Factors That Influence Entrepreneur Success in City of Medan

Selwendri

Onan Marakali Siregar

and Muhammad Arifin Nasution

Faculty of Social and Political Sciences, University of Sumatera Utara Jl. Dr. Sofyan No. 1

Medan 20155 Indonesia

Keyword: Social Media , Business Opportunity, Entrepreneurship

Abstract: The importance of entrepreneurship in society is not just to make improvements and changes in quality of

life community, but also also proven to play a significant role in realizing the quality of the people and the

nation. This study aims to determine the factors that determine the success of entrepreneurs in entrepreneurs

in the city of Medan. This study uses quantitative research methods through the provision of questionnaires

using predetermined indicator indicators in addition to extracting information through in-depth interviews.

The results of the study show that lifestyle variables influence the success of an entrepreneur. In addition,

lifestyle variables have a significant effect onsuccess variables entrepreneurial. So, the hypothesis is

acceptable, namely the existence of partial lifestyle influences onsuccess intentions entrepreneurial. The

results of partial tests explain that psychological capital variables (X2) have a positive effect. In addition,

psychological capital variables have a significant effect onsuccess variables entrepreneurship. So, the

hypothesis can be accepted, namely the influence of psychological capital partially onsuccess intentions.

entrepreneurialThat individual talent variable (X3) has a positive effect and individual talent variables

influencesuccess. entrepreneurIndividual talent variables have a significant effect onsuccess variables

entrepreneurship. So, hypothesis 3 is acceptable, that is, the influence of individual talents partially on

theintention to succeed entrepreneur's.

1 INTRODUCTION

Entrepreneurship has several important roles in

the economy including creating new jobs,

increasing economic growth and national income,

reducing economic disparities that occur between

high-income and low-income communities,

fostering community independence in the

economic field so that it does not depend on other

parties and foster creativity.

In carrying out entrepreneurial activities,

everyone has the opportunity to entrepreneurship,

but when people do entrepreneurial activities, the

results of entrepreneurial activities between one

another are not necessarily the same, although

using the same techniques in running

entrepreneurial activities, because success in

entrepreneurship is not only determined by

technical factors.

When viewed from age, everyone also has the

potential to become an entrepreneur, both young

and old, can run entrepreneurial activities. There

are some entrepreneurs who start a business at an

age that is mature enough due to a termination of

employment or because they do not have activities

at retirement, so they start running entrepreneurial

activities. Although the best age in starting

entrepreneurship is from a young age where at a

young age the ability to learn, have new creative

ideas and keep abreast of information technology

are on the cusp, besides at a young age the risk is

smaller if there are obstacles in entrepreneurship

because they are still not married or young families

with small children

In recent years there has been an increase in

public interest in entrepreneurship in North

Sumatra Province, this is proven by recording

where there is an increase in the number of people

working as entrepreneurs. The results of the 2016

economic census carried out by the North Sumatra

(North Sumatra) Central Statistics Agency (BPS)

said the number of businesses grew by 11.5% or

12,000 businesses from the previous amount of

1.06 million to

1.18 million businesses. This

growth occurs within 10 years.

From the data collection, it can be seen that the

most dominant business is the trade sector

business with a total of almost 47.20% of the total

business. This development is supported by the

development of population and the growth of

Selwendri, ., Siregar, O. and Nasution, M.

Factors That Inﬂuence Entrepreneur Success in City of Medan.

DOI: 10.5220/0010104318571860

In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches (ICOSTEERR 2018) - Research in Industry 4.0, pages

1857-1860

ISBN: 978-989-758-449-7

1857

modern businesses such asbusinesses online. "

Online business has contributed to the increase in

economic activity in Indonesia in

recent years. As

many as 1.16 million businesses or 98.55% are

small-scale micro- enterprises (MSEs) and 17,120

(1.45%) are medium-sized business enterprises

(UMB). In line with the distribution of the number

of businesses, the labor distribution map

illustrates the same thing. From the trade business

category, the processing industry, the provision of

accommodation, as well as food and beverages,

became a place of livelihood of two-thirds of the

total workforce in North Sumatra which amounted

to 2.1 million people. While other business

categories each only contribute under 10%.

Meanwhile for the City of Medan according to

the status of the main job as a young entrepreneur

or self-employed experienced an increase with the

number 1,026 (16.64%) in February 2016 to 1,069

(17.1%) in February 2017. While the number and

percentage of the population of Medan City by

status the main job as a worker / employee /

employee decreased with a total of 2,371

(38.45%) in February 2016 to 2,230 (35.48%) in

February

2016.

Phenomenon of the increasing presence of

young entrepreneurs also increases the number of

business professions in general. Various factors

that influence entrepreneurial intelligence provide

knowledge for entrepreneurs such as lifestyle,

psychological capital and individual talents. These

factors are factors that determine a person's

success in work as an entrepreneur. Therefore,

these factors become the focus in this research

proposal.

Based on the background described, the

formulation of the problem in this study is

whether the factors that influence the success of

entrepreneurs in Medan city, then the

identification of the problem in this research is

does lifestyle have a significant positive effect on

the success of the entrepreneur,does psychological

capital have a significant positive effect onsuccess

entrepreneur, do individual talents have a

significant positive effect on success entrepreneur,

how do you influence the contribution of lifestyle,

psychological capital and individual talents

tosuccess entrepreneurial?

2 RESEARCH METHODS

Population in this study were entrepreneurs in

Medan City who were members of KADIN and

HIPMI, North Sumatra which numbered around

150 people.

Sekaran (2006) quoted from Roscoe (1975)

The sample size that is feasible in the study is

between 30 to 500. If the research will do

multivariate analysis (multiple correlations or

regression), the number of sample members is at

least 10 times the number of variables examined.

The dependent and free variables in this study

were 4 (four) so that 10 x 4 = 40. Based on the

above explanation, the minimum number of

samples used in this study were 40 people. To

facilitate calculation, the researcher took a sample

of 50 respondents.

In this study the authors used two data

collection techniques, namely:

Primary data

collection technique primary data used in this

research is data obtained directly from

respondents using a questionnaire.

Secondary Data Secondary

data collection techniques used in this study

are:

Literature Study

Collection of data obtained from books,

scientific works and opinions of experts

who are competent and have relevance

to the phenomenon to be studied.

Documentation Study

Data collection using written notes or

documents, drawings, or other objects

related to the phenomenon under study.

2.1 Test Methods for Test Instruments

Validity and Reliability conducted to test whether

the questionnaires distributed were appropriate to

be used as research instruments. Validity and

Reliability Tests were conducted on respondents.

This is done so that the data obtained is valid and

reliable. Classical Assumption Test The classical

Assumption requirements must be fulfilled by

multiple regression models before the data is

analyzed are as follows:

Normality

Test Normality Test aims to test whether in the

regression model, dependent variable,

independent variable, or both have normal

distribution or not.

Test Heteroskidastity

heteroskedastisitas test aims to test whether

there is inequality in the regression model

varian of the residuals of the observations

to other observations. If the variance from

ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches

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residual one observation to another

observation is fixed then it is called

homoskedasticity and if a different variant is

called heteroscedasticity. Multicollinearity

Test This test is used to test whether the

regression model found correlation between

independent variables. If there is a

correlation between independent variables,

it can be said that there is a problem of

multicollinearity. A good regression model

should not have a correlation between

independent variables. Multicolinearity test

uses thecriterion Variance Inflation Factor

(VIF)with the provisions:

If VIF> 10 there is a serious problem of

multicollinability.

If VIF is <10, there is no serious

multicollinability problem.

2.2 Multiple Linear Regression

Analysis

Regression Analysis is used to analyze whether

independent variables (lifestyle, psychological

capital, and individual talents) together influence

the dependent variable, namely success

entrepreneur. The equation model used in this

study is:

Y = a + b

+ b

+ e

2.3 Testing

Hypothesis

After the regression model meets classical

assumption requirements, it will be used to analyze

regression through testing the hypothesis as

follows:

Partial Significance Test (Test -t)

This test is conducted to find out how far the

influence of one independent variable

partially (individually) explains the variation

of the dependent variable. The basis for

decision making for partial t test in regression

analysis is as follows:

Based on the value of t count and t table

If the value of t arithmetic> t table,

the independent variable affects the

dependent variable.

If the value of t arithmetic < t

table, then the independent variable

has no effect on dependent variable

Based on the significance value of the

output on software statistical

if the value of sig. < 0.05, the

independent variable has a

significant effect on the dependent

variable

if the sig value. > 0.05, no significant

effect of independent variables on

the dependent variable

0 is

rejected if

< t

table

at α = 5%

accepted if

t >

table

at α = 5%

Significant Simultaneous Test (Test F)

Kuncoro (2013 : 219) argues that F statistical test

basically shows whether all independent variables

included in the model have the same effect on the

dependent variable. Simultaneous testing (Test-F)

is done to see the effect of independent variables

(lifestyle, psychological capital and individual

talents) on the dependent variable

(success

entrepreneurial) together.

2.4

The Determination

Coefficient

Kuncoro(2013: 246) argues that the coefficient of

determination (R

) essentially

measures how

much the ability of the model in explaining the

dependent variable. If R

gets bigger (close to

one), then it can be said that the influence of

the independent

variable (X

, X

) is large

on the dependent variable (Y). This means that

the model used is stronger to explain the effect of

the independent variables studied on the

dependent variable. Unfortunately if R

gets

smaller (near zero), then it can be said that

the

effect of independent variables (X

, X

) on

the dependent variable (Y) is getting smaller.

This explains the effect of the independent

variables studied on the dependent variable.

3 RESEARCH RESULTS

Simultaneous test results explain that lifestyle

variables (X1), psychological capital (X2), and

individual talents (X3) have a positive and

significant effect on the calculated f value

(28,631)> f table (2,81) which means variable

variables lifestyle (X1), psychological capital

(X2), and individual talents (X3) affect the

success of entrepreneurs. In addition, based on

the significance value that the sig value is. (0.00)

<0.05, the variables of lifestyle (X1),

psychological capital (X2), and individual

talents (X3) have a significant effect on the

success variable of entrepreneurs. So, hypothesis

4 is acceptable, namely the influence of lifestyle

Factors That Inﬂuence Entrepreneur Success in City of Medan

1859

variables (X1), psychological capital (X2), and

individual talents (X3) simultaneously on

entrepreneurial success intentions. The results of

this study support the previous research

conducted by Frese (2014) with the title "The

Psychology of Entrepreneurship" which gets

results that variable lifestyle, psychological

capital and individual talents partially and

simultaneously have a positive and significant

effect on the success of entrepreneurs. Based on

the distribution of respondents 'answers related

to the success of the entrepreneur (Y) there is an

accumulation of respondents' answers of positive

value (strongly agree) as much as 84% in the

distribution of answers that state that "I make

customer loyalty an important thing in doing

business". The results of this study support the

theory by Soetadi who states that successful

entrepreneurs must have a strong belief that

wherever their business is, they are able to run

and always have confidence that the business

will succeed. In addition, based on the

distribution of respondents 'answers related to

the success of the entrepreneur (Y) there is an

accumulation of respondents' answers with a

negative value (disagree) as much as 12% in the

distribution of answers that stated prioritizing

creativity and innovation in doing business.

4 CONCLUSIONS

Based on the results of the study and discussion, it

can be concluded as follows:

The partial test results explain that lifestyle

variables (X1) have a positive and significant

effect on the value of t count (3.859)> t table

(1.665) which means that lifestyle variables

affectsuccess entrepreneur. In addition, based

on the significance value that the sig value is.

(0.00) <0.05, the lifestyle variable has

significant effect on the success of

thevariable entrepreneur. So, hypothesis 1 is

acceptable, namely the existence of a partial

lifestyle influence onsuccess

intentions

entrepreneurial.

The partial test results explain that the

variable psychological capital (X2) has a

positive and significant effect on the value of

t count (3.859)> t table (1.665), which means

that the variables of psychological capital

affect the success of entrepreneurs. In

addition, based on the significance value that

the sig value is. (0.00) <0.05, the

psychological capital variable has a

significant effect on the success variable of

entrepreneurs. So, hypothesis 2 is acceptable,

namely the influence of psychological capital

partially onsuccess intentions entrepreneurial.

The partial test results explain that individual

talent variables (X3) have a positive and

significant effect on the value of t count

(3.859)> t table (1.665), which means that

individual talent variables affect the success

of entrepreneurs. In addition, based on the

significance value that the sig value is. (0.00)

<0.05, the individual talent variables have a

significant effect on the success variable of

entrepreneurs. So, hypothesis 3 is acceptable,

namely the influence of individual talents

partially onsuccess intentions entrepreneurial.

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