Journal Sampurasun Vol. 03, Number 02, December 2017

ENTREPRENEURIAL CULTURE OF KUBE

Yuce Sariningsih Social Work Department, Universitas Pasundan West , [email protected]

Abstract

KUBE is a small business group for poor people which was under supervised by Ministry of Social Affairs of the Republic of Indonesia to eradicate poverty. This study aims to investigate the factors that influenced their financial access and marketing ability. It also aims to examine the implications partially and simultaneously to the performance, and its effect to KUBE’s member welfare. The previous study was not explore entrepreneurial culture as an important component in achieving higher performance of KUBE. This study used survey and the interrelationships among a number of variables was measured by path analysis to test hypotheses. Research finding showed that the direct effect of creativity and innovation as important instruments of entrepreneurship comparatively small than skill to contribute on financial access and marketing ability. Means, the entrepreneurial culture in managing KUBE have not been fully applied yet in eradicating poverty in Indonesia. The recommendations as followed: 1) Ministry of Social Affairs should formulate a social policy to strenghthen entrepreneurial culture of KUBE, 2) Universities might improve level of entrepreneurship of KUBE’s member and their business advisor by conducting business training and counseling.

Keywords: entrepreneurship, financial access, marketing ability and welfare.

1. Introduction The skills that are related to the improvement of competence of the task is often not realized Poverty in Indonesia is still quite high based by people although they were very motivated on Indonesian Statistical Bureau (2015), it to work (Winardi, 2007). These condition as was about 28 million of the total 17 million a reason of the Ministry of Social Affairs at occurred in the countryside. This means that the national level to address poverty by giving approximately 60.71% of poverty occurs some grant to the poor women who joined in in rural areas, these conditions become a small business group for improving economic problem with the lower welfare status of activities problem by forming KUBE. The rural communities. The entrepreneurial spirit grant was IDR. 20.000.000,- equal with around to be one of the core instruments for the USD 1300 for each group that consisted of 10 individual in carrying out efforts to raise up person. the people’s economy level, which aimed to alleviate poverty in Indonesia as a result of the Innovation in small business is not remarkable prolonged economic crisis. Entrepreneurship findings, but a discovery that led to use can be an important indicator of whether or economic resources more productive (Alma, not a country reflected their economic profile, 2008). The term innovations in KUBE is not however, entrepreneurship which consist of extraordinary innovation of the appearance of creativity and innovation as well as fighting a product. Low levels of creativity, innovation spirit and endurance in carrying out small and skill in using economic resources are businesses is still not yet popular by most the cause of failure of small and medium people in Indonesia. enterprises like KUBE.

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The problem experienced by small business Creative thinking and innovative has been the group that similar with KUBE were the core business skills, and entrepreneur become weaknesses in the areas of financial access a leader in the effort to develop and apply (Machfoedz, 2004), are as follows: these skills. Creativity and innovation are also 1. The problem in seeking skilled employees; the criteria for social assistance activities in Small and medium companies may be the implementation of business group work able to provide high salaries but can not so that members are expected to have the provide other warranties such as large creativity and innovation are also high. corporations. Small and medium business do not have employee development Every business group work has a distinctive and program and promotion are very limited. specific characteristics (General Guidelines This leads to loss the opportunity for for KUBE: 2004), both of resources, customs, the company to recruit well-qualified values and the habits. Therefore, in addition employees. to social welfare should be able to explore 2. The difficulty of the capital increase; the potential for harnessing KUBE to be a Persons who provide capital is very source of empowerment, should also be able limited. Unlike large companies, to develop creativity and innovation in order small independent traders are not able to improve the ability of members of KUBE to collect a large amount of capital. in recognizing and utilizing potentials. Expected cash flow may be sufficient for daily operations, but when will expand KUBE should have the ability to apply the business may be difficult to obtain creative solutions to problems and capital, and the cause of the failure opportunities to improve or enrich the lives of such entrepreneurs is the lack of of people. Innovation and creativity are the knowledge and management experience. main functions in the entrepreneurial process. Entrepreneurs can combine imaginative and The performance of KUBE in running a creative mind with the ability of a logical and small business have also been considered systematic process. Potential entrepreneurs not yet optimal, have not actually been able are always looking for a unique opportunity to run a small business they started. Things to meet the needs and desires. turn off of KUBE do not usually associated with a lack of money (Bustami, 2007), talent Creativity and innovation are two important or information but more related to something concepts (Wirasasmita, 2008), where more fundamental, that were low level of innovation is a process of changing, entrepreneurship spirit and understanding of experimenting, transforming and business management. revolutionizing (Coulter, 2000). A business group work must develop an entrepreneurial The failure of the small business is often culture as a culture that is open to new triggered by weak marketing efforts technology transfer into products and business (Zimmerer et. al., 2005), where eople talk activities. Business group work must be about entrepreneurs as a risk takers (Hughes, flexible, able to accept change and be willing 2002). On the contrary, good entrepreneurs are to accept failure as the path to success. masterful at identifying risk and developing a plan to manage and offset risk. The stronger Business has felt the need to create new the leader, the more risk the individual is products (DeGraff and Lawrence, 2002), capable assuming, and the more responsibility Without these new ideas, economic, that individual must marshal to creatively technological, and social progress would manage the risk Creativity and innovation are be slow indeed. Management includes the core of entrepreneurship. planning, organizing, leading, and controlling of human activities (George et. al.; 2006). KUBE was expected to improve the socio- Innovation as the management resources is economic conditions of the lower strata the specific instrument of entrepreneurship of society to improve living standards, as to get an economic value (Drucker, 1985). It well as able to cope social unrest caused by is the act that endows resources with a new the helplessness and instability economy. capacity to create wealth. Innovation, indeed

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creates resources and does not have to be The Smal Medium Enterprise in the technical, does not indeed have to be a “thing” Philippines has had consistent themes in altogether. terms of management structure, market orientation, type of labor, sourcing inputs, a Change and innovation are passionate source of capital and source of technology. processes. Successfully planned change (Ndubisi, 2008). Generally, the most problem requires a commitment grounded in an faced by small scale industry cannot compete engaging vision and deep emotional in low-end markets with the lower labor cost involvement with the program. An efforts to competitor. address the creativity and innovation is by strengthening the entrepreneurial mentoring, 2. Method access to capital and product marketing. The concept of team building counterpart in the implementation of productive economic The study employed explanatory survey activities through connecting KUBE in method and the data source was primary and the context of Intellectuals, Business and secondary data. A Questionnaire, observation, Government (IBG) to improve the creativity, and structured interview have been chosen for innovation and skills KUBE. Productive the data gathering techniques. Data has been business activities through KUBE is one of the analyzed by path analysis, which simply used activities to achieve the community welfare. the words “cause” and “effect” as statistical terms similar to independent variables, or Very worthy of mention the issue of minority exogenous and endogenous variables. and women-owned businesses in developing country. The more generic issue was the This study has been conducted in - gender problem, the marginalization of Indonesia for 8 (eight) months at KUBE women entrepreneurs was regarded as women in the district of Bandung, , commonplace. However, in recent times, , . , , Banjar increasing the sensitivity of policy makers in West Java. Some considered as a pilot was witnessed for women entrepreneur. There project KUBE program with significant result are also nongeneric issues such as culture and according to Social Affairs Board of West values of some Asia Pacific economies which Java Province, 2009). come in the way of women entrepreneurship development. 2.1 Population and Sampling

Indonesia currently has only 0.18% of entrepreneurs (entrepreneurs) of the The unit of analysis in this study was KUBE population. In fact, the developed countries for poor Women who received business should have at least 2% of the population assistance in form of money and goods for engaged in the entrepreneurial sector (http: the development of their business activities. //wikipedia.web.id, 2009). Indonesia needs The research population was the entire poor at least 4.07 million entrepreneurs or two women who joined in 46 groups, consisted percent of the population to support optimal of 450 beneficiaries. Samples were taken by growth. There must be at least 4.07 million using Proportional Cluster Sampling from the entrepreneurs in Indonesia (Halim in http:// population group of poor women business m.antaranews.com (2009). group as beneficiaries of KUBE aid who got money (amount with 900 USD/group/10 Indonesia shows a figure lower than the women) or goods. percentage of the population that was self- employed. Hasan (in http://kompas.web.id, Sampling was chosen by using Multistage 2009), which stated: “The percentage of the Cluster Sampling. The first stage in taking a population in Singapore of self-employed sample group was determined 80% of the 46 reached 7 percent, China and Japan reached groups as population equal with 36.8 or 37 10 percent, while the highest is the United groups consisting of 360 beneficiaries KUBE States amounted to 11.5 to 12 percent. as described in the following Table 1. Entrepreneurship population.

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Table 1. A Sample of KUBE for Poor Women at West Java

Location Address (Sub-District) Kind of Business Member Bandung 1. Ciparay Bag Craftsmen 10 2. Ciparay Bag Craftsmen 10 3. Margahayu Food vendors 10 4. Katapang. Tailor 10 5. Katapang. Tailor 5 6. Katapang. Food seller 10 7. Pacet. Daily product 10 8. Pacet. Bag Craftsmen 10 9. Kutawaringin. Food seller 5 10. Cileunyi Food seller 10 1. Maja. Crackers 10 2. Maja Crackers 10 3. Dawuan Sheep farmer 10 4. Dawuan Sheep farmer 10 5. Dawuan Sheep farmer 10 1. Kersamanah. Crackers 10 2. Garut Batik 10 3. Karangpawitan. Craft 10 4. Karangpawitan. Craft 10 5. Banyuresmi Crackers 10 6. Banyuresmi Noodle 10 7. Banyuresmi Crackers 10 8. Garut Cake 10 9. Garut Kota Crackers 10 10. Kota Coconut sugar 10 1. Kadugede Sheep farmer 10 2. Kadugede Daily product 10 3. Kadugede Salon 10 1. Cidolog Tailor 10 2. Cidolog Embroidery 10 3. Cidolog Embroidery 10 Banjar City 1. Langensari Sheep farmer 10 2. Langensari Dried banana 10 3. Langensari Dried banana 10 Cirebon City 1. Lemahwungkuk Daily product 10 2. Lemahwungkuk Daily product 10 3. Lemahwungkuk Daily product 10 Total 37 Groups 360

Sumber: Social Affairs Board, West Java Province, 2008.

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The second stage was to take 3 respondents paper. There are also printing, shipbuilding, from each group purposively according to the and automobile-assembly plants. following criteria: 1. A part of the group with the position as Chairman of the Indonesian Chamber of chairman, or secretary or treasurer of the Commerce and Industry (Kadin) of West Java, business groups. Agung Suryamal Sutisno revealed West Java 2. Registered in Social Affairs Board as a Kadin has implemented GARUDA program, beneficiary of money or good and still Entrepreneurial Movement village. This running some business. movement as an attempt of Kadin creating Based on those criteria, then drawn a number entrepreneurs in rural areas. (jabarprov.go.id/ of samples that represented a group as the En/.../West_Java_Kadin_Held_GARUDA_ third stage, that was 37 groups multiple 3 Program). GARUDA program inspired by the respondents equal with 111 respondents. Chinese State who at 25 years or 30 years ago, where the citizen at that time become a burden. 2.2 Resarch Instruments But now the economy and development in China developed rapidly. This economic and The data gathering used a questionnaire to development progress because of China could the poor women who joined in KUBE as be able to empower the population of 1.3 respondents, then record their answer. The billion citizens to be productive. GARUDA question for the measurement instrument program was launched at Cililin, West employed a close ended or multiple choice, . Cililin was chosen because questions asked the respondent to choose an this is the center of female Indonesian migrant answer from a list of alternative. The scaling workers (TKW). West Java Kadin supported used a Likert scale that was a semantic by Bank BRI in giving the train to the TKW differential where respondents were asked to in this area. choose between opposite poles on an issue (Morris, 2016) 3.1 KUBE: A Recent Policy Initiative

Poverty is the basis for economically Testing the validity of the data used the product productive activities grant program through the moment correlation coefficient and reliability Business Group (KUBE). Addressing poverty testing technique used in this research was requires cooperation, support, and synergy of Cronbach Alpha technique. This study used a all stakeholders, including local government series of calculation and then decided whether sector, civil society, and the business world, can or not reject the null hypothesis at a so the intertwined unity of movement steps predetermined level of 5%. to jointly improve the ability of the poor to access sources of material, intellectual and 3.����������������������� Results And Discussion information optimally. Definition and scope of poor women business group (KUBE) West Java Province – Indonesia located in according to the Ministry of Social Affairs of western Java is bounded by the province the Republic of Indonesia are as follows: of (Jawa Tengah) to the east, 1. Business Group (KUBE) is a group of the Indian Ocean to the south, the province citizens or socially assisted family of Banten to the west, the capital district of formed by citizens or socially assisted to the northwest, and the Java Sea to family that has been fostered through the north. The capital of West Java is Bandung. the process of Social Welfare Program The principal means of livelihood in Central (PROKESOS) to carry out activities of Java is agriculture; rice, tobacco, sugarcane, social welfare and economic efforts in corn (maize), rubber, tea, coffee, cinchona the spirit of togetherness as a means to bark, sweet potatoes, and fruits and vegetables improve social welfare. are grown or collected. Industries produce 2. KUBE an integrated approach and the textiles, ceramics, footwear, tires, electric overall process of implementation of the bulbs, processed food, beverages, nonmetallic Social Welfare Program (PROKESOS). mineral products, transport equipment, and

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KUBE formation begins with the process of the poor. Goals and objectives of the of group formation as a result of social activities organized by the Business Group assistance, business skills training, (KUBE) refer to the Guidelines and Technical assistance and mentoring stimulant. At the Guidance, Social Services West Java (2008), provincial level, productive business through as follows: Business Group (KUBE) organized by the 1. Enhancing capability in fulfilling the Social Service Department of West Java needs and improvement of social welfare Province. Referring to the Guidelines for the of members. Implementation and Technical Guidelines, 2. Enhancing KUBE members in addressing Guidance Business Productive Economic the problems that occur in the family and for Women Prone Socioeconomic, West social environment. Java Provincial Government, Department of 3. Improving the ability of members of Social Welfare (2008) stated that: “KUBE KUBE in displaying his social role. is a community empowerment in national economic development, which in the future is While the targets KUBE program is a group expected to be embryo SMEs and stimulate of poor families or certain people who will get the economy with social welfare issues “. One help Social Guidance and Skills, Productive type of KUBE KUBE is a woman, based on Economic Enterprises aid stimulant intended consideration for women as the economic for: backbone of the family 1. KUBE for Needy Families 2. KUBE for Vulnerable Families Most small business owners do marketing 3. KUBE for Poor Women moves direct to every customer that 4. KUBE for Juvenile encountered in the effort that some of the 5. KUBE with Disabilities prospective buyers would be interested. This 6. KUBE for Neglected Children approach can no longer be used when the 7. KUBE for the Elderly business is growing. poor women business 8. KUBE for Youth group expected to develop their entrepreneurial 9. KUBE for Orphan spirit to promote small business they started, 10. Communication Forum Community as well as being an innovator is able to utilize Social Worker. and transform opportunities into ideas that can be sold or marketed, adds value by leveraging the effort, time, cost or skills in order to gain The productive business developed covering profit. Therefore, it is necessary to increase the fields of agriculture, animal husbandry, the managerial ability to organize productive fisheries, forestry, household industry, economic activities, to develop operational services and other economic activities. capabilities, obtain funds for venture capital The activities carried out in the form of and manage business activities. In addition, venture capital assistance in the form of it is necessary to increase the technical economic infrastructure and the benefits knowledge to realize ideas, thus expected to of living channeled directly or through the combine creative thinking and imaginative mechanism of banking. The establishment capabilities logical and systematic process, and development of a KUBE implemented which is key to the success of this fusion within five (5) stages: productive economic activities. 1. Preparation; The activities in the preparatory phase consists of orientation Productive business can expand marginalized and observation, registration and communities to access capital slightest, such identification, planning, program access has a transformative effect on human implementation, general social lives. Over time, many people with limited counseling, guidance problem ability of capital were able to use a small recognition, motivation and evaluation capital loan as the basis to build a lasting, in guidance preparation (which is done the form of a plot of agricultural land, farms, by the village officials, officers, and food industry, craft workshops or small shop, supervisors functional companion). which can be lifted out of poverty. Access to 2. Implementation Phase; The activities capital can ultimately increase the incomes during the implementation phase

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includes the selection of candidates B. Requirements for Families Patronage Social (KBS), 1. Based in the village designated as the establishment of pre-group and the location of activities; group selection / determination of the 2. Physically and mentally healthy; type of business, training companion, 3. Classified women who have low skills training members of KUBE, life incomes, believe it is less than Rp. insurance, assistance stimulant capital, 96 521, - per person / month for rural mentoring and evaluation (conducted areas, and Rp. 130 499, - per person by village officials, escort officers, / month for urban areas. (Susenas supervisors functional and relevant BPS and Social Affairs, 2002). agencies). 4. Have expertise and skills in the 3. The phase of Business Development; Productive Economic Business The activities at this stage of business (UEP) which allows developed development covers business technically and operationally. development guidance, provision of 5. Never fostered by the Social business development assistance, Welfare Program, implemented by mentoring and evaluation (conducted both Social Agency of West Java by officers’ escort and clerk functional and West Java Provincial Office of builder). Social Ministry. 4. Stage Business Partnership; The activities 6. Interested, honest, willing to at this stage include an inventory of the cooperate in activities Productive resources that exist (natural resources, Economic Enterprises for Fiscal economic resources, social resources and Year 2008 WRSE. human resources), making agreements 7. Willing to manage relief efforts in execution of business partnerships, the form of Productive Economic expansion of the network of business Enterprises in KUBE. partnerships and evaluation (conducted by the mentor and adviser functional). KUBE institutional structure depending on 5. Monitoring and Evaluation Phase; the the type of business you run, so there is no activities at this stage include process standard structure, yet simple organizational control and monitoring ongoing structure that can be used as a reference refers implementation and evaluation of to the Guidelines for the Implementation and the success that has been achieved Technical Guidance, Social Services Provincial (implemented by escort officers and Government of West Java (2008) consisted of: supervisors functional). 1. Chairman 2. Secretary Target activities through the Productive 3. Treasurer Economic Business Guidance for WRSE KUBE are women with the criteria and 3.2 Creativity and Innovation of KUBE requirements as follows: A. Criteria: The variables in this study were creativity (X1), 1. Age 17-50 years; innovation (X2), skill (X3), financial access 2. Widows as a head of household or (Y1), marketing ability (Y2), performance live alone; (Z1) and welfare level (Z2). Explanation 3. Women who became head of the took the form of a causal statements models household; that incorporate these variables, that is, the 4. Women as the main breadwinner in variables of creativity (X1), innovation the family (wife whose husband left (X2), skill (X3) caused variables of financial indefinitely, and or pain that can not access (Y1) and marketing ability (Y2). work for a living); Then, variables of financial access (Y1) and 5. Income less or do not meet the marketing ability (Y2) caused performance minimum physical needs; (Z1) as an intervening variable. The outcome 6. The education level is low (usually a of this research that performance (Z1) caused maximum of completion of primary welfare level (Z2) of poor women business education). group who joined in KUBE (Table 2.).

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Tabel 2. Result of Direct Effect and Indirect Effect

Variabler Direct Effect Indirect Effect Total Effect

Variable X1 to Y1 12.600% 15.100% 27.700%

Variable X2 to Y1 5.900% 8.900% 14.800%

Variable X3 to Y1 17.100% 11.000% 28.100% Other variable 29.400%

Total 100.000%

Variable X1 to Y2 12.600% 13.500% 26.100%

Variable X2 to Y2 4.600% 11.300% 15.900%

Variable X3 to Y2 13.800% 13.200% 27.000% Other variable 31.000%

Total 100.000%

Variable Y1 to Z1 20.000% 13.900% 33.900%

Variable Y2 to Z1 23.500% 13.900% 37.400% Other variable 28.700%

Total 100.000%

Variable Z1 to Z2 74.300% 74.300% Other variable effect 25.700%

Total 100.000%

Source: Research finding, August 2010.

The result of a hypothesis also known as access, followed by creativity variable that has a test of significance can be interpreted on a strong enough influence on financial access. several levels. One hypothesis called the null While the influence of the smallest variable to hypothesis, denoted H0 is very specific and financial access variable was innovation. claimed that the mean is equal to a definite specific value. The other hypothesis denoted Hypothesis testing results indicated that H1, and claim that the mean was some other creativity, innovation, and skills simultaneously value than the hypothesized value (Siegel and partially significant and positive impact and Morgan, 1996). The result of testing this on the financial access. Partially, skill variable hyphotesis based on a sample of data was that most significance effect on the financial one of them will be accepted and the other access, and then creativity and innovation. rejected. To test the effect of independent In general, respondents had to have technical variable partially used t-table for 95% critical skills accordance with its business, as this skill values with the degrees of freedom was n-k- becomes one component of the assessment 1. To test the effect of independent variable process of the Ministry of Social Affairs when simultaneously used F table with 5% critical considering them as beneficiaries so that value.������������������������������������ The result of testing hypothesis as the respondents received help economically followed (Table 3.) productive activities. Respondents already have business skills but remain limited The above data showed that the variable skill on financial access and marketing. While has the greatest influence on the financial creativity and innovation

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Tabel 3. The Result of Hypothesis Test

Hypothesis Coefficient Fvalue Ftable tvalue ttable Outcomes

Simultenously effect

Creativity (X1), Innovation H0 rejected. (X ) and Skill (X ) affected H accepted. 2 3 385.925 3.040 1 significantly toward financial

access (Y1)

Creativity (X1), Innovation H0 rejected. (X ) and Skill (X ) affected H accepted 2 3 159.522 3.040 1 significantly toward marketing

ability (Y2)

Financial access (Y1) and H0 rejected. marketing ability (Y ) H accepted 2 59.758 3.040 1 affected significantly toward

performance (Z1)

Performance (Z1) affected H0 rejected.

significantly toward welfare 72.538 3.040 H1 accepted

level (Z2) Partially effect

Creativity (X1) affected H0 rejected.

significantly toward financial 0.356 25.153 1.645 H1 accepted

access (Y1)

Innovation (X2) affected H0 rejected.

significantly toward financial 0.243 1.993 1.645 H1 accepted

access (Y1) Skill (X ) affected significantly H rejected. 3 0.414 3.184 1.645 0 toward financial access (Y1) H1 accepted

Creativity (X1) affected H0 rejected.

significantly toward marketing 0.355 4.944 1.645 H1 accepted

ability (Y2)

Innovation (X2) affected H0 rejected.

significantly toward marketing 0.215 3.819 1.645 H1 accepted

ability (Y2)

Skill (X3) affected H0 rejected.

significantly toward marketing 0.372 11.171 1.645 H1 accepted

ability (Y2)

Financial access (Y1) H0 rejected.

affected significantly toward 0.418 4.358 1.645 H1 accepted

performance (Z1)

Marketing ability (Y1) H0 rejected.

affected significantly toward 0.475 4.977 1.645 H1 accepted

performance (Z1) Source: Research finding, August 2010

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Creativity is a new idea, whereas innovation beliefs that make entrepreneurship a valid and is the commercialization or application of new respected career choice. ideas Wirasasmita (2008: 5). Creativity and innovation are actually related to each other The development of an entrepreneurial culture and are indispensable in improving financial implies their mental attitude to come forward access and marketing ability. Respondents as as much as possible in carrying out productive an entrepreneur must continually emerge the economic activities. The importance of way of creativity. Level rapid changes have entrepreneurial strategies to anticipate the created an environment that required creativity negative impact of social assistance to and innovation in order to remain in position. beneficiaries, in order to avoid dependence Thus creative solutions are needed to improve on a continuous basis, or realize that the aid the financial access to carry out the business. received is a stimulant of venture capital, which is, in turn, should be able to be developed The financial statements of small businesses on the basis of its own strength or potential as a form of creativity is needed to achieve joint business group (General Guidelines for the simple goal, which is to evaluate the KUBE, 2004). True entrepreneurs generated performance and planning tools business and creativity and innovation relentlessly, so it can access to funds from financial institutions, be said that the core of the entrepreneur is the particularly banks to develop the business creativity and innovation. (Golrida, 2008: 1). However, most respondents have not yet implemented this simple recording The entrepreneur needed an ability to properly, so creativity is emerging for small perform a particular task, both physically and business development would be meaningless mentally (Meoheriono, 2009). Creativity and without embodied in an action, in the form of innovation are also related to the skills where simple bookkeeping administered. entrepreneurs are expected to emerge from the economic activity through productive Respondents had the great idea to increase economic activities are expected as an financial access but have not had the entrepreneur who has the skills, especially courage to apply for a bank loan, because entrepreneurs who have the power of of unpreparedness at risk if it is unable to entrepreneurial skills. Skills are an important pay the mortgage. Nonetheless, respondents component in the development of the business, are interested in forming a cooperative and in line with it can be said that the level of skills borrow money from the savings and loan of an entrepreneur affected the successful on activities carried out by the cooperative. increasing the financial access and marketing. Creativity has not been able to be realized in Skills possessed by the respondent at the time the form of innovation, which is in this study of technical skill alone was likely to produce can be regarded as a level of respondent’s a product. These skills must be developed ability to utilize the resources available to constantly and go into a loop. realize creative ideas. Furthermore, as an innovation, KUBE is expected to be the The creative industries are industries that rely embryo of small businesses and cooperatives, on elements of talents, skills, and creativity. where respondents have a high entrepreneurial These three elements are a fundamental spirit. As an entrepreneur, respondents should element of the individual so that everyone encourage the realization of creativity that has a basic capital equal and free (Moelyono, is called innovation in doing business. One 2010). By optimizing the utilization of the reason that could be a latent variable of the creative potential of these three elements, problem in realizing entrepreneurship to then means it has participated in the efforts to eradicate poverty in Indonesia is culture. As increase the capacity building of Indonesian mentioned above, the KUBE member would human resources. not take a risk to propose some loan from the bank, this is one kind of culture. On the The creativity that generated innovation is other hand, culture is an important part of the often associated with the mastery of high entrepreneurial environment. To encourage technology. It is the old paradigm. Innovation more entrepreneurs, a country needs a set of could also not of technology but of new value

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generated. Innovation can be achieved by partners, facilitate access to funding populist the creation of new value that can be created economic development of Corporate Social by micro enterprises, though. Development Responsibility (CSR), and other activities with a capital of creativity that is focused related to the acceleration of capital), and and effective, in the long term will be able other relevant experts if necessary. to increase growth and equity (growth and equity), so as to improve the quality of life (well-being) through community 4. Conclusion empowerment. KUBE women can be regarded as one of the creative industries are the kinds Business Group (KUBE) under supervised of products are not much different from that by Ministry of Social Affair Republic of produced by Small Medium Enterprise (SME) Indonesia is a group of citizens or socially but has not been fully supported by the banks. assisted family formed by citizens or socially As the creative industry is very responsive to assisted family, that has been fostered through absorb the accumulation of social phenomena the process of Social Welfare Program in society and poured into context in the form (PROKESOS) to carry out activities of social of products and services such as fashion welfare and economic efforts in the spirit of apparel products and crafts and entertainment togetherness as a means to improve social products, agriculture and animal husbandry. welfare. KUBE program aims to tackle poverty through community empowerment To develop the creative economy in Indonesia, by moving the local economic potential to the the concept of the actor is very important, society itself, in synergy with the existence they are scholars (intellectuals), business of cooperatives to development capital, the (business) and the government (government), expected outcome is the impact the welfare of or the abbreviated IBG. Referring to the above the surrounding community. opinion, to achieve the ability of capital in accordance with the indicators KUBE, then Creativity and innovation are the core of the respondent should be assisted by a team of entrepreneurship, and creativity has a close a business counselor who will assist theKUBE connection with innovation. Poor women member to emerge creativity, innovation, and business group was expected to improve the skills. The business counselor team also must socio-economic conditions for the lower strata understand the interaction between scholars, of society to improve living standards, as well business, and government to improve the as well able to cope with social unrest caused financial access and marketing ability. by the helplessness and inability economy.

These three components interact in a system Hypothesis testing results indicated that greatly affect creativity, innovation and skills creativity, innovation, and skills simultaneously of respondents in improving the ability of and partially significant and positive impact capital. Strengthening the business counselor on the financial access. Partially, skill variable team in enhancing creativity, innovation, and most significance effect on the financial skills of respondents in carrying out productive access, and then creativity and innovation. economic activities is very important, it is also In general, respondents had to have technical on the consideration that the respondents have skills accordance with its business, as this skill low education levels and as the economic becomes one component of the assessment backbone of the family. The team basically process of the Ministry of Social Affairs when as a motivator and provide insights on considering them as beneficiaries so that entrepreneurship and skills training, which the respondents received help economically consisted of voluntary who has a knowledge productive activities. Respondents already in business and representatives of universities/ have business skills but remain limited academics (realize a variety of activities on financial access and marketing. While related to management, helping to make the creativity and innovation among respondents design of the loan application of venture generally still weak. capital and establish relationships with banks facilitator in the formation of cooperatives, The application of entrepreneurship culture to establish business networks with business in managing KUBE as small businesses

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has not been fully applied yet in addressing Coulter, Mary. 2000. Entrepreneurship in the problem of poverty in Indonesia. The Action. New Jersey: Upper Saddle River, KUBE member would not take a risk to Prentice Hall. propose some loan from the bank, this is one kind of culture which has been some Creswell, John W. 1994. Research Design, barrier in business developing. On the other Qualitiative and Quantitative Approaches. hand, culture is an important part of the California: Sage Publication. entrepreneurial environment. To encourage more entrepreneurs, a country needs a set of DeGraff, Jeff & Lawrence, Katherie A. beliefs that make entrepreneurship a valid and Creativity at Work,Developing the Right respected career choice. A voluntary business Practices to Make Innovation Happen. counselor is very crucial for KUBE business San Francisco: John Wiley & Sons. Inc. development in order to facilitate among Intelectual parties, Business dan Government. Dermawan Wibisono. 2006. Manajemen The recommendation of this study was Kinerja. Konsep, Desain dan Teknik directed to Academic Community, Business Meningkatkan Daya Saing Perusahaan. Sector and Government (Ministry of Social Jakarta: Erlangga. Affairs Republic of Indonesia) as followed: 1. Ministry of Social as government Dinas Sosial Pemerintah Propinsi Jawa representative should improve their Barat. 2008. Pedoman Pelaksanaan dan entrepreneurship culture by conducting Petunjuk Teknis, Kegiatan Bimbingan business training for KUBE member and Usaha Ekonomi Produktif bagi Wanita voluntary business advisor. Rawan Sosial Ekonomi, Tahun Anggaran 2. Universities as representative of 2008. Bandung: Dinas Sosial Pemerintah academic community should carry out a Propinsi Jawa Barat. research and community service related to improve entrepreneurship of KUBE Drucker. Peter F. 1985. Innovation and 3. Business sector should develop a Entrepreneurship, Practice and Principles. program based on Corporate Social New York: Harper & Row Publisher. Responsibility Program for helping KUBE’s management. Formula Bisnisnet. 2009. Kemandirian Pengelolaan KUBE. Jakarta: www. formulabisnisnet.com. 5. References Gordon, Judith R et.al. 1990. Management and Afiff, Faisal. Dr., 1982. Strategi Pemasaran. Organizational Behavior. Massachusetts: Bandung: Angkasa. Simon & Schuster., Inc.

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