The role of corporate social responsibility (CSR) toward the development micro and small and entrepreneurs using partnership and community development program (PKBL) in Pekanbaru

Abstract

Purpose

This paper aims to determine the roles of corporate social responsibility (CSR) or social responsibility practiced by state-owned enterprises (SOEs) toward the development of entrepreneurial attitude and revenue of micro and small entrepreneurs in Pekanbaru.

Design/methodology/approach

This research used quantitative analysis with t-test (different test) to view the differences in entrepreneurial attitude and revenue before and after receiving the CSR fund through Partnership and Community Development Program (PKBL program).

Findings

PKBL aid by a state-owned company is highly effective and helps small and micro entrepreneurs in increasing revenue. It is seen from the significance of sales turnover and cost efficiency development. Some positive impacts of receiving PKBL fund on the development of entrepreneurial attitude towards positivity are significant and some are not. A significant change is found in the development of entrepreneurial attitude in the aspect of planning and leadership that show that micro and small entrepreneurs have a plan and a good leadership after receiving PKBL fund. There appears a significant difference before and after PKBL fund distribution. Confidence, task orientation, risk taking and honesty dimensions show no signs of significant difference before and after receiving PKBL fund, as they are related to someone’s nature, which is attached to each individual, and it requires time, processes and optimal treatment to change.

Originality/value

No study has investigated the roles of CSR or social responsibility practiced by SOEs towards the development of entrepreneurial attitude and revenue of micro and small entrepreneurs in Pekanbaru, Riau.

Citation

Indarti, S. (2018), "The role of corporate social responsibility (CSR) toward the development micro and small and entrepreneurs using partnership and community development program (PKBL) in Pekanbaru", International Journal of Law and Management, Vol. 60 No. 1, pp. 79-86. https://doi.org/10.1108/IJLMA-12-2016-0167