Entrepreneurial Perspective

Basic Traits and Development of Entrepreneurship

The basic entrepreneurial traits are a number of traits that reflect the concept of entrepreneurship and must be possessed by an entrepreneur in order to run his business well. According to McClelland, an entrepreneur has the following traits and characteristics:

Definition of Entrepreneur today

According to the Big Indonesian Dictionary (KBBI), an entrepreneur is a person who does business (trade, industry, etc.); a person who engages in trade; a merchant, an entrepreneur. Meanwhile, entrepreneur itself has several different definitions according to experts, including the following.

1. According to Salim Siagian
   Entrepreneurship can be defined as the spirit, behavior, and abilities that can respond positively to self-serving opportunities and services to customers or communities. In addition, creating and providing useful things by applying more effective work methods and taking risks.
2. According to Burgess
   Entrepreneur is someone who manages, organizes, and has the courage to bear all risks in creating business opportunities and various new businesses.
3. According to Harvey Leibenstein
   The definition of entrepreneurship according to Harvey is an activity that includes the things needed to create or run a company when all markets have not been formed or clearly identified, or the components of the production function are not fully known.
4. According to Rumelt
   Entrepreneurship is the creation of a new business which means it does not exactly duplicate an existing business, but has some elements of novelty.

As such, the definition of an entrepreneur today includes creative and innovative abilities, the ability to take risks, as well as different types of businesses undertaken for profit. Entrepreneurs must be able to adapt to market changes, develop effective strategies, and dare to make difficult decisions to achieve success in various types of businesses.

Entrepreneurial Process

Innovation Stage
Reporting from the book Entrepreneurship Course Learning Module (2020) by Maryati, innovation will encourage someone to become an entrepreneur. Some personal factors that encourage innovation are the desire for achievement, the emergence of curiosity, the desire to bear risks, educational factors, and experience. While the driving factors of innovation that come from the surrounding environment are opportunities, experience, and creativity.

Trigger Stage
According to Agung Purnomo, et al in the book Basics of Entrepreneurship: For Universities and the Business World (2020), personal factors that trigger a person to become an entrepreneur, namely:

• Dissatisfaction with the work he is doing
• Termination of Employment (PHK) or not having another job
• Age factor encouragement
• Courage to take risks
• High commitment or interest in entrepreneurship

Implementation Stage
This is the stage where a person starts trying to open a business. The personal factors that drive this stage are:

• Mental readiness
• The existence of an executive manager as the main helper
• High commitment to the business
• Vision and foresight, in order to achieve success

Growth Stage
After trying entrepreneurship, slowly but surely, the business will begin to grow and develop. This stage is supported by two factors, namely the organization as well as the environment. The driving factors that arise from the organization are:

• Team cohesiveness
• A solid strategy
• Emergence of organizational structure and culture
• The existence of a product to be proud of.

While the driving factors that arise from the environment, namely:

• An element of competition that is quite favorable
• The existence of continuous consumers and suppliers of goods
• The emergence of assistance from investors or banks
• The existence of sources that are available and can be utilized
• Government policies that support the growth of certain regulations.

The Role of Entrepreneurship in Economic Development

The role of entrepreneurship in economic development is very significant and can be seen from several important aspects. Entrepreneurship can generate new jobs, both directly and indirectly, by absorbing labor and providing opportunities for people to work and improve their economic welfare. Entrepreneurship is also often associated with innovation and creativity, such as creating new products or services that can increase innovation and update the technology used in the industry.

In entrepreneurship, there is the development of Micro, Small and Medium Enterprises (UMKM) which is an important part of entrepreneurship, which can increase the diversification of economic income sources and strengthen the national economic structure by increasing productivity through the discovery of new commodities, new types of materials, new ways of doing business, and new ways of marketing, thereby reducing costs and increasing production efficiency. Entrepreneurship also plays a role in advancing the economy through the utilization of information technology, opening up opportunities for Indonesia to fill the niche of the fast-growing digital market. With government support, such as the National Economic Recovery (PEN) program that provides capital assistance for UMKMs, entrepreneurship can continue to thrive and contribute to national economic development.

Ethics and Social Responsibility of Entrepreneurs

Ethics of Entrepreneurs

Ethics in the business world refers to the moral principles that direct the behavior of entrepreneurs in running their business. Ethics serves as a guide to making responsible and correct decisions from a moral standpoint.

1. Integrity and Honesty
   Entrepreneurs must always act honestly in all aspects of their business, whether in dealing with consumers, employees, business partners, or the government. For example, it should not provide false or misleading information in advertising products or services. High integrity builds trust from all relevant parties.
2. Transparency
   Entrepreneurs must provide clear, complete and accurate information about their products, services and business operations. This transparency also applies to financial reports, work procedures, and company policies. This openness helps maintain good relationships with stakeholders and prevent conflicts.
3. Justice
   The ethic of fairness means treating all parties fairly, without discrimination based on race, religion, gender or other backgrounds. This includes in hiring employees, granting promotions, or relationships with business partners. Employers should avoid actions that could unfairly disadvantage or benefit one group.
4. Compliance with the Law
   Compliance with the law is an important part of ethics. Entrepreneurs should always ensure that their business is run in accordance with applicable laws and regulations. This includes tax regulations, consumer protection, employee rights, and other industry regulations.
5. Moral Responsibility
   Entrepreneurs also have a moral responsibility, which is to consider the social and ethical impact of every business decision. For example, selling products that are safe and beneficial to consumers, rather than just pursuing profits. Moral responsibility also means avoiding practices that can harm society, such as corruption or exploitation.
6. Respecting the Rights of Others
   Respecting the rights of others, including intellectual property rights, consumer privacy rights, and employee rights, is part of the ethics that entrepreneurs must uphold. This also includes keeping customer or employee data confidential and not utilizing such information for harmful purposes.

Social Responsibility of Entrepreneurs

Entrepreneurial social responsibility is the obligation of entrepreneurs to make a positive contribution to society and the environment beyond the achievement of financial returns. This social responsibility ensures that business operations are not only focused on profit, but also pay attention to the impact on the surrounding community and ecosystem.

1. Environmental Protection
   Entrepreneurs have a responsibility to preserve the environment in their business operations. This can be done by implementing environmentally friendly practices, such as reducing carbon emissions, minimizing pollution, and managing waste responsibly.
2. Employee Welfare
   As part of its social responsibility, employers should prioritize employee welfare by providing decent wages, safe working conditions, and self-development opportunities. This includes providing training for skills upgrading, adequate health facilities, and appropriate social security. In addition, employers should encourage work-life balance, which can increase employee productivity and loyalty to the company.
3. Responsibility to Consumers
   Employers also have a responsibility to ensure that the products or services they offer are safe and of quality. This means providing honest and accurate information about the product, ensuring that it meets safety standards, and avoiding business practices that could harm or mislead consumers.
4. Local Community Development
   Entrepreneurs have an important role to play in empowering local communities. They can support Micro, Small and Medium Enterprises (MSMEs) by providing training, capital assistance, and opening market access for them. Prioritizing the use of local raw materials and local labor can also help drive the local economy. Moreover, involving communities in decision-making processes that affect them can create a harmonious and mutually beneficial relationship between entrepreneurs and local communities.
5. Ethics in the Supply Chain
   An entrepreneur’s social responsibility also includes ensuring that its entire supply chain operates ethically. This means selecting suppliers that comply with environmental and social standards, and avoiding working with those involved in labor exploitation or environmental destruction. By building a sustainable and responsible supply chain, entrepreneurs can minimize negative impacts throughout the production process and maintain their business reputation in the eyes of the public.

The Future of Entrepreneurship

Entrepreneurship in the future will combine the global with the local, or GloKal as it is called. This allows entrepreneurship to remain globally competitive while not losing important local values and ethics. Digital technology will continue to facilitate access to global resources and markets, allowing digital entrepreneurship to create products, interact with customers, and conduct product marketing and business operations more effectively.

The younger generation will have many opportunities to start businesses by utilizing their skills in programming, graphic design or multimedia production. They can create innovative mobile applications, e-commerce, digital content, and start-ups. However, there are also challenges faced such as fierce competition, cybersecurity, rapid technological changes, and limited resources. An effective strategy to deal with these challenges involves investing in training, technology updates, and business model changes.

Entrepreneurs should also pay attention to corporate social responsibility (CSR). This involves charitable activities, environmental protection, and improving people’s quality of life. CSR is important for maintaining corporate reputation and advancing sustainable development. Thus, the future of entrepreneurship is predicted to be smarter and adapt to digital technology, while still paying attention to ethical values and social responsibility.

Entrepreneurial Mindset

Entrepreneurial Mindset

Mindset refers to the specific behaviors, attitudes, and thought processes that drive our decisions. It includes how we perceive situations, obstacles, and our mental capabilities. Our thought process can be positive, negative, or somewhere in between. A negative mindset can blind you and cloud your judgment with doubt and uncertainty. Whereas a positive mindset opens your mind to the possibilities in a situation.

The entrepreneur mindset is a set of skills that relies heavily on positive and resilient thinking. People with this mindset see new opportunities whereas others only see risks. They constantly generate ideas to solve everyday problems and are not afraid to take a look or pursue their own ideas.

1. Think out of the box
   Sometimes the best way to overcome challenges is to think outside the box. If we develop our creativity, we can solve problems in ways we’ve never thought of before.
2. Choose a business based on passion
   It’s natural for someone to choose a business based on market needs and their strengths. However, an entrepreneur with a Passion First mindset takes a different approach. They try to find out what is really important to them, what they are passionate about, and then organize the business based on those things. They understand that running a company is full of challenges, and the best way to survive through tough times is to choose a business that gives them meaning and purpose.
3. Independent
   Independence is one of the most important aspects of a successful entrepreneur’s mindset. An entrepreneur will not follow what everyone else is doing or look to others for instructions. Instead, they listen to their gut and determine their own path.
4. No fear of failure
   Entrepreneurs are not afraid of failure because they see it as an opportunity to learn and grow. By understanding the value of failure, knowing that failure is an inevitable part of the journey to success and that every failure brings valuable lessons.
5. Responsible
   The independent mindset of successful entrepreneurs comes from an attitude of responsibility. Entrepreneurs do not blame others for the life conditions they face. Be it failure, success, or life circumstances. Instead, they prefer to empower themselves by taking responsibility to improve them.
6. Creative and innovative
   Creative and innovative is the fuel that drives new ideas, opens new markets, and creates value in unexpected places. Entrepreneurs are not satisfied with their comfort zone. Because they will always look for new and better ways of doing things.
7. Can collaborate with a team
   Entrepreneurs understand the power of collaboration. They know that success is impossible to achieve alone and require the diverse skills, perspectives and experiences of others. Entrepreneurs are not afraid to seek help, delegate tasks or work in teams.
8. Developing emotional intelligence
   Successful entrepreneurs have high emotional intelligence. They are self-aware, able to manage emotions, understand and empathize with the emotions of others, and are adept at navigating social networks. Entrepreneurs use these skills to build strong relationships, make sound decisions and lead effectively. Building emotional intelligence starts with self-awareness.
9. Have clear and achievable goals
   Successful entrepreneurs always know what they want to achieve by setting clear and measurable goals. Goal setting is essential as it provides direction, serves as motivation, and to measure progress. Entrepreneurs don’t just set long-term goals. However, they also break them down into smaller steps to make them more manageable. This creates a roadmap that guides them towards their ultimate goal.

Managerial and Entrepreneurial Decision Making

Managerial and entrepreneurial decision-making is a systematic process that entails data analysis, goal setting, alternative development, evaluation, and implementation. This process is carried out to address problems or take advantage of opportunities facing the organization. Managers must have good analysis and evaluation skills to collect and analyze relevant data, as well as good communication skills to share information with the team and stakeholders.

In the decision-making process, managers must also consider internal and external factors, such as resources, capacity, organizational culture, business environment, market, competitors, technology, and innovation. They must also have problem-solving and adaptive skills to deal with changes that occur in the business environment.

In entrepreneurship, managerial decision-making is critical to achieving competitive advantage and innovation. Managers must have the ability to identify business opportunities and develop strategies to take advantage of them. They must also have the ability to create something new and different from competitors (innovation).

In synthesis, managerial and entrepreneurial decision-making is a systematic process that entails data analysis, goal setting, alternative development, evaluation, and implementation. Managers must have good analysis and evaluation skills, good communication skills, leadership and motivation skills, as well as problem-solving and adaptive skills to achieve organizational goals.

Sumber:

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