Social Capital in Micro-family Enterprises: A Case Study in East Java, Indonesia

Augendra Bhukuth, Damien Bazin, Ani Wulandri and Valentina Teslenko
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Ani Wulandri: Narotama University, Surabaya, Indonesia
Valentina Teslenko: ARENAP, Russia

No 2022-11, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: Family businesses operating mainly in the informal economy in East Java, Indonesia, generally employ family members and neighbors. As part of a qualitative study on employer-employee relationships, we interviewed the owners of 37 of these family businesses (30 small and 7 medium) to investigate the level of responsibility they feel towards their employees. By using a Social Capital approach to analyze the data, we found that the relationship between employers and employees is based on trust, and that family businesses have to maintain this trust to be able to sustain their activities in a highly competitive market. We then describe the ups and downs of managing employees when the employer-employee relationship is close.

Keywords: Decent work; Employers-employees relationship; Family Business; Informal sector; Microenterprises; Social benefits; Social capital (search for similar items in EconPapers)
JEL-codes: D22 J15 J24 J46 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2022-05
New Economics Papers: this item is included in nep-iue, nep-sbm, nep-sea and nep-soc
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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2022-11

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