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Market Orientation, Entrepreneurship Orientation And Performances Of Micro Small And Medium Entreprise – MSMEs: Evidence From Langsa And Kuala Simpang, Indonesia Muhammad Rizal Dias Setianingsih Department of Management, Faculty of Economic, Department of Management, Faculty of Economic, Samudra University, Langsa, Indonesia Samudra University, Langsa, Indonesia e-mail: [email protected] e-mail: [email protected] Abstract- Low business productivity occurs due to lack of Indonesia since 1998. The crisis has made economic knowledge from entrepreneurs, lack of entrepreneurial changes for laid-off employees working in various spirit, education level and no experience of the business companies. For those who have been dismissed must undertaken. But for those who want to learn and be patient immediately get a new job so that income is still obtained in running their business will gain business success and and can improve the welfare by opening a business, either ultimately can increase business scale from micro business business that produces products or that services. The effort to small business even to medium business. Then developed by the people of Indonesia in overcoming the entrepreneurs can expand their business by looking at economic conditions by developing micro, small and market orientation through entrepreneurial orientation. medium enterprises both in urban and rural areas. The purpose of this research are To know the partial Business development was undertaken by the influence and Simultaneous Orientation of Entrepreneurship community, whether micro, small and medium enterprises and Market Orientation on the Performance of Small and can improve the Indonesian economy. These improvements Medium Micro Enterprises (MSMEs) in Langsa City and in the economy include income earned, employment Kuala Simpang City intersection and To see the difference opportunities resulting in reduced unemployment and of influence of Orientation of Entrepreneurship, Market regional development through these efforts. Although Orientation and performance Small and Medium Micro micro, small and medium-sized enterprises are very large Enterprises (MSMEs) in Langsa and Kuala Simpang city. but still there are low productivity businesses, it is due to The results showed that partially and simultaneously small business capital, mistakes in running the business, there is a significant effect of entrepreneurship orientation knowledge of the owner of the business, and lack of and market orientation on the performance of Micro Small knowledge about the business being run and the share the and Medium Enterprises (SMEs) in Langsa and Kuala market faced by the resulting product or service. Simpang. Based on the Independent T-test, there is no The low productivity of the business is due to the difference in entrepreneurship and performance orientation lack of knowledge from entrepreneurs, the absence of level in Langsa City and Kuala Simpang, while market entrepreneurial spirit, the level of education and the lack of orientation variables in Langsa City and Kota Kuala experience about the business undertaken. But for those who Simpang are different. want to learn and be patient in running their business will From the analysis of coefficient of determination can gain business success and ultimately can increase business be seen that the variables of entrepreneurship orientation scale from micro business to small business even to medium and market orientation can affect the performance of SMEs business. Then entrepreneurs can expand their business by in Langsa City of 73.1%, while the remaining 26.9% looking at market orientation through entrepreneurial influenced by other factors outside the model of this study. orientation. While in Kuala Simpang city can be seen that the variation The entrepreneurial orientation is the ability to of entrepreneurship orientation and market orientation can create something new and different. Basically, the affect the performance of SMEs in the City of Kuala entrepreneurial spirit and attitudes are not only owned by Simpang of 32.3%, while the rest of 77.7% is influenced by the entrepreneur but everyone who has a creative and other factors outside the model. willing idea can be expressed as a person who has an entrepreneurial orientation and now an entrepreneurial Keyword: entrepreneur, market orientation, entrepreneur, orientation can be encountered in the business world. The MSMEs, Langsa, Kuala Simpang orientation of entrepreneurship can be run with the support of the market or see the market orientation of the business to Introduction be run. The current national economic development has Market orientation is one part of marketing. improved after the monetary crisis that occurred in Marketing is an activity that gives direction to all business / commercial activities that include marketing mix in which 158 product either goods or services, as well as marketed ideas II. LITERATURE REVIEW is a manifestation of the concept of experiencing the process of development and production addressed to the end user. Entrepreneurship The market orientation in every micro, small and medium The ability of a person in optimizing resources enterprises related to business performance. The business owned such as material, time and creativity to innovate in performance of each entrepreneur for micro, small and producing products and services that have usability and earn medium enterprises is still very minimal which is indicated income can be called entrepreneurship. According to by its limitations. The performance of the Micro, Small and Entrepreneur or entrepreneur comes from the word: Wira: Medium Enterprises (MSMEs) sector in the economy has a main, dashing, brave, noble; self: self; sta: standing; effort: good contribution because it can increase people's income productive activities. From the origin of the word, and reduce unemployment. entrepreneurs are initially aimed at people who can stand on MSMEs for trading types in Langsa City and Kuala their own. Entrepreneurs are people who have their own Simpang consist of food and beverage traders, clothing, business or entrepreneurs. Entrepreneurs are people who shoes and sandals. Type of business among others there are dare to open independent productive activities. According to survive and develop and there are also just survive and even Hendro (2011: 27), entrepreneurship is more than close his business. SMEs trading is constrained by the organizing because it can consist of creators (creators), ability of an entrepreneur in running a business, in this case, investors (investors), and actors (innovator). While Hisrich is the ability to manage businesses such as how to obtain (2004: 6) states that entrepreneurship is the process of merchandise, has not been able to compete with similar creating something new at the value of using the time and businesses. Then another obstacle is the source of capital is effort required, taking on the financial, physical and social too minimal and difficult to obtain the source of capital in risks that accompany, receive the resulting monetary business development. For that orientation Entrepreneurs rewards, and personal satisfaction and freedom. need an increase in human resources is the ability to manage According to Sumiati (2015: 3) entrepreneurship is businesses that can pay attention to the market orientation of defined as a new entry that can be done by entering a fixed products traded by Entrepreneurs. The interesting market or a new market with existing or new products or fundamental difference of these two cities is the services or launch a new company. characteristics of the city, where Langsa city tends to Heterogeneous (Aceh, Java, Melayu, Gayo) while Kota Entrepreneurial Orientation Kuala Simpang tends to dominate by the Malay (80%). The orientation of entrepreneurship is the tendency Several previous studies and in line with this research of top management to take calculated, innovative and concerning UMKM entrepreneurs who have been studied in proactive risks (Morris and Paul in Fayolle 2007: 129). the city Langsa, one such research conducted by Rizal According to Avlontis & Salavou (2007), the (2016) who saw about the factors that affect women Entrepreneurship orientation is an organizational entrepreneurship in the city of Langsa, the factors observed phenomenon that reflects their managerial skills, as is the variable of capital, independence, emotional, and companies begin to take initiative and change their education. competitive actions so as to benefit their business. The formulation of the problem as follows: Furthermore, Frishammar and Horte (2007), entrepreneurial 1. How is the effect of Entrepreneurship Orientation on the orientation creates complex, intangible, unspeakable skills Performance of Micro Small and Medium Enterprises that enable companies to generate new ideas for new, (MSMEs) in Langsa City and Kuala Simpang. innovative, and risk-averse products. 2. How is the effect of Market Orientation on the Entrepreneurship orientation is the organizational performance of Micro Small and Medium Enterprises capability contributes to the creation of unique (MSMEs) in Langsa City and Kuala Simpang. organizational resources, positional advantages that affect 3. How is the influence of Orientation of Entrepreneurship performance (Muchtolifah 2005: 21). Furthermore, Suryana and Market Orientation simultaneously to the (2008: 38) states that the entrepreneurial orientation of performance of Micro Small and Medium