The Impact of Entrepreneurship Competence on Micro Business Performance

Abstract

This research focuses on entrepreneurial competencies required by traditional herbal medicine sellers, how they can survive against competition and crisis, and how they realize that they have entrepreneurial competencies like those of other successful entrepreneurs. Increasing entrepreneurial competence can improve the performance of microbusinesses, both financially and non-financially. Using a qualitative research method, this study seeks to determine the entrepreneurship competency model that has an impact on the performance of microenterprises. .The population in this study was all micro businesses in the field of traditional herbal medicine, and the samples were selected using purposive sampling technique. The informants in this study were 86 people, and data were collected through interviews and observations. The data were then analyzed using qualitative descriptive analysis. The results of the survey show that micro-enterprises require entrepreneurial competencies, which consist of 1) the ability to develop a strategic plan, 2) the ability to conceptualize business development, 3) the ability to build a relationship, 4) the ability to learn continuously, and 5) good personality.

How Entrepreneurial Competencies Can Effect Business Performance

“…(Al Mamun et al, 2019;Barazandeh et al, 2015;Dhamayantie & Fauzan, 2017;Ferreras-garcia & Hernández-lara, 2019;Sungkawati, 2019) Direct and Indirect Influence Based on the results of the study, it was concluded that there was an influence between Knowledge ( 𝑋 1 ) and Individual Ability ( 𝑋 3 ) on Business Performance (Y). To see more about the magnitude of the direct and indirect effects of each variable, it is presented in Table 4.12 the details of the direct and indirect effects are as follows: Mamun et al, 2019;Barazandeh et al, 2015;Dhamayantie & Fauzan, 2017;Ferreras-garcia & Hernández-lara, 2019;Sungkawati, 2019) The actual influence of the Individual Ability variable ( 𝑋 3 )on Business Performance (Y) is 0.0021. It means that Individual Ability ( 𝑋 3 )directly affects Business Performance (Y) is 0.0001.…”

“…Indirect influence is through the Individual Ability variable 𝑋 3 )(Y) through Knowledge ( 𝑋 1 )of 0.002. (Al Mamun et al, 2019;Barazandeh et al, 2015;Dhamayantie & Fauzan, 2017;Ferreras-garcia & Hernández-lara, 2019;Sungkawati, 2019).…”

“…Based on the individual test results (t-test) above, it shows that for all independent variables (X) that affect Business Performance (Y), then the total effect of the entire variable (X) on the dependent variable (Y) is 0.276. (Al Mamun et al, 2019;Barazandeh et al, 2015;Dhamayantie & Fauzan, 2017;Ferreras-garcia & Hernández-lara, 2019;Sungkawati, 2019)…”

“…Meanwhile, it is simultaneously known that Knowledge (𝑋 1 ) and Individual Ability (𝑋 3 ) affect Business Performance (Y) by 28% or, if interpreted, is in the weak category. (Al Mamun et al, 2019;Barazandeh et al, 2015;Dhamayantie & Fauzan, 2017;Ferreras-garcia & Hernández-lara, 2019;Sungkawati, 2019).…”

“…Based on the table above, it can be seen that the test for the F test taken from Anova with a probability level (Sig) = 0.000 because Sig < 0.05 and 𝐹 ℎ𝑖𝑡𝑢𝑛𝑔 > 𝐹 𝑡𝑎𝑏𝑒𝑙 ie 7.449 > 3.16, then the decision is 𝐻 0 rejected, meaning that overall (simultaneously) there is a positive influence and significant between Entrepreneurship Competence and Business Performance in 2013 Business Education alumni at UPI. (Al Mamun et al, 2019;Barazandeh et al, 2015;Dhamayantie & Fauzan, 2017;Ferreras-garcia & Hernández-lara, 2019;Sungkawati, 2019) Partial Test This test is conducted to determine whether each dimension affects or not on Business Performance. The following can be seen as the results of the partial test in Mamun et al, 2019;Barazandeh et al, 2015;Dhamayantie & Fauzan, 2017;Ferreras-garcia & Hernández-lara, 2019;Sungkawati, 2019).…”