The Influence of Entrepreneurship Capability to Micro and Small Business Growth in Indonesian Fish Processing Industry

  • Authors

    • Sudrajati Ratnaningtyas
    • Acip Sutardi
    • Yogi Makbul
    2018-08-14
    https://doi.org/10.14419/ijet.v7i3.25.17476
  • Business Growth, Entrepreneurship Capability, Fish, Processing Industry, West Java

  • Abstract

    This study aims to measure the entrepreneurship capability and its influence on business growth in the fish processing industry which is a supporter of the culinary industry. There are three dimensions of entrepreneurship capability included in the model: entrepreneurial skills, management skills, and technical skills, with each factor. The research was conducted in fish production center in West Java Indonesia, in 2017. The research method used was survey method by Two-Stage Cluster Random sampling technique; and used primary and secondary data. Data analysis technique used Compound Annual Growth Rate (CAGR) to measure business growth, and Structural Equation Model (SEM) to analyze the influence of entrepreneurship on business growth. The results showed that communication, ability to take risk, innovative, change-oriented, persistent, proactiveness, committed, planning and goal setting, decision making, motivating, marketing, inner control, design, environment observation, critical path method, work break down structure are indicators appropriate to be a measure of entrepreneurial capability, especially for micro and small business manager. Entrepreneurship capability significantly influenced business growth at 95 percent confidence level. It means that when entrepreneurship capability is improved it will increase the business growth rate of micro and small business in the fish-based food processing industry in Indramayu Regency.

     

     

  • References

    1. [1] Timmons JA, Spinelli S. New Venture Creation: Entrepreneurship for the 21st Century. Vol. 2009, Business. 2016. XXX, 658 p.

      [2] Siropolis N. Small Business Management-A guide to Entrepreneurship. Boston: Houghton Mifflin Company; 1994.

      [3] Hisrich R, Peters M. Entrepreneurship: Starting, Developing and Managing a New Enterprise. Strategic Change. 1995.

      [4] Newenhuizen C. Business Management for Entrepreneurs. Cape Town: Juta and Co.Ltd.; 2009.

      [5] Kutzhanova N, Lyons TS, Lichtenstein GA. Skill-Based Development of Entrepreneurs and the Role of Personal and Peer Group Coaching in Enterprise Development. Econ Dev Q. 2009 Aug;23(3):193–210.

      [6] Departemen Perdagangan. Pengembangan Ekonomi Kreatif Indonesia 2025, Rencana Pengembangan Ekonomi Kreatif 2009-2015. 2008.

      [7] Kementerian Pariwisata dan Ekonomi Kreatif. Indonesia Kreatif. Jakarta; 2013.

      [8] Kementerian Koordinator Bidang Perekonomian. Rencana Strategis 2015-2019. Jakarta; 2015.

      [9] Kementerian Kelautan dan Perikanan. Analisa Data Pokok Kelautan dan Perikanan 2015. Jakarta; 2015.

      [10] Pusat Data dan Analisis Pembangunan Jawa Barat. Buku Data Pembangunan Tahun 2013. Bandung; 2013.

      [11] Baumane-Vitolina, Ilona; Cals I. Theoretical Framework for Using Resource Based View In The Analysis Of SME Innovations. Eur Sci J. 2013;1(1):174–82.

      [12] Kanugi JN. Factors Influencing the Performance of Growth Oriented Small and Medium Enterprises in Thika Sub-County. Strateg J Bus Chang Manag. 2017;4(2):180–96.

      [13] Lekhanya LM. Determinants of survival and growth of small and medium enterprises in rural KwaZulu – Natal. 2016.

      [14] Sulistyo HS. Innovation capability of SMEs through entrepreneurship, marketing capability, relational capital and empowerment. Asia Pacific Manag Rev. 2016;21(4):196–203.

      [15] Roig-Tierno, Norat; Alcázar, Joaquín; Ribeiro-Navarretec S. Use of infrastructures to support innovative entrepreneurship and business growth. J Bus Res. 2015;68(11):2290–4.

      [16] Brookfield, Katherine; Gray, Tim; Hatchard J. The concept of fisheries-dependent communities: A comparative analysis of four UK case studies: Shetland, Peterhead, North Shields and Lowestoft. Fish Res. 2005;72(1):55–69.

      [17] Knutson P. Escaping the corporate net: Pragmatics of small boat direct marketing in the U.S. Salmon fishing industry of the Northeastern pacific. Mar Policy. 2017;80:123–9.

      [18] Samian, Masoud; Saadi, Heshmatollah; Mirzaeia, Khalil,; Ansari, Elham; Ahmadihagh, Esmaeil; Soleymani A. The role of fishing cooperatives on social – Economic and cultural development of rural areas of Bord Khun city of Bushehr, Iran. J Saudi Soc Agric Sci. 2017;16(2):178–83.

      [19] Bjørndal, Trond; Brasão, Ana; Ramos, Jorge; Tusvike A. Fish processing in Portugal: An industry in expansion. Mar Policy. 2016;72:94–106.

      [20] Arbo, P; Hersoug B. The globalization of the fishing industry and the case of Finnmark. Mar Policy. 1997;21(2):121–42.

      [21] Eide, Arne; Heen K. Economic impacts of global warming: A study of the fishing industry in North Norway. Fish Res. 2002;56(3):261–74.

      [22] Hisrich, R.D.; Peters MP. Entrepreneurship: Starting, Developing, and Managing a New Enterprise. Mc.Graw-Hill,Inc.; 1995.

      [23] Shahverdi M, Ismail K, Qureshi MI. The effect of perceived barriers on social entrepreneurship intention in Malaysian universities: The moderating role of education. Manag Sci Lett [Internet]. 2018;8:341–52. Available from: http://www.growingscience.com/msl/Vol8/msl_2018_27.pdf

      [24] Cooney TM. Entrepreneurship Skills for Growth-Orientated Businesses: Report for the Workshop on ‘Skills Development for SMEs and Entrepreneurship’. Copenhagen, 28 November 2012. 2012.

      [25] Zoltan, J.; Audretsch DB. Innovation and Technological Change. In: Handbook of Entrepreneurship Research< An Interdisciplinary Survey and Introduction. New York: Springer Science+Business Media, Inc.; 2005. p. 55–79.

      [26] Cochran WG. Sampling Techniques. Wiley Series in Probability and Mathematical Statistics Applied. 1977.

      [27] Ferdinand A. Structural Equation Modelling -Dalam Penelitian Managemen. Semarang: Fakultas Ekonomi Undip; 2002.

      [28] Ghozali I. Model Persamaan Struktural : Konsep dan Aplikasi dengan Program Amos Ver.5.0. Semarang: Badan Penerbit Universitas Diponegoro; 2004.

  • Downloads

  • How to Cite

    Ratnaningtyas, S., Sutardi, A., & Makbul, Y. (2018). The Influence of Entrepreneurship Capability to Micro and Small Business Growth in Indonesian Fish Processing Industry. International Journal of Engineering & Technology, 7(3.25), 100-105. https://doi.org/10.14419/ijet.v7i3.25.17476

    Received date: 2018-08-14

    Accepted date: 2018-08-14

    Published date: 2018-08-14