shared among members of a community group that allows the cooperation between them. Social capital has been developed in community because it comes from religion, ideology, and constructed norms in society (Fukuyama, 2000). Grootaert & Van Bastelaer (2002) provide an explanation of how it can be measured in the context of community development, as in the Figure 1. At the micro level, it includes cognitive aspects that include values, norms, and beliefs, and structural aspects that consist of network and local institutional. At the macro level, it includes governance as cognitive aspect and state institutions and the rule of law as structural dimensions.

Figure 1 Dimensions of Social Capital

In the aspect of management of economic activities, Westlund (2006) state of social capital in business or entrepreneurship can be divided into two, namely: social capital associated with internal part and social capital associated with external side. The first, it describes that there are a relationship that can create and distribute attitudes, norms, traditions, etc. which is expressed in the spirit of the organization, the climate of cooperation, and methods to codify knowledge, product development, conflict resolution, etc. The last, it shows that there are created relations that related to production such as relations with suppliers, product users and partners; social capital associated with the environment that describes the relationship with policy makers, universities and similar organizations; and linked to the market that is indicated by development of relationship with marketing, broader consumer, and is related product labelling.

Urgency of social capital utilization in the implementation of CEE due to several things. First, the paradigm shift in the development of education system has been occurred, that is paradigm shift centralized to decentralized paradigm. Paradigm decentralized gives chance for community to plays decisive roles in the decision making process regarding education (Jalal & Supriyadi, 2001) by utilizing all existing potential in the form of economic potential, natural capital, social capital, socio-cultural, and spiritual (Merriam & Cunningham, 1989; Galbraith, 1995). Secondly, in the context of the development of an entrepreneurial society, in which social capital is seen as an input in the production process, it has a significant influence which can increase confidence and a sense of emotional well against a group, society or association, increase the efficiency of the public sector, facilitate greater cooperation for services benefit for groups, communities, and associations related, and form a network of agents connected to each other (Grootaert & Van Bastelaer, 2002). Third, the practice of education management generally is based on the development of human capital. Many educational or community development programs implemented by the top-down approach, which tends to produce mechanical-individual people, give priority to the mastery of hard skills and less to develop the potential of social and affective (Goodlad, 1984). Fourth, social capital is defined as a resource available to people through their social connections (Kim & Aldrich, 2005) should be utilized by the target group to develop its business activities. Unfortunately, the ability to use social capital is still not optimally controlled by its target group. It could be appears from the lack of graduates of the program who can develop their business in a sustainable manner and there is no valuable community of practice established.

As the concept of capital, social capital can generate profits in the form of physical capital, human capital even social benefits (Grootaert & Van Bastelaer, 2002) because it has an element of investment or productive, which in social relationships embodied existence of the resource which can be used. Profits obtained can be useful for the individual and society (Schaefer-McDaniel, 2004). As is known, many findings describes its benefits in economic activity, i.e. producing lower transaction costs associated with the mechanism of cooperation or coordination of formal (Fukuyama, 2001), improving the coordination of complex production process, facilitating diffusion and adoption of high technology (Wallis et al., 2004), and developing behaviour innovate (Li & Luo, 2011). In particularly, in small business management and activity of entrepreneurship, social capital build collective action, form a guarantee, and provide easy access to relevant information (Spence et al., 2003), allows the sharing of knowledge and career advancement within the organization (Wickramasinghe & Weliwitigoda, 2011), to facilitate entrepreneurship (Adler & Kwon, 2002) and increase profit organization (Hazleton & Kennan, 2000) and is able to develop a larger network in order to reach the existing resources outside he (Kim & Aldrich, 2005).

Considering of the urgency of social capital utilization above, the implementation of CEE ideally utilize and develop the social capital that make the empowerment process could be fulfilled sustainably. It means that CEE could build and/or develop social capital (Balatti et al., 2007). This is due to that the education expected to produce an effect or great benefit both to the target groups, the public and stakeholders. Of course, success of the education describes that there are lots of actions to develop capacity of social capital of the target group and the parties involved through the provision of various facilitation such as the development of learning culture, business management capabilities, and improvement of access to information and communication.

Based on the above thought, this research is conducted to find out how social capital is utilized and developed by target groups of the CEE. Through this research, understanding detailed and comprehensive information on the utilization and development of social capital existing in the management of the CEE could be examined correctly and meaningfully in the effort to improve the education in the future that could anticipate and adapts to social changes on which aspect of the structural, cultural and interactional have been changes.

Methods

This qualitative research uses a case study approach. The research aimed to understand the "how" and "why" an activity or phenomenon occurs or takes place (Yin, 2014). In this case, the study intended to comprehend how social capital utilization implemented by target groups to advance their business efforts and quality of life for themselves and/or community. The study conducted at three locations in Central Java province includes the District of Semarang, Jepara Regency and Pati regency. The analysis unit is CEE formed as Desa Vokasi program i.e. entrepreneurship education to develop entrepreneurial competencies of the rural people based on using resource or local wisdom to overcome their living problems. The program is consisting of a pilot project run in Gemawang, Semarang Regency, and two impact programs held in Karangrandu, Jepara Regency, and in Sukoharjo, Pati Regency. The cases determined purposively. The sites were selected by considering differences priority of the policy of regional economic development. As widely known, Semarang develop agriculture and plantation sectors for increasing economic productivity and eventually community welfare whereas Jepara focus on the development of the furniture-based processing industry supported by the abundant resource and skilled workforce in the particular field. Meanwhile, Pati tend to enlarge the economic progress by promoting economic activities that produce goods and/or services based on fisheries and marine sector.

The subject of this study is the informants who is be regarded to know more about the management of the entrepreneurial education namely the target groups, educators, managers, and community leaders. Data collected by using qualitative data collection methods that include interviews, observation and document analysis (Creswell, 2012; Lodico et al., 2010) and equipped with a guidance interview, observation and documentation. In-depth interviews carried out to informants who consist of initiators, managers, target groups, formal leaders, and facilitators and community leaders to examine such information related to characteristics of the target groups and community, implementation and impact of the education, social capital diversity and its implementation, utilization of social capital and its result, and obstacles encountered in the management of productive enterprises of the target groups. Observation focused on entrepreneurial activities of the entrepreneurs, activities of the target groups, membership of the target group for determining the form of social capital embodied in community, level of productivity of the entrepreneurial ventures, activities or interactions with other community groups, etc. While the documents in the form of news print media, recording of meeting results, diaries/individual journals, archival activities, report on the implementation of the CEE, and the results of documentation, and the work of the target group in the form of business products analysed to know description of the learning process, the results achieved, impact of the learning, interaction in groups of entrepreneurs, the utilization of cooperation, etc.

Data analysis conducted by using qualitative analysis techniques refers to the interactive model which includes data reduction, data presentation and conclusion (Miles & Huberman, 2007). To obtain the validity of the data, the researchers used a technique to improve the reliability of data, namely: the data source triangulation techniques, by which researchers assess and compare the data obtained from the informant, archives, observations, etc.; data triangulation technique, comparing the data achieved from interviews, observation, and documentation; and extend the observations, and with thick description in accordance with the focus of research being studied.

Findings

Bellows described research findings refers to research focus including general description of the research location, characteristics of entrepreneurial activities of the target groups, utilization of social capital and its benefits reached by the target groups for developing their entrepreneurship efforts.

General Description of The Research Location

This research was conducted in three regencies in Central Java Province namely Semarang Regency, Jepara Regency, and Pati Regency. Generally, the descriptions of the three regencies as research setting for the research analysis unit reviewed are as follows:

Semarang Regency

Semarang Regency is geographically located at 110˚14'54.75″ to 110˚39ʹ3″ East Longitude with 7˚3ʹ57″ and 7˚30ʹ South Latitude. The four longitudes and latitude coordinate an area of 95.020.674 ha. The average temperature can be relatively cool due to its height of the area from sea level; most of the Semarang Regency is about 544.21 above sea level. Most of the region is agricultural land consisting of paddy fields and non-paddy fields; meanwhile, the rest is non-agricultural land. The area of agricultural land use is 25.17 percent, non-paddy agricultural land is 38.27 percent and non-agricultural land is 35.56 percent. The area of paddy fields in each district is not similar such as Suruh District, Pabelan District, and Bringin District that have more than 2,000 ha of paddy fields area, while in Getasan District, the area is only 26 ha. This situation leads to different agricultural productivity. The decrease in the area of agricultural land caused by agricultural land conversion that is used for housing, industrial area, shops, public facilities, etc.

The population of Semarang reaches 1,027,489 people consisting of 552,669 men (53.78%) and 504,820 women (46.22%). The population density reaches 1.081/km2. Based on the highest diploma achievement, in 2017, the majority of the population reached 59.66% of the educational level in primary school and secondary school. This number shows that the participation rate in education have to be increased to create good quality of human resources. In the economic perspective, the employed population reaches 595,297 people consisting of 317,698 men and 278,599 women. Meanwhile the population who are unemployed reaches 198.662 people consisting of 67,579 men and 131,083 women. The productive population work in various business fields such as 149,426 people in agricultural sector, 168,138 people in manufacturing sector, 129,629 people in trade sector, 75,816 people in services sector and 73,288 people in other sectors (BPS Statistics of Semarang Regency, 2017). The large population in agricultural sector is caused by how this sector requires quite many labours. In almost all districts, the use of agricultural land, both in paddy fields and non-paddy fields is relatively wide, such as in area of Jambu District, Suruh District, Pabelan District, and Sumowono District.

In the socio-cultural aspect, most of the population are Muslims (950,215 people). Meanwhile other population adhere to Christian, Catholic, Hindu, Buddha, and Confucianism. Therefore, it is not surprising that this regency has many worship places such as mosque, church, vihara, etc. The social life of Semarang society is not much different from other Javanese ethnic society in which people’s attitude and behaviour are in line with Javanese cultural values in terms of language, dress, talk, and act. The value of mutual cooperation and unity is still upheld in social life such as sambatan tradition namely the activities of working together for social interests, kenduren tradition that is activity of sharing food with neighbours at special moment, and community service. This regency also has diverse artistic heritage in local dance, folk performing arts, puppets, theatre, traditional music, religious music, etc. There are around 59 art groups spread in almost all regions of Semarang that need more concern and special facility in performing their optimal work. In addition to the above potential, this regency still faces social issues such as poverty which is still high (around 7 percent), high population growth, family divorce, crime, and even natural disaster such as tornadoes, landslides and floods.

Jepara Regency

Jepara located at 5″43ʹ20.68″ to 6″47ʹ25.83″ South Latitude and 110″9ʹ48.02″ to 110″58ʹ37.83″ East Longitude. In the west and north side, it is bordered by Java Sea, while this regency is bordered by Kudus Regency and Pati Regency in the east side. In the south side, this regency is bordered by Demak Regency. This regency has various land surface heights, which are located from 0 meter above sea level to 1,302 meters above sea level. The area covers 100.403,132 ha and it is used to various purposes such as agriculture, farm, housing, industry, and public facilities. The use of land for agriculture with irrigation and rainfed systems covers 26.525,792 ha and for dry land covers 73.887,397 ha. Dry land is used for buildings, large yards, moor and state forests.

At the end of 2017, the population of Jepara Regency reaches 1,205,800 people consisting of 601,206 men or 49.85% and 604,594 women or 50.05% (BPS Statistics of Jepara Regency, 2017) with a growth rate of 1.55%. Most of the population is in the productive age group of 817,838 people or 67.51% and the rest is classified as the unproductive-aged population of 308,023 people and the unproductive-aged population (ages 65 and above) are 79,939 people. In terms of educational aspect, employed-aged population (ages 15 and above) are 602,188 people, dominated by workers with primary education (199,880 people), junior secondary education (159,149 people), and senior secondary education (115,130 people). Meanwhile, there are only 24,656 people with higher education. This situation shows that the improvement in increasing the level of education to create more productive workers is required.

In the economic aspect, most of the population have job in manufacturing field in small and medium scale of industry. This is indicted by the total of regional income that reaches 34.45 from trade sector (16.72%), agricultural sector (15.46%). The total revenues are 17.2 trillion rupiah. The total of manufacturing industry reaches 13,380 business units with 148,079 workers. There are 77,187 workers in furniture industry with 5,993 business units. It is due to the fact that Jepara Regency is a centre of wood or furniture processing industry that has been famous in Indonesian society, especially furniture products and manufacturing expertise. Other processing industries are crafts of panel, ikat woven rattan, monel earthenware, tile, kretek cigarettes, wood, food convection, and embroidery. Kretek industry that has 29 units has absorbed 1,254 workers. This industry is developing in Jepara because of the influence of the existence of large scale cigarette industry in Kudus Regency and the demand for citizens’ cigarette consumption.

In socio-cultural aspect, most of the Jepara society adhere to Islam religion (97.35%). This leads to the society’s daily activities that influenced by Islamic teachings such as religious activities, recitation, and religious holidays celebrated by most of the Muslim communities. The behaviours of mutual cooperation, mutual assistance, kinship, and mutual respect are developed and preserved in society’s daily life. The potential of traditional arts that is interesting and valuable in the society as ancestral heritage are such as lomban parties, torch parties, bratan parties, and jembul tulakan, culinary tours, kridadjati dance, tayub dance, etc. In addition to those social potentials, there are social issues that need to be overcomed such as the poverty and hardship of the society (100,320 people or 8.35%). Furthermore, this regency has issues in maternal and child mortality rates, spread of infectious diseases for example tuberculosis, and high rate of crime.

Pati Regency

Pati Regency is located in the northeast. The geographical position of this regency is between 110º50’-111º15’ East Longitude and 6º25’- 7º00’ South Latitude. In the north side, this regency is bordered by Jepara Regency and Java Sea, while in the west side; it is bordered by Kudus Regency and East Jepara Regency. In the south side, it is bordered by Blora Regency and Grobogan Regency, while in the east side, it is bordered by Rembang Regency and Java Sea. The area covers 150.368 ha consisting of 39 % of paddy fields, 36% of non-paddy fields, and 25% of non-agricultural lands. The topography of the regency is divided into highlands, lowlands, and the coast of the Java Sea. The highest altitude of the region is in Tlogowungu District which is 624 meters above sea level and the lowest is in Tayu District, 1 meter above sea level which is the coastal area. The average of rainfall is 2,142 mm in 2016 with 116 rainy days. Administratively, this regency is divided into 21 districts with 406 villages and 5 sub-villages in which in 2016, there were 1,484 neighbourhood and 7,585 hamlets.

In terms of human resources, in 2016, the population of Pati Regency reached 1,239,989 people consisting of 600,723 men and 639,266 women with the sex ration of 0.93 and the population density of 803 people per km2 (BPS Statistics of Pati Regency, 2017). In terms of productivity, the productive population is 850,979 people and the unproductive population is 389,010 people. Meanwhile, in terms of education level of job seekers, it is recorded that most of the population have completed senior secondary education (26,584 people).

The progress of the economy in Pati is strongly supported by several main sectors such as manufacturing, agriculture, and trade industries. The manufacturing industry sector is the most important supporting sector in economy. In 2016, this sector contributed 27.04 % of Gross Regional Domestic Product that reached Rp 33.646.610,22. Industrial sector involved 220 companies and absorbed 100,755 workers. The most dominant industry is the fishery and salt processing industry. In addition, the sectors that have big contribution is agricultural sector, forestry sector, fishery sector with 26.68 % of contribution and 189,608 people. The agricultural sector absorbs a lot of workers but its productivity is still low compared to the manufacturing industry sector. The next sector that support economic development is the trade sector that contributes 13.86% of income. In addition to those sectors, the sectors of construction, social services, information and communication and others sectors also support the society’s economy.

The population of Pati Regency adhere to various religions. Most of the are Muslim (1,173,337 people), Christian (29,123 people), Catholic (3,541 people), Hindu (123 people), Buddha (7,305 people), and other beliefs (200 people). Religious differences indicate that the regency still uphold the religious tolerance and freedom in life. In social life, the behaviour reflecting unity and kinship is still maintained and developed such as community gatherings, recitation, community services, etc. This regency also has other potentials brass such as coffee farm, cashew fruit centres, mango fruit centres, brass craft centers, rice and mung bean industry. Cultural arts and traditions such as alms of the sea, alms of the earth, sendangsani procession, birthday of the Prophet, mapati, suronan become the society’s potential that continues to be maintained and developed.

The crucial problem faced in Pati Regency is the existence of poor society even though the number has decreased every year. In 2016, it was recorded that there were 114,2 thousand or 11.56% of poor society which was lower compared to the number of poor society in 2015 (141,7 thousand people or 11.95%) (BPS Statistics of Pati Regency, 2018). The districts that has welfare family are Pati District, Winong District, and Juwana District. Meanwhile the districts that have opposite situation are Sukolilo District, Gunung Wungkal District, and Tlogowungu District. Other problems faced are beggars and homelessness, crime, unemployment, and underdevelopment or isolation.

Characteristics of Entrepreneurial Activities

The CEE programs developed by Non-formal and Informal Development Center as national non-formal education institutions which has role to develope non-formal education models in term to gain national educations goals. The program has run in Gemawang village, Jambu Area, Semarang Regency. In early its development, there are 11 education and training programs developed for building vocational skills of the community members in accordance with the conditions of society. Nevertheless, not all of them could be managed successfully recent. Three of them could be done today namely enterprise of batik production managed by one entrepreneur who has 9 workers, culinary enterprises managed by 12 members of community and has been grouped on local culinary association, and production of the educative game tools possessed by one person who works five mans.

In 2011, two of the programs has implemented as impact of the pilot project including the programs held by Jepara Learning Activity Centre in Karangrandu Villages, Pecangaan Areas, Jepara Regency and by Pati Learning Activity Center in Sukoharjo Village, Pati Regency. The first program educated 35 of the community members. But, there are only 25 of the members are collected in culinary group, called “Sri Mulya”. Whereas, the second program educated a number of 35 mans of the community members for having entrepreneurship skills in field of seed catfish cultivation (Table 1).

Table 1 Description of the Analysis Unit
Aspect The CEE
Gemawang Karangrandu Sukoharjo
Status Pilot Project Impact Impact
Implementation 2009/2010 2011 2011
Initiator Non-formal Development Centre Regional 2 Learning Activity Centre Learning Activity Centre
Resource Deconsentration Deconsentration Deconsentration
Program 11 programs 1 program 1 program
Target Group Productive
Mans and women
Productive
Women
Productive
Mans
Ekonomi Dominan Agriculture
Forestry
Manufacturing industry, Tourism Agriculture
Fishery
Running enterprise Batik enterprise,
Educative game tools, Culinary
Culinary Seed catfish cultivation

Utilization of Social Capital by the Target Groups

To understand of social capital which has been utilized by the target groups appropriate to each management of the enterprise in three locations, the following description shows how it managed in view of across cases of the education.

Values, Norms, and Commitment

Values is something that is believed good or bad and be behaviour guidance both individual and community in the life. Existence of values is formed in norms which are established for developing or maintaining values living in society. Values and norms will motivate and make people committed to everything that will be done. The third of dimensions have relation in society which could be unity on individual or community behaviours in social living including work environment or entrepreneurship activity. Associated with this, the research findings as on Table 2 reveals that entrepreneurs or target groups could build values, norms, and commitment as social capital aspects which are oriented to product quality resulted, consumers or market satisfaction, and harmonized relation among the actors.

Table 2 Values Orientation, Norms, and Commitment of Target Groups
The actors Values orientation, Norms, and Commitment
Product Consumers/market People
Qulinary Gemawang Cleanness
Taste quality
Openness of material used Hang together
Togetherness
Pirukunan
Batik
Gemawang
Thoroughness Persistence
Innovation
Focus on quality of material
Focus on material quality
Clear information of product resulted
Tastes of market
Guarantee giving
Hang together
Togetherness
Commitment between the actor and workers
Educavative
Game Tools
Gemawang
Corresponding to order Correspond to orders
Guarantee giving
Hang together
Togetherness
Qulinary Karangrandu Committed to culinary role/regulation Product honesty
Complaint taking
Hang together
Openness of management
Anjang sana
Seed Catfish Cultivation
Sukoharjo
Healthy cultivation Openness of seed conditions
Homogeneity of the price
Complaint taking
Anjang sana
Routine gathering
Openness of the management
Agreement of savings and loan

Values oriented to product were formed in activities of product or goods production which were focused on resulted product. It has to healthy, safety, qualified, and suitable to demand of market/consumers. The oriented value to market or users has been implemented on the selling process of the product that hopefully could be found out their satisfaction. It consists of giving honest and open information of the product will be sold for consumers if they want to know, accentuating of the product quality, receiving complaints or inputs, giving guarantee of the product sold namely by accepting return of product or giving others services. Although, one thing different related to this values is what are done by the entrepreneurs on cultivation of the fish, i.e. they apply homogen price of the seed both for encashment to individuals or wholesalers. Beside that values, the actors act in social living based on existing values in community for instance hang togetherness, openness, togetherness among them. Their behaviours described in social actions namely anjang sana means the behavior of visiting each other in turns to strengthen friendship between members, pirukunan means voluntary mutual assistance between members both material and non-material, and routine gathering.

Trust

Trust is one urgent aspect in managing entrepreneurial activity has been done by the target groups. Trust is basically a condition that individual take trust feeling to others. In context of business. To trust is place people or something to caring of the interest of entrepreneurs, to trust to someone is means allows the actor to develop consciousness of something that others know it and the actor does not know, and that is capacity of the actors to related for and to problems that may be harmful (Ward & Smith, 2003). By built trust in society, it will be positive influence as Fukuyama stated that community which has low trust tends to introvert to partner that could be able to reach happiness in modern life (Fukuyama, 1996).

The research findings show that the entrepreneurs could build and develop trust for achieving the success of their business. Refers to argument of Ward & Smith (2003) that trust on economic activity could be divided into: authentic trust, network trust, authority trust, and commodity trust, so, trust has been developed by them is descripted on Table 3. According to Table 3, it could be said that the actors who was studied have similarity relatively in constructing and developing trust to consumers and the other side. The trust has been implemented by maintaining reputation of others that was formed on know each other’s between the actors and wholesalers, with stores or consumers. For gaining trust to enlargement of the business network, the actors perform some ways namely know each other, receive input openly, focus on responsibility and agreement of the demand or orders of consumers, and apply instalment payment system. Trust to others, especially in the group of entrepreneurs, has been committed by creating harmonized life of the organization and openness of the funding management that be possessed by them. While, trust to others side was exercised by providing products or services that are qualified and healthy, and having legality support which is accepted from governmental institution that related to their entrepreneurship activities and product resulted.

Table 3 Trust Developed by the Entrepreneurs
The Actors Form of Trust
Autentic Network Comodity Authority
Qulinary Gemawang The actor was known
Reputation
Know each other
Entrusted system
Openness of funding
Receiving input from consumers
Quality assurance
Applying domestic industry label
Batik
Gemawang
The actor was known
Reputation
Instalment payment and bill system
Appropriate to order
Complaint taking
Responsibility
Woof quality
Innovative techniques
Product legality
Educavative Game Tools
Gemawang
The actor was known Suitable to consumers demand
Instalment payment system
Clearness of material
Quality assurance
Providing a portion of the work
Qulinary
Karangrandu
The actor was known Complaint taking
Openness of funding
Quality of the material
Hygienic of the product
Applying domestic industrial label
Seed Catfish
Cultivation
Sukoharjo
The actor was known Openness of: fund management, Instalment payment
Complaint taking
Feed and water quality
Honesty of seed condition
Having “Madya” group certificate

As we known that trust is an important thing for achieving the successful economic business, it has integrative functions in organization, namely unify the activities to form regularity, reduce complexity in the rapid change of life or ambiguous and become a key or tool of the implementation particularly for individuals (Buskens, 2002; Todeva, 2006). Empirical study reveals that it is needed by people to be able adapts with complex environment, ambiguity and uncertainly, results safety for living in complexity living, help people take a risk, and produces capability to change and supports radical changes, help people be innovative, learn, and be creative, become lubricant which can extend social relation that could increase efficiency, build work together, enlarge sharing, improve mutuality and openness, develop resolution of conflict, and overcome problems interactively, lets down the detail contractual need and monitoring equipment, grows the intrinsic values of trust, and creates innovative culture (Six, 2005; Srinivasan, 2004; Silversides, 2001; Xu et al., 2008).

Networking

Networking is one of the dimensions of social capital which is structural trait (Coleman, 1994; Nahapiet & Ghoshal, 1998) and contains activities done by individuals in interacts with others both individuals and institutions. Osterle (2001) expressed that a business must be supported by capability of networking as competencies for working internally and externally. This competence intends to find out: (a) resources i.e. manpower, manager, and information system, (b) business process like selling process, and (c) unit enterprise for example activities on the supply chain. That is caused by the fact that institutions of business or enterprise depend on the others side who is includes partners, costumers, investors, competitors, government, industries, mass media and press, vendors, and associations.

The research founds that entrepreneurship networking that was formed both horizontally and vertically in context of improving the business actions is as presented on Table 4. The table confirms that the networking could be got by the actors although it is not all exists in strong conditions, having high intentionality. The horizontal network expanded by them in the collective life or with their workers through creating of relation mechanism which is based on togetherness, friendship, family, commitment and/or mutual agreement.

Table 4 Networking Efforts Done by the Actors
The actors Networking Efforts
Horizontal Vertical
Strong Weak Strong Weak
Qulinary
Gemawang
Using label of product required
Routine togetherness and savings and loan
Friendship has long runs
Less exhibition of the product, come from the government
Lack of show room
Routine facilitation given by the SME Centre, and local managers Through other members of the groups, incidentally
Batik
Gemawang
Voluntary
Good friendship and kinship
Less exhibition of the product, come from the government
Internet is used limitedly
Routine facilitation given by the SME Centre, and local managers Coordination with local government incidentally
Educavative Game Tools
Gemawang
Customers who has known Less exhibition of the product, come from the government
Leaflet used limited
Using word of the mouth
Routine facilitation given by the SME Centre, and local managers Coordination with local government incidentally
Qulinary
Karangrandu
Regular meeting
Sharing devices of the production
Using the healthy material as duty; Entrusted system on selling
Doing work together orders of the product incidental Received facilitation from social worker
Leader active is good enough
Coordination with local government incidentally
Facilitation of related institution limited
Seed Catfish Cultivation
Sukoharjo
Relation to the wholesalers done intentionally
Savings and loan, business profits stated clearly
Anjang sana committed by the actors
Be a learning source for others side incidental Received facilitation from social workers and Learning Activity Centre Coordination with local government incidentally

Expansion of the network is influenced by internal and external factors of the actors (Muijs et al., 2011). The finding of research shows that motivation, braveness, and knowledge of actors give effects to finding of partners who have benefits. For instance, the culinary group in Karangrandu has lacks of capability to network with other sides. It was caused by low information and knowledge of the network access and the worries of taking a risk so that the networking of their business depends on liveliness and hard work of the members that nota bene have different entrepreneurial activities. On the culinary group in Gemawang, the members do the networking with other sides individually and more rely on facilitation of the others institution. It is looks same also on the group of the seed cultivation, in which development of the network is a little done by the members and dominant to receive the services from the fishery workers and facilitator of the Pati Learning Activity Centre. But, that is different to actor of the Batik production. He developed his networking of the business with partners namely banking, government, and forestry company which is being in surrounding because himself has high motivation, courage, and will of success. Father, his network success could be influence to braveness of the entrepreneur of the educational game tools to expands the network specially on gaining capital aids although it is all still limited.

To attain surplus of the activities of entrepreneurship, the actors could be able to do expanding networking strategies, such as understand potential and her/his self, comprehend various part to build ideal network, take strategic approach to gain career opportunity (macro) and networking activities (micro), realize heterogeneous ways to build ideal network, develop trust, improve quality of self and professionalism, learn successful cases of the efforts which teach experiences, skills, interest, etc., consider chances or opportunities may be reached and transmit values that contributes to organizational networks and use them for influence the others or staffs (Baber & Wymon, 2007). Or, the efforts to good networking may be done by knowing urgency of connection to others, having authentic and positive attitudes, rely on quality of the networking, hold on the network ethics, communicate effectively and dialogically, and serve positive manner for getting job (Kramer, 2012).

Information and Communication

Management of information and/or knowledge can be said that is learning process which implemented by individuals to having values, attitudes, knowledge and skills new that are needed to increase himself quality. In context of the business running, the actors have to do learning process continuously related to improvement of the primer competence that supports roles practice they have such as group leader, administrator, problem analysers, evaluator, trainer, and so on (O`connor et al., 2007). The learning activities could be run by them through utilization of the existing resources in the surroundings in term of formal, non-formal, and informal.

The finding declared that acquisition of information/knowledge of the entrepreneurship activities was done by the actors in the different methods. Table 5 evidences the process implemented based on their will and initiative and aids from other sides in developing their business. They searched the information or knowledge useful for their business as if of enhancement of the product quality, product development, recovery of the production mechanism, chance and treats, and problem solutions faced. They practiced informal learning which is formed on behaviours to see, observe, and research of the prices, share market, and opportunities both directly observing to changing social phenomena and using internet facilities. Also, they efforts to seek the information by sharing among the actors, especially that was happen to group of the entrepreneurs which has chance to communicate at the mutual meeting that is monthly arisan forum.

Table 5 Aquisition of Information/Knowledge of the Actors
The actors Aquisition of information /knowledge
Internal External
Qulinary
Gemawang
Observe share market and chance
Sharing among the members
Training
Accompaniment
Facilitation of the local managers
Batik
Gemawang
Observe share market and chance
Using internet and mass media
Sharing among the actors relevant
Training
Facilitation of the Centre of The Entrepreneurship Development
Educative Game Tools
Gemawang
Observe others product
Sharing among the actors relevant
Facilitation of the local mangers and community educators
Qulinary
Karangrandu
Sharing among the members
Self-learning, through using internet
Training from other sides
Facilitation of the social workers
Seed Catfish Cultivation
Sukoharjo
Informal learning
Sharing among the members
Utilization of mass media
Facilitation of the social workers
Training from other sides
Wholesaler as informant the price

Information or knowledge has been achieved as result of the good relation to the other sides, namely local manager, facilitator, relevant institution, and wholesalers who has been recognized. Facilitators and related organizations gave information about availability of resources that could be accessed, improvement of the enterprise capacity, and management of the conducive group. Local managers gave information for the actors especially exhibition programs which will be done in context of the celebration of International literacy Day and the visit programs from outsiders. The government organizations i.e. Agency of Industry, Trade, and Entrepreneurship and Micro Enterprise, located in Semarang Regency, Agency of Fishery and Marine, in Pati regency, and Board of Women Empowerment and Family Planning, Jepara Regency frequently provided trainings in order to quality improvement of the activities, effectiveness, group organizing, and other skill. The others interesting is to actors of the seed cultivation, change or fluctuation of the seed price in the market could be known from wholesalers.

Experiences gained by the actors which has participate in training program delivered to other members of the group both in routine meeting and informal interactions daily. But, knowledge transfers is not a guarantee of the values, understanding, and skills useful could be performed by all of them. There are determining factors includes different interest, implementation chance, teamwork, technology, facilities owned, professional obstacles, and culture of organization that can cause the process is not succeed or happened (Cunningham et al., 2004). For instance, on the culinary group, Karangrandu, it is not all of the members applied the knowledge that has been given by training organizers or managers because of the material required difficult gained in the surrounding, and consideration that products resulted will have expensive price, so that, it is worried unable purchased by consumers. The same on group of the seed cultivation, technology application or spawning technique such as use of enzyme of the feed was not directly applied because of scare of failing in their business.

Besides that thing above, they gave frequently information or knowledge to community members who want to learning. They acted as facilitator in a certain teaching process or as sources of learning which was visited and observed by them. As example, the Batik producer, group the culinary in Gemawang, and group of the seed cultivation shared knowledge and skills about how their business became succeed to community members both individual and collective. Its means that teaching-learning behaviour to other persons declared that although it is not be a primer function, the actors have contribution to improvement of the entrepreneurial concept or understanding of the productive actions in community living.

Based on the information above, it could be inferred that the actor are more dominant doing informal learning, and tends to receive information and knowledge though to participate into learning process which is provided by other sides especially it is relevant to production technique, management of funding, marketing, etc. performed by themselves. Generally, they could not yet manage educational activities which is based on micro demand/problem at each of them and planned in order to generate new understanding useful and applicative. So, learning culture and behaviour must be an alternative for aids them to more be professional entrepreneurs and gives benefits continuously.

Benefits of Social Capital Utilization

Social capital has role in entrepreneurship activities. It can be divided into: a) bonding social capital that ties up the actors in organization or certain environment, b) bridging social capital means that could be bridge between the actors and the external sides in their milieu both individuals and organization, and c) linking social capital that focus on relations of the actors with government or institution at the top level (Woolcock, 1998; Field, 2005). Related to this, Table 6 claims that they could achieve economic and social benefits of the relation tied among them and/or with other sides.

Table 6 Benefits of the Social Capital Utilization
The actors Social Capital Benefits
Bonding Bridging Linking
Qulinary
Gemawang
Strengthening pirukunan and trust each other’s
Growing up the consciousness for improvement and happiness
Enlargement of:
Product marketing
Capital
Knowledge of the business
Having marketing facilitation of the members product
Achieving new understanding
Developing business network
Gaining legality
Batik
Gemawang
Kept commitment and responsibility of the workers Improvement to: a) innovative products, business network
Providing new experience
Be an educator/trainer
Increasing funding
Getting new experiences
Gaining legality, reputation
Educative Game Tools
Gemawang
Created pirukunan between the actors and his workers Knowledge improvement achieved through sharing Increasing funding and facility of the mutual business
Gaining legality of the group
Culinary
Karangrandu
Developing togetherness, and happiness Enlargement of the culinary knowledge, safe family reproductions of the members Developing the members knowledge
Gaining legality of the group
Seed Catfish Cultivation
Sukoharjo
Developing togetherness, trust, and consciousness of business Be learning source
Developing the members knowledge
Improving of knowledge and fund
Gaining of the legality acquisition

According to Table 6, it can be known that positive relation of the actors who was studied could result merits namely gained consciousness to develop, created togetherness more conducive, grows up trust, achieved happiness on groups, and enable strengthening of pirukunan among the members as form of the social cohesion. Positive relation to the others side who has relevant or same activities and/or in living of the industry allied could give benefits to them or the organization that are quality or competency of them which is realized in improvement of possession of the new knowledge and skills in field of production techniques and management of enterprise, acquisition of business legality, enhancement of funding and facilities, and development of trust and happiness. While, the linking relation that was built could increase funding and facilities of their business as capital of the group, gain reputation or legality, and enrich new knowledge.

The target of the CEE achieved benefits from the social capital utilization done by them although there are difference intentionality or quality. That’s caused by several factors. The findings shows that first, high competencies could be able for achieving benefits of the relation built such as the Batik entrepreneur is more creative and has access largely to banking than the culinary actors in Karangrandu that was not understand to the access of resources and lacks of brave attitude to take a risk, for example, in getting aids or funding loans to develop the members business. Seconds, group leadership determine living of the business as it happened to group of the seed cultivation in Sukoharjo. The leadership was viewed that it could be find problem solution of the seed selling when the supply was huge so results over production. Third, local government was not support optimally to the group to more success, so that, they have limited chance for using facilities was provided by the government such as for product selling or market as it experienced by the culinary group in Karangrandu.

Result and Discussion

Implementation of the CEE in society needs assets or capital that could be utilized in form of social capital, beside human capital and cultural capital. This can’t not separate from paradigm shift or thought of community development and/or education recently. Emerging the paradigm that is rely on the urgency of social energy, that is change in thinking of development which is focused to human capital to the process based on social capital and/or cultural capital. The first paradigm assessed that had deficiency that is more emphasize to development of cognitive aspect and skills which could be form human resource individualistically. The individualistic competence will be not an advantage without the social capital, as known that the capital itself is meant as everything is produced from interactions among individuals or communities which incur profits, guided by values and norms, trust, and commitment.

Someone can be a successful entrepreneur determined by how much human capital and social capital he has, especially in complex and rapidly changing environment. Neace (1999) declared that human capital of the entrepreneurs including of visionary, self-confidence, knowledgeable, ambition, charisma, and have experience or skills, and social capital contributed to success of the entrepreneurs consist of association they have, trust in organization and among individuals, mutual mediated network, and use of information. Having human capital of them is not enough, although it was urgent factor. That means, social capital was its determinants due to entrepreneurship competency (Figure 2) would not be beneficial if they cannot expands positive interaction with the others (Westlund & Bolton, 2003) or it could be claimed that business achievement that is to know new idea plus understanding of “how” and equipped by knowing of “who” (Bridge, 2013).

Figure 2 Social Capital Competency

In context of the CEE management that has been conducted to its target groups, the finding shows that the educational programs or curriculum which is studied, generally, was more oriented to human capital embodiment of the target groups rather than create the social capital one. Its seem from proportion of them which more dominated by substances that accentuate development of the technical capacity of entrepreneurship such as production process, development and marketing of product, and other technical skills. It means that the education implemented was less designed for encouraging of networking capacity, work together, synergy, and growth of trust, and sharing of knowledge as happened to the target group in Karangrandu and Sukoharjo. The formation that is not well results effect, that is, the learning output in the form of the application of entrepreneurship capacities which has been possessed by the target group are less developed optimally.

As known that the CEE was hoped at finally to result entrepreneurs who can produce products/services useful for progress of their life and environment, so the CEE has to able to create individuals or groups who initially they are a potential person, become nascent entrepreneurs, be owner of new business, and finally be owner of the business which will being progress (Singer et al., 2015). The creation process of the individuals must be conducted by giving learning experiences and educational facilities that enable them implement values, knowledge, and skills of entrepreneurship which belonged. Related to it, the implementation of the CEE on each target groups has tried to facilitate of the target groups which basically utilize social capital, for example, by established group of mutual enterprise, and gave capital aid allocation which could be used by the group. Even on the CEE located in Gemawang, development program of funding of the micro business was be planned as form the follow up in context of guarantee of learning output. But unfortunately, funding policy of the education on the national level become one cause of the planning could not be done. This fact is shows that utilization of social capital on the education implementation was influenced by regional policy or national one in which the education performed (Grootaert & Van Bastelaer, 2002).

Although it was not in optimal result, the target groups who has educated and developed by the CEE initiators could be act to utilize social capital. As information of the groups studied, it can be inferred that they did the activities which tends to achieve their business success. They developed and preserved positive values, norms, and commitment with others both internally and externally, improve trust, enlarge networks of business, and increase information and/or knowledge management. As its consequence, they gained benefits that support the wealth of himself which are includes improving knowledge of business, developing business network, gaining capitals, and improving productivity of their business management.

Therefore, the CEE as educational constructive effort to realize successful entrepreneurs needs to be organized with an approach oriented to the utilization and development of social capital. This educational process needs to be directed at the mastery and the development of social entrepreneurial competencies that include: values and norms mastery, positive commitments in developing the business, ability to develop trust, ability to build networks, and ability to manage information and/or knowledge. Consequently, in the aspect of curriculum or syllabus, the material delivered through intra curricular or extracurricular is not necessarily oriented to the creation of entrepreneurial technical competencies. However, it must be comparable to the development of networking skills, the development of value, trust, and commitment, and the development of skills in managing information and/or knowledge. The learning process must also be based on the approach that situates the target group as active individuals, enables dialogue, open communication, and avoids the domination of certain parties. Cooperative learning methods, project-based learning and experimental-based learning need to be done in the learning process complemented by the creation of business incubators and the support of pure partnership with various parties. In addition, in ensuring the success of this education, sustainable evaluation process needs to be implemented before, during and after the education process based on participatory principles, self-reflection principles, and meaningful principles.

Conclusion

Based on the finding stated above, it can be concluded that utilization of the capital had been done by the target groups. The utilization happens dominant at pasca of the learning. Social capital which was created and developed by them is realized on relations of friendship, interest of business, and legality. In running of their productive business, they promoted positive values, norms, and commitment which bolster the success of business; expanded trust based on authenticity of their self and business, product or services quality, service given on the activities, and legality; enlarged the network both horizontally and vertically for gaining resources and the achievement; and performed efforts to get information and communication through self-learning activities which refer to each of their needs and taken part of the education held by the other sides. The utilization gives something beneficial that be able to escalate their business. The benefit that was reachable includes cultivation of the group cohesivity, establishment of responsibility and commitment better, resources for production or management, renewal of knowledge of and extension of network of their business.

The CEE performance or management and the entrepreneurship education generally, will not be successful if is only focus to development of the learning process which is intended to creation of individuals quality who has functional competency or technical entrepreneurship skills. Therefore, the CEE that will be managed including life skills-based non formal education, have to applied by prioritizing embodiment of entrepreneurship capacity which represent social capital based competency well besides develop human capital-based one, so that enables the target group could rapidly apply their learning outcome and achieve accomplishment they want.
Quality development of the target groups that according to expectation must be balanced by implementation of education programs that are more rely on the process which is based on mutual values, trust each other’s, commitment and on educated humanistic relations. Finally, existence of the CEE development which have basic of utilization and improvement of social capital will be easily to guarantee enlargement of community successful and improve participation of the others both individuals and organization in context of the creation of social wealth.

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