Strategies for Applying Women's Social Capital in Small and Medium Enterprises in North Sulawesi, Indonesia

Abstract

This study aims to reveal the strategies for applying social capital and its benefits in small and medium enterprises (SMEs) managed by women, particularly in the restaurant sector. This research employs a qualitative approach with in-depth interview methods on respondents selected through purposive sampling. Respondents consist of female restaurant owners who have been running their businesses for 5-15 years and have managed to survive during the COVID-19 pandemic. The respondents for this study are 12 female owner of Rumah Makan around Universitas Negeri Manado, Sulawesi Utara which meet the sampling criteria. The interview was carried out from May to June 2024. The data obtained were analyzed thematically to find out how social capital patterns are applied in business start-up strategies, marketing strategies, and business sustainability strategies, as well as the economic benefits obtained. The results show that trust, networks and communication, as well as values or norms, play a crucial role in the success of SMEs. Trust is built through improving product quality and service, while effective networking and communication with suppliers and customers help expand market reach and ensure operational and revenue stability. Values such as honesty and responsibility are also important in building reputation and customer loyalty. The economic benefits of applying social capital include increased customer numbers, wider market reach, and stable income. The use of social media and online applications has proven very effective in increasing sales, while good relationships with suppliers and loyalty programs help ensure stable income. This study provides a deep perspective on the importance of social capital in institutional economics in supporting the success and sustainability of SMEs managed by women in the context of Indonesia's economic development.