Migrant Entrepreneurial Capital (MEC) Model: Integrating Human, Social, and Psychological Capital for Sustainable Economic Empowerment of Return Migrants in Indonesia

Abstract

Return migrants accumulate skills, networks, and resilience abroad, yet many fail to achieve sustainable economic reintegration because support systems address these resources in isolation. This study proposes and tests the Migrant Entrepreneurial Capital (MEC) model, which integrates human capital, social capital, and psychological capital as a configurational basis for return migrant entrepreneurship. A convergent mixed-methods design was applied in Kebumen Regency, Central Java, through a partnership between the Migrant Resources Center of Universitas Muhammadiyah Purwokerto and PT Bryna Sukses Abadi, a labour placement company. Data were collected through a structured MEC Assessment Questionnaire, in-depth interviews, focus group discussions, and field observation. Hypotheses were tested with correlation analysis, independent-sample tests, discrimination analysis, and an exact test of capital configuration. The three capital dimensions are positively interrelated. Return migrants who run a business hold significantly higher human, social, and psychological capital than those who do not. The integrated MEC score discriminates business ownership better than any single dimension, and returnees who are strong in all three dimensions are far more likely to run a business. Qualitative evidence reveals strong bonding networks but weak bridging and linking capital, unrecognised skills, and psychological disorientation after return. The study offers an empirically grounded, configurational model of migrant entrepreneurial capital and translates it into design principles for integrated reintegration programmes for migrant protection agencies, universities, and placement companies.