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COMMUNITY EMPOWERMENT, SYNERGY AND SOCIAL ENTREPRENEURSHIP

COMMUNITY EMPOWERMENT, SYNERGY AND SOCIAL ENTREPRENEURSHIP. By : Bambang Isma wan ISEA Symposium on Social Entrepreneurship and NGO Sustainability January 2 1, 2013. Great News !. The Econom y of Indonesia growth 6,5%

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COMMUNITY EMPOWERMENT, SYNERGY AND SOCIAL ENTREPRENEURSHIP

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  1. COMMUNITY EMPOWERMENT, SYNERGY AND SOCIAL ENTREPRENEURSHIP By: Bambang Ismawan ISEA Symposium on Social Entrepreneurship and NGO Sustainability January 21, 2013

  2. Great News ! • The Economy of Indonesia growth 6,5% • Inflation rate 2011 3,79%, far lower than 2010 that reach 6,96%, lower compare to BRIC countries • Indonesia appreciated very well in investment grade by lFitch Rating, after 14 years. • Government Debt Rate (25,70) is lower compared to other ASEAN and other center of Development Countries 2

  3. 52% Villagers still living with Bad Sanitation 36% Urban Population without Clean water Access

  4. Every 2 hours, one woman dies after delivering baby because of Bad Health Service

  5. 51 Millions Business Entity in Indonesia are Micro Enterprises, owned by the poor give living for 200 Million People

  6. Are They LAZY?

  7. They WORK HARD!

  8. What is THE RESULT? Business Stagnant Till Old Malnutrition Bad Sanitation

  9. What is THE RESULT Difficult to get health care Low Quality Education

  10. The poor are not the have-nots They are the have-little

  11. PARTICIPATION CAPITAL PRODUCTIVITY INCOME ACCESS TO DEVELOPMENT ORGANIZATION TERM OF TRADE DISCREPANCY BARGAINING POSITION HUMAN RESOURCES TECHNOLOGY POVERTY KEY WORDS

  12. POVERTY KEY WORDS P A R T I C I P A T I O N TERM OF TRADE INCOME CAPITAL PRODUCTIVITY HUMAN RESOURCES TECHNOLOGY BARGAINING POSITION ORGANIZATION DISCREPANCY ACCESS TO DEVELOPMENT

  13. MUHAMMAD YUNUS(2006 Nobel Peace Prize Laureatte) "When there is widespread poverty and social injustice, Social Entrepreneurship is the answer"

  14. ENTREPRENEUR Can be classified into two : • Business entrepreneur • Social entrepreneur The basic difference is the use of both profit • Business entrepreneur : profit for share holder • Social entrepreneur : the benefits for stake holder

  15. ENTREPRENEUR Creating Wealth and Social Justice Evian, 2008

  16. SOCIAL ENTREPRENEURSHIP Social entrepreneurshipis social development with entrepreneurship solution. Social development : is a development effort that includes aspects of poverty alleviation, productive employment &social integration. Bambang Ismawan

  17. INITIATING THE SOLUTION #1

  18. SOCIAL ENTREPRENEURSHIP,THE BINA SWADAYA WAY

  19. BINA SWADAYA Empowerment Institution founded by Pancasila Farmers Association (IPP) on May 24, 1967 to empower the poor and the marginalized

  20. BINA SWADAYA The history: • Pancasila Social Movement Era (1954 -1974) • Socio Economic Development Institution Era(1974 – 1999) • Social Entrepreneurship Institution Era (1999 – present)

  21. 5FIELD OF ACTIVITIES • Community Empowerment • Microfinance Service and Development • Agribusiness Development • Development Communication • Marketing Promotion and Distribution

  22. FOCUS OF ACTIVITIES • Community Based Self Reliant Institution Development • Community Based Production Promotion and Development • Microfinance Services and Development

  23. Community Based Self Reliant Institution Development

  24. SELF HELP GROUPFunction Vehicle for : • Learning and teaching • Problem identification • Decision making • Resource mobilization • Communication with the 3rd parties

  25. SELFHELP GROUP MANAGEMENT INCOME GENERATING OPEN MINDEDNESS • TOWARD NEW IDEA • TOWARD NEW COOPERATION SHG • HOUSEHOLD MANAGEMENT • CAPITAL FORMATION • BUSINESS DEVELOPMENT DEMOCRATIC • REGULAR MEETING • CADER FORMATION • DEMOCRATIC BOARD ELECTION • ACCOUNTABLE ADMINISTRATION • PARTICIPATORY PLANNING, IMPLEMANTATION AND EVALUATION

  26. SELFHELP GROUP FACILITATION • SHG Facilitation intended to provide technical assistance. • The role of facilitator as: motivator, facilitator and communicator. • Facilitator must have commitment and competent, need adequate training.

  27. RESULTS • Direct facilitation: 3000 SHGs: 100,000 families • Indirect Facilitation: • collaboration with National Board of Family Planning: establish of 650 thousand UPPKS SHGs (13.5 million families) • collaboration with National Planning Board and Ministry of Home Affairs in the IDT program: establish of 120,000 SHGs (3.6 million families) • collaboration with Ministry of Agriculture: establish of 60 thousand (1.2 million families) SHGs of small farmers-fishermen (P4K) • collaboration with PerumPerhutani (State Owned Forestry Company: establish of 7000 Forest Farmers SHGs (Social Forestry project) • Promotion of SHGs in collaboration with CSR programs

  28. Community Based Production Promotion and Development

  29. Virgin Coconut Oil Red Fruit Louhan Fish Adenium Aglaonema Anthurium Community Based Production Promotion and Development

  30. Community Based Production Promotion and Development About 50 products • Cupang fish • Lobster • Longan • Tin Fruit • Mahkota Dewa • Jelly Gamat • Essential oils • Reptile • Durian • Sarang Semut • Nepenthes • Chili • Hydroponic Vegetables • Swallow • Sengon tree • Croton • Cassava • Catfish • Dragon fruit • Soursop etc.

  31. Community Based Production Promotion and Development Strategy: • Cooperation with research institutes • Writing in magazines and books • Training and consultation • Marketing promotions through Agro Expo • Managing Agricultural Shops and distribution units

  32. Microfinance Service and Development

  33. INDONESIA BUSINESS ENTITIES STRATIFICATION • Big Enterprise 4.370 (0,008%) • Medium Enterprise 39.657 (0,072%) • Small Enterprise 4.340.000 (7,88%) • Micro enterprise50.697.000 (92,04%) Total 55.081.027 Source: Ministry of SME and Cooperatives, Republic of Indonesia, 2010

  34. STRATEGIC POSITION OF MICROENTERPRISE

  35. ECONOMIC ACTIVITIES OF MICROENTERPRISE • Primary and secondary activities : agriculture, plantation, animal husbandry, fisheries (all are implemented in limited scale and subsistent), small craftsmen, tailors, snacks producers, etc. • Tertiary activities : transportation (in varied kinds), renting activities of houses, land, production tools, etc. • Distribution activities : small traders in traditional markets, peddlers, retail distributors and agent, and the like. • Other service activities : street singer, shoes polisher, haircutter, mechanics, garbage laborer, street photographer, and so on.

  36. The Importance of Micro Enterprise • Extraordinary number & having potencies to develop fast • Vulnerable,poverty will grow largely & become burdens of the nation, unless they are empowered • Loan to micro enterprise generate average income 87,34%per month (Mat Syukur, Dissertation 2002) • From a study of Small Enterprises indicates financing is a determent factor of 53% of the MicroEnterprises transformto Small Enterprises (JBIC, REDI, Bappenas, Development Alternatives)

  37. MICROFINANCE SERVICE MODELS • Saving Led Microfinance: capital mobilization from members’ saving • Credit Led Microfinance: start up capital from investors • Partnership: Linkage Program of Bank and SHGs • Micro Banking: BPR (Bank Perkreditan Rakyat)

  38. LEADERSHIP IN BINA SWADAYA

  39. Charlize Theron Daniel Craig

  40. DNA 98, 4% is the same, only 1.6% different

  41. BINA SWADAYA LEADERSHIPAccording to PROF. GEDE RAKA As a community organization Bina Swadaya uphold the values ​​of human dignity (respecting humanity), within the community, institutions, relationship with other parties, and Bina Swadaya members.

  42. LEADERSHIP THAT RESPECT HUMANITY KNOWLEDGE NETWORKING INTEGRITY COMPASSION

  43. INITIATING THE SOLUTION #2

  44. ROOTS OF POWERLESSNESS COLONIAL INHERITANCE INSTABLE GOVERNMENT DEPENDENCY TRAP • Powerlessness of the People • Poverty • Underdevelopment Massive Currency DEVALUATION Corruption, Collusion, Nepotism Natural Disasters Damaged Environment

  45. COLONIAL INHERITANCE • Colonization that aims to get maximum profit (Batigslot Politiek) to deplete natural resources causes of poverty and backwardness of the people • VOC, armed traders, control of the archipelago. • Cultur stelsel (1830), forced cultivation aggravate poverty. • Agrarische wet 1870, the entry of western capitalism.Economic dualism (Boeke)

  46. INSTABLE GOVERNMENT Governance System Trial & Error: • Liberal > < Guided Democracy • Presidential > < Parliamentary • Centralization > < Decentralization • Attraction range of interests (ideological, sectarian, regional)

  47. DEPEDENCY TRAP • Old Order : Party and Onderbouw System • New Order : Project System for Development Financing • Reformation : the two am. systems are working at the local level

  48. MASSIVE CURRENCY DEVALUATION 50.000.000.000 % for 67 years • In the 50-ies : ‘Sjafruddin’s Scissor’ Rp1000 to Rp500 (recede for 50%) • 1966: currency depreciation Rp1000,- into Rp. 1,- (recede100.000%) • 1967, US $1 = Rp84 – Rp100, average Rp.95 • 2012, US $1 = Rp9500 (recede 10.000%)

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