Entrepreneurs should be proactive in building and maintaining networks

Oct 13, 2025 by thesweetdesigns.com 67 views

Effect of Entrepreneurial Networking and Entrepreneurial Characteristics on Micro Business Performance in Medan

Introduction

In today's fast-paced business environment, micro businesses play a crucial role in driving economic growth and development. However, the performance of micro businesses is often influenced by various factors, including entrepreneurial networks and characteristics. This study aims to analyze the influence of entrepreneurial networks and entrepreneurial characteristics on the performance of micro businesses operating in the Medan Perjuangan and West Medan District. By examining the relationship between these variables, this study provides valuable insights for entrepreneurs, policymakers, and business stakeholders to develop effective strategies for micro business development.

Background

Micro businesses are an essential component of the economy, particularly in developing countries. They provide employment opportunities, stimulate economic growth, and contribute to the development of local communities. However, micro businesses often face significant challenges, including limited resources, inadequate access to markets, and lack of entrepreneurial skills. To overcome these challenges, entrepreneurs must be proactive in building and maintaining networks, as well as developing entrepreneurial characteristics that enable them to adapt to change and innovate.

Methodology

This study employed a quantitative descriptive analysis method using multiple linear regression to analyze the data collected from 51 micro businesses engaged in the culinary industry in Medan Perjuangan and West Medan District. The population criteria included micro businesses that had been operating for a minimum of two years, particularly those classified as street vendors (PKL). The sampling method used was saturation sampling, which involved using the entire population as a sample. The data was analyzed using a significance level of 0.5%.

Results

The results of this study showed that the entrepreneurial network variable and entrepreneurial characteristics together had a positive and significant influence on micro business performance. The F test revealed that the two variables had a significant influence on micro business performance, while the T test showed that the variables also had a positive and significant influence on the performance of micro businesses in Medan Perjuangan District and West Medan. The adjusted R² value obtained was 0.483, indicating that around 48.3% of micro business performance was influenced by the entrepreneurial network (X1) and entrepreneurial characteristics (X2), while the remaining 51.7% was influenced by other factors not examined in this study.

Discussion

The significant influence of the entrepreneurial network and entrepreneurial characteristics on micro business performance highlights the importance of entrepreneurs being active in building and maintaining networks. An extensive network can provide access to better resources, cooperation opportunities, and more effective marketing. For example, culinary entrepreneurs can establish cooperation with suppliers of raw materials, business partners, or even with other business actors to expand market reach and increase their business competitiveness.

Entrepreneurial characteristics such as motivation, the ability to take risks, and innovation also play a crucial role in the progress of micro businesses. Entrepreneurs who have positive characteristics will be more able to adapt to change, face challenges, and create new ideas to improve their products and services.

Conclusion

This study provides a clear picture of the importance of entrepreneurial networks and entrepreneurial characteristics in supporting the performance of micro business. The results of this study can be a reference for businesses and policymakers in formulating more effective micro business development strategies. By understanding the influence of entrepreneurial networks and entrepreneurial characteristics on micro business performance, entrepreneurs and policymakers can develop targeted interventions to support the growth and development of micro businesses in the Medan Perjuangan and West Medan areas.

Recommendations

Based on the findings of this study, the following recommendations are made:

Entrepreneurs should be proactive in building and maintaining networks: Entrepreneurs should establish and maintain relationships with suppliers, business partners, and other stakeholders to access better resources and cooperation opportunities.
Entrepreneurs should develop entrepreneurial characteristics: Entrepreneurs should focus on developing characteristics such as motivation, the ability to take risks, and innovation to adapt to change and innovate.
Policymakers should develop targeted interventions: Policymakers should develop targeted interventions to support the growth and development of micro businesses, including providing access to resources, training, and mentorship.
Businesses should invest in micro business development: Businesses should invest in micro business development by providing resources, training, and mentorship to support the growth and development of micro businesses.

Limitations

This study has several limitations, including:

Limited sample size: The study was limited to 51 micro businesses, which may not be representative of the larger population.
Limited scope: The study focused on micro businesses operating in the Medan Perjuangan and West Medan District, which may not be generalizable to other regions.
Limited variables: The study examined only two variables, entrepreneurial network and entrepreneurial characteristics, which may not be comprehensive.

Future Research Directions

Future research should aim to:

Examine the influence of other variables: Future research should examine the influence of other variables, such as marketing strategies, business strategies, and venture capital, on micro business performance.
Investigate the impact of policy interventions: Future research should investigate the impact of policy interventions on micro business development.
Develop a comprehensive model: Future research should develop a comprehensive model that incorporates multiple variables to explain micro business performance.

By addressing these limitations and expanding the scope of the study, future research can provide a more comprehensive understanding of the factors that influence micro business performance and inform the development of effective strategies for micro business development.
Frequently Asked Questions (FAQs) on the Effect of Entrepreneurial Networking and Entrepreneurial Characteristics on Micro Business Performance

Q: What is the main objective of this study? A: The main objective of this study is to analyze the influence of entrepreneurial networks and entrepreneurial characteristics on the performance of micro businesses operating in the Medan Perjuangan and West Medan District.

Q: What is the population criteria for this study? A: The population criteria for this study include micro businesses that have been operating for a minimum of two years, particularly those classified as street vendors (PKL).

Q: What is the sampling method used in this study? A: The sampling method used in this study is saturation sampling, which involves using the entire population as a sample.

Q: What is the significance level used in this study? A: The significance level used in this study is 0.5%.

Q: What are the results of this study? A: The results of this study show that the entrepreneurial network variable and entrepreneurial characteristics together have a positive and significant influence on micro business performance. The F test revealed that the two variables have a significant influence on micro business performance, while the T test showed that the variables also have a positive and significant influence on the performance of micro businesses in Medan Perjuangan District and West Medan.

Q: What is the adjusted R² value obtained in this study? A: The adjusted R² value obtained in this study is 0.483, indicating that around 48.3% of micro business performance is influenced by the entrepreneurial network (X1) and entrepreneurial characteristics (X2), while the remaining 51.7% is influenced by other factors not examined in this study.

Q: What are the implications of this study? A: The implications of this study are that entrepreneurs must be proactive in building and maintaining networks, and developing entrepreneurial characteristics such as motivation, the ability to take risks, and innovation to adapt to change and innovate.

Q: What are the recommendations of this study? A: The recommendations of this study are that entrepreneurs should be proactive in building and maintaining networks, entrepreneurs should develop entrepreneurial characteristics, policymakers should develop targeted interventions to support the growth and development of micro businesses, and businesses should invest in micro business development.

Q: What are the limitations of this study? A: The limitations of this study are that it has a limited sample size, limited scope, and limited variables.

Q: What are the future research directions? A: The future research directions are to examine the influence of other variables, investigate the impact of policy interventions, and develop a comprehensive model that incorporates multiple variables to explain micro business performance.

Q: What are the practical implications of this study? A: The practical implications of this study are that it provides a clear picture of the importance of entrepreneurial networks and entrepreneurial characteristics in supporting the performance of micro business, and can be a reference for businesses and policymakers in formulating more effective micro business development strategies.

Q: What are the theoretical implications of this study? A: The theoretical implications of this study are that it contributes to the understanding of the factors that influence micro business performance, and provides a framework for future research on the topic.

Q: What are the policy implications of this study? A: The policy implications of this study are that it highlights the need for policymakers to develop targeted interventions to support the growth and development of micro businesses, and to provide access to resources, training, and mentorship to support the development of entrepreneurial networks and characteristics.