Social entrepreneurship and CSR best practice: The drivers to sustainable business development in new Covid-19 Era

Abstract

Social Entrepreneurship (SE) practice has become one of the solutions to the economic and social problems of the community during the COVID-19 pandemic. This study examines the role of Corporate Social Responsibility (CSR) Best Practice, which acts as a mediator in the influence of SE toward Sustainable Business Development (SBD). This study applied a quantitative approach with a cross-sectional survey. The samples are actors in Micro Small Enterprises (MSEs) applying SE principles in Semarang, Central Java province, Indonesia, with 142 people obtained by purposive sampling. The structural equation model was used to test the relationship between variables. The results of the analysis prove that SE has a significant effect on the implementation of CSR Best Practice and SBD. The application of CSR Best Practice for employees and consumers can mediate the influence of SE toward SBD. In contrast, CSR Best Practice for Society and the Environment cannot act as mediators. Implementing the CSR Best Practice and SE strategies can encourage and develop added value and strengthen MSEs to achieve a sustainable business. The study results recommend that SE through CSR Best Practices is urgently necessary to solve economic and social problems in the community after the COVID-19 pandemic.