Entrepreneurship Development Through Tourism Villages Essay Example
Entrepreneurship Development Through Tourism Villages Essay Example

Entrepreneurship Development Through Tourism Villages Essay Example

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  • Pages: 16 (4292 words)
  • Published: August 22, 2021
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Abstract

This article examines the successful conversion of Pentingsari Village from a poverty-stricken village into a highly sought-after tourist spot. The village's entrepreneurial spirit has been crucial to its triumph. Pentingsari Village Tourism offers an exceptional and serene setting, providing urban residents with a unique experience. The atmosphere in Pentingsari Village grants respite from the hectic urban lifestyle, offering a natural therapeutic effect.

Entrepreneurship in tourism villages is linked to the concept of economic defense, with a specific emphasis on society as the main foundation for defense, especially in activity-based tourism villages. This study utilizes a qualitative approach by observing Pentingsari Village Tourism and conducting focus group discussions and in-depth interviews with residents and the village head. In summary, it is crucial for the Indonesian government to establish regulations that allow all stakeholders to maximize the opportunities presented

...

by villages across Indonesia.

Introduction

Poverty remains an ongoing challenge confronted by many countries globally.

The presence of unequal infrastructure and human resources development within a country contributes to poverty, resulting in low purchasing power and economic uncertainty among the population. To tackle these challenges, the United Nations (UN) has introduced the Millennium Development Goals (MDGs) as a comprehensive strategy.

The MDGs and SDGs are initiatives by the United Nations that seek to enhance the well-being of marginalized individuals worldwide. The MDGs comprise eight focal areas aimed at generating fresh prospects for a superior existence, with special emphasis on eradicating extreme poverty and hunger. The introduction of the SDGs by the United Nations complements this agenda by advocating sustainable development and ensuring effective execution of the MDGs.

The SDGs include 17 work programs that aim to improve human life in the future, with poverty

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as the main focus. The Indonesian government, through Bappenas (National Development Planning Agency), uses the MDGs and SDGs as guidelines to achieve balanced development in Indonesia. Additionally, President Ir. H. Joko Widodo has introduced NAWACITA, nine work programs aimed at promoting justice for all Indonesians. In their pursuit of equitable development, the Indonesian government aims to prioritize peripheral areas before focusing on central areas.

Inadequate infrastructure in the outskirts of the city limits people's access to education, healthcare, and goods and services. Consequently, the Indonesian government is prioritizing infrastructure development, specifically in the eastern region of the country. Historically, Indonesia focused on developing Java, but now there are efforts to construct infrastructure throughout all areas, including border regions and eastern Indonesia. The government's goal is to fulfill their constitutional duty of achieving social justice for all citizens of Indonesia.

In 2018, the Indonesian government aimed to improve its human resources through various strategies. These included setting up vocational schools, organizing management training programs, and promoting entrepreneurship. The goal of the entrepreneurship program was to encourage the growth of new economic sectors and create more jobs. In contrast, the United States has a larger number of entrepreneurs, making up about 3% of its total population. On the other hand, Southeast Asian countries like Thailand and Malaysia have a smaller proportion of entrepreneurs, ranging from 1% to 2% of their total population. Indonesia's percentage is even lower at approximately 0.001%.

Ideally, the optimal percentage of entrepreneurs in a country is 1% to 3% of the total population. Entrepreneurs are crucial for a county's economy as they contribute by adding value to items or utilizing development potential. They receive support from

different government programs for engaging in varied production activities.

The aim of this endeavor is to improve economic production in Indonesia, both on a micro and macro level, during the ongoing global transition into Industrial Revolution 4.0. This period is defined by technological advancements that allow individuals to participate in activities from any location and at any time. The internet, specifically through smartphones, exemplifies how technology facilitates different business ventures. Additionally, wireless connectivity has become synonymous with the era of Industrial Revolution 4.0.

Entrepreneurs see the industrial revolution 4.0 as a moment to create a new economic sector, including the creative industry and digital economy. The creative industries have multiple added values as they make full use of all available resources. Tourism is one example of a creative industry, involving not only tourist areas but also destinations. Pentingsari Tourism Village in Umbulharjo, Cangkringan, Sleman Regency, DIY (Yogyakarta Special Region) is a prime example of this. The village was established due to its isolated location, as the community lacked access to economic opportunities beyond their village.

Pentingsari, a village with a high poverty rate, struggles to provide education for its children. However, there are always some individuals from Pentingsari who pursue education outside the village and later return to contribute to the development of their hometown. In an effort to promote tourism, Pentingsari is working on establishing a daily activity that can serve as a tourist attraction.

In 2008, the management of Pentingsari underwent restructuring as the government and related parties collaborated to plan the village's future. They adopted a village-based entrepreneurship approach for this purpose. Additionally, Pentingsari Village is surrounded by various tourism destinations in Sleman-DIY Regency, making it

an attractive spot for both domestic and foreign tourists.

Pentingsari Village is known for offering a range of village activities that allow tourists to immerse themselves in the local culture and experience what life is like as a villager.

The Theory of Tourism Development

The theory of development is based on the concept of generating new ideas and designs that lead to innovation and positive benefits across different sectors. This includes human resource development, tourism, curriculum, and regional growth. The theory places particular emphasis on the connections between tourism and regional development.

A development concept is the creation of something new and its transformation into an innovation, providing capabilities and solutions. When it comes to tourism development, mapping is conducted in the area, encompassing region, district, and city. This mapping helps identify the potential of the region by examining various economic indicators, indicating the tourism-related potentials it possesses. Once the potential is assessed, it can be developed into a new tourism venture by investing in new infrastructure to connect the village with other areas. Notably, Gunn's tourism development model emphasizes nine external factors that influence tourism development: natural resources, cultural resources, leadership and organization, finance, labor, entrepreneurship, society, competence, and government policies.

According to Gunn, the development of tourism is influenced by external factors, which in turn affect the transformation of tourism in a particular area. This aligns with economic theory, which suggests that tourism development relies on the fundamental concepts of supply and demand. Essentially, if there is no demand and supply simultaneously, tourism development cannot be achieved.

The concept of market balance or equilibrium is crucial for

tourism development. It is derived from microeconomic studies and Leiper's work focusing on connecting infrastructure with tourist destinations. One important aspect is the creation of road access to villages in order to attract and mobilize tourists. Consequently, the construction of roads, infrastructure, and public facilities becomes imperative. By employing the Leiper development model, a strong relationship between tourists and tourism managers can be established, provided that policy makers or the government can correctly identify the requirements for tourism development.

Leipier suggests that when there is connectivity between tourism destinations and tourists, it leads to assimilation in various aspects such as the environment, people, economics, socio-cultural aspects, technological transfer, and politics. This results in holistic development through tourism. Each individual has their own approach in developing tourism models based on their perspectives, making the tourism development model dynamic and open to different interpretations.

This study will use a tourism development model initiated by Gunn to combine tourism stakeholders and tourism development for the prosperity of the village. The Theory of Defense Economy examines the combination of economy and defense. Economy involves utilizing limited resources with unlimited human desires to maximize profits with minimal effort. Defense science encompasses systematic knowledge of war and defense principles, as well as the development, examination, and evaluation of analysis results and methods of dissemination. Defense is an effort to maintain sovereignty by utilizing all available resources to face various threats. Understanding defense can be approached through ontology, epistemology, and axiology perspectives.

The concept of defense economy involves merging the aspects of economy and defense to effectively manage a country's resources for ensuring the integrity and sovereignty of the state. It plays a crucial role

in achieving national independence. Another perspective views defense economy as a business within the defense sector, which is closely associated with the defense budget.

The defense economy relies on government financial support for national defense in order to operate effectively. This economy is centered around the concept of bolstering the national defense system, which necessitates two key elements: welfare and security. By meeting the economic needs of its citizens and eliminating conflicts or disagreements, a state can attain security.

In order to achieve national defense, it is essential for the government to focus on improving economic justice. This is because the basic human needs have already been fulfilled. Defense economics relies on three fundamental aspects: economic law, political economy, and economic politics. These building blocks play a crucial role in establishing an autonomous state economy that can sustain itself without relying on other nations. Economic law encompasses the legal structure that regulates the country's economic activities.

The legal foundation of the Indonesian economy can be found in Pancasila and the 1945 Constitution. The fifth precept emphasizes the importance of social justice for all Indonesians, which necessitates the government to ensure broad economic justice. Article 33, paragraph (1) of the 1945 Constitution states that the economy is structured as a collaborative effort based on the principle of family. Additionally, paragraph (4) asserts that the national economy should adhere to the principles of economic democracy, unity, fairness, independence, and balance. Political economy serves as both a scientific discipline and a study of interconnectedness and its ability to influence both economic and political factors.

The five variables are indicators or benchmarks for a country's political economy. These variables include:

  1. Government intervention,

policy changes, political economic actions

  • Price increases in the market
  • Declining purchasing power
  • Scarcity of resources
  • Social revolution, industrial transformation
  • Revolution and advances in science, knowledge, technology, communication and information
  • Political economy is Das Sein or a science in order to manage the economy and its government. Political economy has a tendency for values and aspects of political interests. On the one hand, interests or politics are stronger than economic aspects. The economy motives are also charged itself by the political motives. Furthermore, political economy is basically capital or an investment.

    Capital is the fundamental resource for infrastructure development. A manifestation of the progress of political economy is seen in regional economic development, such as the MEA (ASEAN Economic Community). Economic politics, known as Das Sollen, is a policy outcome influenced by a country's economic circumstances, which relies on economic laws and political economy. It serves as both a means to achieve political objectives and a rationalization of political power. Thus, the desired goals, formulated through strategic planning, are successfully attained.

    Thus, economic politics aims to attain maximum prosperity and economic justice for the community, enabling individuals to experience a developed economy. Economic politics is vital in generating prosperity for society as it intertwines with and relies on politics and economics. To effectively execute economic concepts, policies (politics) must be implemented. The country's defense economy necessitates three fundamental components: economic law, political economy, and economic politics.

    The government must pay attention to defense in order for the state to continue. It is crucial for the government to recognize the sovereignty of their country as a policy maker. This research aligns with the theory of

    defense economy, stating that the government has a mandatory duty to prioritize public welfare. Without prosperity in the community, economic growth cannot be achieved. Additionally, tourism development serves as a form of defense economy.

    The utilization of an area's potential, such as tourism, can support the economic resilience of a region and country. It can also contribute to regional defenses through tourism.

    Theory of Entrepreneur

    Schumpeter's definition of an entrepreneur involves disrupting the existing economic order by introducing new products and services, creating new forms of organizations, or exploiting new raw materials. Entrepreneurs are also individuals who can transform economic resources from low productivity to high productivity. Hisrich-Peters describe entrepreneurship as the process of creating something valuable through dedicating time and effort, while considering financial gain, personal satisfaction, and independence. Entrepreneurship involves turning everything into a product with added value. According to Zimmerer, entrepreneurs take risks and operate in uncertain conditions while focusing on profit and seizing every opportunity that combines needed resources for maximum benefit.

    Every potential has the potential to be a profitable opportunity, as stated by Prof. Dr. J. Winardi, S.E.

    There are several characteristics of someone with an entrepreneurial spirit, including:

    • Internal Control Locus: An entrepreneur believes they have the power to control their own destiny and can take autonomous action.
    • High Energy Level: An entrepreneur possesses high levels of energy and can exert effort regardless of time constraints. They will stop only when a task or project is completed or succeeds.
    • Tolerance Against Ambiguity: An entrepreneur is willing to accept various risks and uncertainties as an inevitable part of

    their journey.

  • High Trust: An entrepreneur exercises full control over their decisions, recognizing that each decision comes with risks but also opportunities.
  • Action Oriented: An entrepreneur is an executor who not only generates ideas or concepts but also implements them based on well-formed plans.
  • Entrepreneurial Concept

    Entrepreneurs view creative and innovative thinking as a mindset necessary for problem-solving and producing novel solutions. They perceive obstacles as opportunities to grow, lead, and succeed in competitive environments. Moreover, entrepreneurship entails a specific perspective on people in general.

    Sometimes, individuals can identify opportunities and take quick action to benefit themselves without the knowledge of the general public. An entrepreneur can emerge from a combination of professional experience, personal growth, and compelling circumstances. A prime example of this is Walt Disney, a renowned figure in the film industry who achieved great success as a businessman in entertainment. However, behind his triumph lies a grim tale of mistreatment by his parents. Disney endured a period of confinement where he was unfairly locked up and had to endure the company of rats.

    Ever since then, Walt Disney has served as inspiration for mouse creatures and has become a beloved cartoon character among children, known as Mickey Mouse. Mickey Mouse continues to be extremely popular among children globally, and even adults have built up collections of Mickey Mouse dolls. Walt Disney's journey has transformed him into a successful businessman, thanks to the lessons learned from past hardships.

    Moreover, Colonel Sanders, a fast food entrepreneur known for KFC (Kentucky Fried Chicken), embarked on a business venture despite facing 1000

    failures in the fast food industry. Colonel Sanders demonstrated resilience and perseverance in the face of adversity. As a result, KFC now has branches in nearly every country worldwide. Drawing from the triumphs of these entrepreneurs, it is crucial to adopt a creative and unwavering mindset when establishing a business for successful outcomes. Furthermore, success is attained through dedication rather than mere chance.

    Successful entrepreneurs rely on unfinished sacrifice and effort as the crucial factors for achieving success.

    Research Methodology

    This study employs a qualitative approach to research. Qualitative research is conducted using a descriptive approach, aiming to offer solutions or remedies to current problems based on available data sources. The research utilizes qualitative methods, including interviews, observation, and document review, for data collection.

    The researchers chose to use a qualitative approach to deeply review, analyze, and understand the problems studied in relation to the topics raised. They conducted efforts to explore information related to research by examining the application of village funds to the research object. Information was gathered from various sources, including the BPM-PPD report, the tourism agency, and the village head, regarding reports on the development of entrepreneurship-based tourism villages. The study focused on informants who were directly involved in the research and possessed expertise in the relevant field. The research was conducted in Pentingsari Village, Umbulharjo, Cangkringan, Sleman Regency, Yogyakarta Special Region (DIY).

    The study employed data collection techniques such as conducting in-depth interviews and collecting online or direct documents from resource persons. The use of semi-structured interviews was preferred to gather ample data and facilitate spontaneous questioning while ensuring relevance to the study's topic in cases where the initial set of questions might be insufficient.

    Subsequently, the gathered data, including interviews, observations, and related documents, will undergo analysis during the discussion and analysis process.

    Researchers will use the theory as the framework for this research, combining important concepts through inductive reasoning to form powerful conclusions related to the research topic.

    Discussion; Results

    Mr. Doto provided an explanation that Pentingsari Tourism Village was established in 2008. It is situated on the slopes of Mount Merapi, approximately 12.5 km from the summit of Mount Merapi and 22.5 km from the center of Yogyakarta City.

    Tourism villages are destinations that prioritize the preservation of local and sustainable practices. An example of an important tourism village is Pentingsari, which focuses on nature, culture, and agriculture with an emphasis on environmental awareness. In Pentingsari, visitors can engage in various activities that promote learning about nature, the environment, agriculture, plantations, entrepreneurship, socio-cultural aspects, traditional arts, and local wisdom. These elements are deeply embedded in the community's rural lifestyle on the slopes of Mount Merapi. In the 1990s, Pentingsari Village was known as one of the poorest communities in the Merapi Gurung area, characterized by a low level of economic and community income and a simple village life.

    Access to this region is challenging and the land is infertile, leading to a lack of development. However, by embracing the spirit of cooperation and taking care of nature, the environment, and local traditions, the community has been able to thrive. This has resulted in abundant natural resources, vegetation, agricultural products, and a vibrant socio-cultural life that is preserved. Despite this progress, the community remains isolated from the outside world. In early 2008, the villagers took small steps to improve the social, economic,

    and cultural aspects of their village while still preserving their local wisdom and traditions. With limited resources and support from various parties, a tourism village was established to help Pentingsari village catch up with other villages and advance. The success of this tourism village depends on the villagers being open to new experiences and forming positive connections with visitors from outside their community.

    The tourist village of Pentingsari encourages daily community activities like farming, livestock raising, and other activities to promote the active involvement of the community. The goal is for the village to have a significant impact, allowing community members to become active participants rather than mere observers. This tourist village was established without significant financial capital, relying instead on enthusiasm to bring the community together for self-organization, environmental management, and instilling pride in their own village. Additionally, the development of the tourism village involves collaboration with various stakeholders, including government, private entities, and universities, to actively contribute to the village's growth. However, in 2008 the community of Pentingsari Tourism Village was unable to depend solely on tourism as a means to improve the local economy and community income due to limitations in human resources, supporting facilities and infrastructure, skills, and the development and marketing of tour packages. As a result, the number of tourists visiting the village in recent years has not exceeded 1,000.

    In 2009, the Pentingsari Tourism Village received assistance from various parties to enhance camp facilities and infrastructure. This included repairs to the hall, bathrooms, parking lots, and improved road access. As a result of this program, the number of tourists significantly increased to 5,000 in 2009, leading to an

    increase in public income. In 2010, the Pentingsari Tourism Village continued to receive programs and assistance. These initiatives aimed to provide HR training, guiding uniforms, and additional facilities for arts, culinary, and souvenirs. Thanks to the PNPM Mandiri Tourism program, efforts to improve facilities and infrastructure were accelerated. Consequently, Pentingsari now boasts 40 homestays, various agricultural attractions, well-organized arts and culture services.

    The eruption of Mount Merapi destroyed the development of a tourist village and resulted in not achieving the target of attracting more than 10,000 tourists. Only less than 9,000 tourists visited this year. The eruption also caused damage to facilities and infrastructure, taking 6 months to rebuild trust among people and tourists. However, instead of using natural disasters as an excuse to beg and complain, the village community became stronger and more active in managing the socio-economic life of the community.

    Both government and private entities, such as BCA's CSR Programs and various Community Service Institutions in Universities, play a crucial role in supporting Pentingsari Tourism Village. Their support extends to improving village facilities, infrastructure, human resource capacity, and the development of a productive economic community. Currently, with a population of 370 people and 127 families, Pentingsari Tourism Village has empowered over 70% of its community members. This empowerment includes various groups involved in homestays (55 units), arts and cultural attractions (25 people), local guides/tourism for youth (30 people), local culinary (60 people), home industry (20 people), community-owned shops (6 units), and security/support staff (30 people). Furthermore, the villagers have repurposed abandoned village land into camping and outbound areas (1 hectare) and transformed the Kali Kuning river basin into an appealing adventure spot for tourists.

    In addition to their collaboration with institutions, Pentingsari Tourism Village communities also partner with several local entities such as youth farmer groups, plantations, agriculture, and peasant women. Moreover, they cooperate with external parties such as art groups, breeders groups, lava tours, and the village government utilizing village-owned land.

    After receiving help in developing human resources and tourism facilities from various parties, the level of tourist visits to Pentingsari Tourism Village has remained stable at 30,000-35,000 people per year. From 2015 to 2017, the average monthly income reached Rp. 150,000 - Rp. 200,000. Over a period of 10 years, the village has provided opportunities for locals to earn additional income and boost the local economy without leaving their hometown. This has been achieved without causing harm to the environment and has helped to prevent urbanization among the younger generation. The village has also empowered women's groups and spurred the growth of various productive economic activities.

    The daily activities in Pentingsari Village provide a form of nature therapy, allowing visitors to enjoy village activities and temporarily escape from their office routines. The transformation of Pentingsari Village into a tourist destination follows a similar approach to Gunn's tourism development model. Just like the model suggests, the inhabitants of the bustling city seek different activities in order to alleviate their fatigue. Pentingsari Village offers a unique experience where visitors can actively participate in the daily village activities and feel like important members of the community. This approach aligns with the economic concept of supply and demand as tourism generates income for the villagers while preserving the natural environment of Pentingsari Village through these activities.

    This is an implementation of the theory of

    economy defense where Indonesia's national defense system puts society at the forefront. Pentingsari Village actively engages the local community in tourism activities, resulting in a strong defense base. The main actors in tourism activities are the local people of the village. This also sparks economic activity through the sale and purchase of handicrafts and other creative products.

    The people of Pentingsari Village are involved in tourism village activities to indirectly support the defense economy concept. This arose from the entrepreneurial spirit of the local population, who desired to improve their fate. Previously, Pentingsari Village was characterized by poverty, but it has now transformed into an advanced village.

    Entrepreneurship in the development of a tourism village creates opportunities for profit, particularly for the village community. This has allowed important village communities to generate income, enabling them to provide their children with education at both school and higher levels.

    Conclusion

    Entrepreneurship in village tourism serves as a role model for empowering people and maximizing the use of resources in the village. Eradicating poverty in the village requires more than government policies such as subsidies or assistance; it also necessitates the professional management of village assets. The strong participation of society in the village is a powerful factor in improving the lives of the people in Pentingsari Village.

    Village tourism indirectly introduces the concept of economic defense, which relies on the participation of the local community, making it the most effective defense for the Pentingsari Village region.
    Internally, the Indonesian government must reform its regulations regarding policies that aim to reduce poverty through entrepreneurship methods. This is important as every region in Indonesia is composed of villages or small communities, many of

    which suffer from poverty due to a lack of public facilities and inadequate road access.

    The Indonesian government needs to focus on the suburban regions to distribute economic equality for the Indonesian people.

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