Social Entrepreneurship as a Catalyst for Indigenous Agro-Industrial Transformation

Authors:
Inez Cara Alexander Phoek, Hendrik Susanto, Simon Ebel Maris Phoek

Addresses:
Department of Business Management Study Program, Saint Theresa College of Economics, Merauke, South Papua, Indonesia.

Abstract:

Indigenous farming communities in remote rural areas often face structural constraints, including limited market access, weak institutions, and exclusion from modern agro-industrial value chains. While social entrepreneurship has emerged as an alternative development approach, empirical evidence on its transformative role within the indigenous agro-industry remains limited. This study examines how social entrepreneurship acts as a catalyst for agro-industrial transformation and community empowerment among indigenous farmers in Merauke, Eastern Indonesia. Using a qualitative exploratory case study design, data were collected through in-depth interviews, participant observation, and document analysis involving indigenous farmers, cooperatives, local social enterprises, and government stakeholders. The findings reveal that social entrepreneurship enables the creation of shared social and economic value through community-based agro-industrial models, eco-cultural product branding, and integrated indigenous cooperatives. These models strengthen farmers' economic autonomy, enhance social participation, strengthen indigenous institutions, and promote sustainable value chains. Moreover, the study demonstrates that embedding cultural values and collective governance within agro-industrial innovation increases resilience and long-term sustainability. This research contributes to social entrepreneurship and rural development literature by integrating empowerment theory into agro-industrial transformation in an indigenous context. The findings offer important policy implications for inclusive rural development, indigenous empowerment, and sustainable agri-industry in peripheral regions.

Keywords: Social Entrepreneurship; Indigenous Empowerment; Agro-Industrial Transformation; Indigenous Farming; Economic Changes; Rural Areas; Peripheral Regions; Social Participation.

Received: 16/11/2024, Revised: 06/02/2025, Accepted: 05/05/2025, Published: 09/09/2025

DOI: 10.64091/ATISL.2025.000205

AVE Trends in Intelligent Social Letters, 2025 Vol. 2 No. 3 , Pages: 142-151

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