The effect of knowledge, entrepreneurship motives and the society’s culture in increasing the women micro business performance in Riau province

Abstract

PurposeThis study aims to know the effect of knowledge management, entrepreneurship motives and the society’s culture on women micro business performance in Pelalawan Kabupaten.Design/methodology/approachThis research was done on women micro business in Pelalawan Kabupaten, Riau Province. The research used survey approach which used questionnaire instrument as the research primary data. The population of the research was the entrepreneurs of women micro businesses in Pelalawan Kabupaten who joined training. There are 121 entrepreneurs spread across five districts (Pankalan Kuras, Pangkalan Kerinci, Pangkalan Lesung, Kerumutan and Bandar Seikijang) where entrepreneurs in the five districts actively participate in training.FindingsThe performance of the business cannot be said that it was very well performed, because any growth had not been seen in the business run, which automatically the increase of the profit had not been able to be expected. Product sales were still fluctuating and there was no tremendous increase in sales. In addition, the increase in the number of consumers is also not significant. In relation to the knowledge management, it can be concluded that the knowledge management on the business management of the entrepreneurs was still low. There were many indicators that needed attention so that the business could develop; factors such as knowledge about market, production aspect, distribution, promotion and relationship building, financial management and technology usage were still far from expectation. The entrepreneurship motive was still low. It was proved by the condition that the entrepreneurs could not develop the business and the entrepreneurs’ welfare had not been developed yet. If the business developed, it would be followed by recognition from the people in the society. However, this has not been achieved and entrepreneurs also do not have an achievement orientation so that their business is no better than other businesses in regional Indonesia. There were not many people who supported the businesses run by the entrepreneurs in Pelalawan Kabupaten because the people’s loyalty to the products sold by the entrepreneurs was still low.Originality/valueThere had not been a comprehensive research assessing knowledge management, entrepreneurship motives and society’s culture and its effect on the micro business performance, specifically for women entrepreneurs; thus, this study is different from the previous research studies. This point became the originality of this research as well as the usage of the variable of society’s culture which became the local wisdom and was owned by Pelalawan, Riau, Indonesia and which became the characteristic highlighted in this research.