The Effect Of Entrepreneurship Orientation On The Small Business Performance With Government Role As The Moderator Variable And Managerial Competence As The Mediating Variable On The Small Business of Apparel Industry In Cipulir Market, South Jakarta

Abstract

This research is conducted based on the phenomenon of the apparel industry at Cipulir Market, South Jakarta in small business context. The production rate drastically decreased since the tight competition with the apparel product from China occurred when the free-trade policy was applied. Based on the literature review, small business sector decreased because of the lack of role from the entrepreneur, government, and managerial competence aspects. The purpose of this study was to quantify andexplain the effect ofentrepreneurial orientation on business performance and the moderating influence factors and the role of governmentas well as the factors mediating influence managerial competencies of entrepreneurial orientationon business performance. The method applied in this research was quantitative method. The location of the research was at Cipulir Market, South Jakarta. The research sample consisted of 255 people from the group of apparel industry in small business sector. Data analysis utilized PLS (Partial Least Square) technique. The result demonstrated that entrepreneurship orientation did not have any influence on the small business performance. The government role was not yet influential to strengthen the relationship between entrepreneurship orientation and business performance; yet, entrepreneurship orientation affected managerial competence. Managerial competence influenced small business performance; Managerial competence a