The impact of social capital on UMKM productivity in Bali

A person who is bound by customary norms, especially UMKM production activities that are also in the customary village environment, will have choices in the form of whether to temporarily lay off the production process and choose to participate in adat activities as an effort to participate in adat. It is known that there are two custom variables, namely the first variable is called a production holiday to meet customary norms and the second variable is an extension of the production process to meet customary norms.

The UMKM production process that occurs in Bali is strongly influenced by various types of factors, one of which is social capital. Social capital is a collection of social relations connected with each other in a network of institutional relationships in a group that knows each other (Bourdieu: 1986) and (Putnam: 2000) states that physical capital refers to physical objects, human capital refers to the ability of each Individual social capital refers to the relationship between each individual, social networks and norms. The concept includes social institutions, which is a container for various community activities to achieve various goals with all aspects of the norm.

Trust between groups and mutual assistance activities between groups is important in social capital. The forms of social capital that exist in Bali are customs and culture helping each other, and there are several types of activities that exist including the ceremonial ceremony, the wedding ceremony, the ceremony of the god yadnya which requires the participation of each member of the traditional village, as well as other mutual cooperation activities that have various kinds of forms depend on needs, so social capital is considered to have a correlation with UMKM production activities in Bali.

Social capital becomes very important in the development process because social capital can provide benefits to the community because social capital is formed from trust (trust), where this trust is binding on the community (Purnomo, 2013). In addition to social capital having a positive impact, social capital also has a negative impact. Social capital can cause rent seeking and create high social ties with high social values, so that it can create conditions that will produce collective actions that are highly coordinated and beneficial to the group but can create exclusive traits that cause harm to people outside the group or other groups (Kartasasmita, 2017). The most extreme form of social capital is that it can be an extreme movement to foster radical understanding. In addition, social capital can also change in a negative direction such as a decrease in the honesty of the price problem due to profit orientation.

Customs have the ability to bind and regulate members of customary villages and oblige members of customary villages to participate and work together in various traditional activities or ceremonies such as ceremonies (pitra yadnya), wedding ceremonies (manusa yadnya) or dewa yadnya ceremonies so as to cause a production activity can be temporarily closed because workers and production business owners help and participate in these activities without getting paid or getting benefits.

The participation and active role of business owners and workers in the interdependent production process is part of the rights and obligations in the written and unwritten rules of adat norms. Someone who is bound by customary rules will have choices in the form of participating in customary activities or carrying out production activities in the workplace. Written and unwritten norms and rules are things that must be obeyed. Every person who is a member of adat will have rights and obligations. The rights of each member of the customary village can be in the form of the right to the land where they live, the right to get donations of rice if they have a death ceremony called patus, the right to get assistance to make ceremonial facilities and so forth related to the ceremony.

The obligation of each member of the adat village is ngayah. Ngayah is an activity that helps and participates in making ceremonial facilities and helps in the process of traditional ceremonies carried out by everyone in the traditional village where they live without asking for compensation or wages or expecting compensation. Customary norms indeed bind anyone who has been a member of a customary village wherever they live. Adat indeed produces activities that must be followed by all residents without exception. If a person who is a member of an adat does not participate in all the ceremonial ritual activities and does not participate in the ceremonial ritual activities, there are various types of sanctions that must be accepted in the form of material or non-material. This commitment certainly causes various impacts on production activities, especially UMKM in Bali.

Yuliarmi et al (2012) found that social capital had a positive effect on traditional institutions in empowering small and medium industries in Bali Province. Furthermore Kadarisman (2015) found that social capital in the form of trust between traders strongly supports the development of traders' business activities by helping each other through inter-trader loans based on trust between traders.

From the results of interviews with several UMKM groups in Bali, it can be said that there is almost no correlation between production holidays as an effort to meet customary norms with production levels. The participation of each indigenous member does not have a correlation with the level of production or does not have a strong relationship. This means that even if someone chooses to dismiss production and chooses to participate in custom activities, the choice does not affect the level of production, this is in line with the results of in-depth interviews which show that the majority of respondents state that all production targets will be completed at the specified time, even if they occur temporary production holiday because this respondent still gets help from other fellow entrepreneurs to finish production on time. Here the values ​​of social capital such as group collaboration and mutual cooperation activities aimed at helping colleagues in the group are still very well established. Furthermore, for the extension of the production process as an effort to meet customary norms, the relative level of production has no impact.

As a conclusion that, one form of social capital in Bali in the form of customary norms, is very instrumental in regulating and supporting the religious and social life of the community. This social capital certainly also has an impact on economic activity. This condition is caused because someone who is already a member of adat will be bound by adat norms. So that people who are bound by adat will try to fulfill their obligations and choose to postpone their work because they think participation is an obligation that must be fulfilled by each adat member.

With factor analysis it is known that there are two custom variables namely the first variable is called a production holiday for efforts to meet customary norms and the second variable is called an extension of the production process time to meet customary norms. Based on the correlation analysis, it is known that there is a very weak correlation between the variables of production leave with the level of UMKM production. This means that even if someone does not produce and chooses to take part in the traditional activities, it will not correlate with the level of production of UMKM. Even though the production holiday takes place temporarily, the production target will be finished on time, this is because the respondent still gets help from other fellow entrepreneurs to finish production. While the correlation between the variable extension of the production process with the level of production of UMKM is relatively low and even negative. This is where the values ​​of social capital such as group cooperation and mutual assistance activities aimed at helping colleagues in traditional village scope groups are still very well established in Bali.