Can Community Empowerment Leverage People's Income? Does Business Capability Play a Role?

Abstract

Until today, there have been so many community empowerment programs to achieve prosperity, but most of which cannot meet the expected outcome. On this basis, this study is aimed to seek for the possibility whether business cability can be a good mediator on mediating the effect of community empowerment on local community income. Through an applied quantitative method, this study analyzed the issue using structural equation model. The result, however, shows that business capability could not mediate the effect of community empowerment on local community income. Further study is, thus, needed to explore the determinants of local community income. Keywords—community empowerment, business cability, local community income