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JOSS :

Journal of Social Science

CAPITAL CONVERTIBILITY: EMPOWERMENT STRATEGY FOR MICRO-

ENTREPRENEURS IN BABELAN VILLAGE, NORTH BEKASI REGENCY

Wimba Wisesa

, Robert M.Z Lawang

Universitas Indonesia Depok

E-mail: [email protected]

, [email protected]

KEYWORDS

Village development,

Convertibility, Capital

Convertibility

ABSTRACT

This research examines capital convertibility in Huripjaya Village,

Babelan District, North Bekasi Regency. Capital convertibility refers to

the ability of capital or economic resources to switch between forms or

sectors to improve societal welfare. The main objective of this research

is to analyze the dynamics of capital convertibility, the factors that

influence it, and its impact on village development. The research method

used was a combination of literature study, field observation, and

interviews with the main stakeholders in Huripjaya Village. The

research results show that capital convertibility in this village is

influenced by internal and external factors, including geographical

conditions, natural resources, institutions, and regional economic

development. Factors such as economic diversification, the role of

microfinance institutions, and community involvement in regional

decision-making play an important role in increasing capital

convertibility. Apart from that, the existence of community economic

training and education programs was also identified as a factor that made

a positive contribution to changes in the economic structure in Huripjaya

Village. In the context of development impacts, this research presents

findings that increasing capital convertibility can make a significant

contribution to improving the welfare of rural communities. This can be

seen in increasing community access to health services, education, and

better infrastructure. This research provides valuable insights for

policymakers, local governments, and other relevant parties to design

more effective and sustainable development strategies at the village

level. As a contribution to the rural development literature, the research

opens up space for further research in analyzing the factors affecting

capital convertibility in different geographical and social contexts.

INTRODUCTION

Indonesia has village-level administrative areas covered in Village Potential. including

villages, kelurahan, Nagari in West Sumatra, Transmigration Settlement Units, and

Transmigration Settlement Units (SPT) which are still being fostered by related ministries. The

results of the 2021 data collection recorded that 84,096 village-level government administrative

areas consisted of 75,584 villages, 8,461 urban villages, and 51 UPT/SPT. In addition, it is also

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known that the number of sub-districts is 7,274 and the number of districts/cities is 514

(Indonesian Village Potential Statistics 2021).

Village Potential 2021 data shows that the economic potential of villages/wards is 23,472

villages/wards that have superior goods products and as many as 2,385 villages/kelurahan that

export their superior products to other countries (Sumantri, 2011). Supporting the movement

of the economy is not only supported by physical facilities, but the support of credit facilities

and telecommunication network facilities is important today so that economic growth is faster.

The results of Podes 2021 show that there are 56,732 villages/kelurahan having People's

Business Credit, there are 12,649 villages/kelurahan having Joint Business Credit (KUBE),

there are 12,464 villages/ ward having Small Business Credit (KUK). The next Podes 2021

data shows that most villages/kelurahan in Indonesia work in agriculture, forestry, and

fisheries, namely 72,724 villages/kelurahan in addition, there are 4,450 villages/kelurahan

where most of the people work in the large/retail trade, and there are 3,151 villages/kelurahan

where most of the people work in the processing industry. The number of village/kelurahan

communities working in agriculture in Indonesia is supported by the existence of rivers,

irrigation canals, and reservoirs in villages/kelurahan (Ramadana, C. B., Ribawanto, H., 2017).

Of the 84,096 villages/kelurahan in Indonesia, there are 66,636 villages/kelurahan with rivers,

there are 35,926 villages/kelurahan with irrigation canals, and there are 12,813

villages/kelurahan with reservoirs (Indonesian Village Potential Statistics 2021).

Village development is one of the government's development focuses. This is

emphasized by the inclusion of village development in the government's nawacita. The

seriousness of the government can be seen from the allocation of State Budget funds which are

increasing and directed to village funds and village development (Sumpeno, 2011).

The seriousness of the government in village development efforts can be seen from the

increasing allocation of revenue from the State Budget for Village Funds. From the graphic

image accessed through https://djpk.kemenkeu.go.id/, it can be seen that the allocation of

village funds in 2015 was 20.8 T. then increased by 124.8% or 46.7 T in 2016. Then it increased

again by 28% or 59.8 T. Then from 2018 to 2021 it experienced a not-so-significant increase,

but it shows the seriousness of the government in implementing the Village Fund program.

The village development efforts can be seen through how the village status changes based

on the Building Village Index. IDM is an instrument to map the condition of villages

throughout Indonesia through definite measures using various indicators regulated by the

Ministry of Villages, Development of Disadvantaged Regions, and Transmigration.

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Table 1

West Java Province Village Fund Allocation 2021

West Java Province Village Fund Allocation 2020-2021

Keterangan

2020

2021

Percentage

Kab.bogor

511.893.929

523.393.765

2,20%

Kab.garut

509.491.067

506.831.553

-0,52%

Kab.cirebon

456.827.649

454.574.807

-0,50%

Kab.cianjur

427.760.763

430.246.084

0,58%

Kab. tasikmalaya

403.244.314

402.887.661

-0,09%

Kab.Indramayu

393.638.379

393.162.113

0.64%

Kab. majalengka

395.234.824

391.668.514

-0,91%

Kab. sukabumi

370.128.471

377.384.015

1,92%

Kab. karawang

346.104.755

349.344.485

0.93%

Kab.Bandung

322.217.180

334.046.576

3,54%

Kab.Kuningan

307.069.415

305.029.334

-0,67%

Kab.Bekasi

257.786.371

264.332.147

2,48%

Kab. ciamis

263.028.754

263.615.735

0,22%

Kab. bandung barat

252.987.831

257.381.269

1,71%

Kab. sumedang

225.307.089

227.319.620

0,22%

Kab. Subang

215.253.211

220.076.242

2,19%

Kab. purwakarta

169.446.203

170.355.883

0,53%

Kab. pangandaran

89.358.559

90.603.565

1,37%

Kota Banjar

23.438.141

25.369.574

7,61%

Jumlah

5.940.216.905

5.990.622.942

Source: https://djpk.kemenkeu.go.id/

Based on the allocation data, Bogor Regency received the largest allocation fund while

Banjar City received the smallest allocation, the amount of West Java Province Village Fund

allocation was seen increasing based on the data above, an increase of 0.84% in 2021. Based

on the data above, there was a significant increase of 7.61% such as Banjar City, but there were

also areas that experienced a decrease in allocation funds such as Majalengka District. As an

industrial area of Bekasi Regency itself, there is an increase in the allocation of Village Funds

by 2.48%.

Bekasi Regency has 23 sub-districts, consisting of 180 villages and 7 sub-districts where

the number of villages is not in the category of Very Disadvantaged and Disadvantaged, 140

villages are included in the category of developing villages, 32 villages are included in the

category of Advanced, and 8 villages are included in the category of Independent villages.

(West Java Village Community Empowerment Office, n.d.) The allocation of Village Funds

was distributed to 180 villages in the Bekasi Regency area.

The population of Bekasi Regency amounted to 3,113,017 data increased by 2% every

year from 2010 to 2020, the expansion of development became one of the causes of the increase

in population. The expansion of development is evidenced by the construction of the Cibitung-

Cilincing Toll Road (CCTR) project where the toll gate will be opened in Buni Bakti Village-

Babelan District, the project opens wide access for developers to carry out development there

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(Redaksi, n.d.). The population in Babelan District is the second highest with a growth rate of

3% per year.

The government through various programs has made various efforts to develop the

economy of rural areas. One of them is creating a business climate that encourages healthy

economic development, improves the welfare of members and the surrounding community,

and contributes to building the national economy as an economic organization.

One of the Government Interventions in the public finance sector for village development

in the form of Micro, Small, and Medium Enterprises (MSMEs) is among others carried out

through a credit guarantee program or People's Business Credit This is based on the opinion

that views that MSMEs play a large role in the economy in this case large labor absorption

(Zureigat et al., 2014).

According to data from the Indonesian Ministry of Cooperatives and SMEs in 2019, it

shows that the number of business units reached 65,465,497 with 98.68% percent of them being

Micro Business units with a total of 64,601,352. This figure increased by 1.94% from the

previous year. Meanwhile, as many as 5,637, or only 0.01% are large business units. The

number of workers absorbed by MSMEs in 2019 was 119,562,843 people (96.92%) while as

many as 3,805,829 people (3.08%) were absorbed by large businesses. With this amount,

MSMEs contributed 9.58 trillion GDP based on current prices in 2019, or amounted to

(60.51%) of Indonesia's total GDP of 15.83 trillion. Based on these data, MSMEs have a large

role in the Indonesian economy, especially in terms of employment and the share of GDP. One

of the determinants of the strength of MSMEs in supporting the economy is the flexibility of

MSMEs in facing the economic crisis as shown by the persistence of MSMEs when the

economic crisis hit Indonesia in 1998. (Ministry of Cooperatives and SMEs, 2019)

Therefore, the Mantri Corner Program initiated by Bank Rakyat Indonesia (BRI)

provides banking services such as PMD, PMD will be commanded by a BRI Mantri at the

Village / Village Office of an area. Every day am expected to be able to help and serve the

community.

Mantri is a mediating structure of social capital between village officials, communities,

and BRI. For this reason, an orderly will also coordinate with business clusters, communities,

and village community groups to collaborate on matters that can increase public understanding

of banking products and services other than savings, such as loans, business loans, village fund

management, and others. Mantri BRI also functions as a Financial Advisor by assisting

prospective micro and small customers.

Similar to the Community Empowerment Program, the Village Mantri Corner Program

requires a companion or facilitator who can facilitate community participation. There is a term

used in social welfare science to refer to people who are assigned to carry out the process of

community empowerment (Utami, 2007). Practitioners Community Development is a term

used by (Laverack, 2006). Facilitator is a term used by Brodhead and also by the District

Development Program Coordination Team coordinated by the Directorate General of Village

Community Development – Depdagri. Animator is a term commonly used by, (Tilakaratna,

1985). (Ife, 1995) refers to it as Community Worker. While Mantri is a term used in the PMD

Program owned by Bank Rakyat Indonesia (BRI).

In (Anwar, 2014) research by the community of Cibunar village and Jagabaya village,

Parungpanjang District, Bogor District, West Java, on social capital in the development of

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facilities/infrastructure to reduce poverty, a comparative study conducted shows that the local

community has a strong village tradition, which places the village as the basis of social capital.

A strong social capital base plays a role in the development of physical

facilities/infrastructure in the village starting from the proposal process, and development to

village deliberation. By looking at the role of social capital in the development of

facilities/infrastructure in the two hamlets, both in terms of quality and quantity, it can be

concluded that social capital also has an influence, both strong and weak, on the entire quality

and quantity of physical facilities/infrastructure development.

The relationship between social capital and business sustainability can be known using

the theory proposed by Granovetter in Economic Sociology (Damsar, 2016), about how

behavior and institutions are influenced by social relations which is a classic problem in social

theory.

Granovetter proposed a concept of embeddedness, which is an economic action that is

socially situational and inherent in ongoing personal social networks among stakeholders. It is

also not only limited to the actions of individual actors themselves but also includes broader

economic behavior, such as pricing and economic institutions that are all buried in a web of

social relations.

A network of social relationships is a series of regular or similar social relationships

among individuals or groups. Actions performed by members of network institutions are

"attached" because they are expressed in interactions with others (Damsar, 2016). Granovetter

asserts that individuals are rooted in a network of interpersonal relationships.

Looking at this theory, it can be said that social capital that occurs in the community or

society covers the social life of stakeholders, in a form of social relations carried out, both with

financial access (banking), with third parties (vendors), with the surrounding community who

are influential in socio-economic life.

Social relationships that are established, attached, and related to economic actions or

economic behavior carried out by stakeholders of MSME actors in business sustainability. So

indirectly social capital affects business sustainability.

(Soemardjan, 1964) Cooperation); (2) Persaingan (Competition); dan (3) Pertikaian

(Conflict) .(Soemardjan & Soelaeman, 1964)

Bank BRI as a credit provider that mandates every Mantri as Financial Advisory in the

Village, in its implementation always provides counseling and activities that support the

productivity of business actors so that every activity is participatory. So then the theme will be

used to be the direction and guideline for the preparation of this research (Alston, 2020).

Various BPS reports have illustrated positive implications for increasing economic

growth from micro, small, and medium enterprises. This positive implication is certainly

influenced by various factors that can affect economic growth. based on research and studies,

MSMEs have had many positive roles in the village economy, but they cannot be separated

from the negative roles that cause the existence of MSMEs only as signboards. To see the

research gap, it is important to involve various parties who have researched Social Capital,

Business Sustainability, People's Business Credit, and Micro, Small, and Medium Enterprises

(MSMEs) Supporting research (Mayu & Adlin, 2016).

From (Wibowo, 2016), social capital and business continuity have a significant positive

role, this can be seen at the beginning of the development of social capital that can encourage

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cluster performance. Even interestingly, in the study, during the 1997 financial crisis, several

Ceramics MSMEs that had opened up to bank credit capital caused a decline in business

performance. However, the social capital aspect at that time could restore the problem of the

financial aspect of ceramic MSMEs, this revival was due to the existence of a group of ceramic

craftsmen with the concept of mutual responsibility and informal interaction to support each

other's finances. To save the financial problems of Ceramics MSMEs which have a relationship

with banking credit capital.

Another study, (Tedjaningsih & Sufyadi, 2020) conducted in Kamulyan Village,

Manonjaya District, Tasikmalaya Regency, showed that overall social capital with a network

of cooperation, reciprocity, trust, norms/rules, shared values, and proactive is included in the

high category. The sustainability of Mendong Farming is seen from the ability of farmers to

carry out agricultural business activities in procuring production facilities, capitalization,

marketing, organizing groups, and obtaining information and technology, including wells. And

there is a real relationship between the variables of social capital and together with the

sustainability of mending farming.

Business continuity research is a person's effort to meet the needs of life by utilizing all

abilities. Social capital bridges the creation of cooperation. This research was conducted in

North Cimahi, Cimahi, West Java in two different business groups. (Febri Kerisyana, 2017) As

a result, one group has good enough social capital for business continuity. Furthermore, in

research conducted in Surakarta City in the creative industry, weaknesses were found,

including (a) lack of capital for business expansion, (b) lack of ability to market products, and

actors and craftsmen can be improved through knowledge and technology transfer strategies,

regular mentoring, and training related to competencies (Bachrein, 2010). Business continuity

during the COVID-19 pandemic is a decline in sales, capital difficulties, raw material

difficulties, and product and government distribution obstacles.

METHOD RESEARCH

The research methods used in this study can be seen in several aspects such as approach,

type of research, research location, information selection, data collection techniques, data

analysis techniques, and techniques to improve the quality of research. All of these aspects are

elaborated in this section with each of these explanations as follows (Suyanto, 2015).

Research Approach and Types of Research

This research was conducted to understand how MSMEs utilize the potentials that exist

in their regions, and how MSMEs can manage social capital in business practices to maintain

business continuity and synergize many existing strengths. This research activity is marked by

an in-depth look at the activities of Hurip Jaya MSMEs that rely on social capital to maintain

business continuity through a network of cooperation between villages and third parties such

as the government, small or large entrepreneurs, and banks. Then the research will understand

how MSMEs can maintain their business sustainability. How MSMEs sort social capital to

maintain business continuity, the extent of MSMEs' ability to utilize social capital, and can

ensure business continuity.

This research uses a qualitative research approach with a descriptive type of research.

Qualitative research according to Taylor and Bogdan is research that produces descriptive data

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in the form of written or spoken words of people and behavior that can be observed and

researched (Krefting, 1991).

(Nueuman, 1994) calls descriptive research, to begin with a problem or question that has

been well-defined and tries to explain it accurately. Descriptive research aims to present a

specific picture of a situation, social arrangement, or relationship. The results of this study can

be in the form of a detailed description of the problem or answers to research questions.

The steps for researching to understand the conversion process of economic capital, and

social capital in business sustainability: (i) realize problems that occur in villages with friendly

community conditions but economic activities are less developed, (ii) use the perspective of

convertibility theory to connect problems that occur in the village, (iii) design research, collect

data, analyze data and interpret data, (iv) notify the results Research to others so that it can be

used as a foundation for other researchers or as a basis for the implementation of every program

that will be held in the village by taking into account factors that have the potential to have a

positive impact on business sustainability.

This approach places the researcher against something that is studied subjectively, in the

sense that the researcher highly values and pays attention to the subjective views of each subject

studied. This approach will try to understand the individual meaning (subjective meaning) of

the subject under study. As a researcher, subjectivity in seeing an object does not mean

abandoning the objectivity of the research itself. In understanding and developing, patterns,

categories, business actors, and analysis of the processes that occur and allow capital

conversion to occur. In this way, objectivity towards the subject under study can be maintained.

The selection of a qualitative approach is based on: (i) factors why business actors in the

village find it difficult to develop, (ii) an understanding of economic capital, social capital, and

cultural capital that is converted into other capital that can maintain business sustainability, (iii)

supporting factors and obstacles in the capital conversion process. For this reason, through this

qualitative approach, researchers hope to describe the process of convertibility, functional

social capital in the convertible process, and the support and obstacles of convertibility as a

foundation for business actors, rural communities, and subsequent research.

Based on the explanation of the types of research objectives in descriptive research, it

can be said that this type of research makes it very possible for researchers to conduct in-depth

investigations of various kinds of information about economic capital, MSME social capital,

and the conversion process, in the efforts made by MSMEs in maintaining business

sustainability, and how to use MSME functional social capital to help maintain business

sustainability, and what are the supporting and inhibiting factors in the conversion process.

RESULTS AND DISCUSSION

This chapter will describe the findings in the field obtained by researchers as stated in

the discussion section. The analysis used uses the basis of research objectives as in chapter I

which is also based on the theoretical framework previously described in chapter II. The

discussion in chapter V is carried out by linking comprehensively between the results of

theoretical studies in chapter II, and the implications of findings in the field contained in chapter

4. In this chapter, the discussion will be divided into four parts regarding the conversion of

economic capital, social capital, and cultural capital then will analyze the conversion with

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business sustainability. Business sustainability will be analyzed using three points, namely

production sustainability, sales sustainability, and raw material sustainability.

The Process of Converting Economic Capital to Social Capital

In explaining the process of capital conversion, the author uses two approaches to inputs

and activities, the inputs are explained into two aspects of village funds and infrastructure

development, and activities into six aspects.

In the process of converting economic capital to social capital, as Bourdieu says capital

does not stand alone but has relations in the form of the possibility of change or exchange

(conversion). Bourdieu explained that economic capital being the root of all capital cannot all

be reduced to economic capital alone (Harker et al., 2016). Based on the results of capital

conversion research that occurred in Huripjaya village, it can be seen during the process of

input or receipt of economic capital in the form of funds in this case the provision of KUR and

village funds given to the community or the development of village infrastructure and activities

that allow conversion to occur.

Social capital in its application as Woolcock said emphasizes associations both vertically

and horizontally between individuals, and among other entities such as communities, groups,

and firms. This view emphasizes that cross-relations between people from various social

sectors including religion, class, ethnicity, gender, and social status can affect a narrow

sectarian view. The thing to link between social capital is called 'Bonding' and 'Bridging'. Based

on the results of research, the conversion of economic capital to social capital can be seen

during the provision of funds in the form of kur and village funds and infrastructure

development in Huripjaya village. In the process, some activities can become the process of

converting capital. The process of capital occurrence is divided into six aspects, including

counseling and training activities, conducting home visits building MSME centers, appointing

BRILink agents, providing halal certificates, and providing home industry training certificates.

Counseling and training conducted by banks can turn social capital into economic capital

this is illustrated in information sourced from informants that the activities carried out are open

to the public which means customers and non-customers can participate in these activities. This

can open access to a fairly wide network for banks and all business actors based on this

statement and followed by a literature review in Chapter II, the aspect of social capital

contained in this activity is groups and networks. This counseling and training activity can

provide access to the community and business actors to get access to economic capital. The

picture that occurs in the process is that the bank coordinates with the village government

(communication) to hold activities for the entire community (group), the village government

appoints one of its members to be the executor of the activity (trust), the appointment is given

economic capital (capital). Furthermore, this activity will create relationships between banks

and the community and business actors on an ongoing basis.

The next activity is to conduct a home visit, in which there is a social capital of trust and

solidarity. This is because this activity shows that there are efforts to convince the banking

community so that the bank has sufficient trust to provide capital to business actors, the bank

will also confirm to the community around the business actor this is by the theory used in

Chapter II, P).

Furthermore, building MSME centers, through the development of MSME centers, is

expected to be able to contribute together in improving the village economy. This activity was

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initiated by the village government and private parties. Village governments assist in building

infrastructure that supports the occurrence of MSME centers while the private sector can

provide CSR grants to support the activities of business actors. This is consistent with the

theory of collective action and cooperation where there is a group of individuals, common

interests among them, and potential conflicts between common interests and the interests of

each individual.

The next activity that can change capital in Huripjaya village is to appoint BRILink

Agents, the appointment is made as an effort made by the bank to become an example of

customers who have successfully developed their business. BRILink agents have an important

role in providing information and communicating with the surrounding community who want

to expand their business with assistance through the KUR program (Mas-Verdú et al., 2015).

The appointment of an agent by the bank illustrates that the quality of social capital in

Huripjaya Village is quite high. Based on this in line with the theory (World Bank, 2004) of

information and communication (information and communication) that an area with low social

capital is found to have poor access to information and communication. The determination of

BRILink agents is also based on individuals who are local heroes in the region, so it is expected

to be an example to the community. In the theory put forward by (Coleman, 1988) information

channels, important social capital is information inherent in social relationships. It can be seen

that, giving economic capital to agents, agents use their social capital to influence people to

make loans directly to the banks. The community avoided loans with large interests and

succeeded in their business.

The next activity is the provision of halal certificates to business actors, business actors

carrying out their business need quality improvement to maintain the sustainability of their

business, one of the quality improvements is the provision of halal certificates to the products

they make, the provision of halal certificates so that products can compete in the market. So

that the opportunity for absorption of production results is high. The provision of certificates

as a form of economic capital conversion, through additional capital to business actors, then

business actors get information from working capital providers (economic capital) to carry out

halal management to the authorities (social capital), then social bridging is used to obtain halal

certificates (cultural capital). Cultural capital is institutionally standardized according to what

is proposed (Bourdieu, Viet Studies, n.d.). The awarding of this certificate is a series of capital

convertibles that go hand in hand with the activities of granting certificates of home industry

training.

Every activity or activity carried out is organized and mobilized effectively in the process

of providing funds (village funds) and people's business credit (kur) and developing

infrastructure made to support village economic activities. The village government in every

implementation of the work program will involve entrepreneurs (Chapter IV, Page 85) which

will cause a multiplier effect for business actors. This is as expressed by (Bourdieu, Viet

Studies, n.d.).

Economic capital in the form of currency from the bank will not be obtained by people

who have not run their business, this is to the requirements for obtaining kur from the bank

(Chapter II, Hal), so there are other alternatives to raise capital to do business by actively

participating in every village activity or village program, which later the capital obtained is

enough to open a business, and expand each of its business activities through credit facilities.

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It is similar to what has been suggested (Bourdieu, Viet Studies, n.d.) that economic capital

will be neither profitable nor even possible unless one imparts special competence in it

(knowledge of genealogical and real relationships and skills in using them).

Based on the results of field research, the pattern of the capital convertibility process was

found as follows:

Convertibility occurs in initiation by the Village Government and Banking which is

channeled through activities, of course, initiation occurs through the kur program or village

government work program. Furthermore, social capital and cultural capital are needed to gain

access to the community and business actors, there are important aspects in obtaining networks,

trust, information, and communication and finally is a hereditary lesson that will be discussed

in more depth in sub bub 5.2. Furthermore, the community and business actors will get

economic capital (money), this economic capital will also return to the village government and

banks through the State Budget and Bank Interest deposited by business actors and the

community.

Aspek Kapital Sosial dan Budaya yang Fungsional untuk Keberlanjutan Usaha

a. Group and Networks

The involvement of groups, namely the community, village government, banks, and

business actors in functional social and cultural capital conversion for empirical business

sustainability to understand concrete things each group in understanding the structure of

each group and seeing the potential possessed to expand functional networks for business

sustainability.

Groups have a role to play in disseminating information, reducing opportunistic

behavior, and facilitating collective decision-making. The effectiveness of social capital

provides an opportunity for structural development in the form of network associations.

Efforts to fulfill this role depend on many aspects of the groups created from the process,

reflecting their structure, their membership, and the way they function. Judging from this

definition, banks as a group aim to be able to generate profits for their entities through bank

interest to be received, and also as a tool of economic stability. The community or actors as

a group have a goal, namely improving the family economy. The village government has

the goal of improving the economy of Huripjaya village. This can allow exchange or change

village

government

and banking

input

activity

data

economic

capital

society and

business

behavior

social capital

and cultural

capital

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between capitals. Through groups and networks, they can collaborate and provide mutual

benefits to each group (Fadli, 2020).

The network aspect can also be described between business actors and business actors

(B2B), these business actors can convert their capital through similar networks, for example,

pond business actors, who have similar pond businesses, with pond business actors located

adjacent to their businesses. They can exchange information and strengthen networks

between similar businesses.

This network also has important aspects in maintaining two aspects of business

continuity, namely, the sustainability of sales and the sustainability of communication raw

materials established with banks, village governments, or business actors the business actors

themselves can open market expansion by maximizing word-of-mouth marketing

techniques), so that sales can increase. Next is the sustainability of raw materials, which can

be converted through the existing network. Such as the relationship between stall sellers and

suppliers of stall raw materials, which makes it easier for stall owners not to buy their raw

materials in the market at a considerable distance. So that the costs incurred by business

actors can be absorbed through their social capital. Furthermore, in maintaining the quality

of raw materials, their business actors coordinate with similar business actors for supplier

information that has good quality in raw materials. Furthermore, the parties showed actions

to strengthen groups and networks by appointing agents in charge of social bridging

between groups. This facilitates information and communication between groups so that the

process of capital conversion can be easily carried out.

b. Trust and Solidarity

Social capital activities that can function functionally in business sustainability, in

economic activities in Huripjaya Village. Trust is an important aspect of business continuity,

a thing that needs to be considered in looking at the social capital of a region, including

social capital (linking). The convertible perspective can be seen through the trust between

banks and business actors in Huripjaya Village. The trust built between business actors and

banks can be seen when the banks provide loans to business actors. Kredit Usaha Rakyat or

KUR, is a loan given to business actors without providing collateral. This is what causes

trust to become an important aspect of social capital in maintaining business continuity.

Trust is also not built only from the banking party to business actors, but between business

actors and other business actors who are now better known as Business to Business (B2B),

this is illustrated when village business actors, need loans to business actors as collectors of

fishermen's products because the relationship that has been built for a long time has caused

trust between business actors. The next relationship of trust is between the government and

business actors and the community, where the government itself entrusts each village

program to village business actors and the community by taking into account

professionalism in each program held. The next aspect of social capital is solidarity which

is illustrated in every activity held by village governments, communities, business actors,

and banks, according to Durkheim (Kenny &; Susan, 1946) solidarity is divided into two

based on similarities and differences. Based on the similarity, it can be seen that village

governments, banks, communities, and business actors have similarities to both want to

improve family economic welfare which can ultimately improve the village economy more

broadly, this can be seen in the presence and implementation of activities held with

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collaboration between stakeholders, the support can be given in the form of time or material

they have. Based on the differences, it can be seen that the banks have a tough business

mentality and have broad business insight, while rural people tend to have a business

mentality that does not focus on improving their business. This is proven by the banks by

always providing socialization and education to the public.

Based on aspects of trust and solidarity that have the potential to have functional

business continuity, trust relationships, and business continuity can be seen from the higher

the level of bank trust in business actors, business actors can obtain additional working

capital to expand their business. This is in line with the continuity of production, and the

continuity of sales. Business actors can expand the market without having to worry about a

lack of capital because banks that have a high level of trust in business actors can provide

working capital. This high level of trust in the banking industry, of course, needs to look at

the track record, this is what causes the relationship between banks and business actors not

only to be a relationship of obligations and expectations but also a relationship based on

aspects of trust.

c. Information and Communication

Coleman revealed that flexibility of access to information in social structures to

encourage community activity, as well as lack of information flow tend to make people

indifferent or hesitant in doing things. Furthermore, (Ariana et al., 2018) explained that

social capital among business actors can increase cooperation that allows continuous sharing

of knowledge (information) and experience between them. This knowledge can be in the

form of information about raw materials and market opportunities. Based on the above

definition, information becomes important in terms of conversion and business continuity.

That information can encourage community activities, this is illustrated in this study where

the activities held are informed through rapid WhatsApp and word of mouth to people who

want to join an activity. The activities held will convert aspects of social capital to social

linking information, it brings the public into information about our programs and other

programs held by the bank. As in the findings in the field, social linking brings business

actors to access capital so that with the capital obtained business actors can expand their

business. Activities and actions become important as a form of the information concept that

information providers and recipients of information will exchange information which is one

of the strengths of business actors, communities, banks, and village governments.

The participation of stakeholders in activities or actions is also an opportunity for

stakeholders to listen to each other and understand what each other's needs and desires are.

So that this information can be used by village governments and banks to provide services

that are by the needs of business actors, as well as business actors who get information about

what things are needed by business actors. The findings of the field results illustrate the

provision of information from the bank to business actors for the management of halal

certificates, with the provision of halal certificates, the sustainability of the production

business is obtained, as well as the aspect of social capital trust can increase because product

quality increases. Information about raw materials in each business actor is also important

to get ease in supplying and pay attention to the quality of the supply.

Furthermore, regarding communication, one of the important aspects of convertibility

is that it is also a community strengthening and community development aimed at improving

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welfare or alleviating community poverty, among others, by increasing access to

information through communication and education programs in connection with the above

theory information and communication become an important unity in the conversion

process, Information will be conveyed through communication through the program. The

same thing happened in Huripjaya village where to provide information to business actors

and the community, BRI held a program to communicate information. To create social

bridging between the village government, business actors, and banks. The openness of

institutions also allows the creation of space for business actors to convey what is their needs

and what is difficult. So communication is also not top-down but communication can also

be bottom-up, to produce win-win solutions in the community, in this case, business actors.

d. Hereditary Lessons (Inheritance of Recipes)

Cultural capital that merges with one's mind and body (embodied) whose state or quality

can be converted into Economic Capital. Formed, and developed through formal or informal

training or informal to achieve a state or quality worthy of being considered as capital that

can be converted into Economic Capital, and then money. Through this statement in the

field results obtained, it was found that there is a conversion of cultural capital that occurs,

cultural capital that merges with one of the business actors (embodied), such as the ability

to cook taught by the parents of business actors, it provides opportunities for business actors

to start a business (economic capital). Based on cultural capital converted into economic

capital, business actors also build relationships between business actors and the community,

business actors who become informants are known to be active in every activity in the

village, so this opens up opportunities for information to get credit to banks.

This is an opportunity for business actors to get additional capital to expand, and

improve business sustainability. It is confirmed that cultural capital owned by business

actors can turn into economic capital and economic capital turn into social capital

(information and communication) and finally become economic capital again. To increase

the income of business actors, business people who previously rented a place to do business,

now the place of business he occupies has become his.

CONCLUSION

The conclusion of the aspects of functional social and cultural capital for business

sustainability in Huripjaya Village itself is four points, the first is networking, the second is

trust, the third is information and communication, and the fourth is hereditary lessons.

This aspect of the network is important to strengthen in maintaining business

sustainability, especially in the sustainability of sales and raw materials. If the network is

strengthened, business actors can sell their products so that development in business can be

realized. The networking aspect can also link between social capital called bonding and

bridging.

The trust aspect has a function in maintaining social bonding between banks and business

actors, and business actors with other business actors (B2B). The bank has done this effectively

by making home visits. Furthermore, the relationship between business actors and suppliers

(B2B) is based on trust that can provide opportunities for business actors to access economic

capital (opportunities to make loans).

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Furthermore, the Information and Communication Aspect, aspect has a function in

educating and promoting programs. The information is communicated through the program

carried out. The program carried out involves archiving stakeholders so that convertibility

occurs. Information and communication that occurs in Huripjaya Village are obtained from the

program, village orderlies, and Brilink agents directly.

The last aspect of learning is hereditary, this cultural capital has a function in the process

of convertibility. The ability to cook, which is passed down from generation to generation, can

provide money (economic capital) to business actors.

The conclusion is that businesses, governments, and banks ultimately receive direct profit

conversion through money and wealth. How this will lead to business continuity.

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Wimba Wisesa

, Robert M.Z Lawang

(2023)

First publication right:

JoSS - Journal of Social Science

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