Social Inclusion and Informal Recruitment in Women-Led Microenterprises: A Case Study from South Sulawesi, Indonesia

Abstract

This study explores informal recruitment practices and their contribution to social inclusion in women-led micro, small, and medium enterprises (MSMEs) in South Sulawesi, Indonesia. Employing a qualitative case study approach through in-depth interviews and field observations, the research reveals that recruitment based on trust, kinship, and social networks opens access to employment for marginalized groups such as women with low educational backgrounds, single mothers, and those excluded from the formal labor market. These mechanisms function not only as efficiency strategies but also as instruments of socio-economic empowerment at the community level. However, the absence of formal contracts and social protection places workers in a vulnerable position. Findings further show that social capital, particularly family ties, fosters loyalty and solidarity while simultaneously limiting openness to external networks. On the other hand, digital transformation through social media platforms such as Facebook and TikTok expands market reach, creates additional job opportunities, and supports broader social inclusion. The novelty of this research lies in the integration of informal recruitment, social capital, and digitalization dimensions in building the resilience of women-led MSMEs. Theoretically, this study contributes to the literature on human resource management in the informal sector; practically, it offers strategic recommendations for MSMEs and inclusive policies to strengthen gender-based economic resilience in the digital era.