Building Rural Economic Resilience through Community-Based AgroIndustrialization: Evidence from Indonesia

Purpose – This study examines the feasibility and socio-economic impact of establishing an organic cassava flour factory in Wuasa Village, Indonesia, using a social entrepreneurship approach. Design/methodology/approach – A concurrent transformative mixed-method design integrates financial feasibility analysis (Net Present Value, Internal Rate of Return, Payback Period, Profitability Index) with qualitative assessment of social outcomes. Findings – The proposed enterprise is financially viable: positive NPV (IDR 1,618,141,959), IRR of 13.74% (exceeding 5% discount rate), payback period of 1 year 8 months, and profitability index of 1.35. Socio-economic benefits include 25 direct jobs, increased household income, improved education access, and enhanced local economic circulation (>IDR 2 billion annually). Economic resilience is operationalized via three measurable mechanisms: value addition (price ratio = 3.2), local multiplier effects, and institutional strengthening. Originality – This study integrates agro-industrial development, social entrepreneurship, and economic resilience into one analytical framework. It operationalizes resilience into contextspecific, measurable indicators seldom empirically tested in community-based agro-industrial settings in the Global South. Keywords – Rural economic resilience, Community-based agro-industrialization, Social entrepreneurship, Organic cassava flour, Indonesia, Mixed-methods, Value addition, Local multiplier effect Paper type – Research paper Disclaimer: This manuscript is a preprint version submitted to the Journal of Business and Socio-economic Development (JBSED) and is currently under peer review. This version has not yet been peer-reviewed or formally accepted for publication. The content is shared for early dissemination of research findings.