| Summary: | This research is an exploratory qualitative research that tries to explore
deeper the effectiveness of the community groups' (POKMAS) role in improving the
welfare of the furniture industry center. The background of the problem is the 2008
crisis of the world economy that led to a decline in the productivity of the study area,
which is at the center of furniture industry in Central Java Bulakan Sukoharjo. With the existence of crisis and welfare declining prevention program due to the decrease in
industrial productivity with POKMAS, there is a need to know the level of
effectiveness and constraints.
This study uses grounded theory method, in which the approach taken is by
field work observations. The observation instruments used in the field is in-depth
interviews with list of questions. The results showed that the effectiveness of the role
of community groups in an effort to improve the welfare center for the furniture
industry is very high, it is seen from the indicators of economic well-being of the
community members and the increased ownership of assets / capital investment for
reproduction. According to the theory of success in accumulating assets and undertake reinvestment by community groups, there is a characteristic or a form of social entrepreneurship.
The community groups role effectiveness is also demonstrated by the increase in the group members' productivity. This is in line with Input-Process-Output
Model theory of Strategic Entrepreneurship, which stated that community groups
successfully processes input and outputs which provide profits for the members, their
own institution and social groups. While the barriers faced by community groups in the effort improving the welfare for the furniture industry are: internal and external.
Internal obstacles are the low creation and innovation as the members' low formal
education background, moreover transparency lack is also a source of internal
constraints for community groups. The external constraint is due to negative stereotype against community groups and the post power syndrome of senior public figures.
Conclusions, recommendation, and managerial implications of this research
are: 1) that empowerment-based community groups can be effective in improving the
well-being, thus it deserves to be replicated to other places. The legality aspect is
absolutely necessary in implementing the community groups in community
empowerment. Consistency and commitment of all parties to carry out tasks according
to the main tasks of each function are required. Emphasizing formal institutional rules
aspect should take precedence if community groups should be applied in urban areas,
while management aspects figure must be done for achieving community groups in the effort to improve the industrial district welfare.
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