This paper aims to investigate the role of corporate social responsibility (CSR) funding through Partnership and Development Nurturing Program (PDNP) in the development of…
Abstract
Purpose
This paper aims to investigate the role of corporate social responsibility (CSR) funding through Partnership and Development Nurturing Program (PDNP) in the development of entrepreneurial attitude and the small and micro entrepreneurs’ (SMEs’) income in Pekanbaru.
Design/methodology/approach
Primary data were obtained from the SMEs’ response to the development of entrepreneurial attitude, income of sales and expenses before and after getting PDNP fund. Secondary data were obtained from the publication of firms and relevant authorities. The sample used in this study comprised 95 respondents, including the SMEs in Pekanbaru who received PDNP fund in 2013 and who were selected by purposive sampling. Generalized structural component analysis (GSCA) was used to analyze the data for inner model (hypothesis testing for structural model) and outer model (measurement model for unobservable variables). Sobel test (under GSCA model) was used to test whether a variable is a mediating variable that assesses the relationship between endogenous variables and exogenous variables.
Findings
CSR funding (by PNBP fund) is significantly effective for entrepreneurial attitude. The higher value of CSR funding (by PNBP fund), which is reflected in the high values of turnover (X1), marketing coverage (X2), partnership program (X3) and sales (X4), will lead to a higher value of entrepreneurial attitude, which is reflected in the high value of planning (M1), confidence (M2), orientation to task (M3), risk taking (M4), leadership (M5) and honesty (M6). Entrepreneurial attitude significantly affects the income of SMEs. The higher value of entrepreneurial attitude, which is reflected in the high value of planning (M1), confidence (M2), orientation to task (M3), risk taking (M4), leadership (M5) and honesty (M6), will lead to a higher value of income of SMEs, which is reflected in the high value of effectivity (Y1), efficiency (Y2) and economist (Y3). CSR funding (by PNBP Fund) has a significant effect on the SMEs’ income with a mediation effect of entrepreneurial attitude. A high value of CSR funding (by PNBP Fund), which is reflected in the high values of turnover (X1), marketing coverage (X2), partnership program (X3) and sales (X4), will lead to a higher value of income of SMEs, which is reflected in the high value of effectivity (Y1), efficiency (Y2) and economist (Y3), if the value of entrepreneurial attitude is higher, which is reflected in the high values of planning (M1), confidence (M2), orientation to task (M3), risk taking (M4), leadership (M5) and honesty (M6).
Originality/value
A gap exists between the expected goals of SMEs, which is to increase people’s income through the development of their entrepreneurship, and the realization of the program. Hence, it is necessary to improve the implementation of the partnership program, which needs improvement in planning, process and the evaluation of the program. This phenomenon motivated the researcher to conduct this study so that the partnership and the community development program, as a form of CSR, benefit SMEs to increase their income.
Details
Keywords
Susi Hendriani, Yulia Efni and Ezky Tiyasiningsih
This study aims to know the effect of knowledge management, entrepreneurship motives and the society’s culture on women micro business performance in Pelalawan Kabupaten.
Abstract
Purpose
This study aims to know the effect of knowledge management, entrepreneurship motives and the society’s culture on women micro business performance in Pelalawan Kabupaten.
Design/methodology/approach
This research was done on women micro business in Pelalawan Kabupaten, Riau Province. The research used survey approach which used questionnaire instrument as the research primary data. The population of the research was the entrepreneurs of women micro businesses in Pelalawan Kabupaten who joined training. There are 121 entrepreneurs spread across five districts (Pankalan Kuras, Pangkalan Kerinci, Pangkalan Lesung, Kerumutan and Bandar Seikijang) where entrepreneurs in the five districts actively participate in training.
Findings
The performance of the business cannot be said that it was very well performed, because any growth had not been seen in the business run, which automatically the increase of the profit had not been able to be expected. Product sales were still fluctuating and there was no tremendous increase in sales. In addition, the increase in the number of consumers is also not significant. In relation to the knowledge management, it can be concluded that the knowledge management on the business management of the entrepreneurs was still low. There were many indicators that needed attention so that the business could develop; factors such as knowledge about market, production aspect, distribution, promotion and relationship building, financial management and technology usage were still far from expectation. The entrepreneurship motive was still low. It was proved by the condition that the entrepreneurs could not develop the business and the entrepreneurs’ welfare had not been developed yet. If the business developed, it would be followed by recognition from the people in the society. However, this has not been achieved and entrepreneurs also do not have an achievement orientation so that their business is no better than other businesses in regional Indonesia. There were not many people who supported the businesses run by the entrepreneurs in Pelalawan Kabupaten because the people’s loyalty to the products sold by the entrepreneurs was still low.
Originality/value
There had not been a comprehensive research assessing knowledge management, entrepreneurship motives and society’s culture and its effect on the micro business performance, specifically for women entrepreneurs; thus, this study is different from the previous research studies. This point became the originality of this research as well as the usage of the variable of society’s culture which became the local wisdom and was owned by Pelalawan, Riau, Indonesia and which became the characteristic highlighted in this research.