Effect of Entrepreneurship Behavior and Working Capital to Success
Business
Aep Syamsudin, Ikaputera Waspada, and Navik Istikomah
Universitas Pendidikan Indonesia, Setiabudhi 229 street, Bandung, Indonesia
Keywords: Behavior of Entrepreneurs, Capital Asset, Entrepreneurs’ Profit.
Abstract: This main isue proposed in this study is about the entrepreneurs’ profit wich has reduction in the sub-district
Lembang and Sukasari. The aim of this research is to know the effect of capital asset and behavior of
entrepreneurs to entrepreneurs’ profit of Fried Chicken. The subject of this research is Fried Chicken of
entrepreneurs featured products in sub-district Lembang and Sukasari. This subject of this study is 30
entrepreneurs. Then, the method use in this study is explanatory survey distributing questionnaire is the tool
to gather the date.besides, is aslo uses simple linear regression as the technique in collecting the data
supporting by Eviews 9 and MSI (Method Succive Interval) for changed ordinal date to interval date. Based
on the research obtained that partoally behavior of entrepreneurs and capital asset variable shave a positive
and significant effect on the entrepreneurs profit.
1 INTRODUCTION
The economic crisis that occurred in Indonesia in
1998 caused the economy in Indonesia experienced
a downturn, the exchange rate of Indonesian
currency also experienced the lowest point. The
social and economic situation in Indonesia at that
time was very bad. The effect of MSMEs in
Indonesia is very important, especially in helping to
solve the problem of poverty and unemployment.
Although the role of SMEs in the economy of
Indonesia is central, but government policies and
regulations that support it until now felt not
maximized. The problem is the capital access to
banking is still difficult. From these events, it is
necessary to have further handling from the
Indonesian government to develop small and
medium business community because it can improve
people's economy and minimize unemployment
through the development of Micro, Small and
Medium Enterprises (MSMEs).
Seeing such obstacles, MSME entrepreneurs
must start accustomed to analyze and do business
records, to know the extent to which business
development. The analysis and recording of business
that is often forgotten by UMKM entrepreneurs is a
credit problem. Micro, Small and Medium
Enterprises Credit is one of the instruments of
business development that always get big portion
and attention of a country, because with the
existence of micro, small and medium enterprise
credit in the economic sector will move the economy
well. Fried Chicken business includes micro and
medium enterprises & nbsp; because the industry
meets the above criteria as a micro business, such as
total asset maximum Rp. 50.000.000,00 and its
turnover or income is biggest Rp. 300.000.000,00.
The role of small and medium enterprises
(SMEs) in Indonesia's economy has been great since
the beginning. However, since the economic crisis
hit Indonesia, the role of SMEs increased sharply.
Data from the Central Bureau of Statistics (BPS)
shows that the percentage of SMEs compared to
total companies in the year 2004 was 99.9 percent.
In the same year, the labor force absorbed by this
sector reached 99.4 percent of the total workforce.
Similarly, the contribution of the Gross Domestic
Product (GDP) is also large, more than half of our
economy is supported by the production of SMEs
(59.3%) The concept of micro, small and medium
enterprises (UMKM) is very different from a
country with other countries. SMEs become the
discussion of various parties and even SMEs are
considered as savior Indonesia's economy during the
crisis period 1998-200, SMEs have the
characteristics of small capital, relatively small risks
36
Syamsudin, A., Waspada, I. and Istikomah, N.
Effect of Entrepreneurship Behavior and Working Capital to Success Business.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 36-39
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

and encourage people to develop entrepreneurial
spirit.
2 LITERATURE REVIEW
Schumpeter posited neoclassical economic theory.
(Suryana, 2013, p.168) that the company will benefit
if it has a unique advantage to avoid perfect
competition. These earnings and benefits can only
be created from the inventions made by
entrepreneurs. The discovery of entrepreneurs can
create benefits through the discovery of new ways of
providing the best service to customers. According
to Yoyon Supriyadi and Ratih Puspitasari (2009,
p.2) suggests that what is meant by business capital
is a very important asset element in the company.
Because without working capital the company can
not meet the needs for daily activities and other
obligations such as paying debts, wages, and so
forth. Where the money or funds that have been
spent it is expected to be back again entered within
the company in a short time through the sale of
prosuksinya.
According to Suyadi Prawirosentono (2002, pp.
132), Working capital has several elements in it,
among others, cash, short-term investments,
accounts payable, accounts receivable, inventory,
income, and down payment According to Dominick
Salvatore (2005, pp. 269) says that in order to
maximize profit, a firm should use each input to a
marginal revenue product from input equal to the
cost of the marginal resource to hire the input. With
constant input prices, this means that the firm must
hire each input until the marginal revenue product of
the input is equal to the input price. The firm's
earnings must produce output at the maximizing
level of profit with the optimum input combination.
Thus hiring and employing the input so that the
above equations are met, so that the company can
produce at the best level of output or at a level that
maximizes profit with the optimum input
combination.
3 METHODS
The method used in this research is explanatory
method (explanatory method) which is a research
method that intends to explain the relationship
between variables by using hypothesis testing. The
purpose of explanatory research is to explain or test
the relationship between variables studied. In a
research tool data collection or research instrument
will determine the data collected and determine the
quality of research. The research instrument used in
this research is a questionnaire about
Entrepreneurship Behavior, Working Capital and
Profit. The sample used in this study is a saturated
sample where the number of population is less than
one hundred, all samples are SMEs Fried Chiken in
Kecamatan Lembang and Sukasari District. Total
trader amounted to 30. In this research, to know
influence between independent variables and
dependent variable. Data analysis technique used is
multiple linear regression analysis.
4 RESULTS AND DISCUSSION
Fried Chicken business research in Lembang and
Sukasari sub-districts, all of which are 30
entrepreneurs. Here is an overview of respondents.
Number of respondents with male gender there are
25 pengusha while female businessman there are 5
people whereas the general description of
respondents by age is age between 11 & 20 years
consists of 6 people, age between 21-30 there are 18
people, age between 31-40 there are 6 people, and
above 40 years there is 1 person. Respondents group
based on the last level of education from primary
school graduate there are 2 people. Respondents
from junior high school graduates have 16 people.
Respondents from high school graduates have 12
people. Respondent group based on business
experience with 1 to 2 years business experience
there are 13 people, experienced 3 to 4 years there
are 12 people, and experienced more than 5 years
totaling 5 people.
Hypothesis testing through t-test, the error rate
used by the author is 5% or 0.05 at a significant
level of 95% with df = nk-1 (30-2-1) = 27. The t test
results on the above T test results using Eviews 9 of
each independent variable (entrepreneurial behavior
and working capital) are as follows: Variable
(entrepreneurship behavior) obtained t-count equal
to 2,7971 while t-table equal to 1,703. It shows that
t-hit & gt; T-table (2.7971 & gt; 1.703) or otherwise
rejected and & nbsp; received which means that
entrepreneurial behavior has a positive and
significant effect on earnings. Variables (working
capital) obtained t-count equal to 2.8047 while t-
table equal to 1,703. It shows that t-hit & gt; T-table
(2,8047 & gt; 1,703) or in other words other & nbsp;
received and & rejected which means that working
capital positively and profitably affects earnings.
Based on the test results obtained f-count as big
& 12,44 demands f-table of 3.35 and a significant
level of 5% or 0.05. It shows that f-count & gt; F-
table (12,44 & gt; 3.35) or in other words is rejected
Effect of Entrepreneurship Behavior and Working Capital to Success Business
37

and receipt which means that independent variables
(entrepreneurial behavior and working capital)
together influence the dependent variable (profit).
Based on Eviews estimation, the value of & nbsp; is
0.4796 or 0.48. This means that the regression line is
able to explain 48% of the facts and the remaining
52% is explained by other variables. In other words,
it can be said that the profit variable can be
explained by entrepreneurial behavior variable and
working capital is only 48% and the rest 52% is
explained by other variables outside the variables
After performing partial test, simultaneous test, and
also R square determination test next is to do
regression and test the classical assumption
consisting of Multikolinearitas, Heteroskedastis, and
Autokorelasi. After the Regression is obtained the
data as follows:
LnY = 6,0279 + 1,0407 Ln X1 + 0,3348LnX
The Influence of Entrepreneurship Behavior
Entrepreneurial behavior has a positive relationship
in determining the profitability of a company, where
entrepreneurial behavior will determine the extent to
which a company achieves the main goal of the
company is the achievement of maximum profit, so
that the income level of the employer or trader will
increase. Based on statistical calculations using
multiple linear regression, it is known that
entrepreneurial behavior is significant and has an
effect on profit. This means that the more
entrepreneurial behavior owned by entrepreneurs
Fried Chicken then the profits to be gained will be
greater and vice versa if entrepreneurial behavior is
low, it will reduce the profits earned by employers.
This is in accordance with the theory of resource-
based strategy proposed by Mathoney and Pandian
(Suryana, 2013, p. 124) stating that: In order for the
company to profit continuously, to reach all
competitors in the industry, the company should
prioritize superior internal capabilities, which are
non-transparent, elusive, or diverted by competitors
and provide strong long-term competitiveness and
exceed current demands in Markets and in turbulent
external situations, and able to survive the recession.
One of the benchmarks for business success is
profit or profit. Many factors that affect and increase
the profits of traders one of them is entrepreneurial
behavior and working capital entrepreneurial
Behavior is the activities or activities of an
entrepreneur, among them is fostered by three main
characteristics that is, innovative, risk-taking, and
task-oriented and result. Zimmerer in Suryana
(2006: 14) says that "entrepreneurship is the
application of creativity and innovation to solve
problems and efforts to take advantage of the
opportunities faced every day".
Effect of Working Capital on Profit According to
Yoyon Supriyadi and Ratih Puspitasari (2009, p.2)
suggests that what is meant by business capital is a
very important asset element in the company.
Because without working capital the company can
not meet the needs for daily activities and other
obligations such as paying debts, wages, and so
forth. Where the money or funds that have been
spent it is expected to be back again entered within
the company in a short time through the sale of
prosuksinya. Working capital is always needed.
Working capital will continue to spin in a business.
Expenditures used to purchase, pay wages or hire
employees and so forth, will return to cash again
through the proceeds of the sale. The cash is then
used again for purchases, wages, salaries, etc. in the
next working period. In addition, in general the
capital can be used to measure whether a business is
able to pay its financial obligations that must be met
immediately. Thus working capital is very
influential for companies and traders. In accordance
with the results of research that working capital
significantly influence the level of income traders
According to Dominick Salvatore (2005, pp. 269)
says that in order to maximize profit, a firm should
use each input to a marginal revenue product from
input equal to the cost of the marginal resource to
hire the input.
5 CONCLUSIONS
Based on the results of research and discussion, the
authors can draw conclusions about the influence of
entrepreneurial behavior and working capital to
SMEs profit through a case on traders Fried Chicken
in District Lembang and Sukasari District. The
conclusion is as follows Entrepreneurial behavior
has a significant effect on Fried Chicken business
profit in Lembang and Sukasari Subdistricts.
Working capital significantly affects the profit of
Fried Chicken entrepreneurs in Lembang and
Sukasari Subdistricts.
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