social economy

1. Smart City Jakarta
Introduction to
Entrepreneurship
Lecture 5: Social Economy

2. Social Economy

3. Social Economy
Social economy broadly speaking describe sector of market that operate between public and private sector
(Parliament, 2016). Although there no official definition, there are distinct framework that differentiate social
economy form other enterprise. The element are made based on “social economy test”, that are:
The primacy of the person: the social economy is primacy based on individual and the social objectives over capital,
Sustainable growth: the main aim of the social economy activities does not stress to gain profit, but distribution of
wealth to owner is the main objective
social and economic balance: in practicing their activities, social economy user aim more on social aims, and
democratic governance and ownership: social economy main function are arrange in accordance of democratic,
transparency and participatory decision making process. The social economy are based on individuals that has
grouped and decide to collaborate volutorary, co-operative and reciprocal basis; owning the capital does not
conclude the decision-making process.

4. Social Economy Impact
Social economy initiative are based on primary principal of people’s need. The judge whether
social economy is a success or not are based on the amount of benefit created for the wider
community in term of number job: number of people join voluntary or learning capacity;
benefits to the producer and user and the ability to turn in income inside the community. Social
economy is about effectiveness cooperation, interdependence. In the context of social economy
and active participant of citizen and the economy well being in the community, concerned about
creating an egalitarian, inclusivity and a full democratic society that advocate for social justice,
equality in term of fundamental and opportunity (Amin et al., 2002).

5. Example of Social Economy
Such as, DU’ANYAM is a social enterprise that create and distribute wicker craft to economically
liberate and improve health of woman undeveloped area in Indonesia. First establish in 2014,
started as a project in Larantuka City, East Nusa Tenggara Province, Indonesia, one of the
poorest area in Indonesia with the one of the highest maternal and newborn mortality rate. In
this, DU’ ANYAM see an opportunity to address maternal & newborn problem by using the
existing wicker weaving traditions and giving an alternative job opportunity other than
subsistence farming for pregnant women (D'UANYAM, n.d.).