The Influence of Entrepreneurial Characteristics to Rengginang MSMEs’ Performance in Semplak Barat Village, West Java, Indonesia

Siti Jahroh

School of Business, Bogor Agricultural University,
Bogor, Indonesia
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Ida Purnasih

Department of Agribusiness, Faculty of Economics and Management Bogor Agricultural University
Bogor, Indonesia
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Abstract

The development of micro, small and medium enterprises (MSMEs) becomes one of the Indonesian government attentions in facing ASEAN Economic Community (AEC) competition. MSMEs in Indonesia were able to survive from economic shocks during the Asian financial crisis in the 1997-1998 period when in the meantime many large scale enterprises went bankrupt. Probably it indicates that there must be certain entrepreneurial characteristics of MSMEs that make them still able to survive until now. Entrepreneurial characteristics are expected to have significant and positive influences to the business performance. The government has been supporting local or traditional food producers. In the West Java Province there is a traditional food called rengginang (traditional sticky rice cracker), which is one of Indonesian famous traditional foods. This study aims to analyze the influence of entrepreneurial characteristics to business performance of rengginang makers, mainly MSMEs, in Semplak Barat Village, Kemang Sub-District, West Java, Indonesia. The analysis tool used is a Partial Least Square (PLS). Dare to take risk, originality, task and result oriented, confidence, future oriented, and leadership are the significant indicators of entrepreneurial characteristics of rengginang makers. On the other hand, their business performance is reflected by their volume of production, number of agents and turnover. The result of the analysis shows that entrepreneurial characteristics significantly influence business performance of rengginang MSMEs in Semplak Barat Village whereas the coefficient was positive.

Keywords: MSMEs, entrepreneurial characteristics, rengginang, West Java, AEC, Asian financial crisis
JEL Codes: M3, O3, O13


 

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