Entrepreneurship Capital and Performance of Social Forestry Entrepreneurship Group

It is important to explain community forestry entrepreneurship in the context of community forest management, which continues to develop as social entrepreneurship that can increase sources of livelihood and environmental benefits. This study adapted the concept of community capital to explain the level of entrepreneurial capital and its influence on the performance of the Social Forestry Entrepreneurial Group (SFEG) through a quantitative approach by collecting data from Focus Group Discussions (FGD), interviews, observations


Introduction
Effective community forest management has positive ecological impacts and increases welfare [1] by utilizing the economic value of forest products [2], increasing forest cover [3], and preventing deforestation [4].The failure of community forestry enterprises (CFE) is caused by social conflicts, mismanagement of resources, uneven distribution of benefits, and low skills influenced by other geographical factors [3][4][5][6].CFEs thrive through mentoring processes, land conflict resolution, and profit generation from commercial activities [5,7].Economic profit is one of the goals of CFE, as social enterprises have both social and environmental goals [8,9].CFE development encourages poverty alleviation in communities around forests by obtaining jobs and income, and medium enterprises (SMEs) and CFEs can absorb labor, which is higher than the industrial scale [10,11].Some of the profits from operations allocated to investments in business equipment and the environment play a role in encouraging business sustainability and increasing a community's social welfare [8,12].
The level of business benefits for public facilities in the form of buildings, education, and health still needs to be higher, but CFE could be an important strategy for mitigation and adaptation to withstand the effects of climate change [13,12] improves ecosystem function, maintaining water management, mitigating natural disasters, and conserving biodiversity.The Social Forestry Enterprise Group (SFEG) is a community forestry enterprise (CFE) unit of the social forestry program, and each community has resources that can be used to improve welfare [14].The concept of community capital [15] reveals that developing community groups are measurable from the capital level because currents and interactions between capital influence the nature of capital itself.More specifically, sustainable community forestry management with high economic value is the accumulation of human and financial capital that groups access [16].Previous studies on CFE have reviewed many aspects from an economic perspective, covering aspects of 1) institutions, 2) governance, 3) capacity building, and 4) productivity [9], while the study of CFE as a social enterprise that has social, economic, and environmental benefits is still limited.From the description above, the objective of this study is to review SFEG as a social enterprise to measure the level of development using the community capital concept and its influence on SFEG performance.

Study Area
This study was conducted in the Lumajang District (East Java Province) (Figure 1), Pulang Pisau District (Central Kalimantan Province) (Figure 2), and Buleleng District (Bali Province) (Figure 3).The unit of analysis in this study was the Social Forestry Entrepreneurial Group (SFEG), totaling 39 units considering the representativeness of the SFEG independence class, namely blue, silver, gold, and platinum [17].

Data Collection Methods
Primary and secondary data were used in this study.Primary data were collected through Focus Group Discussions (FGD), interviews using a questionnaire, observations, and literature review.Table 1 are variable measurements were carried out using scoring method 1 for the lowest score and 5 for the highest score based on a predetermined unit; the level of community capital of a group is the total score of natural capital (X1), social capital (X2), financial capital (X3), physical capital (X4), human capital (X5), and political capital (X6) divided by the maximum number of scores.The level of capital consists of five (5) categories, namely very low (0-0.20),low (0.21-0.40), moderate (0.41-0.60), high (0.61-0.80), and very high (0.81-1.00).The coefficient of determination was tested, and multiple regression analysis was performed to determine the effect of each capital on SFEG Performance.

Entrepreneurial Capital and SEFG Performance
Groups of people with high resources have a source of livelihood with high returns and investment.In contrast, groups with low resources cannot invest and have low returns [22].A group has high capital because the nature of capital can be increased by the group itself or by external encouragement.In Table 2, the number of SFEG based on the capital level is four units in the low category, 22 units in the medium category, 11 units in the high category, and two units in the very high category in the platinum class.The level of capital does not describe an SFEG class, as shown in the platinum class.There are medium and high capital levels, and in the blue and silver classes, the level of capital is low to high.Capital is transformed by structures that carry out policies and processes that make it possible to convert one type of asset into another [23].The level of capital for each SFEG class varies, as shown in Table 3, including the level of natural capital in the silver class (0.08) and gold (0.08), which is lower than the blue class (0.11) and platinum (0.14), which manage and utilize the economic value of forest resources together, similar to the higher level of social capital, 0.19 (blue) and 0.23 (platinum).The low social capital of the silver (0.15) and gold (0.16) classes is due to the low level of participation because members have their main livelihood in the mining and plantation sectors; therefore, entrepreneurial management activities are often represented, and the level of participation of members in managing forest resources is influenced by the economic benefits obtained [24].Human capital is defined as skills to generate economic value as a source of livelihood [15], community forestry management skills with agroforestry patterns, silvopasture and utilization of environmental services class blue (0.06) and platinum (0.08) have been running before the formation of SFEG, these skills were acquired informally, passed down from generation to generation, counseling or mentoring or training facilitation [25].Facilitation of entrepreneurial skills and strengthening of members' business institutions is needed to increase human capital, which is still low [6]; there is SFEG class silver (0.51) and gold (0.54).
Funding is an important capital for running an entrepreneur [26], and the platinum class (0.04) can access entrepreneurial funds sourced from member fees, local investors, subsidies, Village Unit Cooperative/Koperasi Umum Daerah (KUD), Village Owned Entrepreneurial Board/Badan Usaha Milik Desa (BUMDes), and entrepreneurial capital assistance from the Government or National Owned Entrepreneurial Board/Badan Usaha Milik Negara (BUMN).The level of financial capital is low in the silver class (0.02).The majority only accessed program assistance because of the difficulty in obtaining loans.Credit loans to community groups can increase environmental investment, strengthen institutions, and increase other assets [27].Increasing community forestry entrepreneurs' commodity production and economic value requires adequate equipment and infrastructure.Physical capital in the platinum class (0.20) is the highest, consisting of ecotourism, silvopasture, and agroforestry entrepreneurship commodities.
In contrast, the level of physical capital in access roads, production equipment, and entrepreneurial support facilities in the silver (0.13) and gold (0.13) classes was relatively low.The profits of an enterprise can be distributed in the form of physical capital investment; in addition, it can be obtained through government programs [28] as a benefit relationship between community groups and government officials.High political capital in the platinum class (11.50)Apart from intensive assistance by the officers, the proactive attitude of community groups can also access assistance with equipment, funding, and capacity building.Lack of access or conflicts with the government and its officers can reduce support for entrepreneurial development [29].
The average value of SFEG performance at a low, moderate, high, and very high capital level was 10.25, 11.95, 24.90, and 32.Table 4 shows that a higher level of capital improves a social entrepreneur's performance.The management and utilization of forest resources with a very high level of capital can distribute the results of entrepreneurship and employment fairly and equitably, with a value of 22.00, which is driven by social capital in the form of very high participation, trust, and cooperation in transparent and accountable entrepreneurial governance according to an agreed mechanism [8,30].Environmental performance aims to preserve forests for entrepreneurial sustainability by protecting against forest disturbances and reforestation [31,32].The SFEG with low (2.25) and medium (2.77)capital levels had lower performance values than the high (7.45) and very high (10) categories.At high and very high capital levels, some entrepreneurial proceeds can be allocated for forest disturbance protection activities, routine planting, or reforestation [33].Community forestry entrepreneurs' development has influenced forest resource protection and conservation [34].The effect of entrepreneurial capital on SFEG performance is determined using multiple regression statistical analyses.The ANOVA test results in Table 5 show that the significance value of the entrepreneurial capital variable was 0.000.The significance of entrepreneurial capital on SFEG performance is <0.05, meaning it simultaneously influences SFEG performance.The level of capital affects the sustainability of livelihoods in community groups [27], and livelihood capital significantly affects people's livelihood strategies [35].The level of capital can encourage food security, better health, increased welfare, and sustainable management of natural resources [23,36].Improving the livelihood of forest-edge communities requires increased capital ownership [37].Table 6 shows that natural, financial, and political capital have a significance value of <0.05, which means they have a significant influence on SFEG performance, while social, physical, and human capital have a significance value of >0.05, meaning they do not have a significant influence on SFEG performance.Forest resources as an important natural capital for people who live around forests and depend on forest resources [20] because they affect the main source of livelihood [37] by managing and utilizing the economic value of forest products [38], contrast to the commodity of ecotourism environmental service entrepreneurs is strongly influenced by physical capital, higher physical capital can improve ecotourism performance [4], in line with physical capital and financial capital have an important role in community forestry management [39].The Social Forestry Enterprises Group, as a source of livelihood, requires various sources of funding to carry out production, management, and marketing processes to generate profits, which significantly influences the sustainability of the livelihoods of community groups based on entrepreneurial bodies [12].Loans to groups can encourage an increase in the livelihoods of group members; groups with low financial capital cannot develop entrepreneurship because of a lack of access to funding sources [27].
The government's role is very important in improving the welfare of residents around the forest in the poor category through intensive training, the optimal duration of the training, adequate infrastructure, the existence of a productive economy to increase household income and sustain livelihoods [40], and empowering communities to practice sustainable forest management to improve welfare [41].Human and physical capital in this study did not significantly affect performance; political capital in the form of a close relationship between community groups and government or officers can influence a policy on natural resource management and the economy.Political capital enables the disbursement of technical assistance, increases knowledge and skills [28], and overcomes the shortage of physical capital [42].In addition to the government's role, the SFEG already has entrepreneurial partners, can access markets, and can increase physical capital through credit, subsidies, or grants.This is in line with the fact that the physical capital of an effective entrepreneur follows market developments [43].
Social capital does not significantly affect the performance of SFEG; in contrast, social capital significantly influences sustainable livelihoods through in24creasing institutional capacity and developing internal and external collaboration networks [44].The close bond of group members builds cohesion as a solid foundation for governance to develop a community group entrepreneur [28,45].Awareness of the function of forests and ancestral history is the motivation for developing groups [46], and community adherence to customary institutions and local wisdom serves as the foundation for collective forest management [14] and is important for the development of small and medium enterprises in the forestry sector [30].Members must actively participate, strengthen social bonds, and work together to improve performance and generate sustainable economic value [22].

Conclusions
The entrepreneurial capital of SFEG in this study is low to very high category, the independence class does not show a high level of capital.The higher the level of entrepreneurial capital, the better is the performance of the SFEG.The level of natural capital, social capital, financial capital, physical capital, human capital, and political capital influences the performance simultaneously.Natural capital, financial capital, and political capital directly and significantly influence SEFG's socioeconomic and environmental performance.In contrast, social capital, physical capital, and human capital do not have a significant influence and can be increased through officers' intensive assistance in increasing institutional capacity, skills, and business management.

Figure 1 .
Figure 1.Study area of Lumajang District, East Java Province.

Table 1 .
Variables, operational definitions, and indicators.The intensity of finding flora/fauna in the social forestry area • The maintained water system, the hydrological function of the forest area

Table 2 .
The level of entrepreneurial capital for the SFEG class.

Table 3 .
The average entrepreneurial capital for the SFEG class.

Table 4 .
Average performance based on the SFEG class.

Table 5 .
ANOVA test of the effect of entrepreneurial capital on SEFG performance.

Table 6 .
Coefficient of entrepreneurial capital on SFEG performance.