Local Business Research Articles

In pursuit of power: Land tenancy contracts and local political business cycles in Indonesia

This study examines whether strategic delegation of land tenancy contracts is linked to local-level political business cycles in the context of a village institution – bengkok land – prevalent since the Dutch colonial rule in Indonesia. Bengkok land refers to communal village land that incumbent village heads receive usufruct rights over until their term in the office ends. We test whether incumbent village heads utilize time-bound access to bengkok land for political consolidation. Based on a novel cross-sectional household survey fielded in 2018 across 130 Javanese villages, we find robust evidence of a positive correlation between the percentage of total tenancy contracts as sharecropping and proximity (before or after) to the village election. As vulnerability of the sharecroppers makes them a pro-poor target for the incumbent village heads, these results implicate political capture.

Pengembangan Literasi Ekonomi Masyarakat Desa Maryke dalam Meningkatkan Kesejahteraan melalui Pemanfaatan Sumber Daya Lokal

The Economic Literacy Development Program for Maryke Village aims to improve community welfare through the utilization of local resources, particularly in managing small businesses like broomstick production. The community’s limited understanding of economic literacy has hindered their ability to manage finances and optimize local economic potential. This research employs a qualitative methodology with a participatory approach, collecting data through observations, in-depth interviews, and group discussions with the community and local stakeholders. The results indicate that the program successfully enhanced the community’s understanding of economic literacy, particularly in financial management and business planning. Participants of the program began to manage household budgets, save regularly, and develop local resource-based businesses. Increased productivity and income were observed in the broomstick production business after the training. The program not only improved the community's awareness of the importance of economic literacy but also encouraged them to use local resources more effectively and sustainably, leading to a positive impact on their welfare.

Accounting Practices Based on Memory in the Tofu and Tempe Business

General background accounting is often perceived as merely a set of recording and bookkeeping techniques, limiting its broader scope. Specific background in reality, various factors such as social, economic, cultural, legal, and political elements influence the development of accounting practices in local businesses. Knowledge gap among micro-businesses, like tofu and tempe entrepreneurs in Sepande Village, accounting practices remain underexplored, especially in relation to cultural influences.This research aims to describe the interaction between cultural meanings and accounting practices in the tofu and tempe business. Results the findings reveal that these entrepreneurs do not maintain formal accounting records due to perceived complexity and a lack of necessity. Instead, they rely on memory and experience to manage their finances. Cultural and societal characteristics play a significant role in decision-making, shaping a unique form of accounting that deviates from conventional methods. Novelty this study contributes new insights into how informal accounting practices emerge in a culturally embedded business environment, where memory replaces traditional accounting systems. Implications the results highlight the importance of understanding the cultural context when developing accounting education and systems for micro-businesses, suggesting that a one-size-fits-all approach to accounting may not be effective across different cultural settings. Highlights: Entrepreneurs rely on memory for financial management instead of formal records. Cultural characteristics significantly influence business decision-making processes. Informal accounting practices emerge from the unique cultural context of the community. Keywords: Accounting, Culture, Micro-businesses, Tofu, Tempe

Entrepreneurial Skills Required for Self-Employment among Electrical Installation Students in Technical Colleges in Adamawa State: A Focus on Managerial, Accounting, and Marketing Competencies

This study investigates the entrepreneurial skills required by Electrical Installation and Maintenance Works (EIMW) trade students in Government Science and Technical Colleges in Adamawa State for successful self-employment. Utilizing a descriptive survey research design, data were collected from a sample of 217 respondents, including administrators, teachers, and students, using a structured questionnaire. The findings reveal that students need a total of 20 managerial skills, with particular emphasis on effective planning and resource control. Additionally, the study identifies 22 essential accounting skills, such as determining profit and loss and knowledge of costing, which are crucial for business survival. In terms of marketing, students require 16 key skills, highlighting the importance of customer loyalty retention and effective communication. These findings emphasize the necessity for educational institutions to enhance their curricula by integrating practical entrepreneurial training. The study also recommends collaboration with local businesses to provide students with real-world experiences and continuous professional development for educators to ensure they are equipped to teach relevant skills.

Economic Erosion: Examining Germany's Decline as a Business Destination

This study delves into the complex web of causes that have contributed to Germany's gradual decline as a sought-after business location. This scholarly work methodically examines a variety of internal and external variables shaping the country's economic environment, thus providing a comprehensive picture of the significant challenges currently faced by the German economy. The study methodically analyzes key variables such as labor market dynamics, regulatory frameworks, demographic changes and infrastructure improvements to uncover the root causes of this decline. The results of this research are of enormous importance for the formulation of strategic, precise policy initiatives aimed at revitalizing the German economy, strengthening its resilience and restoring its position as a global beacon for industry recruitment and retention. Using a strong mixed methods approach, this study leverage the synergy of primary data collected through surveys, interviews and case studies, and secondary data derived from government reports, academic publications and economic indicators. This multi-layered technology makes it easier to recognize observable patterns and develop concrete, realistic plans that will lead Germany to long-term economic development and prosperity. This research is a component of efforts to revitalize Germany's economic strength and restore its reputation as a leading commercial center, and provides useful information for policymakers, industry executives and academics alike. The comprehensive analysis presented in this study has far-reaching implications for the larger European economic environment and contributes to the global discourse on sustainable economic development and renewal

Empowering Economic Growth in Balongdowo Village, Sidoarjo, East Java: Pioneering a Digital Tourism and Marketing Initiative

Balongdowo Village, recognized as the largest producer of Kupang in Sidoarjo Regency, has significant potential for economic development through its local seafood products. This community service program aims to enhance the economic sustainability of the village by empowering local businesses and introducing digital marketing strategies. The program focuses on promoting Kupang-based products through e-commerce platforms such as Tokopedia, Shopee, and Bukalapak, expanding market reach beyond the local area. Additionally, the initiative supports the development of a village information system portal to highlight the village’s profile, potential, and services. By integrating digital tools into marketing and village management, the project seeks to transform Balongdowo into a self-sufficient digital village. The program includes training sessions for local business owners and village officials on e-commerce usage, product presentation, and website management. The result is the successful establishment of online shops for local businesses and the launch of the Balongdowo village website, creating new opportunities for economic growth and improved public services.

Empowerment of Satlinmas in Improving Public Order and Security

The general background highlights the growing need for community involvement in safeguarding human rights and maintaining social stability, particularly in the context of regional apparatus empowerment. The specific background focuses on the role of Satlinmas in Candi District, where community members are organized to take an active part in protecting citizens against human rights violations. Despite existing research on community empowerment, there remains a knowledge gap regarding the effectiveness of Satlinmas in achieving these goals. This study aims to investigate how Satlinmas empowerment contributes to maintaining public order and security through a framework called Tri Bina, which encompasses Human Development, Business Development, and Environmental Development. The results indicate that Satlinmas has successfully enhanced community capacity through training and education, supported local businesses by ensuring a conducive environment for economic activities, and engaged in environmental preservation efforts. The novelty of this research lies in its comprehensive approach to community empowerment, emphasizing the interconnectedness of various developmental aspects. The implications of these findings underscore the importance of integrating community protection units into broader public safety strategies, highlighting the potential for improved community resilience and collaboration in safeguarding rights and maintaining order. Highlights: Community protection units improve public order and security. Tri Bina framework enhances human, business, and environmental development. SATLINMAS promotes community engagement in safety and environmental cleanliness. Keywords: Empowerment, Security, Environment, Community, Business

Assessing Tourists' Willingness to Pay for Community-Based Ecotourism: Enhancing Sustainability and Local Involvement

Malaysia’s captivating attractions are increasingly promoted through community-based ecotourism (CBE) initiatives. These efforts aim to empower local communities, conserve nature, and generate income by involving locals in managing ecotourism resources and activities, ensuring both economic benefits and sustainability of protected environments. CBE highlights diverse customs and cultures, enhancing ecotourism experiences through local resources. Understanding tourists' attitudes and preferences is crucial for developing sustainable cultural tourism packages. Key inquiries involve measuring local community participation, artistic elements, and tourism offerings in CBE management around protected parks. Evaluating tourism preferences and willingness to pay (WTP) for attributes provided by local businesses is essential for effective CBE management strategies in rural areas. This study employs the Choice Experiment model to analyze tourists' preferences for CBE activities and their marginal willingness to pay (MWTP) for management attributes at Min House Camp (MHC) in Kubang Kerian, Kelantan. The attributes examined include local community involvement, activity packages, accommodation facilities, and information provided. The study found 'super' package activity, increased local participation and employment, excellent accommodation, and adequate information to be the most important attributes. The study suggests that business owners and local managers adopt the CBE concept and focus on the key qualities that have been identified. Local communities and stakeholders should implement new tour packages at MHC, combining desirable features to meet market demand. Future studies could use a mixed logit model to account for multiple attributes of community ecotourism tours in protected parks.

Persistence of sub-urban agriculture and landowners' behavior in the population declining phase: Case of the preferential tax treatment for rental farmland

With the majority of the world’s population residing in urban areas, particularly in vast suburbs, land use control around the suburbs of large cities is a concern for not only protecting agricultural productivity but also maintaining a decent residential environment. A practical policy measure to address this concern is providing preferential tax treatments to landowners who lease out their farmland, and the Production Green Land (PGL) Act is a typical example, which was extensively revised by the Japanese government in 2018 to conserve farmlands and allow active farmers to use it effectively amid the overall population decrease. Previous studies have extensively focused on identifying factors to encourage persistent agriculture in the urban growing phase. However, the appropriate combinations of specialization, diversification, attributes, and location of farm businesses in the shrinking suburbs, where leasing farmland has become a practical option for farmers. Moreover, multifunctional value is important for ensuring that agriculture continues as a family business. Studies on the attributes of suburban landowners who keep farmland and provide multifunctional value to the community are also limited. Based on the above understanding of the literature, this study explores the specific farm attributes and locations related to the persistence of suburban agriculture. To this end, this study conducts a two-wave survey of suburban farmers, including smallholders in the Tokyo Metropolitan Area. The following key findings are observed. First, the continuity of agriculture in the suburbs is significantly related to farmers’ diversification activities in terms of sales channels and provision of services, with specialization within a business type in terms of agricultural operation also being an advantageous factor. Meanwhile, regarding the location, the probability of continuing agriculture is lowest in moderately populated suburbs. Second, landowners engaged in multifunctional agriculture that is linked with the community tend to hold farmland rather than convert it even when they stop or downscale their agricultural activities. Third, regarding the policy implication, the number of exiting and downsizing farmers was larger compared with expanding farmers, in addition to an unbalanced geographical distribution. Based on the findings, the study recommends that multifunctional agriculture through forming relationships with the community should be encouraged, new entrants to agriculture must be promoted, and active farmers who expand farm size need to be supported.

ANALISA KINERJA KEUANGAN UNTUK KEPUTUSAN PEMBERIAN KREDIT PADA BANK MANDIRI KCP BELAWAN

This research aims to determine the influence of Financial Performance Analysis on Credit Granting Decisions at Bank Mandiri KCP Belawan. This research uses a qualitative descriptive research method. Data collection techniques through observation, interviews and documentation. The results of this research are that the factors that can make a credit application accepted by the bank are (1) the debtor already has an official business license and NPWP, (2) the debtor must have 50% capital before applying for credit and the business is managed directly by the debtor himself. , (3) The debtor must be cooperative and open when asked about his efforts to arrange credit, (4) The debtor has never had a history of arrears in payments. (5) The debtor has never been involved in legal problems, (6) The value of the collateral provided by the debtor must be in accordance with the market price when applying for credit, (7) The established business has been running for approximately 1 year, (8) The business location is convenient accessible to local residents. If a business has no debt (current debt = 0), neither the current ratio nor the quick ratio can be calculated in the usual way and is considered undefined or infinite, then this shows that the business has a very strong liquidity condition because there are no liabilities. short term needs to be met.

Pengaruh Country Of Origin Terhadap Purchase Intention Dimediasi oleh Customer Trust: Studi pada Kopi Janji Jiwa di Kota Bandung

Due to an increase in people's purchasing power, competition between local and international coffee chain businesses is getting tougher. The number of stores and the value of sales indicate that there is competition. Kopi Janji Jiwa has the most shops in Indonesia, but its sales value is lower than that of its rivals. This demonstrates that factors like origin country have an impact on sales value. However, customer trust is required because it is insufficient to be considered. Companies that have a good country of origin and customers who trust them can make more people want. The purpose of this study is to ascertain how customer trust in Janji Jiwa Coffee influences purchase intention in relation to country of origin. With a descriptive approach, the quantitative research method was used, using nonprobability sampling technique with purposive sampling type where the number of respondents is 150 respondents. Through the distribution of questionnaires to Bandung residents who knew about, had not purchased, or had ever purchased Kopi Janji Jiwa, data were gathered. Information examination was done utilizing SmartPLS 3.2.9 programming. The findings demonstrated that customer trust has a positive impact on purchase intention, that customer trust has a positive impact on purchase intention, and that country of origin has a positive impact on purchase intention. The discoveries likewise show that nation of beginning emphatically affects purchase intention interceded by client trust in Janji Jiwa Coffee.

DEVELOPMENT STRATEGIES FOR BACKPACKER TOURISM DEVELOPMENT IN KOTA KINABALU, SABAH, MALAYSIA

This study investigates the development strategies aimed at enhancing backpacker tourism in Kota Kinabalu, Sabah, with a focus on social, environmental, and economic dimensions. This study uses quantitative methods through the distribution of questionnaires to study the behaviour and opinions of backpackers in Kota Kinabalu. This study focuses on respondents at backpacker accommodation and tourist destinations in Kota Kinabalu. A total of 228 backpackers participated in this study. These strategies encompass social development, environmental development, and economic development, and encompass initiatives such as community engagement, environmental conservation, and collaboration with local businesses. Achieving a balance between economic growth and social and environmental sustainability is crucial in maximizing the potential of backpacker tourism. Successful implementation of these strategies necessitates the active involvement of various stakeholders, including government agencies, local communities, and the tourism industry. Integrating these strategies into destination management plans will elevate the backpacker tourism experience and facilitate sustainable growth. Further research and collaboration among stakeholders are imperative to effectively implement these strategies and harness the opportunities presented by backpacker tourism in the region.

Die EU vor der Erweiterung: Sicherheitspolitische Prioritäten für die Wirtschaftsstandorte Deutschland und Österreich

Abstract The EU's international environment did not face a sudden change in 2022, but long-term processes of change became more visible since then. The Russian war of aggression is a wake-up call for the EU to finally overcome its geopolitical naivety, if it wants to remain competitive at the global level and maintain its attractiveness as a business location. Economic policy and geopolitics must be considered together. At the Wiener Dialog zur Zukunft Europas 2024, experts discussed initiatives for the EU to respond to the BRICS+, to complete a defence union and to address current challenges of enlargement and energy policy. We summarise the problem analyses and policy recommendations for the German and Austrian governments to set the agenda at the beginning of the EU's new institutional cycle.

Bewährungsprobe Europas: Wettbewerbsfähigkeit in einer Welt im Wandel

Abstract Competitiveness is increasingly becoming a political focus. In times of geopolitical uncertainty, a trend of de-globalization and changing economic structures, the EU must assert itself as a business location in the competition between nations. Location characteristics such as a successful digital and green transformation in the face of increasingly scarce human capital, an incomplete internal market and inadequate defense capabilities are important. A high level of competitiveness is only possible with a European single market that is equipped with sufficient resources and a sound cooperation between the member states in the EU.

Der Standort Österreich aus Sicht der ökonomischen Komplexität

Abstract Economic complexity indicators attempt to map latent factors for long-term growth. In this analysis, we shed light on Austria as a business location using multidimensional complexity indicators that allow statements to be made about regional specialization, key technologies for the green transition and individual sectors such as the semiconductor industry. Austria usually occupies top international positions or is at least among the leaders, and this has remained stable over the last 20 years. This implies extensive opportunities for diversification into promising technologies. For individual brown industries, however, there is a risk of getting locked into products whose demand will decline in the course of the green transition.

Impact and Resilience of Mauritian SMEs: Sales Dynamics during the COVID-19 Pandemic

The COVID-19 pandemic has left an indelible mark on the global economy, significantly impacting small and medium-sized enterprises (SMEs) in Mauritius. This study investigates the sales dynamics of local SMEs during the COVID-19 pandemic. Through a quantitative survey, data was collected data on sales performance during the pandemic to gain comprehensive insights into the challenges faced and the adaptive strategies employed by these businesses. The findings underscore the challenges that the majority of participants encountered during the pandemic, with a notable decline in sales emerging as a central concern. The study reveals the diverse measures adopted by these enterprises to navigate the unprecedented economic turbulence. Notably, many turned to online sales channels, implemented cost-cutting measures, and adjusted their workforce. Furthermore, our research sheds light on the perceptions of government intervention among these businesses. A significant proportion expressed satisfaction with the government's response, believing in its effectiveness. This study offers valuable insights into the multifaceted impact of the COVID-19 pandemic on local SMEs in Mauritius and identifies the strategies adopted by these enterprises to adapt to the continually evolving economic landscape. These findings hold significance for policymakers, business proprietors, and other stakeholders as they craft and implement strategies to support and rejuvenate local businesses in the post-pandemic era.

A triple bottom line decision framework for sustainable business location in the retail sector: a developing country perspective

A triple bottom line decision framework for sustainable business location in the retail sector: a developing country perspective

Innovative Marketing Services in Business Practice

Businesses embrace a tremendous shift towards service-dominant logic in order to achieve and sustain advantage. To expand its influence, marketing needs to take on a service lens as well. The customer-centric approach tries to position value generation with processes that al-low customers to „get things done”, which is linked with a quest for innovation. Modern marketing takes an integrative approach – by trying to link various channels, touchpoints, and customer relationships – which both caters to organizational goals and fulfils customer expec-tations and aims at persuading and affecting behaviors rather than attitudes. The paper reports the theory of marketing service innovation and examines research data on how enterprises use marketing services, how they define their innovativeness, and perceive them as value generators. The authors break marketing services into advertising ser-vices and market-research services. Intense competition characterizes both. The analysis co-vers small, medium, and large companies in Poland. The main conclusions are: (a) the level of service innovativeness depends on a company context (its size, scope of operations, and busi-ness locations); (b) enterprises evaluate marketing services which they can access as generally innovative and potentially beneficial.

Analysis of Rental Value of Shop Houses in Kecamatan Medan Petisah

This research aims to analyze the factors that influence the rental value of shophouses in Medan Petisah District, Medan City. The difference in shophouse rental prices is caused by increasingly expensive land prices, which are influenced by busy locations and the presence of new buildings. The Petisah area has experienced rapid development in recent years, causing a significant increase in land prices. This land issue is very important considering the increasing need for regional development. This research uses a market approach to determine the rental value of shophouses by analyzing the factors of building area, rights (certificates), building age, location, road width and parking area simultaneously and partially on the rental value of shophouses. This type of research is quantitative/associative/correlational with inferential statistical data analysis. The population of this study was all shophouses in Medan Petisah District, totaling 456 shophouses, with a sample of 82 shophouses. Data is processed using multiple regression analysis. The research results show that simultaneously, all independent variables have a significant effect on the rental value of shophouses. Partially, the variables of building area, rights (certificate), building age and parking area have a significant effect, while the variables of location and road width have no significant effect. Based on the regression coefficient value, the variables building area, rights (certificate), building age, and parking area have a positive and significant influence on shophouse rental values ​​in Medan Petisah District, Medan City

The economic impact of social media marketing: A study of consumer goods in emerging markets

The economic impact of social media marketing on consumer goods in emerging markets has become increasingly significant, driven by rapid digital adoption and the growing influence of online platforms. This study explores how social media marketing strategies employed by consumer goods companies contribute to economic growth in these regions. By leveraging data from various emerging markets, the research examines the role of social media in enhancing brand visibility, consumer engagement, and market penetration. The study highlights the ability of social media to reach vast audiences at relatively low costs, enabling companies to build brand awareness and foster consumer loyalty in markets where traditional advertising channels may be less effective or accessible. Through targeted advertising, influencer partnerships, and interactive campaigns, social media marketing has proven instrumental in driving sales and expanding market share for consumer goods companies. This, in turn, has stimulated local economies by increasing consumer spending, creating jobs, and encouraging competition. Furthermore, the study discusses the multiplier effect of social media marketing on economic development, particularly in how it helps local businesses integrate into the global economy. By providing a platform for smaller companies to compete with established brands, social media has democratized access to markets and facilitated the growth of entrepreneurial ventures in emerging economies. However, the study also acknowledges the challenges and limitations of social media marketing in these contexts, such as digital divides, varying levels of internet penetration, and the need for culturally sensitive content. The findings underscore the importance of adapting social media strategies to the specific characteristics of emerging markets to maximize their economic impact. In conclusion, social media marketing has become a powerful tool for driving economic growth in emerging markets by enhancing brand presence, increasing consumer demand, and fostering competitive business environments. As digital ecosystems continue to evolve, the role of social media in shaping economic landscapes in these regions is expected to expand further, offering significant opportunities for consumer goods companies and local economies alike.