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THE ROLE OF COOPERATIVES IN THE SMES EMPOWERMENT IN RURAL AREAS
Corresponding Author(s) : Safaah Restuning Hayati
Humanities & Social Sciences Reviews,
Vol. 7 No. 2 (2019): March
Abstract
Purpose: This study aims to analyze the role of Mitra Dhuafa Cooperative in Gemolong Sub-district of Sragen, Indonesia, in empowering rural microenterprise, and to analyze its success rate by measuring the correlation between micro financing and the level of capability, and poverty alleviation.
Methodology: The method used in this study is quantitative analysis. The data collection was obtained through a survey by distributing questionnaires to 100 members of Mitra Dhuafa Cooperative. The data was analyzed using Somers'd Correlation Test, with Statistical Package for Social Science (SPSS) software.
Main Findings: The result of data analysis shows a positive relation (0.320) between the level of capability of micro business actors and poverty alleviation. The Indicators of empowerment success were measured by Amartya Sen's capability indicators, namely, opportunities and access in the economic, social, health, education, openness, and security fields. The research concludes by stating that Mitra Dhuafa Cooperative has succeeded in reducing the level of poverty by increasing the capability, bargaining power and independence of micro business actors.
Applications: This study can be useful for implementing poverty alleviation program and Islamic microfinance programs in rural areas.
Novelty/Originality: The combined implementation of Grameen Bank model and Sen’s capability approach to analyze its success for poverty alleviation in rural areas.
Keywords
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- Abur, Cyprian Clement and Japheth Terande Torruam. (2012). “Microcredit as a Strategy for Poverty Reduction in Makurdi Local Government Area of Benue State, Nigeria†International Journal of Humanities and Social Science 2 No. 12 Special Issue (June): 179-186. Http://www.ijhssnet.com/journals/Vol_2_ No_12_Special_Issue_ June_ 2012/22.pdf.
- Al-Fâdinî, Fahkru al-Dîn Muhammad Shaykh. (2012). “Taqwîm Dawr al-Tamwîl al-Aṣghar fî Mukâfaḥah al-Faqr†Masters Dissertations: Business Studies, Kuliyyah al-Dirâsât al-Tijâriyyah, Jâmi’ah al-Sûdân Lil’ulûm wa al-Tiknûlûjiyâ. Http://repository.sustech.edu/handle/12345 6789/2310.
- Chaouch, Musa bin Mansour wa Tawfiq Brahm. (2013). “Dawr al-Tamwîl al-Aá¹£ghar fî Muḥârabah al-Faqr fî al-Manâá¹iq al-Rîfiyah Ḍamina Uá¹ur al-Mâliyah al-Islâmiyah†Mawsû’ah al-Iqtiṣâd wa al-Tamwîl al-Islâmy.
- Durrani, Muhammad Kashif Khan dkk. (2011). “Role of Micro Finance in Reducing Poverty: A Look at Social and Economic Factors†International Journal of Business and Social Science Vol. 2 No. 21 Special Issue (November): 138 – 144. Http://www.ijbssnet.com/journals/Vol_2_No_21_Special_Issue_November_2011/16.pdf.
- Hick, Rod. (2012) “The Capability Approach: Insights for a New Poverty Focus†London School of Economics and Political Science, Journal of Social Policy: 1–18. Http://eprints.lse.ac.uk/39745/1/The_capability_approach_ Insights_for_a_new_poverty_focus_%28lsero%29.pdf tanggal 25 Januari 2014.
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- Riyadi, Slamet dan Sugiarti. (2012). Lembaga Keuangan Mikro Antara Teori dan Praktek: Sebuah Pengalaman dari Komida dalam Mengembangkan Lembaga Keuangan Mikro untuk Perempuan Miskin. Jakarta: Yayasan Mitra Dhuafa.
- Stamboel, Kemal A. (2012). Panggilan Keberpihakan: Strategi Mengakhiri Kemiskinan di Indonesia. Jakarta: Gramedia Pustaka Utama.
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- The OECD DAC Network on Gender Equality (GENDERNET). (2012). “Women’s Economic Empowerment†Poverty Reduction and Pro-Poor Growth: The Role of Empowerment: 1-29. Www.oecd.org/dac/gender.
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References
Abur, Cyprian Clement and Japheth Terande Torruam. (2012). “Microcredit as a Strategy for Poverty Reduction in Makurdi Local Government Area of Benue State, Nigeria†International Journal of Humanities and Social Science 2 No. 12 Special Issue (June): 179-186. Http://www.ijhssnet.com/journals/Vol_2_ No_12_Special_Issue_ June_ 2012/22.pdf.
Al-Fâdinî, Fahkru al-Dîn Muhammad Shaykh. (2012). “Taqwîm Dawr al-Tamwîl al-Aṣghar fî Mukâfaḥah al-Faqr†Masters Dissertations: Business Studies, Kuliyyah al-Dirâsât al-Tijâriyyah, Jâmi’ah al-Sûdân Lil’ulûm wa al-Tiknûlûjiyâ. Http://repository.sustech.edu/handle/12345 6789/2310.
Chaouch, Musa bin Mansour wa Tawfiq Brahm. (2013). “Dawr al-Tamwîl al-Aá¹£ghar fî Muḥârabah al-Faqr fî al-Manâá¹iq al-Rîfiyah Ḍamina Uá¹ur al-Mâliyah al-Islâmiyah†Mawsû’ah al-Iqtiṣâd wa al-Tamwîl al-Islâmy.
Durrani, Muhammad Kashif Khan dkk. (2011). “Role of Micro Finance in Reducing Poverty: A Look at Social and Economic Factors†International Journal of Business and Social Science Vol. 2 No. 21 Special Issue (November): 138 – 144. Http://www.ijbssnet.com/journals/Vol_2_No_21_Special_Issue_November_2011/16.pdf.
Hick, Rod. (2012) “The Capability Approach: Insights for a New Poverty Focus†London School of Economics and Political Science, Journal of Social Policy: 1–18. Http://eprints.lse.ac.uk/39745/1/The_capability_approach_ Insights_for_a_new_poverty_focus_%28lsero%29.pdf tanggal 25 Januari 2014.
Kabir, Mohammad Anwarul dkk. (2012). “The Role of Microcredit and Microfinance Institutions (MFIs): Extent and Intensity of Poverty, Poverty Alleviation and Outreach†International Affairs and Global Strategy No. 4: 29 – 48. Http://www.iiste.org/Journals/index.php/IAGS/ article/view/1457.
Onwumere, J. U. J. dkk. (2012). “The Impact of Micro-Credit on Poverty Alleviation and Human Capital Development: Evidence from Nigeria†European Journal of Social Sciences Vol. 28 No. 3: 416 – 423. Http://www.academia.edu/4136966/My_Papers.
Riyadi, Slamet dan Sugiarti. (2012). Lembaga Keuangan Mikro Antara Teori dan Praktek: Sebuah Pengalaman dari Komida dalam Mengembangkan Lembaga Keuangan Mikro untuk Perempuan Miskin. Jakarta: Yayasan Mitra Dhuafa.
Stamboel, Kemal A. (2012). Panggilan Keberpihakan: Strategi Mengakhiri Kemiskinan di Indonesia. Jakarta: Gramedia Pustaka Utama.
Suryahadi, Asep. (2012). “Kemiskinan di Indonesia: Definisi, Pengukuran, dan Karakteristikâ€. Lembaga Penelitian SMERU Research Institute dan Australian AID –Workshop ARG – Kemiskinan dan Pengukurannya di Yogyakarta 27-29 November 2012. Http://australiaawardsindo.or.id/files/arg/pdajogja/Dr%20Asep%20Suryahadi.pptx.
The OECD DAC Network on Gender Equality (GENDERNET). (2012). “Women’s Economic Empowerment†Poverty Reduction and Pro-Poor Growth: The Role of Empowerment: 1-29. Www.oecd.org/dac/gender.
Yusuf, Muhammad Bashir Owolabi. (2013). “The Impact of Pakistan Poverty Alleviation Fund on Poverty in Pakistan: An Empirical Analysisâ€. Middle-East Journal of Scientific Research Vol. 13 No. 10: 1335–1344. Http://www.idosi.org/mejsr/mejsr13% 2810%2913/9.pdf.