ENTREPRENEURSHIP

The nature of entrepreneurial development refers to the characteristics or qualities inherent in individuals with an entrepreneurial spirit. These are traits that drive a person to create something new, take risks and build a successful business. In simple terms, entrepreneurial traits are a set of characteristics that make someone an entrepreneur.

Basic entrepreneurial traits that can be found:

• High achievement motive

Experts suggest that a person has an interest in entrepreneurship because of a certain motive, namely the achievement motive. Achievement motive is a social value that emphasizes the desire to achieve the best in order to achieve personal satisfaction. The basic factor is the needs that must be met. As stated by Maslow (1943), the theory of motivation is influenced by the level of needs – needs according to the level of satisfaction.

• Always perspective

An entrepreneur should be able to look forward more optimistically. Look ahead by thinking and trying. efforts to take advantage of opportunities with full calculation. A future-oriented person is one who has a perspective and a view into the future. Because he has a further view into the future, he will always try to work.

• Always committed to work, have work ethic and responsibility

Someone who has a spirit of commitment in his business and a passionate determination to develop his business, he will not be half-hearted in trying, dare to take risks, work hard and not be afraid to face the opportunities that exist in the market.

• Have a sense of leadership

They are said to be leaders because they must seek opportunities to gather resources (materials, people, technology and capital) needed to carry out activities, set goals both for themselves and for others, and lead and guide others to achieve goals.

The entrepreneurial process begins with innovation. innovation is triggered by personal and environmental factors. individual factors that influence innovation are tolerance, risk taking, education and experience. While external factors that come from the environment that affect innovation are opportunities, role models, and activities.

Next is the trigger event, after the innovation is increasingly stimulating to process and there is a trigger event. Triggering events are influenced by personal, sociological and environmental factors.

The third process is implementation. Implementation is influenced by personal, environmental and sociological factors. Personal factors that influence consist of vision, commitment, managers, leaders and entrepreneurs. Environmental factors include competitors, customers suppliers, investors, bankers, incubators, resources and government policies. Sociological factors include networks, groups, parents, family and role models.

The fourth process is growth. The growth phase is influenced by personal, organizational and environmental factors. Personal factors that influence growth consist of vision, commitment, managers, leaders and entrepreneurship. Organizational factors that influence entrepreneurial growth include groups, strategies, structures, cultures and products.

Entrepreneurship already has a lot of important roles in life, because entrepreneurship is closely related to all the activities of a person in the environment. The concept of economic growth is really proven to be appropriate in the standard company, because linking entrepreneurship together with economic growth provides a former connection to either a person or a group. (Zuhrinal. 2023)

Economic growth can also be seen through the importance of the role of entrepreneurs to support economic growth. The role of entrepreneurship is increasingly important as a result of the dynamics of economic development. Especially with regard to the importance of economic growth and business development to increase people’s purchasing power and prosperity, and the government’s ability to achieve satisfaction in providing public services. In its development, entrepreneurship has proven to be able to make a very real and important contribution to building both of these.

According to Yusof, Permula and Pangil (2005) in Frinces (2010) there are four reasons why entrepreneurs are important in society. The four reasons are to use factors of production such as land, capital, technology, information and various human resources (HR) in producing effective tasks. Identifying opportunities in the environment by increasing activities that will benefit everyone (beneficial to everyone).Choosing the best approach when using all factors of production to minimize waste in various entrepreneurial activities (minimizing waste in entrepreneurial activities). For the benefit of the future generation.

The link between entrepreneurship and economic growth is that the existence of entrepreneurs will of course provide opportunities for people who are unemployed, therefore everyone who has a large business of course needs employees to help their business. This is what will help reduce the unemployment rate.

The terms business ethics and social responsibility are the foundation of business actors in running their business. In its application, it is considered important for the sustainability of the company.

Simply put, corporate social responsibility (CSR) is a form of corporate concern for all stakeholders that includes economic, social, and environmental aspects.

Corporate Social Responsibility in Indonesian is known as corporate social responsibility while in America, this concept is often equated with corporate citizenship. In essence, both are intended as a company’s efforts to increase concern for social and environmental issues in business activities and also in the way the company interacts with stakeholders on a voluntary basis. In addition, corporate social responsibility is also defined as a business commitment to contribute to sustainable economic development, working with company employees, employees’ families and local communities in order to improve the quality of life..

Since the collapse of the New Order dictatorship, the public has been emboldened to aspire and express their demands for the development of the Indonesian business world. The public has become more critical and able to exercise social control over the business world. This requires business actors to run their businesses more responsibly. Business actors are not only required to obtain profits from their business fields, but they are also required to make a positive contribution to their social environment.

Bambang Rudito and Melia Famiola stated that corporate social responsibility is a concept that organizations, especially (not only) companies have a responsibility to consumers, employees, shareholders, communities and the environment in all aspects of the company’s operations. Furthermore, it is stated that social responsibility is closely related to sustainable development, where there is an argument that a company in carrying out its activities must base its decisions not only on financial factors such as profits or dividends but must also be based on social and environmental consequences for the present and for the long term.

According to Baker, social responsibility is how a company manages its business processes to produce positive things that affect its environment. Social responsibility can be said to be the way companies organize production processes that have a positive impact on the community. It can also be said to be an important process in managing the costs incurred to achieve profits, both internally (workers, shareholders), and externally (public regulatory institutions, community members, civic groups and other companies). The essence of social responsibility. Basically, the forms of corporate social responsibility can vary. From charity to community development activities.

Baker states that there are two models of implementing social responsibility. These models are:

1. Traditional American Model. This model is more philanthropic/charitable. In this model, the company earns as much profit as possible, fulfills its tax obligations and donates the profits to society.
2. Modern European Model. This model is more integrative, focusing on the company’s main business areas that are run with responsibility to society.

According to Louise E. Boone and David L. Kurtz, business ethics are standards of conduct, and moral values that govern actions and decisions in the work environment. Business ethics are ways to conduct business activities, which cover all aspects related to individuals, companies, industries and also society. All of this includes how we conduct business fairly, in accordance with applicable laws, and independent of an individual or company’s position in society.

In doing business ethics, there are several things that need to be considered, including:

1. Self-control
2. Development of social responsibility
3. Maintaining identity and not easily swayed by the rapid development of information and technology
4. Creating healthy competition
5. Implementing the concept of “sustainable development”
6. Avoiding the 5K trait (Katabelece, Kongkalikong, Connection, Collusion, and Commission)
7. Able to state that what is right is right
8. Fostering mutual trust between the strong business class and the lower business class
9. Consistent and consistent with the rules of the game that have been mutually agreed upon
10. Developing awareness and a sense of belonging to what has been agreed upon.
11. The need for some business ethics to be outlined in a positive law in the form of legislation

Common Business Ethics Challenges:

1. Conflict of Interest situations where a business decision may be influenced by the potential for personal gain.
2. Honesty and Integrity

The Company highly values honesty and integrity, An honest employee can be trusted to tell the truth. Having integrity means strictly adhering to ethical principles in business situations.

3. Loyalty vs truth

 Businesses expect their employees to be loyal and act in the best interest of the company. However, when the truth of a company turns out to be unfavorable, a conflict of interest can arise, namely vested interest vs corporate interest.

4. Providing information (whistle blowing)

Employee disclosure to authorized government agencies or the media regarding illegal, immoral or unethical practices carried out by the company or organization, criminal or unlawful acts committed / implemented by the company / organization. Whistle blowing is a way for employees to disclose unlawful, immoral, or unethical practices, to company officials, government officials, or the mass media.

There are several things to note about the future of entrepreneurship, namely:

1. Job orientation and opportunities

Entrepreneurial orientation refers to a mindset, attitude, and behavior characterized by innovation, risk-taking, and a desire for growth and opportunity. Entrepreneurial orientation can contribute to performance because it allows companies to take advantage of potential new opportunities so that they are competitive in a rapidly changing market.

2. Preparing the golden generation

The momentum of the golden generation must be carefully prepared regarding the availability of jobs. Problems will arise if productive age cannot utilize competencies and expertise and develop creative ideas into a quality generation according to their field of work.

3. Entrepreneurship as a solution

Entrepreneurship is not only able to absorb maximum labor but also able to increase the value of national income, increase better production results, provide opportunities to be able to increase better income, and level social inequality. Entrepreneurship can develop and be able to give birth to many successful entrepreneurs with a strong passion from within an individual. One way is to start introducing the benefits of being a businessman, business theories, profiles of successful business people to motivate and implement business practices by running a business.

An entrepreneur has a different way of thinking than someone who is not an entrepreneur. An entrepreneur often makes decisions in an environment of very high uncertainty where risk, time pressure, and emotions are pressing. In starting a business an entrepreneur needs at least three important things including, Mindset, Knowledge, and Skill.

1. Mindset 

The entrepreneurial mindset is very important in starting a business. By having a mindset, an entrepreneur will be motivated to always be productive and create new innovations to read and create profitable business opportunities. So in general, mindset is a steady attitude and tendency that a person has in answering and analyzing a situation. Mc Graith and Mac Milan (2000) outline the seven characteristics of entrepreneurs as follows:

• Action oriented

For them, risks are not to be avoided, but rather faced and conquered with action and shrewdness.

• Simple thinking

They see problems clearly and solve them one step at a time.

• Always looking for new opportunities

The opportunity in question could be a completely new opportunity, or an opportunity from the same business. For new ones, they are always willing to learn, form networks from below and increase the reach or scope of their business. As for the same business, they are always diligently looking for a number of new alternatives, for example: Model, design, platform, raw materials, energy, packaging, and production cost structure.

• Pursuing opportunities with high discipline

The characteristics of successful entrepreneurs are not lazy or procrastinating. They want their work to be completed, and what they have in mind can be done immediately. They fight with time because opportunities are always related to time. What is an opportunity at one time is not necessarily still an opportunity at another time or opportunity.

• Taking only the best opportunities

The way to judge opportunities lies in the economic values they contain, the brighter future, the ability to achieve, and the changes they bring about. Ultimately, everyone’s success is determined by his or her successful choices.

• Focus on execution

They are situationally adaptive, that is, they easily adjust to new facts on the ground.

• Focusing everyone’s energy on the business at hand

an entrepreneur must have the ability to gather people, build networks, lead, unite movements, motivate, and communicate well.

2. Knowledge

Education is believed to be able to develop the various potentials that humans have. With education, intellectual power, moral power and social power can be developed. In addition, through education, knowledge, attitudes and skills can be improved. Education is a conscious effort, which aims to change a person’s behavior. These educational activities need to be designed, organized, monitored in such a way and evaluated in order to be able to achieve predetermined goals.

3. Skill

Skill is the ability to use reason, thought, ideas and creativity to do, change, or make something more meaningful to produce a value from the work. The need for human resources (HR) who have soft skills and hard skills based on entrepreneurial ability is a demand that must be realized quickly, both through formal education, and informall. But the formal education curriculum in Indonesia considers it so important and strategic to realize these entrepreneurial human resources. This is evidenced by the inclusion of the entrepreneurship subject curriculum in public and private schools and universities. Because people still think that the higher the education taken, the human resources concerned are getting smarter about the ability to design business prospects and entrepreneurial opportunities.

In addition, they will also have faster opportunities to obtain and open up jobs through independent businesses that they create themselves. Meanwhile, the entrepreneurship profession is now more widely open to be developed by high school and university graduates.

FACTORS THAT INFLUENCE MINDSET:

1. Environmental factors

Environmental factors are still partial and descriptive and mostly centered on certain aspects of the environment. The limited literature and conceptual understanding of the factors that influence entrepreneurship development make it difficult for policy makers (government) to develop entrepreneurship in their regions.

2. Education factor

Education is the best solution to form a superior mindset. Education that supports entrepreneurial success does not have to mean formal education in school. Education can be obtained anywhere in the social life of the community. Entrepreneurial behavior lessons involve such things as how to deal with potential situations, personal skills, learning to increase independence, learning control issues, being responsive to problems, facing and solving complex problems and being customer-oriented.

3. Experience factor

Entrepreneurs are said to be successful if they can learn from experience, utilize other sources and opportunities that support the success of their business.

HOW TO DEVELOP A MINDSET

Developing an entrepreneurial mindset must start with positive and creative thinking. An entrepreneur must be able to organize his mindset or what is commonly called a mindset. Mindset for an entrepreneur must be instilled early because mindset is one of the important things for an entrepreneur that makes someone successful. The first mindset that an entrepreneur must have is positive thinking.

According to Dweck (2006: 20-21) there are two kinds of mindset: 

1. A growth mindset, which is a mindset based on the belief that a person’s basic qualities can be processed, changed and developed through certain treatments, experiences and efforts.
2. A fixed mindset is based on the belief that one’s qualities are fixed.

To start a business do not be afraid of setbacks and losses, because this is the first thing in achieving success. The way to minimize failure is to be prepared to learn from other people’s mistakes and criticism, never repeat the same mistake a second time and finally have a strong commitment or determination, to start at one goal to be achieved. strong commitment and determination so that we can focus on a goal to be achieved. By having a strong commitment, we can achieve our goals easily and we can be more professional in running or running a business so that we can develop further. Mindset or way of thinking is the basic path or step that will lead us to the goals, dreams or big goals we want to achieve. Start changing our mindset from bad to better, think positively and believe that we can do the things we want and not give up to achieve success.

Decision making describes the process through which a series of activities are selected as solving a particular problem. Handoko (2000: 129) says that decision making is very important for individuals and organizations. Making decisions is sometimes easy but more often very difficult.

Managerial and entrepreneurial decision making is the process of choosing the best option in situations that require a decision. here are the things to consider in managerial and entrepreneurial decision making:

 MANAGERIAL DECISION MAKING STEP-BY-STEP PROCESS:

1. Problem understanding and formulation

Understand the problem at hand, and be sensitive to problems. Once the problem is well understood, then determine the parts of the problem that must be solved. Can facilitate problem identification by systematically examining cause-and-effect relationships.

2. Collect and analyze relevant data

Must determine what data is needed to make the right decision, and then obtain the information.

3. Development of alternatives

May resist the tendency to make decisions too quickly and make it more likely that effective decisions will be reached.

4. Evaluation of alternatives

Evaluate them to assess the effectiveness of each alternative. Effectiveness can be measured by two criteria whether the alternative is realistic when related to the company’s goals and resources, and how well the alternative will help solve the problem.

5. Selection of the best alternative

Decision-making is the result of evaluating various alternatives. The chosen alternative will be based on the amount of information available to and imperfections of the policy.

6. Decision implementation

Make plans to address the various requirements and problems that may be encountered in implementing the decision. Establish a budget or schedule of planned activities, procure and allocate the necessary resources, and assign responsibility and authority for the implementation of certain tasks.

7. Evaluation of decision results

The implementation of the decision must be monitored continuously. And evaluate whether the implementation is going smoothly and the decision is delivering the desired results.

NEXT, THE ENTREPRENEURIAL DECISION-MAKING PROCESS CAN BE DONE BY: 

• Understanding the problem
• identifying options
• looking at how each option will affect the future
• choosing one or more paths forward.

The importance of good decision making is an important part of management and entrepreneurship. Appropriate and quick decision making can help a company to achieve its goals and maintain business continuity.