Strengthening the Financial Aspects, Characteristics and Competencies of Entrepreneurship to Improve the Performance of MSMEs Managed by Women

Abstract

MSMEs are a potential sector and have a strategic role and a very large contribution to the national economy. According to data from the Ministry of Cooperatives, Small and Medium Enterprises in 2019, the number of MSME actors as many as 65.465.975 million or 99.99% of the total number of entrepreneurs in Indonesia and currently, women's participation in the business sector is increasing. This can be seen In 2012, the involvement of women in the field of entrepreneurship increased by 58 percent. At first glance, this figure looks significant, but it shows that women entrepreneurs in Indonesia still face challenges not only in accessing capital but also in accessing opportunities for skills development, such as product development, financial management, corporate governance and marketing. Some of these problems, if not addressed, will have an impact on the performance of MSMEs .The occurrence of poor performance is influenced by many internal and external factors. According Musran Minuzu (2010) mentions the factors that affect the performance of SMEs is the aspect of human resources, financial aspects, technical aspects of production and operation, market and marketing aspects, aspects of government policy, social, cultural and economic, as well as aspects the role of the relevant institutions. In addition, the characteristic factors include personality traits and individual competencies in the entrepreneurial process that will affect MSME business performance. This study aims to determine whether financial aspects, characteristics and entrepreneurial competencies can improve the performance of MSMEs managed by women, and the results of this study are expected to be a motivation for Indonesian women, especially in the city of Kupang to be more productive and have an entrepreneurial spirit. This research is a quantitative descriptive study, by conducting comparative causal research and in its completion the researcher uses an analytical model with a component or variance-based partial least quare (PLS) approach and can be used to confirm theory and explain whether there is a relationship between latent variables. The targeted output is the proceedings (iCAST) 2021, Samarinda State Polytechnic.