Social enterprise is started by a social entrepreneur. According to Dees (2001), “social entrepreneurship” combines the passion of a social mission with an image of business-like discipline, innovation, and determination commonly associated with. The hybrid model of social and profit-making enterprise has been the hallmark of social entrepreneurship, as Dees adds (2001), “In other words, social entrepreneurship utilizes entrepreneurial approaches to unravel social problems.’’
In addition to innovative social business ventures, social entrepreneurship can include social-oriented business ventures, such as for-profit community development banks like Grameen Bank founded in 1983 developed by Prof. Muhammad Yunus in Banglades the 2006 noble peace prize and laureates, and hybrid organization, mixing not-for-profit and for-profit elements, for instance, some homeless shelters, businesses that train and employ their residents. Another example is the case of BNPT (Bank Tabungan Pensiunan Nasional) Indonesia which emerged as a dedicated micro credit bank since 1958 and was founded by ex-military pensions serving retired military personnel with desire to help them have a better life and to free from the fear of injustice and exploitative loans. After being acquired by TPG in 2008, BTPN[1] sharpened its business focus on mass market to serve “the bottom of the pyramid” consisting of pensioners, micro-business owners, and productive poor. The concept of social enterprise helps to broaden the playing field for those less fortunate. Social entrepreneurs look for the most effective method of serving their social missions (Dees, 2001). The author concludes a tentative definition regarding social enterprise as an organization which uses a business concept as a tool to achieve its social primary goals.
Historically, in Indonesia, during the four decades (1899-1942) better known as the “National Awakening Era’’, there was evidence of the relationship between social movement for independence and the growth of social entrepreneurship in Indonesia as derived from Sri Rahayu’s[2] research. The social enterprises were such as The Prominent and Historical Social Enterprises of Kartini Schools[i], in which she used innovative solutions to overcome societal problems faced by women at that time. Indonesians also saw leading intellectuals and social entrepreneurs such as Samanhudi, H.O.S Tjokroaminoto, K.H. Ahmad Dahlan and many others spurring social movements to unprecedented heights. The organizations they set up played a huge role in shaping Indonesia’s socio-cultural, economic and political developments (Sri, 2012).
The National Awakening period from 1895 to 1945 was a period which saw unprecedented social entrepreneurship growth as a response to increasing nationalist sentiments among native leaders (Sri, 2012). Sri Rahayu describes clearly how traditional movement with social enterprise concepts increasingly emerged, such as Kartini Schools, Sarekat Dagang Islam, Sjarekat Oesaha, Muhammadiyah, Nadhatul Tujar (Current nadlatul ulama), Taman Siswa, and Himpunan Saudagar Indonesia. Those non-state actors or civil societies had benefited the society at large and contributed significantly to national awakening, and had increased exponentially to the national as well as local resilient and gave birth to national movements to gain independence in order to attain justice and provide economic and social security to native Indonesian as an alternative development promoted by colonial repression and pressure during Dutch colonialism (Kelch, 2014)[ii].
By creating welfare and increasing [social cohesions-social capital] among Indonesian natives, the social enterprise could reduce its social and economic vulnerabilities thus gaining improvement on social and economic and increasing local bargaining position compared to what the Dutch could offer, which was under economic depression during that period. The situation was described as “The economic recession led the Dutch government to cut its expenditure and allow social movement organizations to provide critical services such as education and financing. This gave them, almost instantly, a greater networking capacity with the local communities which helped to accelerate their growth (Sri, 2012) [iii].
From above texts, it can be understood how social enterprise’s emergence in Indonesia can be traced back since national awakening period in the traditional forms that had provided a significant impact although no research could provide more explanation on how significant the contributions were. However, the texts could explain how the non-state actors, the traditional social enterprises, could thrive and influence human security of the vulnerable society amidst difficulties during the colonial repressions and backwardness of the socio-economic developments of individuals and communities.
[1] https://www.linkedin.com/company/pt-bank-tabungan-pensiunan-nasional-tbk
[2] Sri Rahayu is one of lecturers & researchers in Management faculty of University of Indonesia
1. [i] Sri Rahayu Hijrah Hati and Aida Idris. 2012. Social movement and social enterprise development in Indonesia, 1895-1945. Proceedings of Asia-Pacific Economic and Business History Conference, Canberra, 16- 18 February. https://apebh2012.files.wordpress.com/2011/05/apebh-text-of-paper-sri-rahayu-hijrah-hati.pdf retrieved 4/10/2015
2. [ii] Kristina Kelch, 2014. Becoming history. Taman Siswa and its influence on the Indonesian National Education. University of Leiden. https://openaccess.leidenuniv.nl/bitstream/handle/1887/29534/KristinaKelchMasterThesis%20final%20version.pdf?sequence=2 retrieved in 4/30/2014 at 4.46 a.m
3. [iii] Sri Rahayu Hijrah Hati and Aida Idris. 2012. Social movement and social enterprise development in Indonesia, 1895-1945. Proceedings of Asia-Pacific Economic and Business History Conference, Canberra, 16- 18 February. https://apebh2012.files.wordpress.com/2011/05/apebh-text-of-paper-sri-rahayu-hijrah-hati.pdf retrieved 4/10/2015
Source: Master thesis: ''Social enterprise potential on human security through social capital'', by Luqman Abdurrahman- Indonesia defense university
In addition to innovative social business ventures, social entrepreneurship can include social-oriented business ventures, such as for-profit community development banks like Grameen Bank founded in 1983 developed by Prof. Muhammad Yunus in Banglades the 2006 noble peace prize and laureates, and hybrid organization, mixing not-for-profit and for-profit elements, for instance, some homeless shelters, businesses that train and employ their residents. Another example is the case of BNPT (Bank Tabungan Pensiunan Nasional) Indonesia which emerged as a dedicated micro credit bank since 1958 and was founded by ex-military pensions serving retired military personnel with desire to help them have a better life and to free from the fear of injustice and exploitative loans. After being acquired by TPG in 2008, BTPN[1] sharpened its business focus on mass market to serve “the bottom of the pyramid” consisting of pensioners, micro-business owners, and productive poor. The concept of social enterprise helps to broaden the playing field for those less fortunate. Social entrepreneurs look for the most effective method of serving their social missions (Dees, 2001). The author concludes a tentative definition regarding social enterprise as an organization which uses a business concept as a tool to achieve its social primary goals.
Historically, in Indonesia, during the four decades (1899-1942) better known as the “National Awakening Era’’, there was evidence of the relationship between social movement for independence and the growth of social entrepreneurship in Indonesia as derived from Sri Rahayu’s[2] research. The social enterprises were such as The Prominent and Historical Social Enterprises of Kartini Schools[i], in which she used innovative solutions to overcome societal problems faced by women at that time. Indonesians also saw leading intellectuals and social entrepreneurs such as Samanhudi, H.O.S Tjokroaminoto, K.H. Ahmad Dahlan and many others spurring social movements to unprecedented heights. The organizations they set up played a huge role in shaping Indonesia’s socio-cultural, economic and political developments (Sri, 2012).
The National Awakening period from 1895 to 1945 was a period which saw unprecedented social entrepreneurship growth as a response to increasing nationalist sentiments among native leaders (Sri, 2012). Sri Rahayu describes clearly how traditional movement with social enterprise concepts increasingly emerged, such as Kartini Schools, Sarekat Dagang Islam, Sjarekat Oesaha, Muhammadiyah, Nadhatul Tujar (Current nadlatul ulama), Taman Siswa, and Himpunan Saudagar Indonesia. Those non-state actors or civil societies had benefited the society at large and contributed significantly to national awakening, and had increased exponentially to the national as well as local resilient and gave birth to national movements to gain independence in order to attain justice and provide economic and social security to native Indonesian as an alternative development promoted by colonial repression and pressure during Dutch colonialism (Kelch, 2014)[ii].
By creating welfare and increasing [social cohesions-social capital] among Indonesian natives, the social enterprise could reduce its social and economic vulnerabilities thus gaining improvement on social and economic and increasing local bargaining position compared to what the Dutch could offer, which was under economic depression during that period. The situation was described as “The economic recession led the Dutch government to cut its expenditure and allow social movement organizations to provide critical services such as education and financing. This gave them, almost instantly, a greater networking capacity with the local communities which helped to accelerate their growth (Sri, 2012) [iii].
From above texts, it can be understood how social enterprise’s emergence in Indonesia can be traced back since national awakening period in the traditional forms that had provided a significant impact although no research could provide more explanation on how significant the contributions were. However, the texts could explain how the non-state actors, the traditional social enterprises, could thrive and influence human security of the vulnerable society amidst difficulties during the colonial repressions and backwardness of the socio-economic developments of individuals and communities.
[1] https://www.linkedin.com/company/pt-bank-tabungan-pensiunan-nasional-tbk
[2] Sri Rahayu is one of lecturers & researchers in Management faculty of University of Indonesia
1. [i] Sri Rahayu Hijrah Hati and Aida Idris. 2012. Social movement and social enterprise development in Indonesia, 1895-1945. Proceedings of Asia-Pacific Economic and Business History Conference, Canberra, 16- 18 February. https://apebh2012.files.wordpress.com/2011/05/apebh-text-of-paper-sri-rahayu-hijrah-hati.pdf retrieved 4/10/2015
2. [ii] Kristina Kelch, 2014. Becoming history. Taman Siswa and its influence on the Indonesian National Education. University of Leiden. https://openaccess.leidenuniv.nl/bitstream/handle/1887/29534/KristinaKelchMasterThesis%20final%20version.pdf?sequence=2 retrieved in 4/30/2014 at 4.46 a.m
3. [iii] Sri Rahayu Hijrah Hati and Aida Idris. 2012. Social movement and social enterprise development in Indonesia, 1895-1945. Proceedings of Asia-Pacific Economic and Business History Conference, Canberra, 16- 18 February. https://apebh2012.files.wordpress.com/2011/05/apebh-text-of-paper-sri-rahayu-hijrah-hati.pdf retrieved 4/10/2015
Source: Master thesis: ''Social enterprise potential on human security through social capital'', by Luqman Abdurrahman- Indonesia defense university