Conceptual model of start-up business for strengthening Madrasah funding using Dynamic System approaches

Abstract

A start-up business is generally developed in a limited financial so that they grow slowly. It also happens on the Cassava Meatballs start-up business run by Madrasah Al-Binaa, one of an Islamic non-formal boarding school. Therefore, it is required some alternative tactics to provide the liquidity and get profits that will encourage the start-up business to grow, develop and be sustain. The start-up business contains some trade-offs so that this study uses Dynamic System approach to simulate the interrelationships among the variables. This study aims to develop a conceptual model of start-up business run by Madrasah Al-Binaa. It is expected that the conceptual model can represent the real system of the Madrasah start-up business. The conceptual model development is begun by observing the phenomena of the existing start-up business process, and then a causal loop diagram and their equations are built. The structure of the developed conceptual model consists of seven elements, i.e. customers, products, liquidity, debt, reputation, workers and household spending. The research method is descriptive analytics. The result shows that the developed model is different with the generic model. In the developed conceptual model, the entrepreneurs are not paid from private payoff, but allow to consider household spending.