Course 5 - Entrepreneurship and Social Economy

1. Entrepreneurship
and Social Economy
Authored By: Vierri Christian
Submitted to: Johan Jang

2. Defining Social Economy
According to Balta BC (n.d.) the term social economy is used by groups of people who creates a enterprise not
only to gain economic gain, but also set objectives for themselves to pursue the social and economic needs for
the society. These businesses could be in various types like non-profit and volunteer organisations, for-profit,
community enterprise, charities, and social enterprises.
The existence of Social economies are purely to pursue both economic and social goals which businesses tend
to achieve to create a better life for people around them. One way of these enterprises helping could be through
creation of jobs, where unqualified people are being given jobs to help them survive (Balta BC, n.d.).

3. Importance of MSME and Business Start ups
to Social Economy
Micro, Small, and Medium Enterprises and business start-ups plays a important role in assisting the growth of
social economy. It is also important especially in developing countries as it helps decrease the rate of poverty in
the country, and also drive them to achieve sustainable growth. Some examples of social goals being achieved
are helping create jobs for unemployed people, help poor people in getting better healthcare in
(under)developing countries, and help children get education (Singh and Venkata, 2017).
According to the data by Singh and Venkata (2017) shown
in the chart, MSME businesses has helped employments in
every region, most impacted being in East Asia with a total
of 73% Total employment, and almost every region has
above 40% of Total employment, excluding High Income
OECD countries and South Asia, being at 33% and 15%.

4. In Indonesia, these enterprises are called Usaha Mikro, Kecil, dan Menengah (UMKM). As Indonesia is
considered a developing country, UMKM businesses has created a huge impact in employment of Indonesia. As
of 2013, Badan Pusat Statistik (BPS) has recorded a total of 57,895,721 units of UMKM businesses being held
in Indonesia, and has contributed 6,03% of growth in employment (Badan Pusat Statistik, 2016).

5. Example of a Business Start up Contributing
Indonesia
One example of business start up in Indonesia is Garda Pangan, a food bank based social enterprise which helps
the people of Indonesia to have proper foods to eat. They collect leftovers of foods and reconstruct it, making
sure the quality of food is still edible for people. The foods shared by Gardu Pangan are usually to orphanages
or to residents who are in need (N,S, 2018).

6. Example of a Business Start up contributing
Society
An example of business start up contributing to the society in the world is the Laughing Man Foundation. A
business created by actor Hugh Jackman and David Steingard. 100% of the profit of the business goes to
funding educational institutions and create programs in social communities in the world. As of 2018, they are
currently investing in housing improvements and giving college scholarships for children in Hulia, Colombia
(LaughingManFoundation, n.d.).

7. References
Balta B.C (n.d.). What Is Social Economy : BALTA. [online] Socialeconomy-bcalberta.ca.
Available at: http://www.socialeconomy-bcalberta.ca/social-economy/ [Accessed 23 Nov. 2018].
Laughing Man Foundation (n.d.). Laughing Man Foundation. [online] Laughing Man
Foundation. Available at: https://www.laughingmanfoundation.org/ [Accessed 23 Nov. 2018].
N, S. (2018). Ini Lah 16 Start-Up Indonesia Terbaik Tahun 2017 Versi Koran Tempo | Good
News from Indonesia. [online] Good News From Indonesia. Available at:
https://www.goodnewsfromindonesia.id/2018/01/09/ini-lah-16-start-up-indonesia-terbaik-tahun-2017-ve
rsi-koran-tempo [Accessed 23 Nov. 2018].

8. Singh, A. and Venkata, N. (2017). [online] Microsave.net. Available at:
http://www.microsave.net/files/pdf/BN_168_MSMEs_Contribution_to_Local_and_National_Economy.
pdf [Accessed 23 Nov. 2018].