The community empowerment strategy and its role in the entrepreneurial spirit and business sustainability

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

To achieve long-term sustainability, human resources (HR) are considered as a crucial factor in reaching this goal. The entrepreneurial spirit fostered through community empowerment, is believed to be a vital element in attaining long-term business sustainability. This study examines the entrepreneurial spirit’s role in enhancing business sustainability through group empowerment programs using the case of entrepreneurs in the Trangsan rattan industrial cluster in Sukoharjo, Central Java, Indonesia. By utilizing multiple regression analysis, the study posits that community empowerment plays a key role in connecting entrepreneurial spirit with the sustainability of businesses. The findings underscore the critical role of entrepreneurial spirit in sustaining joint businesses, particularly in Trangsan, an important rattan industry hub in Indonesia. It suggests that community-level programs and policies can enhance the impact of entrepreneurial initiatives, leading to sustainable industrial clusters. Thus, interventions aimed at empowering individuals with high entrepreneurial spirits could be transformative for Trangsan’s rattan craft industrial cluster. The study’s findings validate the proposed hypotheses and offer practical insights for stakeholders, policymakers, and entrepreneurs in Trangsan.

Keywords: Entrepreneurial Spirit, Business Sustainability, Community Empowerment, Rattan Industrial Cluster

Authors’ individual contribution: Conceptualization — S. and T.H.; Methodology — S. and T.H.; Validation — S. and R.B.R.F.; Writing — Original Draft — E.D.P.; Writing — Review & Editing — S. and E.D.P.; Supervision — R.B.R.F.; Funding Acquisition — T.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: O1, O2, O4

Received: 17.02.2024
Revised: 17.05.2024; 22.01.2025
Accepted: 07.02.2025
Published online: 11.02.2025

How to cite this paper: Sarjiyanto, Haryono, T., Radin Firdaus, R. B., & Paska, E. D. (2025). The community empowerment strategy and its role in the entrepreneurial spirit and business sustainability. Corporate Governance and Sustainability Review, 9(1), 32–41. https://doi.org/10.22495/cgsrv9i1p3