Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


Social Capital as the Foundation of the Integrated Independent Development

Author(s): Teddy Febrian, I Made Weni, Praptining Sukowati

Social capital is a determinant for unequal regional development and is needed in human, social, economic, and political fields. The capital, such as trust, social networks, and community norms or values has advanced to include factors that have direct and important impacts on regional development. Therefore, this study analyzes social capital as a basis for development in Sangatta city, East Kutai Regency, and also identifies the supporting and inhibiting factors. A qualitative descriptive method was used to collect information about real and current situations, which were then analyzed according to Moleong’s technique that focused on field processes. The results showed that public trust in regional development displayed strong support in terms of facilities, education, and health. Also, the norms or values in society were formed from diverse ethnic groups, religions, and regional origins. Therefore, the complexity of forming social networks based on kinship and common political views has an impact on efforts to support or hinder regional development. The supporting factor for regional development in North Sangatta is that the area is a center for offices, government, and the economy. It is also the main location in East Kutai to attain work or business opportunities. Meanwhile, the inhibiting factors were limited budgets, population, and the suboptimal implementation of regional regulations. Consequently, these factors are the realities experienced in making social capital a basis for regional development in Sangatta city.

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