Economic Development through Social Entrepreneurship: Case Study of Rural Innovation Hubs : JEL Classification: L26, O18, O35, R11, Z13

Amirul Mukmin Iskandar; Muh. Renaldy; Nur Pratiwi

doi:10.37899/mjde.v2i1.244

Authors

Amirul Mukmin Iskandar Faculty of Economics and Business, Universitas Hasanuddin, Indonesia
Muh. Renaldy Faculty of Economics and Business, Universitas Hasanuddin, Indonesia
Nur Pratiwi Faculty of Economics and Business, Universitas Hasanuddin, Indonesia

DOI:

https://doi.org/10.37899/mjde.v2i1.244

Keywords:

Economic Development, Innovation Ecosystems, Local Entrepreneurship, Rural Innovation Hubs, Social Entrepreneurship, Sustainable Development

Abstract

Rural innovation hubs have increasingly been recognized as strategic mechanisms for promoting social entrepreneurship and strengthening local economic development. This study aims to examine the contribution of rural innovation hubs to entrepreneurial performance and household economic improvement in Balikpapan, Indonesia. A quantitative cross-sectional survey was conducted involving 180 respondents representing three innovation hubs operating in the agriculture, handicrafts and creative industries, and digital services sectors. Data were collected using structured questionnaires and analyzed through descriptive statistics and paired sample t-tests. The findings reveal a statistically significant increase in household income following participation in innovation hub programs, indicating positive economic outcomes for participating entrepreneurs. Respondents also reported favorable perceptions regarding market access, entrepreneurial skills development, and networking opportunities, whereas access to financial capital remained the least satisfactory aspect of the programs. The novelty of this study lies in its comparative quantitative assessment of multiple rural innovation hubs across different business sectors within a single regional context, providing empirical evidence on their contribution to inclusive entrepreneurship and local economic development. The findings highlight the importance of strengthening institutional collaboration, entrepreneurship support services, and financial inclusion policies to enhance the sustainability and effectiveness of rural innovation ecosystems.

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