THE POTENTIAL OF INFORMAL INSTITUTIONS IN PROMOTING GREEN ENTERPRENEURSHIP (GE) AND SUSTAINABLE SOCIO-ECONOMIC DEVELOPMENT

P Eko Prasetyo; Azwardi; Nurjannah  Rahayu Kistanti

doi:10.2478/eoik-2023-0061

Authors

P Eko Prasetyo Department of Development Economics, Faculty of Economics and Business, Universitas Negeri Semarang, Indonesia
Azwardi Departement of Development Economics, Fakulty of Economic and Businnes, Sriwijaya University, Indonesia
Nurjannah Rahayu Kistanti Department of Development Economics, Faculty of Economics and Business, Universitas Negeri Semarang, Indonesia

DOI:

https://doi.org/10.2478/eoik-2023-0061

Keywords:

Informal Institutions, Green Enterpreneurship and Sustainable Socio-Economic Development

Abstract

The continuity of the green environment, economy, and entrepreneurship is essential for sustainable development. Therefore, this research aims to explored the potential of informal institutions in promoting Green Enterpreneurship (GE) and sustainable socio-economic development. The method employed used microeconomic data rooted in local wisdom, social norms, and localized moral commitments from various regions of Indonesia. Data collection comprised surveys and structured interviews relevant to the research objectives. Quantitative data material was obtained by conducting a field survey of 150 household samples of green entrepreneurship respondents taken representatively in various regions using simple random sampling techniques. The design employed a two-stage mixed-method approach, including exploratory and explanatory designs. The result showed the significance of Green Enterpreneurship (GE) in mitigating the impacts of global climate change and economic crises, thereby contributing to the attainment of sustainable development goals. However, the main results of the research confirm that the capacity of formal institutions has not been able to navigate the complexity of these problems isssues is limited. Conversely, informal institutions, though capable of mitigating global climate change and advancing sustainable development, remained localized and lacked national and global integration and collaboration. Green Enterpreneurship (GE), as a form of social innovation, gave rise to new models of socio-economic solidarity within unique local communities. The research also underscored the pivotal role of informal institutions in facilitating these endeavors, thereby filling a void in high-quality new institutional economic theory.

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