SMALL BUSINESS AND ENTREPRENEURSHIP

Good night all, on the occasion of this evening I will share another bit of science that is on Small Business and Entrepreneurship. Discussion about Small businesses can not be separated from an understanding of the environments and small-scale enterprise systems as well as entrepreneurs. Various activities undertaken Small businesses and obstacles encountered in the business world is covered in a term called Entrepreneurship or Entrepreneurship. The role of entrepreneurship or entrepreneurial dominates business conduct and determine the future direction for a small business.
The following are included in kategory small businesses:
1.Usaha trading:
agency, Export / Import, retailers, and others with Active Capital Company (MAP) does not exceed Rp. 150,000,000 / year and Capital Turn-Over (CTO) or capital turnover does not exceed Rp. 600,000.

2.Agriculture Enterprises:
Food and plantation agriculture, fisheries Army / Marine, Animal Husbandry and other businesses including the scope of the supervision of the Ministry of Agriculture. Limit provisions in point number 1

3. Industrial Business
Metal / Chemicals, Food / Beverage, Mining excavated materials, and various small industries Others, with limits MAP = Rp. 250,000,000 and limit CTO = Rp. 1,000,000,000

4.of Business Services
Selling power / services for third parties, consultants, planners, Workshop, as well as restaurants and other transportation with MAP and CTO limit as point number 1.

5.Enterprises Construction Services
Building contractors, Roads, Electricity, Bridges, Water and businesses - other businesses related to the technical Building Construction, with a limit of MAP and CTO as point number 3.

In each type of effort from point number 1 to number 5 above, limit the amount of the company's workforce of no more than 300 people. Unlike in America, and more uniform criteria for all types of businesses with restrictions:
1. Capital and assets not exceeding US $ 3,000,000
2. Workforce does not exceed 100 people.

* FORM AND TYPE OF SMALL BUSINESS
There are a variety of small businesses in Indonesia can be classified according to the forms, types and activities to do. Classification according to the shape based on the pattern of leadership and accountability. Classification by type based on the type of products or services produced and activities done. Besides the above classification by category, are essentially small businesses that is generally classified into 3 (three) special class that includes:
1. Small Industry
For example: a metal casting industry, industry folk crafts, Convection and various other industries.
Small-Scale 2 . Company
For example: The Craft Shop Distributors, Cooperative, Waserba, florists, professional services, restaurant and others.
Informal 3.Sektor
For example: Kiosk pavement, and other agents used goods.

* FORM
Forms based efforts, then a small company located in Indonesia can be classified into two forms:
Individual 1.Usaha
2.Usaha Guild / Partnership

Individual business is responsible to a third party or the other party (in this case the consumer) with the support of wealth that belongs to a private company of the businessman concerned. In Indonesia is quite large and relatively small-scale efforts. In general it is easier to set up, because it does not require complicated requirements and gradually like other forms of business.

Guild effort trying to achieve the objectives of the company makes a profit. Is a form of cooperation of some people who are personally liable for the obligations of the business alliance. Form of accountability and leadership patterns vary according to the forms of alliances formed.

* TYPE
Small businesses are categorized by the type of products or services produced or activities undertaken by a small business, as well as referring to the criteria of small businesses that have been known in the point above. And a wide variety of known types of small businesses include:
a. Trading Business
Agency: Agent newspapers and magazines, shoes, clothes and others.
Retailers: oil, daily necessities, fruits and others.
Export / Import: Various local and international products.
Formal sector: Collection of used goods, street vendors, and others.

b. Agricultural businesses
Food agriculture and plantations: Seeds and farm equipment, fruits and others.
Inland Fisheries / Sea: Shrimp, manufacture of fish crackers and other products from the land and sea fisheries.
Farms and other businesses including the scope of the supervision of the Ministry of Agriculture: Producers of chicken eggs, milk cows, and other livestock production.

c. Industrial Business
Metal or Chemical: Metal Crafters, artisans, leather, ceramics, fiberglass, marble and others.
Food or Drink: Manufacturers of traditional foods, soft drinks, catering and others.
Convection: Manufacturer garment, batik, Connective - weaving, and others.

d. Enterprises Services
Consultant: Consultant law, tax, management and others.
Planner: technical planners, system planners, and others.
Workshop: Car Repair, electronics, watches, and others.
Restaurant: The restaurant, coffee-shop, cafeteria, and others.

e. Construction services business
Building contractors, Roads, Electricity, Bridges, Irrigation and other efforts related to technical construction.

* Advantages and Disadvantages of Small Business
The Government through the Ministry of Industry , Department of Labor, Department of Commerce and the Bank has made efforts as much as possible to help small businesses, small industries and the informal sector. Through small business development strategy.

-Small Business Excellence
In fact, small businesses are able to survive and anticipate the economic slump caused inflation as well as various other factors. Without subsidies and protection, small industry in Indonesia is able to add value to the country's foreign exchange. while the informal sector is able to act as a buffer (buffer) in the lower layers of the community's economy. In general, small-scale enterprises, both individuals and cooperation has advantages and appeal such as:
1. The owner cum manager who worked his own company and has its own management style (also all the managerial functions of marketing, finance and administration.
2. The family company, where managers may not have the expertise Managerial reliable.
3. Most of creating a new job field, innovation, new resources as well as goods and new services.
4. Business risks be borne by the owner.
5. Growth is slow, irregular, often rapid and premature (preterm high-growth)
6. Flexible to form short-term fluctuations, but do not have the Long Term Plan (Corporate-Plan)
7. Independent in determining the price of production of the goods or his services.
8. The legal procedure is simple.
9. Tax relatively mild, because the tax charged is private / entrepreneur, not a company.
10. The contacts with outside parties are private.
11. Easy in the process of establishment.
12. Easy to be dissolved at any time if desired.
13. The owners manage independently and free time.
14. The owner receives all profits.
15. Generally have a tendency.
16. It is the type of business that is most suitable to manage your product, service or project pioneering, completely new, or no one has ever tried it, so it has few competitors.
17. The opening of opportunities with various facilities in government regulations and policies that support the development of small businesses in Indonesia.
18. Diversification effort wide open all the time and always untapped consumer market through creativity manager.
19. Relatively do not require too large an investment, labor is not highly educated, as well as other production facilities that are not too expensive.
20. Although it does not look real, each small business with other small businesses interdependence morally and spirit sought

Besides the general advantages as above, the small business has special strategic significance for the economy, including:

1. In many workmanship certain products, many large companies rely on companies - small companies, because if done alone by their (large companies), the margin of his becoming uneconomical.

2. Is a concentration equalization of the power - economic power in society.

* Barriers to Small Business Management \

Various obstacles that cause weakness and an obstacle to the management of a small business which are still concerns the internal factors of the small business itself as well as some external factors such as:

1. Generally penglola small-business feel no need or never conduct a feasibility study, market research, analysis Turnover Cash / cash, as well as various other studies needed a business activity.

2. Not having a long-term system planning, adequate accounting systems, budget capital requirements, organizational structure and Delegation of Authority, as well as tools other managerial activities (planning, implementation and controlling of business) that is generally required by a business that is profit-oriented ,

3. Lack of business information, only refers to intuition and ambition manager, weak in promotion

4. Lack of technical, operational guidelines and quality control activities and products work, and often inconsistent with the provisions of the order / orders, which resulted in a claim or rejected products.

5. Higher Labour Turn-Over (TO)

6. Too many expenses that are beyond control and debt that is not useful, nor compliance with the provisions of accounting standards.

7. The division of labor is not proportional, it is often the case managers have abundant jobs or employees who work outside the limits of standard working hours.

8. The difficulty of working capital or do not know exactly how the working capital needs, as a result of the absence of cash planning.

9. Inventories were too much, especially the kind of stuff wrong (not sell)

10. Others - others related to the mist-management and managers indifference towards managerial principles.

11. Risks and debts - debts to third parties covered by the owner's personal wealth.

12. The development of enterprises depends on employers who may at any time absent because of illness or death.

13. Sources of capital is limited to the ability of the owner.

14. Planning and control programs do not exist or have never define it.

Nevertheless, the government still encourages industry / small businesses can afford more developed and independent to carry out a variety of small business development programs implemented by the government and the parties or non-governmental organizations, including:
a. Business Capability Improvement Program.
b. Small Industry Development Program to support exports.
c. Linkage System Development Program Foster Father with His business partners.
d. Self Development Program and power Protesi .
e. Research Program and the Small Industry Development.
f. Program Creation / Settings Climate and cooperation.
g. Small Business Development Program of the various state and private universities.
h. Seminar and Exhibition of products of Small Industries of National and International.

* Entrepreneurship and Entrepreneurship

The relationship between the Entrepreneurial Entrepreneurship is very tight. Entrepreneurship is all that matters relating to techniques, methods, systems, and a variety of common business strategies that can be learned about the success or resignation of an entrepreneur.
Analysis related to the entrepreneurs can also be about the character, behavior, attitudes, personality development, kelompook history, as well as interest, motivation and ambition of an entrepreneur to achieve success.
A. Entrepreneurial
Entrepreneurship is not just a businessman, but a successful business because it has characteristics and a certain ability to create something new. Various definitions that describe the role of an entrepreneur has been commissioned by the scientists and economists some time ago, they explained that an entrepreneur is:
1. People who decide to take the risk (take a risk) in introducing products or new services (service, production methods, products, market opportunities, sources) and create new technologies to improve the economy and achieve the goal - the goal.

2. The person who organizes, manages, and bear the risk for the business decision.

3. People who are imaginative, which is characterized by the ability to set goals and can achieve those goals. Also has a high awareness to find opportunities, make the decision to implement innovations that have a moderate risk.

4. People who are smart or talented recognize new products, determine how new production, preparing the operation for the procurement of new products, regulate capital operations, and marketing it.

So the presumption arising in the observer's perception of management and sociology are varied, including:
a. Entrepreneur is someone who is able to make the resources (capital, raw materials and labor) to a combination whose value becomes greater than ever with a wide range of innovation and renewal.

b. Entrepreneur is someone who creates prosperity for themselves and for others. who find ways or techniques that better utilization of resources, minimize waste, and the products or services in an attempt to satisfy the needs of others.

c. Entrepreneurship is difficult to identify the person or controlled, but has the ability to solve a problem in an effective way.

d. Entrepreneurial driven by certain forces that need for achievement, experiment, and be able to realize the wishes and needs, is also able to influence others to support the goal.

e. For other entrepreneurs, entrepreneurial presence would be regarded as a threat to their business, competitors are aggressive, and can be used as new partners, new customers, new agents as well as new investors.

Variations arising assumption reflects that insight into the environment must be controlled and owned by an entrepreneur is a wild forest full of various possibilities of life and death for those who enter it. This context requires that an entrepreneur should at least have a character other than the ordinary human being in general.

Based on the above, the characteristic properties must be owned by an entrepreneur include:
1. Have a personal responsibility.
2. Dynamic and able to lead.
3. Having an optimistic attitude of an opportunity.
4. Being able to anticipate risks.
5. Resilient and persistent, determined full.
6. Energetic and intelligent.
7. Being able to see the opportunities.
8. The need to excel.
9. Creative and innovative.
10. Ability to influence others.
11. Do not depend on others.
12. Initiative to advance.
13. Be positive to any changes.
14. Open to suggestions and constructive criticism.
15. Fast and agile in capturing a sense.

Attitudes and characteristics of the above properties may be quite a lot to be owned and practiced one by one, therefore, need a practical understanding of the ability of an entrepreneur. By interpolating and slight modifications, the team's assistant consultant small entrepreneurs from SBDP (Small Business Development Project) a research institute small businessmen from the Faculty of Economics, University of Gadjah Mada, in a discussion of routine along Coordinator SBDP redefine the characteristics which must be owned by an entrepreneur, including :
1. Long-term Perspective and planning.
2. Giving priority to public interest.
3. Practicing professionalism.
4. Fulfilling the promise of the right.
5. Meet dose, accuracy, integrity, quality.
6. Save money, not stingy, not wasteful.
7. Discipline.
8. Dynamic (for personal), grow or evolve to a group or class.
9. Honouring achievement or productivity.
10. Tough, patient and persevering.


With skill and strategy, an entrepreneur able to create some opportunities, anticipate and seeking success for himself, his company, and others. Everything about the success of entrepreneurs associated with such efforts can be studied, trained and known so far as entrepreneurship. Broadly speaking, the entrepreneurial includes three main components of an entrepreneur, namely:
1. Personality
2. Motivation and Capabilities
3. Facilities and Growth

Each point above can be broken down into more complex as listed below:

1. Personality is influenced by:
- Attitudes and behavior
- Educational background
- Environmental Conditions
- Talent and Default
- Faith someone
- Plus other factors.

2. Motivation is influenced by:
- Level of education
- The level of economic capacity
- Lifestyle and values ​​- values ​​adopted
- Pressure from the - external
- Perception of individuals
- And another factor

3. Growth Facility and supported by:
- The rate of progression of life
- Trend existing needs
- Opportunities and limitations of sources
- Confidence external parties
- Government subsidies
- Other factors

Since the introduction of the first, entrepreneurship has contributed a lot to the economy and quality of life of mankind. Entrepreneurship has created new products and services, new jobs, new distribution channels, aspects of new social benefits, mobilization and innovation on productivity of society, as well as new methods in production technology.

Entrepreneurship can also be applied in various aspects of life and systems such as: education, military, political, cultural, administrative, other than in a business. The goal is the creation of something better, more efficient, more tactical and any more than that already exists.

As a science that can be learned, Karl H. Vesper in his book Small Business and Entrepreneurship to divide the subject of entrepreneurship into 11 fields of research include:

1. Economic of Entrepreneurship.
Examined the economic impacts of the activities - activities carried out by entrepreneurs.

2. Psychology of Entrepreneurship.
Learn entrepreneurial success by examining attitudes, motivation, personality, intellectual power, and so on.

3. Sociology of Entrepreneurship.
Researching the part of entrepreneurs achieve success as a result of the influence of social aspects and cultural community as well as the role of a particular religion.

4. Small Business Management
Studying and researching the management of small businesses.

5. fostering entrepreneurship.
Examining the roles of the various parties that encourage entrepreneurial success, including the role of government.

6. New Venture Entry
Researching possible opportunities for small entrepreneurs to enter into larger-scale businesses.

7. TYCOON History
Studying the entrepreneurial success of international level ever (eg Henry ford, Matsushita, Nitisemito, Probosutejo, Pardede and others.)

8. Minority Enterprise
Studying the entrepreneurial successes of minority groups are generally able to survive.

9. Independent Venture
Examining the efforts of entrepreneurial independence.

10. Corporate Venture
Researching entrepreneurship - entrepreneurship and entrepreneurial aspects contained in the company's business.

11. Female Entrepreneurship.
Researching the existence of successful women entrepreneurs and support aspects of their professionalism.

Such glimpses of self-employment and entrepreneurship in Indonesia, may be useful and can promote the economy, thanks see you next time * -)

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