Indigenous Entrepreneurship: the Social, Cultural and Economic Values Influence the Balinese’S Entrepreneurial Development
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Indigenous Entrepreneurship: The Social, Cultural and Economic Values Influence the Balinese’s Entrepreneurial Development Eristia Lidia Paramita [email protected] Faculty of Economics and Business, Satya Wacana Christian University, Salatiga, Indonesia I Wayan Damayana [email protected] Dhyana Pura University, Bali, Indonesia Christantius Dwiatmadja [email protected] Faculty of Economics and Business, Satya Wacana Christian University, Salatiga, Indonesia Abstract Culture is unique. The interaction between culture and conception of cultural dimensions allow to see greater complexity in relation to the other characteristics of the environment. In such a context, this study has not been made; especially engage the culture and customs typically in Bali. The purposes of this research are to describe the perception of Balinese’s people on entrepreneurship; find out the values of social, cultural and economic influence of the Balinese entrepreneurship; find the supporting and inhibiting factors in entrepreneurship (entrepreneurial) of Balinese. The qualitative method was used. This study involved participants of Bali employers, traditional leaders as key informants related to indigenous entrepreneurship in Bali. Naturalistic observation and field research were used to obtain the data. The findings showed that there were only a little numbers of Balinese entrepreneurs. Most of the activities conducted were influenced by the Balinese social and cultural values. According to the economics value, the entrepreneurs had the effort to achieve their best economics condition. The entrepreneurial of Balinese was still influenced by the social and cultural values. Keywords: indigenous entrepreneurship, social value, culture value, Bali BACKGROUND Economic Resilience karma (residents) Bali is absolutely necessary for humans Bali. Because of this, empowering movement to further pursue the informal sector is very important, as well as to respond to the fact that "the Balinese sell land to buy meatballs, while newcomer sells meatballs to buy land". Cooperative Krama Bali is a place and move the human identity of steady economic Bali (Naradha: May 2002) At the beginning of the formation, this place is engaged in the conduct entrepreneurship training to make meatballs, Coto, and Balinese satay and haircut, also provides capital grants or International Conference on Business and Management 2014 – Penang, Malaysia Page 1 loans, received overwhelming response and attracted a lot of manners to practice it. But after nearly 10 years running is not easy we meet again sellers meatballs, Coto, and manners Balinese satay, even by the centre-by Cooperative manners Bali in Kuta, has been occupied by merchants of the entrants. Starting from the phenomenon, related to the gap theory of social construction of entrepreneurship, and has not been sufficient publicity involving cultural / traditional Balinese with regard to entrepreneurship. Although in general a lot of studies have shown variable has an influence on entrepreneurial culture, has even become a theory and models, but greater attention should be given to the interaction between cultural dimensions and conceptions which allows to see the other characteristics of the environment. This is the reason for doing this research. The purpose of this study are to describe how society's view of Bali (Balinese) about entrepreneurship, knowing the values of social, cultural and economic influence entrepreneurial Bali, knowing the process of formation of entrepreneurial people of Bali, and describe the enabling and inhibiting factors in the (entrepreneurial) Bali. LITERATURE REVIEW The Importance of Entrepreneurship In the early 20th century, entrepreneurship becomes an important role in economic development. Schumpeter (1934) said that if a country has a lot of entrepreneurs, the country has a high economic growth, which will bear the high economic development. Entrepreneurship is a driving force behind economic growth. Further, Kirzner (1973) says that entrepreneurship is an important part in the development. One cause of failure in achieving economic growth and economic development of a country are because of the lack of entrepreneurship in both the level of the individual, organization and society. Researchers have previously said, was instrumental in the development of entrepreneurial economics (Kirzner, 1973), is a vital component of productivity and growth (Baumol, 1993), plays a role in increased investment, new business creation (Gartner, 1985), led to job training (Brown et al, 1976) and the home-base business (Spencer Hull, 1986), increasing employment growth (Birch, 1987), the creation of national identity and leadership (Bolton, 1971) and with capacity management will determine the success of a business (farm performance) (Priyanto, 2005). Schumpeter (1934) stated that entrepreneurship is a driving force behind International Conference on Business and Management 2014 – Penang, Malaysia Page 2 economic growth, formulating new economic combination by (1) developing new products; (2) developing new sources of materials; (3) accumulating capital resources; (4) introducing new products and new production functions; and (5) developing or reorganizing a new industry. Entrepreneurship was also very instrumental in the development of SMEs. Past research has shown, small industrial low performance due to several factors such as lack of entrepreneurial characteristics (entrepreneurial poor). Entrepreneurship becomes a driving force that plays a role in the construction industry. Entrepreneurship can also directly influence the performance of the business. Baum et al. (2001) says that the nature of a person (which can be measured from the link in the face of problems, proactive attitude and passion in work), general competencies (which can be measured from the organizational skills and the ability to see opportunities), its specific competencies such as industry expertise and technical skills, and motivation (which can be measured from the vision, objectives and growth of self efficacy), positively influence the growth of the business. Similar to Baum et al. (2001), Lee and Tsang (2001) concluded that the entrepreneurial elements such as internal locus of control, need for achievement, extroversion, education and self reliance experience affect business growth. According to behavioural experts (behaviourist), entrepreneurship is very instrumental in the success of a person (Kets de Vries, 1977). Someone who has a high entrepreneurial and managerial capabilities combined with sufficient will lead him to success in his business (Priyanto, 2006). Entrepreneurship is also instrumental in developing a person that has want to maximize economic achievement (Mc Clelland, 1976) and causes a person could stand the test, be flexible, trustworthy, able to overcome his problems. Meanwhile Barkham, 1989; Pollock, 1989 in Ghosh (1999) says that the skills, attitude and information search market is a factor that contributes to the success of the company. Sociologists said that entrepreneurship plays a role in integrating, clicking arbitration and set the subsystems in society and the economy (Parsons and Smelser, 1956). Those entrepreneurs are agents of change in society where he lives (Barth, 1967). Storey (1982) argues that the entrepreneur plays a role as the creator of the competition and job creation, as a seed in the future and as an alternative in terms of linking the bureaucratic employer-employee. Meanwhile, Hagen (1960) believes that the entrepreneur is able to motivate people because he was viewed as being the elite because of his success in the business world. Entrepreneur can provide inspiration for the community. International Conference on Business and Management 2014 – Penang, Malaysia Page 3 Entrepreneurship The long history of the meaning of entrepreneurship has been done. Starting from the 11th century, the meaning of entrepreneurship is merely "to do something" and yet has an economic dimension. Further, it has known as entrepreneurship. In the 13th century, the meaning of entrepreneurship means adventurer or an undertaker, which means adventurous and brave. Making of entrepreneurship continues to grow. So that, in the 17th century, it comes the meaning of improving the economics of entrepreneurship as developed by Say and Cantillon. In the 18th century, Say continued exploration of the meaning of entrepreneurship as an activity to carry and bring together the factors of production to be processed into the production that has value. Entrepreneurship is the personal development of the individual to be able to have creative, innovative, dare to try, independently and desire to move forward which enabled him to collaborate with others and develop their business. Meanwhile, Stevenson (1983) also distinguishes between entrepreneurship definition entrepreneurship, and business managers. All three are different but it could be a close connection to run a business. According Priyanto (2005), the success of a business can be achieved if employers have an entrepreneurial spirit and capacity management together. Making of entrepreneurship developed by Saint Louis University (1994) provide a more holistic meaning associated with the definition of entrepreneurship. “The combination of skills, aptitudes and attitudes within individuals resulting in new ideas, innovations, and the ability to turn opportunities into reality through the creation of new ventures. The best entrepreneurs