Research on a system of entrepreneurial financial organization for a community of literature in motion: The Indonesian model

1 CC BY 4.0. © The Author(s). Publisher: IMCRA. Authors expressly acknowledge the authorship rights of their works and grant the journal the first publication right under the terms of the Creative Commons Attribution License International CC-BY, which allows the published work to be freely distributed to others, provided that the original authors are cited and the work is published in this journal. Citation. Yolinda Yanti S., Beatrix Yunarti M.,Leopold Melkiano T. D., Antonius Wiliam T. (2025). Research on a system of entrepreneurial financial organization for a community of literature in motion: The Indonesian model. Science, Education and Innovations in the Context of Modern Problems, 8(3), 409-428. doi: 10.56352/sei/8.3.23.

The quality of a nation's human resources can only be developed if its citizens are literate. Literacy has long been a priority for Indonesia's national and regional administrations, even if just 0.001 percent of Indonesians report an interest in literature, as reported by UNESCO (Wiedarti, 2016). Indonesia's Human Development Index is now ranked 113 out of 187 nations (UNDP, 2016), a position that is well below the rankings of other ASEAN countries (UNDP, 2016). Indonesia comes at 60th place out of 61 countries in terms of literacy proficiency (Central Connecticut State University, 2016).

The PISA 2015 student assessment survey, which was released in 2016 and found that Indonesia ranked 64th out of 72 nations, lends credence to the aforementioned findings. The poll also indicated that Indonesian youngsters between the ages of 9 and 14 were ranked 10th in their ability to read document materials. At 46.83 percent, students' reading skills are still quite low in the Indonesian National Assessment Program (INAP) ratings, despite the fact that students' abilities in mathematics and science are both quite adequate. good.

Literacy in East Nusa Tenggara (NTT), in addition to the national picture, is of concern. According to the Indonesian Ministry of Education and Culture, NTT Province has one of Indonesia's four highest illiteracy rates. In addition, according to studies, NTT Province has consistently rated 31 or 32 in the National Development Index for the past seven years since 2013. This places the province in the bottom half of the country's 33 provinces. It even ranked lower than the national average Human Development Index. The National Human Development Index (IPM) requirement has not been met by NTT's HDI. In terms of human resource development, NTT Province, although being one of Indonesia's oldest provinces, lags behind newer areas like North Kalimantan in the country's National Development Index. NTT Province had the lowest basic literacy ability scores in the country, with 81% of kids failing the basic literacy ability test, according to a recent poll (Rikarno, 2021).

According to the information provided, the government and all other stakeholders in NTT Province must work to raise literacy levels (the ability to read, write, count, discuss, and communicate) throughout the region. NTT Province benefits greatly from the work of non-formal literacy groups as well as schools in raising literacy levels and instilling a love of reading among the populace. The Ministry of Education and Culture started the National Literacy Movement in 2016 with the help of the grassroots community.

Grassroots literacy efforts require funding/capital from a variety of sources, including personal capital for community mobilizers, government grants, and private donations.

In order to avoid a halt in community activities, the community's gathered funds must be organized correctly. A financial management system in a business or non-profit organization is particularly critical since it can have a significant impact on the overall success of the organization (Mahasari, Atmadja, and Prayusi: 2017). (2016). Failures in community finance management that impede the achievement of community goals can be seen in volunteer work. For Tunda, et al. (2000), the objective is developing financial management systems for fishing communities in Bajo Indah Village, Konawe Regency in Southeast Sulawesi. It was discovered that the Bajo Indah Village fishing community is powerless due to a lack of public understanding of home finance management. Fishing communities' inability to manage their household finances has led to out-of-control spending and other signs indicating they are part of a particularly vulnerable demographic. The intended purpose of the fishing village's microfinance institution was to alleviate the poverty of its members, but this was not realized because the community did not comprehend financial management/organization properly..

It was decided to conduct a study on East Nusa Tenggara Province's financial initiatives (planning and budgeting, accounting and reporting, internal control and oversight) based on the facts and empirical data presented above. The research team will develop a good financial organization system for the sustainability of the villages in East Nusa Tenggara Province after documenting the patterns of financial organization in these communities. So that the literacy push in NTT Province may continue and achieve its ultimate goal of improving the quality of human resources without being hampered by faults in arranging community finances, this is critical. The Widya Mandira Catholic University-Kupang, in addition, directly contributes to research that will allow him to achieve his goal of creating an excellent education community in NTT through local collaboration with literacy drivers in NTT.

For this research, the focus is on grassroots organizations engaged in literacy so that it may provide answers for financial organizing for grassroots communities and communities engaged in literacy, unlike prior research that has focused on organizing financially corporate organizations. The accounting environment of a small business or a major corporation is very different from the accounting environment in a grassroots community.

Researchers will conduct in-depth interviews with members of the literacy community in NTT as part of this study. SWOT analysis and Boston Consulting Group will be used to assess the data gathered during the research process. As a next phase, the researcher will conduct observations, in-depth interviews, SWOT and BCG analyses to construct a financial organizing system. Finally, the researcher will give community actors with a financial organizing system solution they can utilize to fix and develop their finances.