The Influence of Competence, Business Motivation and Entrepreneurial Spirit on Business Success in Ciawi District, Bogor Regency (Case Study of Snack Food MSMEs)
Sri Harini1, Erni Yuningsih2, Ipat Latipah3
1,2,3 Faculty of Economics, Djuanda University, Bogor
ABSTRACT: The development of snack food MSMEs in Ciawi District does not always run smoothly, many obstacles and constraints are encountered. Some of the obstacles include low quality human resources, limited business capital, marketing difficulties, management and technology limitations which will have an impact on the success of the business achieved.Business success is a goal that every business actor wants to achieve. Success in developing a business is based on entrepreneurs who have competence, business motivation and a good entrepreneurial spirit. An entrepreneur is a person who has a high capacity for knowledge and skills, has the motivation to continue to develop and has innovative ideas so that he is able to compete with the times.This research aims to determine the influence of competence, business motivation and entrepreneurial spirit on business success in Ciawi District, Bogor Regency (case study of snack food MSMEs). The population in this study were snack business actors in Ciawi District consisting of 50 respondents, sampling using a saturated sampling technique. Data analysis uses multiple linear regression. The research results show that competence has a positive and significant effect on business success, business motivation has a positive and significant effect on business success and entrepreneurial spirit has a positive and significant effect on business success. Simultaneously, competence, business motivation and entrepreneurial spirit have a positive and significant effect on business success. The most dominant variable influencing business success is the competency variable.
KEYWORDS: Competence, Business Motivation, Entrepreneurial Spirit, Business Success
- INTRODUCTION
Micro, Small and Medium Enterprises have an important and strategic role in national development, apart from that they also play a role in distributing development results. MSMEs have proven to be ineffective and able to survive the economic crisis that occurred in Indonesia in 1998 and 2008. When the economic crisis occurred, many large-scale businesses experienced stagnation and even stopped their operational activities, but the MSME sector at this time has proven to be more resilient in facing the economic crisis.
The growth of MSMEs in West Java Province is increasing day by day, this is also followed by the development of regional businesses, one of which is in Bogor Regency. The MSME activity centers in Bogor Regency are spread throughout almost all sub-districts, one of which is Ciawi Sub-district. Management of MSMEs in Ciawi District is carried out by the MSME Forum which consists of several members with various types of businesses owned. This type of processed food and beverage business is ranked first and based on information from the Forum Chair, this type of snack business is one of the superior products because it is in great demand by natives and visitors. Snack Food MSMEs also make a very positive contribution to economic growth and open up employment opportunities for local communities so that they can help reduce unemployment. The development of the snack business in Ciawi District does not always run smoothly, many obstacles and constraints are encountered. Some of the obstacles include: low quality of human resources, limited business capital, marketing difficulties, management and technology limitations which will have an impact on the success of the business achieved.
Business success is a business that can achieve its business goals, apart from that, it is a company whose activities refer to achieving success (Suryana, 2014). A business’s success can be influenced by several factors including motivation, age, experience and education (Baswori, 2016). Another expert’s opinion suggests that factors that can influence business success are divided into two, namely internal factors and external factors. Internal factors include: quality of human resources, organizational mastery, organizational structure, management system, participation, business culture, capital strength, business networks with external parties and entrepreneurial spirit (entrepreneurship) and external factors include: government and non-government (Tambunan, 2012).
An entrepreneur is required to have competence because with the competence he has, business actors can know how to manage and develop their business. Competency is the ability to carry out or carry out a job or task that is based on skills and knowledge and is supported by the work attitudes required by the job. Competency indicators consist of: knowledge, skills and attitudes (Wibowo, 2017).
Another factor that can influence business success is business motivation. Business motivation is one of the determining factors in achieving business success because it is related to the drive or strength within humans to get the best results. Business motivation is a willingness to try as optimally as possible to achieve organizational goals which is influenced by the business’s ability to satisfy individual needs (Saiman, 2014). Business motivation must be possessed by an entrepreneur because it is able to encourage and direct business actors to focus on doing something that will help them achieve organizational goals. There are 4 (four) indicators of business motivation including: profit, freedom, personal dreams and independence.
Apart from competence and business motivation, another factor that can influence business success is the entrepreneurial spirit. The entrepreneurial spirit is a basis for working and producing something that can be measured in material or money. Entrepreneurial Spirit is a humanitarian process (human process) which is related to creativity and innovation in understanding opportunities, organizing resources and managing them so that these opportunities materialize into a business that is able to generate profits or value for a long period of time (Baswori, 2016). The entrepreneurial spirit exists in everyone who has creative and innovative abilities in everyone who likes change, renewal, progress and challenges (Suryana, 2014). The entrepreneurial spirit has several indicators, including: self-confidence, task and results oriented, courage to take risks, leadership, future orientation and originality (Baswori, 2016). Based on this, it can be concluded that business success is closely related to the competence, business motivation and entrepreneurial spirit of business actors.
Snack food MSMEs in Ciawi District have income targets that have been previously set, but not all business actors can realize and achieve these targets, this is because business actors have not been able to manage their businesses well. The following is a table of target and actual income data for snack food business actors in Ciawi District based on the results of a pre-survey conducted on January 11 2022 with 26 people representing business actors who were respondents in this research as follows:
Table 1. Target and Realization of Snack Food MSME Income in Ciawi District in 2022
No. | Product/Business Name | Income Target (Average per month) | Income Realization
(Average per month) |
Monthly Target Achievement (%) | Information |
1 | Cassava chips | 5.000.000 | 4.000.000 | 80,00 | Not achieved |
2 | Kepok Banana Chips | 2.000.000 | 1.500.000 | 75,00 | Not achieved |
3 | Adelia Snack | 4.000.000 | 3.000.000 | 75,00 | Not achieved |
4 | HS Cake Pastries | 5.000.000 | 3.500.000 | 70,00 | Not achieved |
5 | Various Types of Chips | 4.000.000 | 3.000.000 | 75,00 | Not achieved |
6 | R&R Kepok Banana Chips | 3.000.000 | 3.500.000 | 116,67 | Achieved |
7 | Mom’s Arya Cake & Cookies | 1.000.000 | 600.000 | 60,00 | Not achieved |
8 | Opak Mini | 4.000.000 | 3.000.000 | 75,00 | Not achieved |
9 | Rizky Dumplings | 2.000.000 | 1.200.000 | 60,00 | Not achieved |
10 | Linda Rose Kitchen | 5.000.000 | 5.500.000 | 110,00 | Achieved |
11 | Dumplings & Flower shake | 4.000.000 | 2.000.000 | 50,00 | Not achieved |
12 | Traditional food | 3.000.000 | 2.000.000 | 66,67 | Not achieved |
13 | Moring Zema | 8.000.000 | 13.300.000 | 166,25 | Achieved |
14 | FIFA THREE | 5.000.000 | 5.500.000 | 110,00 | Achieved |
15 | Adlie Brothers | 5.000.000 | 5.500.000 | 110,00 | Achieved |
16 | Happy Cookies | 6.000.000 | 3.000.000 | 50,00 | Not achieved |
17 | ELSA (Banana Chips) | 5.000.000 | 3.000.000 | 60,00 | Not achieved |
18 | TRIANA (Semprong) | 3.000.000 | 2.000.000 | 66,67 | Not achieved |
19 | Sale Idris (Banana Sale) | 4.000.000 | 2.000.000 | 50,00 | Not achieved |
20 | NN Family (Rempeyek) | 5.000.000 | 2.100.000 | 42,00 | Not achieved |
21 | Sentul Chips | 3.000.000 | 2.000.000 | 66,67 | Not achieved |
22 | Doblen Chips | 4.000.000 | 3.000.000 | 75,00 | Not achieved |
23 | Rengginang Snacks | 5.000.000 | 5.000.000 | 100,00 | Achieved |
24 | Ciawi Tempeh Chips | 2.000.000 | 1.000.000 | 50,00 | Not achieved |
25 | Reckless | 2.000.000 | 1.000.000 | 50,00 | Not achieved |
26 | Reckless | 3.000.000 | 2.400.000 | 80,00 | Not achieved |
Total | 102.000.000 | 83.600.000 | 1989,92 | ||
Rate-rate | 3.923.077 | 3.215.385 | 76,54 | Not achieved |
Source: Preliminary Survey, 2022 (processed)
Based on Table 1 Target and Realization of Snack Food MSME Income in Ciawi District in 2022, the results of a pre-survey conducted on 26 snack food MSMEs in Ciawi District, it can be seen that the average achievement of the monthly target is 76.54%, meaning that some MSMEs have not been able to fulfill predetermined income targets.
Competence is the main variable that an entrepreneur must have in order to complete his work according to the targets that have been set. Competency is a person’s ability to produce at a satisfactory level in the workplace, competency also shows the characteristics, knowledge and skills possessed or required by each individual that enable them to carry out their duties and responsibilities effectively and improve professional quality standards in work (Wibowo , 2017). However, the practice in the field is based on the results of an interview on January 11 2022 with the Chair of the Ciawi District MSME Forum that snack food MSME actors have not been able to develop their businesses due to limited knowledge and abilities. This is not in line with the theory that an entrepreneur will not be successful if lack the knowledge, ability and will. Having the will but not having the knowledge and abilities will not make someone a successful entrepreneur (Suryana, 2014). The level of competence possessed by a business actor can be determined from the level of education. The educational background of snack business actors can be seen in the following table:
Table 2. Educational Background of Snack Food MSME Owners in Ciawi District in 2022
No. | Educational Background | Business Owner (Person) | Percentage (%) |
1 | Elementary School/Equivalent | 28 | 56 |
2 | Middle School/Equivalent | 9 | 18 |
3 | High school/equivalent | 13 | 26 |
4 | Diploma | 0 | 0 |
5 | Masters | 0 | 0 |
Total | 50 | 100 |
Source: Ciawi District MSME Forum, Bogor Regency, 2022 (processed)
Based on Table 2, the educational background of snack business actors is dominated by those with elementary school/equivalent education, 28 people or the equivalent of 56%, followed by business actors with high school/equivalent education, 13 people with a percentage of 26%, then business actors with junior high school/equivalent education have the highest position. as low as 9 people, equivalent to 18%. This means that there are still some business actors whose low level of education does not comply with the regulations of Employment Law Number 13 of 2003 article 1 paragraph 26 which states that the minimum requirement for work is a high school/equivalent education level. The low level of education among business actors makes their business insight very narrow, their entrepreneurial spirit (entrepreneurship) who are low and do not have or know business management, then this will be an obstacle to a business because it will impact the success of the business.
Another factor that can influence business success is business motivation. Motivation is the encouragement of a series of human behavioral processes in achieving goals. Someone who has high motivation will also produce high performance (Budiman, Ivonne, & Greis, 2016). Based on the results of an interview on January 11 2022 with the Chair of the Ciawi District MSME Forum, it was found that business actors have low personal dreams, which becomes an obstacle to not achieving predetermined income targets. The principle of snack food MSME actors in Ciawi District in running their business is only to meet their needs. In life, most business people adhere to the concept of sufficient sustenance and blessings are more important than the sustenance that makes them rich. The motivation of business actors in starting a business is not to become rich but only to fulfill needs that come from sustenancehalalan toyyiban. The following is data on the turnover of snack food MSMEs in Ciawi District:
Table 3. Growth in Snack Food MSME Turnover in Ciawi District, Bogor Regency in 2021
Year | Total Turnover (Rp) | Percentage Change (%) |
2019 | 685.220.000 | 0,00 |
2020 | 656.025.000 | (4,26) |
2021 | 421.305.000 | (35,78) |
Total | 1.762.550.000 | (40,04) |
Rate-rate | 587.516.667 | (13,35) |
Source: Ciawi District MSME Forum, Bogor Regency, 2021 (processed)
Based on Table 3 Growth of Snack Food MSME Turnover in Ciawi District, Bogor Regency, it can be seen that the snack food MSME turnover in 2019 amounted to IDR 685,220,000, decreased by 4.26% in 2020 to IDR 656,025,000 then decreased again by 35 .78% in 2021 to IDR 421,305,000. The growth in snack food MSME turnover from 2019 to 2021 experienced an average decline of 13.35%, this was due to the low business motivation of snack food MSME players.
Apart from competence and business motivation, another factor that can influence business success is the entrepreneurial spirit. The requirements that an entrepreneur must have include: discipline, high commitment, honesty, creativity, innovation and independence (Suharyadi, 2007). However, in practice in the field, based on the results of an interview on January 11 2022 with the Chair of the Ciawi District UMKM Forum, the target of snack business actors not being achieved was because their entrepreneurial spirit was decreasing, at several bazaars or exhibitions held by Ciawi District there were several products which tends not to vary because it is still classifiedcopycat namely making a product that is the same as other MSMEs. This is due to a lack of innovation and self-confidence to be different from other MSME products. Some of the innovations carried out by snack food business actors can be seen in the following table:
Table 4. Types of Snack Food MSME Innovations in Ciawi District, Bogor Regency in 2022
No. | Product/Business Name | Types of Innovation | Early Product Types | Innovation Development |
1. | Cassava chips | – | – | – |
2. | Kepok Banana Chips | – | – | – |
3. | Adelia Snack | Packaging innovation | Bulk plastic | Standing pouch |
4. | HS Cake Pastries | Packaging innovation | Toples mika | Tube jar |
5. | Various Types of Chips | – | – | – |
6. | R&R Kepok Banana Chips | Taste innovation | Original | Chocolate and cheese |
7. | Mom’s Arya Cake & Cookies | Packaging innovation | Mika plastic | Mika tray |
8. | Opak Mini | Taste innovation | Original and spicy | Sweet corn and balado |
9. | Rizky Dumplings | – | – | – |
10. | Linda Rose Kitchen | Product innovation | Cheese and chocolate filling | Chocolate tape and cheese tape |
11. | Dumplings & Flower shake | – | – | – |
12. | Traditional food | – | – | – |
13. | Moring Zema | Technological innovation | Manual slicer | Slicing machine |
14. | FIFA THREE | Packaging innovation | Big plastic | Jar |
15. | Adlie Brothers | Taste innovation | Original | Balado, chocolate, BBQ and cheese |
16. | Happy Cookies | Product innovation | original where-where | Where-where pelangi |
17. | ELSA (Banana Chips) | Packaging innovation | Bulk plastic | Standing pouch |
18. | TRIANA (Semprong) | Taste innovation | Original | Mocha, durian and strawberry |
19. | Idris Sale (Banana Sale) | Packaging innovation | Bulk plastic | Standing pouch |
20. | NN Family (Rempeyek) | – | – | – |
21. | Sentul Chips | – | – | – |
22. | Doblen Chips | – | – | – |
23. | Rengginang Snacks | – | – | – |
24. | Ciawi Tempeh Chips | Packaging innovation | Bulk plastic | Standing pouch |
25. | Reckless | – | – | – |
26. | Reckless | – | – | – |
Source: Preliminary Survey, 2022 (processed)
Based on Table 4, the results of a pre-survey conducted on 26 snack food MSMEs in Ciawi District, it can be seen that MSMEs have tried to develop their production results through innovations such as product innovation, packaging innovation, taste innovation and technological innovation. There are 14 people or the equivalent of 54% of snack business actors who have innovated in the businesses they are running, while 12 people or the equivalent of 46% of snack food business actors have not innovated due to the lack of entrepreneurial spirit among business actors.
- RESEARCH METHODS
This research uses a descriptive verification research design with a quantitative approach. namely research that is based more on data that can be calculated to produce an interpretation (Sungadji, 2013). The sample is part of the number and characteristics of the population (Sugiyono, 2019). If the population is less than 100 then all are taken so that the research is a census research (Arikunto, 2011). So this research uses a saturated sampling technique, considering that the population in this research is less than 100, the number of samples used in this research is all snack business actors in Ciawi District, Bogor Regency, totaling 50 people.
The variables in this research consist of two types, namely the independent variable which consists of competence, business motivation and entrepreneurial spirit, the dependent variable is business success. Competency is measured through knowledge, skills and attitudes. Business motivation is measured through profit, freedom, personal dreams and independence. Entrepreneurial spirit is measured through self-confidence, task and results orientation, courage to take risks, leadership, future orientation and originality. Furthermore, business success is measured based on capital, income, sales volume, production output and workforce. All statements contained in the questionnaire are measured using a Likert scale with five points ranging from 1 for the strongly disagree category to 5 for the strongly agree category.
This research uses primary data obtained directly through observation, interviews and questionnaires given to respondents and secondary data obtained from archive data of the Ciawi District MSME Forum as well as other sources such as books and journals. The analytical tool used in this research uses multiple linear regression analysis with the help of the SPSS version 26 program. Before testing the influence between variables, a validity and reality test is carried out as well as a classical assumption test.
The results of the first validity test on the competency variable (X1) which is measured by 12 statement items shows that the questionnaire items in this study are valid. This is shown by the calculated r value for each item being greater than the r table (0.3), meaning that all competency variable question items (X1) are declared valid.
The results of the first validity test on the business motivation variable (X2) which is measured by 12 statement items shows that the questionnaire items in this study are valid. This is shown by the calculated r value for each item being greater than r table (0.3), meaning that all question items for the business motivation variable (X2) is declared valid.
The results of the first validity test on the entrepreneurial spirit variable (X3) which is measured by 13 statement items shows that the questionnaire items in this study are valid. This is shown by the calculated r value for each item being greater than r table (0.3), meaning that all question items for the entrepreneurial spirit variable (X3) is declared valid.
The results of the validity test of business success as measured by 10 statement items show that the questionnaire items in this research are valid. This is shown by the calculated r value for each item being greater than the r table (0.3), meaning that all question items for the business success variable (Y) are declared valid.
The results of the recapitulation of reliability tests for the variables competency (0.902), business motivation (0.865), entrepreneurial spirit (0.841) and business success (0.874) can be seen that the reliability value obtained is greater than the Rcritical value of 0.6 for each competency, motivation variable. business, entrepreneurial spirit and business success. The results of this test show that the measuring instrument used is reliable so it can be concluded that the measuring instrument used to measure the variables of competence, business motivation, entrepreneurial spirit and business success has provided consistent results.
Classic assumption test
- Normality test
Based on the results of the One Sample Kolmogorov – Sirnov Test, it shows that the research has a normal distribution with a Sig value of 0.20, meaning the Sig value is greater than 0.05. Normality testing was carried out using a histogram graph and using a normal P-Plot
- Multicollinearity Test
Based on testing in SPSS 26, it can be seen that the VIF value of the competency variable is 1,233<5 and the tolerance value is 0.811>0.05, the VIF value of the business motivation variable is 1,174<5 and the tolerance value is 0.852>0.05, the VIF value of the entrepreneurial spirit variable is 1,422<5 and the value tolerance 0.703>0.05 so it can be concluded that in the regression model for the variables of competence, business motivation and entrepreneurial spirit there are no symptoms of multicollinearity.
- Heteroscedasticity Test
The results of the heteroscedasticity test on the scatterplot graph show that the points on the scatterplot graph spread in an unclear pattern and are above and below the number 0 at point Y. So it can be concluded that in the regression model there is no heteroscedasticity and it is suitable to be used to predict each variable in this research.
- RESULTS
Characteristics of Business Actors
Table 5. Recapitulation of Characteristics of Business Actors
No. | Characteristics | Characteristics of business actors | Amount | Percentage (%) |
1. | Gender | Woman | 44 People | 88 |
2. | Status | Married | 50 People | 100 |
3. | Age | 36-45 Years | 18 People | 36 |
4. | Last education | Elementary School/Equivalent | 28 People | 56 |
5. | Long Effort | 5-7 Years | 18 People | 36 |
6. | Revenue/ Turnover | 1-3 Million | 26 People | 52 |
Source: Processed Primary Data, 2022
Business Actors’ Responses
Based on the results of distributing questionnaires on the competency variable (X1) it can be seen that the average value of business actors’ responses to the competency variable is 4.07 which is included in the high category. This shows that the majority of business actors have high competence supported by knowledge, skills and attitudes in running a business. Then, the business actor’s answer to the competency variable had the highest score of 4.11, namely the knowledge indicator. This means that business actors have very competent knowledge about the business they are running. Long entrepreneurial experience influences the business actor’s knowledge. Meanwhile, the lowest score was 4.00, namely on the skills indicator. This shows that business actors have quite competent skills in running their business, low educational background makes it difficult for business actors to supervise business, use information technology, manage administration and make financial reports. Therefore, it is best for business actors to continue learning by participating in training activities organized by the District MSME forum and local government in order to improve the skills of business actors.
Based on the results of distributing questionnaires on the business motivation variable (X2) it can be seen that the average value of business actors’ responses to the business motivation variable is 4.05 which is included in the high category. This shows that the majority of business actors have high business motivation supported by the freedom, personal dreams and independence possessed by business actors. Then the business actor’s answer to the business motivation variable has the highest score of 4.26, namely on the freedom indicator. This means that business actors have very high freedom in managing their business time, business actors can determine their work time flexibly according to their needs without any restrictions. Meanwhile, the lowest score was 3.87, namely on the profit indicator. This shows that having high enthusiasm alone is not enough to achieve the expected profits. Therefore, other things must be supported in order to support the ability to achieve profits, such as good management by followingworkshop regarding business management, business supervision by participating in MSME mentoring programs and business capital by collaborating with other partners.
Based on the results of distributing questionnaires on the entrepreneurial spirit variable (X3) it can be seen that the average value of business actors’ responses to the entrepreneurial spirit variable is 4.41 which is included in the very strong category. This shows that the majority of business actors have a very strong entrepreneurial spirit supported by self-confidence, task and results orientation, courage to take risks, leadership qualities, future orientation and originality. Then the business actor’s answer to the entrepreneurial spirit variable had the highest score of 4.71, namely the self-confidence indicator. This shows that business actors have high self-confidence and are committed to running their business as seen from the length of time they have been running the business. Meanwhile, the lowest score was 3.44, namely on the originality indicator (creativity and innovation). This shows that business actors must dare to be different and be able to apply their ideas and imagination in their work by conducting surveys and research with consumers regarding the products they want so that business actors can make products in accordance with current developments.
Based on the results of distributing questionnaires on the business success variable (Y), it can be seen that the average value of business actors’ responses to the business success variable is 3.89, which is included in the high category. This shows that the majority of business actors have high business success supported by capital, income, sales volume, production output and workforce. Then the business actor’s answer to the business success variable has the highest score of 4.42, namely on the capital indicator. This shows that business actors are very enthusiastic about using their capital to start entrepreneurship. Meanwhile, the lowest score was 3.33, namely on the income indicator. This shows that business actors must increase sales volume by expanding marketing through social media such asInstagram andFacebook and able to compete with similar products in order to increase the amount of income that is higher than before.
Table 6. Regression Coefficients and Significant Test Coefficients
Coefficientsa | ||||||
Model | Unstandardized Coefficients | Standardized Coefficients | t | Say. | ||
B | Std. Error | Beta | ||||
1 | (Constant) | 14.384 | 5.498 | 2.616 | .002 | |
Competence | .177 | .052 | .416 | 3.401 | .001 | |
Business Motivation | .116 | .049 | .266 | 2.373 | .022 | |
Entrepreneurial Spirit | .213 | .092 | .282 | 2.304 | .026 | |
a. Dependent Variable: Business Success |
Source: Data processing output with SPSS 26, 2022
Based on Table 6, a regression equation is obtained with the following estimation model:
Y = 14,384 + 0.1771 + 0,116X2 + 0.213X3 + and
Based on this equation, it can be concluded that the constant (α) is 14,384, meaning that when competence, business motivation and entrepreneurial spirit (X1 X2 and X3 = 0) then business success is 14,384.
Competency regression coefficient (X1) of 0.177 is positive, the business motivation regression coefficient (X2) of 0.116 is positive and the entrepreneurial spirit regression coefficient (X3) of 0.213 is positive. This shows that every time there is an increase in the values of the competency variable (X1), business motivation (X2) and entrepreneurial spirit (X3) will be followed by an increase in business success.
Table 7. Coefficient of Determination Test
Model Summaryb | ||||
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate |
1 | .630a | .397 | .357 | 2.846 |
a. Predictors: (Constant), Entrepreneurial Spirit, Business Motivation, Competence | ||||
b. Dependent Variable: Business Success |
Source: Data processing output with SPSS 26, 2022
The coefficient of determination in the table above shows the relationship between competence, business motivation and entrepreneurial spirit on business success, showing a correlation figure of 0.630, which means there is a strong relationship. This shows that the higher the competence, business motivation and entrepreneurial spirit, the higher the success of the snack food MSME business.
Table 8. F-Test Results
ANOVAa | ||||||
Model | Sum of Squares | df | Mean Square | F | Say. | |
1 | Regression | 260.606 | 3 | 86.869 | 11.200 | .000b |
Residual | 356.774 | 46 | 7.756 | |||
Total | 617.380 | 49 | ||||
a. Dependent Variable: Business Success | ||||||
b. Predictors: (Constant), Entrepreneurial Spirit, Business Motivation, Competence |
Source: Data processing output with SPSS 26, 2022
Based on the calculated F value in the table, it is known that the calculated F is 11,200 and the F table value for α = 0.05 with V degrees of freedom1 = 4-1 = 3 and V2 = 50-3-1 = 46 of 2.81 So the calculated F is greater than the F table (11,200 > 2.81) so it can be concluded that Ho is rejected and Ha is accepted, meaning with a confidence level of 95%, simultaneously the variables of competence, business motivation , and the entrepreneurial spirit has a positive and significant effect on business success. This is in accordance with research conducted by Aristanti, et al (2021) and F. Nagel & Suhartatik (2021) which states that the variables of competence and business motivation simultaneously have a positive and significant effect on business success, as well as research conducted by Nurcahya & Novianti ( 2019) which states that the variables of competence and entrepreneurial spirit simultaneously have a positive and significant effect on business success.
Partial Regression Model Testing (t-Test)
- The influence of competence on business success
Based on Table 6, it can be seen that the competency variable obtained a t value1 countof 3.401 and t valuetablefor α = 0.05 with degrees of freedom 50-3-1 = 46 of 1.678 means t1 count> ttable (3.401 > 1.678). So Ha is accepted and Ho is rejected, meaning that competence has a positive and significant effect on business success. This is in accordance with research conducted by Octavia (2019) which states that competence partially has a positive and significant effect on business success. Then research conducted by Nuryatimah & Dahmiri (2021) and Aristanti, et al (2021) stated that competence partially has a positive and significant effect on business success.
- The influence of business motivation on business success
Based on Table 6, it can be seen that the business motivation variable obtained a t value2 countof 2.373 and t valuetablefor α = 0.05 with degrees of freedom 50-3-1 = 46 of 1.678 means t2 count> ttable (2.373 > 1.678). So Ha is accepted and Ho is rejected, meaning that business motivation has a positive and significant effect on business success. This is in accordance with research conducted by Wati, et al (2021) which states that business motivation partially has a positive and significant effect on business success. Then research conducted by Ardiyanti & Mora (2019) and Wastuti, et al (2021) stated that business motivation partially has a positive and significant effect on business success.
- The influence of an entrepreneurial spirit on business success
Based on Table 6, it can be seen that the entrepreneurial spirit variable obtained a t value3 countof 2.304 and t valuetablefor α = 0.05 with degrees of freedom 50-3-1 = 46 of 1.678 means t3 count> ttable (2.304 > 1.678). So Ha is accepted and Ho is rejected, meaning that the entrepreneurial spirit has a positive and significant effect on business success. This is in accordance with research conducted by Utari & Yusrik (2021) which states that the entrepreneurial spirit partially has a positive and significant effect on business success. Then research conducted by Sulastri (2017) and Prihatini, et al (2021) stated that the entrepreneurial spirit partially has a positive and significant effect on business success.
Table 9. Partial Testing Recapitulation
No. | Variable | tcount | Say. | Conclusion |
1. | Competence | 3,401 | 0,001 | Positive and significant influence |
2. | Business Motivation | 2,373 | 0,022 | Positive and significant influence |
3. | Entrepreneurial Spirit | 2,304 | 0,026 | Positive and significant influence |
Source: Processed data, 2022
Based on Table 9, it can be concluded that the influence of competence on the success of MSME snack food businesses is greater than the influence of business motivation and entrepreneurial spirit. Therefore, business actors should increase their knowledge because knowledge can make their work as entrepreneurs easier. One effort to hone the skills of business actors is by participating in various kinds of training organized by the MSME Forum, Regional Government and the Cooperative and MSME Service, such as trainingdigital marketing, administration, accounting records, technology optimization and so on so as to increase the competence of business actors.
- DISCUSSION
The Influence of Competence, Business Motivation and Entrepreneurial Spirit on Business Success
Based on the results of the data analysis carried out, competence, business motivation and entrepreneurial spirit have a positive and significant effect on business success. This shows that every time there is an increase in the values of the variables of competence, business motivation and entrepreneurial spirit it will be followed by an increase in business success. Business success is a business that can achieve its business goals, apart from that, it is a company whose activities refer to achieving success (Suryana, 2014). A business’s success can be influenced by several factors including motivation, age, experience and education (Baswori, 2016). Another expert’s opinion suggests that factors that can influence business success are divided into two, namely internal factors and external factors. Internal factors include: quality of human resources, organizational mastery, organizational structure, management system, participation, business culture, capital strength, business networks with external parties and entrepreneurial spirit (entrepreneurship) and external factors include: government and non-government (Tambunan, 2012). This is in line with research entitled “The Influence of Entrepreneurial Competence and Entrepreneurial Spirit on Business Success”. The research results state that entrepreneurial competence and entrepreneurial spirit have a positive and significant influence simultaneously on business success (Nurcahya & Novianti, 2019). Then supported by research with the title “The Influence of Entrepreneurial Competence, Entrepreneurial Orientation and Motivation on Business Success”, the research results state that there is a positive and significant influence of entrepreneurial competence, entrepreneurial orientation and motivation simultaneously on business success (Rifanto & Wulandari, 2020). Another research entitled “The Influence of Competency, Motivation and Productivity on Business Success” the results of the research state that competence, motivation and productivity have a positive and significant effect simultaneously (together) on business success. The findings of this research show the importance of competence, business motivation and entrepreneurial spirit in providing a high contribution to the success of MSME businesses. Based on previous research, it has been proven that the variables of competence, business motivation and entrepreneurial spirit influence business success. Therefore, efforts are needed to improve each of these variables because they have a very large role in increasing business success.
The Influence of Competency on Business Success
Based on the results of the data analysis carried out, competency has a positive and significant effect on business success. According to the opinion of (Harris, 2000) quoted by (Suryana, 2014) successful entrepreneurs are generally those who have competence, namely having knowledge, skills and individual qualities which include attitudes, motivation, personal values and behavior needed to carry out work or activities. Having the will but not having the knowledge and abilities will not make someone a successful entrepreneur (Suryana, 2014). Business actors can increase their competency by re-sharpening their skills through various kinds of training organized by the MSME Forum, as well as the Cooperative and MSME Service, such as trainingdigital marketing, administration, accounting records, technology optimization, product innovation and so on so as to increase the competence of business actors. This is in line with research entitled “The Influence of Entrepreneurial Attitudes and Entrepreneurial Competence on Business Success”. The results of this research state that competence partially influences business success (Octavia, 2019). Then the research entitled “The Influence of Motivation, Competence and Self-Efficacy on the Success of MSMEs” the results of the research state that there is a partial positive and significant influence of competency variables on business success (Nuryatimah & Dahmiri, 2021).
The Influence of Business Motivation on Business Success
Based on the results of the data analysis carried out, business motivation has a positive and significant effect on business success. Strategies for achieving business success require strong motivation to provide support to achieve business goals. Motivation is one of the factors that influences business success because a person’s main motivation is to become a personentrepreneur isbe their own bosses (Hutagalung et al, 2010). Business actors can increase business motivation by followingworkshop regarding business management, business supervision by participating in MSME mentoring programs and business capital by collaborating with other partners. This is in line with research entitled “The Influence of Business Interest and Business Motivation on Business Success”. The research results state that partially business motivation has an insignificant effect on business success (Ardiyanti & Mora, 2019). As for research entitled “The Influence of Motivation and Business Ability on the Success of MSME Businesses”, the results of multiple linear regression tests show that business motivation has a partially positive and significant effect on the success of MSME businesses (Wastuti et al., 2021). Supported by research entitled “The Influence of Business Motivation on Business Success”, the research results state that business motivation has a positive and significant effect on business success (Wati et al., 2021).
The Influence of Entrepreneurial Spirit on Business Success
Based on the results of the data analysis carried out, the entrepreneurial spirit has a positive and significant effect on business success. Business success can be influenced by various factors, including the entrepreneurial spirit that must be possessed by business actors, as stated by expert opinion that business success can also be seen by having the characteristics of an entrepreneur (entrepreneurial spirit), namely self-confidence, task and results oriented, risk taking, leadership, originality and future orientation (Alma, 2014). Business actors can increase their entrepreneurial spirit by daring to be different by applying ideas and imagination in their work through surveys and research with consumers regarding the products they want so that business actors can create product innovations in line with current developments. This is in line with research entitled “The Influence of the Entrepreneurial Spirit on Business Success”. The research results state that the entrepreneurial spirit has a positive and significant influence on business success (Utari & Yusrik, 2021). Apart from that, previous research entitled “The Influence of the Entrepreneurial Spirit on Business Success” showed that the entrepreneurial spirit had a positive and significant influence on business success (Sulastri, 2017).
- CONCLUSION
- The research results show that this research supports the proposed hypothesis, namely competence, has a positive and significant effect, both partially and simultaneously, on the success of Snack Food MSME businesses in Ciawi District. Business actors need to hone their skills by participating in various types of training organized by the MSME Forum, as well as the Cooperative and MSME Service. Like trainingdigital marketing, administration, accounting records, technology optimization, product innovation and so on so as to increase the competence of business actors.
- The research results show that this research supports the proposed hypothesis, namely that business motivation has a positive and significant effect, both partially and simultaneously, on the success of Snack Food MSME businesses in Ciawi District. Business actors need good management by followingworkshop regarding business management, business supervision by participating in MSME mentoring programs and business capital by collaborating with other partners.
- The research results show that this research supports the proposed hypothesis, namely that the entrepreneurial spirit has a positive and significant effect, both partially and simultaneously, on the success of the Snack Food MSME business in Ciawi District. Business actors must dare to be different by applying ideas and imagination in their work by conducting surveys and research with consumers regarding the products they want so that business actors can create product innovations in line with current developments.
- The research results show that this research supports the proposed hypothesis, namely that competence, business motivation and entrepreneurial spirit have a positive and significant effect, both partially and simultaneously, on the success of Snack Food MSME businesses in Ciawi District. Business actors need to increase sales volume by expanding marketing through social media such asInstagram andFacebook and able to compete with similar products in order to increase the amount of income that is higher than before.
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The Influence of Competence, Business Motivation and Entrepreneurial Spirit on Business Success in Ciawi District, Bogor Regency (Case Study of Snack Food MSMEs)
Sri Harini1, Erni Yuningsih2, Ipat Latipah3
1,2,3 Faculty of Economics, Djuanda University, Bogor
Vol 4 No 1 (2024): Volume 04 Issue 01 January 2024
Article Date Published : 26 January 2024 | Page No.: 56-64
Abstract :
The development of snack food MSMEs in Ciawi District does not always run smoothly, many obstacles and constraints are encountered. Some of the obstacles include low quality human resources, limited business capital, marketing difficulties, management and technology limitations which will have an impact on the success of the business achieved.Business success is a goal that every business actor wants to achieve. Success in developing a business is based on entrepreneurs who have competence, business motivation and a good entrepreneurial spirit. An entrepreneur is a person who has a high capacity for knowledge and skills, has the motivation to continue to develop and has innovative ideas so that he is able to compete with the times.This research aims to determine the influence of competence, business motivation and entrepreneurial spirit on business success in Ciawi District, Bogor Regency (case study of snack food MSMEs). The population in this study were snack business actors in Ciawi District consisting of 50 respondents, sampling using a saturated sampling technique. Data analysis uses multiple linear regression. The research results show that competence has a positive and significant effect on business success, business motivation has a positive and significant effect on business success and entrepreneurial spirit has a positive and significant effect on business success. Simultaneously, competence, business motivation and entrepreneurial spirit have a positive and significant effect on business success. The most dominant variable influencing business success is the competency variable.
Keywords :
Competence, Business Motivation, Entrepreneurial Spirit, Business SuccessReferences :
- Ardiyanti, D. A., & Mora, Z. (2019). The Influence of Business Interest and Business Motivation on the Success of Young Entrepreneurs in Langsa City.Samudra Journal of Economics and Business, 10(2), 168–178. https://doi.org/https://doi.org/10.33059/jseb.v10i2.1413.
- Arikunto, S. (2011).Research Procedures: A Practical Approach Revised Edition VII. PT Rineka Cipta.
- Aristanti, E. D., Setiawan, H., & Fauzi, R. U. A. (2021). The Influence of Competence, Motivation and Productivity on the Business Success of Porang Farmers in Madiun Regency.THE LION, 1–20. http://prosiding.unipma.ac.id/index.php/SIMBA/article/download/2172/1881. Accessed January 20, 2022
- Baswori. (2016).Entrepreneurship for Higher Education Third Edition. Ghalia Indonesia Publisher.
- Nagel, P. J. F., & Suhartatik, A. (2022). The Influence of Motivation, Entrepreneurial Competence and Creativity on the Success of MSME Food and Beverage Businesses in Surabaya.Proceeding HUBISINTEK, 1024–1043. http://ojs.udb.ac.id/index.php/HUBISINTEK/article/view/1484
- Nurcahya, D. R., & Novianti, W. (2019). The Influence of Entrepreneurial Competence and Entrepreneurial Spirit on Business Success (Case Study on Entrepreneurs in the T-shirt Craftsmen Area of Gg. Pesantren-Jamika Bandung City).Journal of Economics and Business, 1–13. http://elibrary.unikom.ac.id/id/eprint/822. Accessed February 1, 2022.
- Nuryatimah, P., & Dahmiri. (2021). The Influence of Motivation, Competence and Self-Efficacy on the Success of UMKM Selling Bananas in Purwobakti, Bungo Regency.Journal of Applied Management and Finance, 10(3), 485–496. https://doi.org/https://doi.org/10.22437/jmk.v10i03.13176.
- Octavia, J. (2019). The Influence of Entrepreneurial Attitude and Entrepreneurial Competence on Business Success in Cibaduyut Shoe Manufacturers, Bandung City.UNIKOM Master of Management Scientific Journal, 5(1), 1–7. https://doi.org/https://doi.org/10.34010/jimm.v5i1.3752.
- Priharti, D. V., Herlina, T., & Annisa, V. (2021). The Influence of Entrepreneurial Spirit and Creativity on Business Success in Tailoring SMEs in East Baturaja District, Ogan Komering Ulu Regency.COLLEGIAL, 9(2), 140–151. http://journals.stiedwisakti.ac.id/ojs/index.php/kolegial/article/view/167. Accessed January 5, 2022.
- Rifanto, V. D., & Wulandari, A. (2020). The Influence of Entrepreneurial Competence, Entrepreneurial Orientation and Motivation on Business Success among Warung Tegal Entrepreneurs in Cibuntu.Management Journal, 1–15.
- Saiman, L. (2014).Entrepreneurship Theory, Practice and Cases 2nd Edition. Salemba Four.
- Sugiyono. (2019).Quantitative Qualitative Research Methods and R&D. Alphabet.
- Soewadji, J. (2012).Introduction to Research Methodology. Media Discourse Partners.
- Sulastri, S. (2017). The Influence of Entrepreneurial Spirit on the Success of Soy Milk Business in Braja Salebah District, East Lampung.Journal of Dynamics, 3(2), 37–44.
- Suryana. (2014).Entrepreneurship: Practical Guidelines, Tips and Process for Success. Alphabet.
- Tambunan, T. (2012).Small and Medium Enterprises in Indonesia: Several Important Issues. Salemba Empat Publishers.
- Utari, D., & Yusrik, M. (2021). The Influence of Entrepreneurial Spirit on the Success of Cafe Businesses in Palembang City.BRIDGE (Journal of Economics, Management, Business, Auditing and Accounting), 6(1), 13–25. https://doi.org/10.54077/jembatan.v6i1.52
- Wastuti, N. A., Sumekar, W., & Prasetyo, S. A. (2021). The influence of motivation and business ability on the success of banana processing MSME businesses in Rowosari sub-district, Semarang.R&D Journal, 19(2), 197–210. https://doi.org/10.36762/jurnaljateng.v19i2.890. https://ejournal.bappeda.jatengprov.go.id/index.php/jurnaljateng/article/view/890. Accessed December 2, 2021.
- Wati, L., Dahmiri, & Indrawijaya, S. (2021). The Influence of Motivation on the Business Success of Traders at Parit Market in Kuala Tungkal Jambi.Journal of Management Dynamics, 9(1), 41–54. https://doi.org/https://doi.org/10.22437/jdm.v8i3.16873.
- Wibowo. (2017).Work management. Rajawali Press.
Author's Affiliation
Sri Harini1, Erni Yuningsih2, Ipat Latipah3
1,2,3 Faculty of Economics, Djuanda University, Bogor
Article Details
- Issue: Vol 4 No 1 (2024): Volume 04 Issue 01 January 2024
- Page No.: 56-64
- Published : 26 January 2024
- DOI: https://doi.org/10.55677/ijssers/V04I1Y2024-07
How to Cite :
The Influence of Competence, Business Motivation and Entrepreneurial Spirit on Business Success in Ciawi District, Bogor Regency (Case Study of Snack Food MSMEs). Sri Harini, Erni Yuningsih, Ipat Latipah , 4(1), 56-64. Retrieved from https://ijssers.org/single-view/?id=9392&pid=9355
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