Application of Social Capital-Based Institutional Model in Formulating Village-Owned Enterprise Policy as a Resilience Strategy for Local Economic Development

Abstract

This study aims to determine the application of social capital-based institutional models in formulating policies for village-owned enterprises as a resilience strategy for local economic development. This research uses a qualitative approach. Data collection is carried out through observation techniques, interviews, documentation Data reduction steps, data presentation, and conclusion/verification process the collected data. In view of the aftereffects of the examination, it was found that the investigation of the social capital-based institutional model, shows that parts of trust, informal organizations, and normal practices play a significant part in the utilization of this model in the detailing of arrangements for Town Claimed Ventures. These factors have’a major influence on the success of the village’s local economic development resilience strategy. Then the results of the analysis showed that the application of the social capital institutional model in Barae Village, Soppeng Regency, had succeeded in increasing the economic resilience of the community. This is realized through better access to the capital needed, as well as the ability of the community to meet their daily needs at affordable prices. The impact is an improvement in the quality of life and economic resilience in the village.