The Role of Social Capital in the Development of Community-Based Co-operatives

Abstract

The Muhammadiyah institution is not just a religious social institution, but it is the axis of civilization for Muslims. It become one of the hearts of important Muslim activities in Indonesia, not only as a religious social institution, but also as a centre of da'wah, schools and other important agendas related to the ummah. Along with the increasing understanding of Islamic society in Indonesia, the existence of Muhammdiyah institutions as an institution is needed for Muslims, because it not only focuses on religious activities, but also develops by intensifying social activities and economics such as elementary education institutions through to universities, hospitals, cooperatives and baitul maal wa tamwil. All of the activities of the programs will encourage the formation of social capital, which will assist in realising the brilliance of Islamic civilization and reaching falah. The research method used in this research study was a descriptive qualitative approach with a case study method. Based on the data and analysis that has been done, it can be concluded that the Muhammadiyah institution has an active role in developing the social capital surrounding communities. This is evident from the management efforts in applying said management, thus making Muhammadiyah as a solute institution when it comes to serving the community. One element of social capital that has begun to grow in the community is the formation of networks.

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