The Effect of Entrepreneurial Self-efficacy and Entrepreneurial Competence on The Entrepreneurial Entry Decision and The Success of Start-up MSMEs in Medan City

Imelda Sitinjak

Abstract


One important element in the ASEAN Economic Community (AEC) 2025 blueprint is the strengthening of Small, Medium Enterprises (SMEs). The third largest city in Indonesia, Medan City, has a start-up Micro, Small, and Medium Enterprises (MSMEs) which ranks third in Sumatra itself. The problem is that not all MSMEs in Indonesia can survive or experience growth. So this study aims to determine the effect of entrepreneurial self-efficacy and entrepreneurial competence on entrepreneurial entry decisions and the success of start-up MSMEs in Medan City. The method of determining is the sample using a purposive sampling method, from 100 MSMEs owners. The findings of this study are that entrepreneurial self-efficacy (ESE) has a significant effect on entrepreneurial entry decisions, while entrepreneurial competence is not significant. However, the success of MSME start-ups in Medan is significantly influenced by entrepreneurial competence while ESE is not. The implication of this study is that strong confidence is needed when starting a business, and requires competence to gain business success.

Keywords


entrepreneurial self-efficacy; entrepreneurial competence; the entrepreneurial entry decision; the success of start-up MSMEs

Full Text:

PDF

References


Ashariyadi. (2016, June). Mewujudkan UMKM Berdaya Saing di Era MEA. Masyarakat ASEAN: Geliat UMKM Di Era MEA, 4–5.

Beach, L. R., & R.Mitchell, T. (1987). Image Theory: Principles, Goals, And Plans In Decision Making. Acta Psychologica, 66(3), 201–220.

The Effect of Entrepreneurial Self-efficacy and Entrepreneurial Competence 213

https://doi.org/https://doi.org/10.1016/0001-6918(87)90034-5

Bledow, R. (2013). Demand-Perception and Self-Motivation as Opponent Processes: A Response to Bandura and Vancouver. Journal of Management, 39(1), 14–26. https://doi.org/https://doi.org/10.1177/0149206312466149

Cumberland, D. M., Meek, W. R., & Germain, R. (2015). Entrepreneurial Self-Efficacy and Firm Performance in Challenging Environments: Evidence From The Franchise Context. Journal of Developmental Entrepreneurship, 20(1), 1550004-1-1550004–1550019. https://doi.org/10.1142/S1084946715500041

David, F. R., & David, F. R. (2019). Manajemen Strategik: Suatu Pendekatan Keunggulan Bersaing (Cetakan Ke). Jakarta: Salemba Empat.

Dawkins, S., Martin, A., Scott, J., & Sanderson, K. (2015). Advancing Conceptualization and Measurement of Psychological Capital as A Collective Construct. Human Relations, 68(6), 925–949. https://doi.org/https://doi.org/10.1177/0018726714549645

Echdar, S. (2013). Manajemen Entrepreneurship: Kiat Sukses Menjadi Wirausaha. Makassar: Andi.

Engel, Y., Dimitrova, N. G., Khapova, S. N., & Elfring, T. (2014). Uncertain But Able: Entrepreneurial Self-Efficacy and Novices’ Use of Expert Decision-Logic Under Uncertainty. Journal of Business Venturing Insights, 1(1–2), 12–17. https://doi.org/10.1016/j.jbvi.2014.09.002

Esfandiar, K., Tehrani, M. S., Pratt, S., & Altinay, L. (2017). Understanding Entrepreneurial Intentions: A Developed Integrated Structural Model Approach. Journal of Business Research, 94, 172–182. https://doi.org/https://doi.org/10.1016/j.jbusres.2017.10.045

Fini, R., & Lacetera, N. (2010). Different Yokes For Different Folks: Individual Preferences, Institutional Logics, and The Commercialization Of Academic Research. Advances in the Study of Entrepreneurship, Innovation, and Economic Growth, 21, 1–25. https://doi.org/10.1108/S1048-4736(2010)0000021004

Hair, J. F., Black, B., Babin, B., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis (6th Editio). New Jersey: Pearson Education International.

Hallak, R., Assaker, G., & Lee, C. (2015). Tourism Entrepreneurship Performance: The Effects of Place Identity, Self-Efficacy, and Gender. Journal of Travel Research, 54(1), 36–51. https://doi.org/https://doi.org/10.1177/0047287513513170

Hallak, R., Lindsay, N. J., & Brown, G. (2011). Examining the Role of Entrepreneurial Experience and Entrepreneurial Self-Efficacy on SMTE Performance. Tourism Analysis, 16(5), 583–599. https://doi.org/https://doi.org/10.3727/108354211X13202764960744

Hopp, C., & Stephan, U. (2012). The Influence of Socio-Cultural Environments on The Performance of Nascent Entrepreneurs: Community Culture, Motivation, Self-Efficacy and Start-Up Success. Entrepreneurship and Regional Development, 24(9–10), 917–945. https://doi.org/10.1080/08985626.2012.742326

Ibidunni, A. S., Kehinde, O. J., Ibidunni, O. M., Olokundun, M. A., Olubusayo, F. H., Salau, O. P., … Fred, P. (2018). Data on The Relationships Between Financing Strategies, Entrepreneurial Competence and Business Growth of Technology-based SMEs in Nigeria. Data in Brief, 18, 988–991. https://doi.org/10.1016/j.dib.2018.03.136

Jain, R., & Ali, S. W. (2013). Self-Efficacy Beliefs, Marketing Orientation and Attitude Orientation of Indian Entrepreneurs. The Journal of Entrepreneurship, 22(1), 71–95. https://doi.org/https://doi.org/10.1177/0971355712469155

Krecar, I. M., & Coric, G. (2013). Changes in Entrepreneurial Self-Efficacy since Completion of Entrepreneurial Studies. Procedia - Social and Behavioral Sciences, 89, 74–78. https://doi.org/10.1016/j.sbspro.2013.08.812

McGee, J. E., & Peterson, M. (2017). The Longâ€Term Impact of Entrepreneurial Selfâ€Efficacy and Entrepreneurial Orientation on Venture Performance. Journal of Small Business Management, 57(3). https://doi.org/https://doi.org/10.1111/jsbm.12324

Miao, C., Qian, S., & Ma, D. (2017). The Relationship between Entrepreneurial Selfâ€Efficacy and Firm Performance: A Metaâ€Analysis of Main and Moderator Effects. Journal of Small Business Management, 55(1), 87–107. https://doi.org/https://doi.org/10.1111/jsbm.12240

Munizu, M. (2010). Pengaruh Faktor-Faktor Eksternal dan Internal Terhadap Kinerja Usaha Mikro dan Kecil (UMK) di Sulawesi Selatan. Jurnal Manajemen Dan Wirausaha, 12(1), 33–41. https://doi.org/10.9744/jmk.12.1.pp.33-41

Newman, A., Obschonka, M., Schwarz, S., Cohen, M., & Nielsen, I. (2019). Entrepreneurial Self-Efficacy: A Systematic Review of The Literature on Its Theoretical Foundations, Measurement, Antecedents, and Outcomes, and An Agenda for Future Research. Journal of Vocational Behavior, 110(2019), 403–419. https://doi.org/10.1016/j.jvb.2018.05.012

Obschonka, M., Silbereisen, R. K., Schmitt-Rodermund, E., & Stuetzer, M. (2011). Nascent Entrepreneurship and The Developing Individual: Early Entrepreneurial Competence in Adolescence and Venture Creation Success during The Career. Journal of Vocational Behavior, 79(1), 121–133. https://doi.org/10.1016/j.jvb.2010.12.005

Perry, J. T., Chandler, G. N., & Markova, G. (2012). Entrepreneurial Effectuation: A Review and Suggestions for Future Research. Entrepreneurship: Theory and Practice, 36(4), 837–861. https://doi.org/10.1111/j.1540-6520.2010.00435.x

Prajapati, K., & Biswas, S. N. (2011). Effect of Entrepreneur Network and Entrepreneur Self-efficacy on Subjective Performance: A Study of Handicraft and Handloom Cluster. The Journal of Entrepreneurship, 20(2), 227–247. https://doi.org/https://doi.org/10.1177/097135571102000204

Prodan, I., & Drnovsek, M. (2010). Conceptualizing Academic-Entrepreneurial Intentions: An Empirical Test. Technovation, 30(5–6), 332–347. https://doi.org/10.1016/j.technovation.2010.02.002

Rachmania, I. N., Rakhmaniar, M., & Setyaningsih, S. (2012). Influencing Factors of Entrepreneurial Development in Indonesia. Procedia Economics and Finance, 4, 234–243. https://doi.org/10.1016/s2212-5671(12)00338-3

Reymen, I., Andries, P., Berends, H., Mauer, R., Stephan, U., & Burg, E. van. (2015). Understanding Dynamics of Strategic Decision-Making in Venture Creation : A Process Study of Effectuation and Causation. Strategic Entrepreneurship Journal, 9(4), 351–379.

Robles, L., & Zárraga-Rodríguez, M. (2015). Key Competencies for Entrepreneurship. Procedia Economics and Finance, 23, 828–832. https://doi.org/10.1016/s2212-5671(15)00389-5

Sari, F. D. P., & Sitepu, S. N. B. (2016). Peran Faktor Internal dan Faktor Eksternal pada Keberlangsungan Start-Up Bisnis Kota Surabaya. Jurnal Manajemen Teori Dan Terapan, 9(1), 12–22. https://doi.org/http://dx.doi.org/10.20473/jmtt.v9i1.2783

Setiawan, J. L. (2014). Examining Entrepreneurial Self-Efficacy among Students. Procedia - Social and Behavioral Sciences, 115, 235–242. https://doi.org/10.1016/j.sbspro.2014.02.431

The Effect of Entrepreneurial Self-efficacy and Entrepreneurial Competence 215

Sitepu, S. N. B. (2017). Pengaruh Faktor Internal Terhadap Keberhasilan Start-Up Bisnis di Kota Surabaya. Jurnal Manajemen Teori Dan Terapan, 10(1), 37–50. https://doi.org/10.20473/jmtt.v10i1.5136

Solihin, I. (2012). Manajemen Strategik. Jakarta: Erlangga.

Solimun. (2002). Structural Equation Modeling LISREL dan Amos. Malang: Fakultas MIPA Universitas Brawijaya.

Suryana. (2001). Kewirausahaan. Jakarta: Salemba Empat.

Widyastuti, R. J. (2013). Pengaruh Self Efficacy dan Dukungan Sosial Keluarga Terhadap Kemantapan Pengambilan Keputusan Karir Siswa. Jurnal BK UNESA, 3(1), 231–238.

Wijanto, S. H. (2008). Structural Equation Modeling dengan LISREL 8.8.2 Konsep dan Tutorial. Graha Ilmu.

Zaky, M. A., Nuzar, I., Saputro, W. E., Prayusta, B. D. S. B., Wijaya, S. B., & Riswan, M. (2018). Mapping dan Database Startup Indonesia 2018. In MIKTI dan Teknopreneur Indonesia.




DOI: http://dx.doi.org/10.26418/jebik.v8i3.35670

Refbacks

  • There are currently no refbacks.


JOURNAL INDEXING

    More...

 

PUBLISHED BY

Faculty of Economics and Business
Universitas Tanjungpura





Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

 

View My Stats