Authors : Mirsa Istiharoh and Setyabudi Indartono
Abstract: The existence of a home industry in the Indonesian economy is felt to be very important, especially in aspects of employment opportunities, income distribution, economic development in rural areas and others. Unfortunately, the existence of a cottage industry is now increasingly threatened with the many large industries that are almost spread throughout the city. This study identifies aspects of social capital; networks, norms and values of trust used by home industry entrepreneurs to maintain their industrial existence. This research approach uses a qualitative approach. The theory used to study this phenomenon is Coleman and Robert Putnam’s social capital theory. The results of this study indicate that the main constraints faced by the home industry are the aspects of business capital and marketing. The use of social capital, trust, networks, values and norms is felt to be very helpful in maintaining the existence of a home industry.
Mirsa Istiharoh and Setyabudi Indartono, 2020. The Role of Social Capital in Maintaining the Existence of Home Industry. The Social Sciences, 15: 288-294.