Abstract
Micro, small and medium enterprises play an important role in improving the people’s economy. The contribution of small enterprises can increase state income, absorb labor, improve welfare evenly, and stimulate people’s economy by leading to the entrepreneurial orientation to support better business performance. The purposes of the study were to find out the effect of entrepreneurial orientation on business performance and the effect of entrepreneurial characteristic on entrepreneurial orientation and performance. The respondents were taken from 60 independent entrepreneurs and KWT Tani rejo of the melinjo chips processing industry in Batang Regency. The data were analyzed using Partial Least square (PLS) approach. The results showed that entrepreneurial characteristic influenced entrepreneurial orientation and business performance. In addition, entrepreneurial orientation had a positive effect on the performance of melinjo chips processing business. Entrepreneurs who implement entrepreneurial orientation from innovativeness, proactiveness, competitive aggressiveness, risk-taking and power of autonomy side will have a good impact on their business performance. Keywords: MSMEs, entrepreneurial characteristic, entrepreneurial orientation, business performance, PLS
Highlights
Women entrepreneurs in Indonesia are becoming more creative to develop their businesses
Entrepreneurs who implement entrepreneurial orientation from innovativeness, proactiveness, competitive aggressiveness, risk-taking and power of autonomy side will have a good impact on their business performance
Innovativeness plays an important role in entrepreneurship
Summary
Women entrepreneurs in Indonesia are becoming more creative to develop their businesses. It can be seen from the data from the International Finance Corporation (IFC) in 2016 showing that woman owning micro, small and medium enterprises (MSMEs) contributed 9.1% of GDP (Gross Domestic Product). MSMEs contribute 99% of all existing businesses, employing 89% of the private sector workforce and contributing 57% in GDP. It encourages the increase of income and reduction of poverty. This potential is used by the Indonesian government to identify the MSMEs sector as a key factors to increase economic growth, create employment and reduce poverty. Entrepreneurship is an important issue in economic development (Haliq, 2017)
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