Kinship Social Capital and Entrepreneurship Development: A Comparative Study For Internal And International Migrant of Minangkabau Ethnic

Abstract

Kinship social capital can function as an important source of social capital for welfare and economic development. Kinship social capital has potency to improve entrepreneurship activity. Khinship social capital may provide some benefit as reducing transaction cost, facilitating access toward information, providing informal insurance and helping to solve collective action dilemma. There is one in Indonesia, in which it is popular called as Minangkabau and has strong norms and values in building entrepreneurship. Minangkabau society have high number and potency in entrepreneurship. Minangkabau tribe is one of the ethnics in Indonesia that have matrilineal system and as travelling ethnics. The purposes of this article are identifying and comparing kinds of social capital and its phase of effects toward entrepreneurship building of Minangkabau ethnic in internal and international Migrant. The respondents in this study are Minangkabau ethnic entrepreneurs in Jakarta (internal Migrant) and Minangkabau ethnic traveler entrepreneurs in Malaysia (international Migrant). The method used in this study is Structural Equation Model (SEM). Based on the estimated result, it is found that the two Minangkabau ethnic travel areas have differences and similarities in their social capital. The mutual interrelationship and activities are social capital that underlie entrepreneurship building in both internal and international migrants. Social capital that the Minangkabauan has does not affect the entrepreneurship building for the migrants.