Knowledge-Based Social Entrepreneurship and The Creation of Social Enterprises’ in South East Asia: Indonesian Cases

Abstract

This paper aims to elaborate further the concept of Social Engineer based on three typologies of Social Entrepreneurs suggested by Zahra et al (2009) which states that a revolutionary social change done by social entrepreneurs usually must confront some parties whose its status quo so is disturbed which in turn potential to cause conflict. Based on our empirical research through fieldwork, we conclude that both cases are successful in avoiding unnecessary confrontations. This is because of the role of social cosmopolitan entrepreneur actors who approach large scale community by taking into account of the global ideals while building communities’ capability to ensure its independency and sustainability by recognizing their core problems. In two cases examined through qualitative approaches, the two global ideals are (1) the application of John Elkington’s concept of Triple Bottom Line CSR of a pulp & paper company in Riau, Sumatera, Indonesia to the communities surrounding the company; (2) the implementation of the 10 principles of Fair Trade by a limited liability company in Ubud, Bali, Indonesia to the craftsmen communities. These cosmopolitan entrepreneur actors are successful in combining knowledge about what the Global world demands (“global ethics”) and how to implement it to the communities’ core needs in their own way (“local wisdom”) harmoniously by adapting community approach.