The Role of Entrepreneurial Leadership to Rural Development and Resilience in Indonesia

Abstract

Rural regions are vital for the Indonesian economy as they contributed 13.7% of the national gross domestic product in mid-2021. However, the contribution made by rural areas requires the role of qualified village leaders. Poor governance, lack of entrepreneurial-leadership role models, and sociocultural issues inhibit rural resilience. This research explored best-practice villages using a qualitative approach and identified four fundamental concepts for achieving resilience. This study obtained data from 17 informants with various backgrounds, including village-owned enterprises management, regional government, central government, rural researchers, academia and rural activists. Rural leaders must govern with an entrepreneurial and stewardship orientation, good political capacity and assertiveness to establish rural resilience. Stewardship and assertiveness encourage receptive and wise leadership while focusing on accomplishing local rights and peace with other parties. This study indicates that rural leaders with an entrepreneurial mindset, stewardship compliance and assertiveness can promote political capacity in communities and increase community engagement and rural resiliency.