How Indigenous Profit-Sharing Fosters Inclusive Entrepreneurship: A Phenomenological Study from the Minangkabau Community

Abstract

Inclusive entrepreneurship has become an important research agenda as it seeks to expand entrepreneurial opportunities for individuals and communities traditionally excluded from economic participation. Previous studies have primarily explained inclusive entrepreneurship through formal institutions, public policy, access to finance, and entrepreneurship education, while limited attention has been given to indigenous governance systems that foster inclusion through culturally embedded business practices. This study explores how profit-sharing practices within the Minangkabau community create entrepreneurial opportunities and sustain shared prosperity. Using a phenomenological approach, this research involved in-depth interviews with thirteen entrepreneurs that engage profit-sharing practices across various sectors in West Sumatera. Data were analyzed using Braun and Clarke’s reflexive thematic analysis to capture participants’ live experience of profit-sharing practices. The finding reveals four interconnected dimensions. First, profit-sharing expands entrepreneurial participation by combining complementary resources, knowledge, labour, and productive assets. Second, shared responsibility promotes active participation and strengthens commitment among business partners. Third, collective risk-sharing reduces barriers to entrepreneurship by distributing uncertainty across participants. Finally, entrepreneurial success is understood as shared prosperity, encompassing family welfare, community well-being, social relationship, and spiritual fulfilment. These findings demonstrate that indigenous governance can function as a relational mechanism that promotes inclusive entrepreneurship and collective prosperity, offering an alternative perspective that is particularly relevant for resource-constrained communities in developing economics.