Research Article: 2020 Vol: 26 Issue: 4
Andi Adawiah, STIE Lamappapoleonro
Saban Echdar, STIE Nobel Indonesia Makassar
Akmal Umar, STIMI Makassar
Yusrab Ardianto S, STIE-AMKOP Makassar
Yasrib Putranto S, STIE-Lamappapoleonro Soppeng
This study aims to examine and analyze strategies for improving Business Performance through Entrepreneurship Competence, Market Orientation, and Entrepreneurial Motivation (Study on SME Coffee Shops in Makassar City). The population of this research is all coffee shops in Makassar City, amounting to 546 units. The sample consisted of 80 Warkops (coffee shops), using a proportional cluster random sampling method, namely random sampling based on coffee shop clusters and proportional. It used a descriptive quantitative approach, with a valid and reliable questionnaire as an instrument for data collection. In terms of data analysis technique, the researchers used multiple linear regression. This study found that entrepreneurial competence, market orientation, and entrepreneurial motivation partially and simultaneously affect the SME Coffee Shop's business performance positively and significantly. Researchers recommend to SME Coffee Shops in Makassar City to improve their business performance through increasing entrepreneurial competence, market orientation, and entrepreneurial motivation, along with the provision of coffee shop facilities and conveniences in response to consumer demands for a touch of technology and excellent service.
Business Performance, Entrepreneurial Competence, Market Orientation, Entrepreneurial Motivation.
Small and medium enterprises (SME) are an essential part of the country's economic development, including in Indonesia. The development of SMEs becomes one of the development focuses of the Indonesian government agenda. It is evident from the SME sector's survival during the great crisis in 1998 compared to the broader business sectors. They cannot continue during the crisis. That moment, SME could survive and had the potential to develop. Currently, SMEs are a mainstay for future economic sector development, supported by favorable policies, and problems that hinder SMEs' empowerment must be eliminated. Thus, the government places SMEs as a top priority in the economic recovery to open job opportunities and reduce the number of unemployed.
In post-crisis 2008 in Indonesia, SMEs can prove that this sector can become the national economy's foundation. It is because SMEs can survive compared to other large businesses, which tend to experience a downturn. It is proved by the increasing number of SMEs every year. SMEs in developing countries are the most extensive economic activity in terms of number and ability to absorb labor. Likewise, with conditions in Indonesia, although the size of the contribution to GDP is not large enough, this sector can continue to be a foundation for national economic stability, so that its role is expected to create prosperity for the Indonesian people (Ahmad Hisyam As'ari et al., 2015).
To progress and grow, every SME actor must have an accurate competitive strategy, one of which is through entrepreneurial strategies. Various entrepreneurial strategies can be carried out by SMEs to improve their business performance. However, in this study, researchers only focused on three strategies, namely entrepreneurial competence, market orientation, and entrepreneurial motivation. These three variables affect improving the performance of the SME Coffee Shop business in Makassar City.
Entrepreneurial competence is a fundamental factor possessed by someone who has more abilities, which makes him different from average abilities. As with other businesses, the problems faced by SME Coffee Shops in Makassar City include the difficulty of developing a business due to a lack of information regarding the development and changes of the business environment, only relying on instinct and luck in running their business. The entrepreneurial competence, market orientation and entrepreneurial motivation of SMEs are low, so it is difficult to compete when the competition is getting tighter, there are no special regulations, more guidance and skills are needed to face business competition.
A successful entrepreneur is one with competence. It means as individuals with intelligence, talents, motivation, values, and behaviors needed to carry out the jobs. According to Echdar (2019), the skills that must be possessed by SME Coffee Shop players are (1) Managerial skills (ability to carry out management functions), (2) Conceptual skills (skills in formulating objectives, rules and business strategies, (3) Decision-making skills (abilities in communicating difficulties and make decisions), and (4) Time managerial skills (skills to manage and use time appropriately).
The significance of entrepreneurial competencies and their influence on business performance was stated by Wisda Apriana (2012) in his research, which concluded that motivation, managerial ability, competence, and the environment simultaneously influence the street vendors' performance Bekasi. The Lambing survey results (in Echdar, 2019) show that most respondents become entrepreneurs because they are based on experiences that make them have a business spirit and character. That study results concluded that the main requirement to be a great entrepreneur is by having the spirit and character of a businessman, which is influenced by skills, knowledge, and experience (competence). The first hypothesis (H1) is formulated from the review of these references that the positive influence of entrepreneurial competence on the SME Coffee Shop business's performance.
Market orientation has become an important concept that forms the foundation for quality marketing practice. Companies that have a market orientation will try to provide the highest superior value to their consumers. Thus the company will have a competitive advantage so that it will be difficult for competitors to seize market share. A market-oriented marketing culture supports the need to gather market information and coordinate actions to gain a competitive advantage. According to Lamb et al. (2008), market orientation is a philosophy in marketing strategy with the assumption of product sales are not dependent on trade tactics but it is more on customers choices in purchasing goods, thus, requires good notice to buyer demands and competitor focus to give the customers what they need and want.
Market Direction impact toward Business Operation has been studied by some researchers and their findings indicate that market direction or orientation brings a vital contribution to driving high business operation or performance. Research by Nina Marlina (2013) also concluded that entrepreneurial competence and market direction have substantial relationship to the Paris Puppet SME center's business operation in Bandung. The second hypothesis is proposed that market orientation positively influences the SME Coffee Shop business’ performance from the review of these references.
Apart from entrepreneurial competence and market orientation, entrepreneurial motivation is also a determining factor in improving business performance and achieving company goals. Entrepreneurial motivation has something to do with the strength within the human being as a business person. According to Suryana (2017), one of the theories to understand motivation is a process that seeks to explain the emergence of a person's desire to display specific behavior. This theory tries to describe the process that occurs in a person's mind, which eventually shows a specific behavior. With high entrepreneurial motivation, people will devote all their potential and attention to managing their business well, which will increase their business performance.
Some researchers have also investigated the impact of business motivation toward the performance of business. Al & Mostafa (2019) for example, found that motivation brings a convinced result in business. From this reference study, the third hypothesis is formulated that there is a positive effect of entrepreneurial motivation toward business performance of SME Coffee Shop.
According to Lerner (2018), business performance measurement aims to measure company performance compared to its objectives, which is also a management tool. According to Micheli & Mari (2014), a performance measurement is an accurate and objective tool that is used to assesss and evaluate employee performance and company operations. The information used to measure business performance can be in the form of financial or non-financial information and can be based on internal or external measurements.
The rise of SME coffee shops in Makassar City cannot be separated from the growing consumer demand for food and beverage menu choices and satisfying service. The consumer's need for food choices has prompted many entrepreneurs to enter and pursue the coffee shop business. At first, drinking coffee was only favored by adults to old age and was dominated by men, but over time drinking coffee was also in demand by young people, men or women, and even housewives.
The number of coffee shops in Makassar City is quite large compared to other cities. Almost every street corner, people can find a coffee shop. It is not difficult to find a coffee shop in Makassar City. So that the city of Makassar is identified with the city of 1000 coffee shops, uniquely, each coffee shop has loyal visitors, so that each coffee shop has a different segment. The number of coffee shops in Makassar City in 2019 was 538, spread over four zones. See Table 1.
|Table 1 Number of Warkop (coffee shop) in Makassar City 2019|
However, these developments have not been matched and accompanied by excellent business performance. There are still many obstacles encountered, including low entrepreneurial competence, poor market orientation, and low entrepreneurial motivation. In this context, this research must be carried out by examining the strategy to improve the business performance of the SME Warung Kopi through entrepreneurial competence, market orientation, and entrepreneurial motivation. It is similar to Mallarangeng (2012) research on the entrepreneurial strategy of Handicraft SME in Tasikmalaya, West Java, which shows a similar situation. The gap map and entrepreneurial opportunities for SMEs based on heritage have not been worked out optimally, entrepreneurship has not run optimally. Possible causes include the choice of entrepreneurial strategies that are not per the dynamics of high business competition, entrepreneurial competence, market orientation, low entrepreneurial motivation, inability to sustain, and face the significant market demand and scarcity of resources.
From the background, phenomena, and several previous studies, the problems of the study are: (1) Do entrepreneurial competence, market orientation, and entrepreneurial motivation have any effects to the performance enhancement the SME Coffee Shop business in Makassar City? And (2) Do entrepreneurial competence, market orientation, and entrepreneurial affect the SME Coffee Shop business's performance in Makassar City?
The objectives of this study are to identify: (1) The influence of entrepreneurial competence, market orientation, and entrepreneurial motivation partially on the business performance of the SME Coffee Shop, (2) The effect of entrepreneurial competence, market orientation, and also the entrepreneurial motivation simultaneously and the performance of the SME Coffee Shop business. The benefits of this research are to develop knowledge, especially those related to the strategy to improve the performance of the coffee shop business through increasing entrepreneurial competence, market orientation and entrepreneurial motivation. Besides, the result of the study is also expected can be used as input for the Makassar City Government in fostering and developing SME Coffee Shop.
According to Fithri and Amanda (2012), competence is defined as the intelligence, talents, and abilities of individuals that directly affect their performance. The competence of an entrepreneurs is believed to have a robust influence on the success of their business. So it can be interpreted that a successful entrepreneur has the intelligence, talents, and qualities of an individual, including the attitudes, values, and behaviors needed to carry out a job or activity. Competence includes mastery of three types of abilities, namely: knowledge (knowledge, science), technical skills (skills, technology), and attitudes (attitude). Competence is seen from three aspects of intellectual/rational intelligence (intellectual Quotient/ IQ), emotional intelligence (Emotional Quotient / SQ) with SQ as the foundation.
Specifically, some of the competencies that an entrepreneur must have are (1) good analysis skill, (2) good skills in taking opportunities and managing existing resources, (3) skills in finding infprmation about customets’ needs, (4) learning skills to increase their competence, and (5) good communication skills (Fithri and Amanda, 2012). Entrepreneurial competence is required by an entrepreneur to be developed in producing the best result in organizing his business. Thus, entrepreneurs have to be a long life learner, who is willing and aware that he/she has to learn new things everyday. In this digital era, those entrepreneurs who learn more and have more information will win the competition.
A. Kuriloff, John M, Memphil and Dougls Cloud (in Echdar, 2019), state that there are four primary abilities needed to achieve an equivalent experience for successful entrepreneurship:
1. Technical competence. It means having the competence in designing the business chosen.
2. Marketing competence. It deals with the ablity to find a suitable market, identify customers, and maintain the company's survival.
3. Financial competence. It means having competence in finance, manage purchases, sales, bookkeeping, and profit and loss calculations.
4. Human relations competence. It means having competency in developing personal relationships, such as the ability to relate and build partnerships between companies.
In line with this, according to Echdar (2019), an entrepreneur in order to be able to run his business optimally and adequately, he must have at least three entrepreneurial competencies, namely: (1) knowledge competence, understanding the whole of his business activities as a whole, (2) skills competence, understand how to make policies and decisions made into reality using existing resources, and (3) attitude/behavior competence, ability to integrate policies and gather information and process it into policy recommendations.
According to Maritz & Donovan (2015) entrepreneurship cannot be separated with innovation. Innovation will help a company to get a long term success. It menas that to win a business competition, a company should always do innovation. Thus, innovation is considered as a part of entrepreneurship competence and an entrepreneur must improve their competence, especially in making innovation to improve their business performance. In general, entrepreneurial competence is related to an individual's intelligence, talents, and qualities, including the attitudes, values, and behavior needed to carry out his business activities. Entrepreneurial competence is also the ability to determine or decide on a problem within the scope of a company or business so that the development of a managed business can develop and be accepted by the community.
Market orientation deals with customers, consumers, and competitors (Wahab & Nagaty, 2017). Market orientation is a process of generating and providing market information in order to give the best thing to the customers. Since market orientation aims to provide the customers with high values product and service, it will influence the company (Benito et al., 2009).
In a simple sense, market orientation is an effort to make the product and service meet the customers' needs. Market orientation is a supplay, foundation in making a decission or organizational principles. Market orientation is a culture of a good company that should always be strengthen through ornanizational training.
According to the Marknesis Team (2009), Market Orientation is an attempt to translate marketing philosophy into marketing practices. Meanwhile, according to Fandy (2014), market orientation (MO) is the assessment of behavior and activities that shows the company concept of marketing implementation. It deals with the ability to fulfill the customers’ demands. If the company can identify the costumenrs’ demands and then adjust their products to suit that demands there will be a chance for the company to get a higher profit.
Hasan (2013) states that the market orientation model includes; (1) customer orientation; (2) profit orientation (3) integrated marketing, namely the integration of efforts carried out by all parts of the organization to satisfy company goals by satisfying customer wants and needs. Market orientation assists management in identifying unique capabilities and customers whose value demands are aligned with these capabilities.
Therefore, another key to success in building customer orientation and profit orientation is through promotion and marketing. There is no meaning that a company has the right plan, has a reliable product, and has a strong work team if other people do not know the product. On the contrary, if a product has mediocre quality, but if the promotion and marketing are carried out aggressively and effectively, it will certainly get a positive response from the market (Saban Echdar, 2017).
Motivation is the driving force that influences a person's behavior so that he is moved to act to do something to achieve specific results or goals. According to Junior (2016), motivation refers to external or internal force that moves someone to do something to achieve a certain goal. It is the attitudes and values that influence individuals to achieve specific results according to the individual goals. These attitudes and values are invisible, which provide strength to encourage individuals to behave in achieving their goals.
According to Hisric et al. (2005), entrepreneurship is a process for achieving additional wealth. Wealth is created by those who are willing to take significant risks in order to produce valuable products and services. Those products and service should not be something new, but it is a must for the entrepreneur to produce them with the acceptance and placement of skills and resources needs. Thus, entrepreneurial motivation is a stimulus that can encourage someone to do a business, which is carried out with enthusiasm, creativity, innovation, and the courage to take risks in order to gain profits, both in the form of money and self-satisfaction.
According to Suryana (2017), broadly influencing entrepreneurship interest can be grouped into intrinsic and extrinsic factors. Intrinsic factors are factors that arise as internal stimuli, which encourage interest in entrepreneurship, partly because of the need for income, self-esteem, and feelings of pleasure. Extrinsic factors are the external factors that move someone to do something, for an entrepreneur thos factors may include family environment, opportunities, and education.
Pradhan & Pradhan (2017) state that performance covers two things, the ability to the job and prior experience. Wibowo (2014), performance comes from in terms of performance. As for the notion of performance as a result of work or work performance. However, performance has a broad meaning, not only the result of work but how the work process takes place. In Wibowo (2014), Armstrong and Baron's performance results from work that has a relationship with organizational strategic goals, customer satisfaction, and contribute to the economy.
Fairoz et al. (2010) say that a company's performance is influenced by the effectiveness of the strategies that have been implemented to echieve the objectives. Schneidar et al. (2003) in Eshiaghy & Maatofi (2011) state that an organization's productivity and efficiency are obtained by satisfying employees and being sensitive to biological and social-emotional needs in a comprehensive way. Companies' performance is the progress made by the company in achieving its vision. While company performance measurement is the process of assessing the acomplishment of the programs that the company have planned (Rivai and Basri, 2014). A company's performance can be seen from the benefits that the company made (Moerdiyanto, 2010).
Business performance is the result of an individual or group in an organization that is influenced by various factors to achieve organizational goals within a specified period. The function of work or activity meant the implementation of the results of the work or activities of a person or group, which is the authority and responsibility of an organization. Meanwhile, the factors that influence a person's work result/performance consist of internal and external factors. Internal factors include intelligence, skills, emotional stability, motivation, role perception, family conditions, physical condition, characteristics of the workgroup, and so on. External factors include labor regulations, customer desires, competitors, social values, labor unions, economic conditions, changes in work locations, and market conditions.
Conceptual Framework and Hypotheses
Through theoretical and empirical studies, the study conceptual framework is displayed on Figure 1.
Based on the conceptual framework and several previous studies, the hypothesis proposed in this study are:
1. Entrepreneurial competence, market orientation, and entrepreneurial motivation, directly, have a partially positive and significant effect toward the performance of the SME coffee shop business.
2. Entrepreneurial competence, market orientation, and entrepreneurial motivation, simultaneously, have a positive and significant effect toward the performance of the SME Coffee Shop business.
This descriptive study aims to make systematic, factual, and accurate descriptions of the population's facts and characteristics in Makassar City, which at the time of the research were 538 units. Determination of the sample using Arikunto's opinion (in Echdar), namely 15% x 538 = 80, (80 samples are rounded). Other criteria in determining the sample are coffee shops that: (a) are equipped with adequate facilities and infrastructure, (b) that have been running a business for> 1 year, and (c) that have a turnover of more than Rp. 50 million. The technique used in this study is a field study, which is a way to obtain or collect data by directly observing the object in question, with the support of a questionnaire.
To study the hypothesis stated, the authors use multiple regression analysis as follows:
Y = a + b1X1 + b2X2 + b3X3 + e
To test the hypothesis used the F test (Simultaneous), to determine the effect of the independent variable on the dependent variable simultaneously, by comparing the calculated Fvalue with the Ftable value (Ghozali, 2013), and the t-test (partial), to determine the effect of the independent variable on the variable. Partially dependent, by comparing the tcount with the ttable (Ghozali, 2013). The hypothesis used:
a. H0: bi = 0, meaning that the independent variable does not affect the dependent variable
b. Ha: bi > 0, meaning that the independent variable has a positive effect on the dependent variable.
The test criteria with a significance level (α) = 0.05 are determined as follows:
a. If tcount> ttable, then H0 is rejected and Ha is accepted.
a. If tcount> ttable, then H0 is accepted and Ha is rejected.
Test Research Instruments
Validity test: Based on the validity test results using the Product Moment formula in the SPSS program, the values obtained from the 17 questionnaire statements were considered valid. This can be seen from the calculated score of r> r table, where r table = 0.183, N = 80, and dk = 5%. Meanwhile, invalid statements can be seen from the result of r count <r table, and the data is not further processed.
Reliability test: Reliability test (reliability test) is a measure that shows the extent to which measuring instruments can be trusted (reliable). A reliability test was performed using Cronbach alpha. The Cronbach alpha coefficient of more than 0.60 indicates the reliability of the instrument. Besides, the Cronbach alpha, which is getting closer to 1, shows the higher the internal consistency of reliability (Ghozali, 2013). The reliability test carried out only on statements that have met the validity test and those that do not fulfill it, so there is no need for a reliability test (Table 2).
|Table 2 Reliability Index Criteria|
The conclusion is as follows:
a. Reliability Test Item statement of variable entrepreneurial competence (X1)
The reliability test results appear that the Cronbach's Alpha value is 0.781, so that the statement item to get the value of the entrepreneurial competence variable (X1) is in the high criteria, so it is said to be reliable.
b. Reliability Test Item statement of variable market orientation (X2)
The reliability test shows that the Cronbach's Alpha value is 0.801. The statement items to get the value of the market orientation variable (X2) are at very high criteria, so they are said to be reliable.
c. Reliability Test Item statement of variable entrepreneurial motivation (X3)
The reliability test results show the Cronbach's Alpha' value is 0.808 so that the statement item to get the value of the entrepreneurial motivation variable (X3) is at a very high criterion, so it is said to be reliable.
d. Item Reliability Test Statement of Coffee Shop business performance variables (Y)
The reliability test shows that the Cronbach's Alpha value is 0.879, so that the statement item to get the variable value of the coffee shop business performance (Y) is very high, so it is said to be reliable.
Based on the results, the questionnaire distributed can be used as a measuring tool in this study.
Multiple Linear Regression Analysis
Multiple linear regression was done using the SPSS 21 version. The purpose of this analysis is to find out the effect of the independent variables on the dependent variable, both partially or simultaneously (Table 3).
|Table 3 Results of Multiple Linear Regression Analysis|
|Model||Unstandardized Coefficients||Standardized Coefficients||t||Sig.|
|Dependent Variable: Coffee Shop Business Performance|
The regression equation model is described in the form of the following equation:
Y = 1,483 + 0,380X1 + 0,403X2 + 378X3 + e
The explanation of the regression equation is as follows:
a. The regression coefficient of the entrepreneurial competence variable (X1) has a positive direction in its effect on the coffee shop business (Y).
b. The regression coefficient of the market orientation variable (X2) has a positive direction in its effect on the coffee shop business (Y).
c. The regression coefficient of the entrepreneurial motivation variable (X3) has a positive direction in its effect on the coffee shop business (Y).
Research Hypothesis Test
a. F Test (Simultaneous Test)
The magnitude of the influence of the independent variable (X) on the dependent variable (Y) can be seen in the results of statistical analysis using the SPSS program, as shown in the following Table 4:
|Table 4 Simultaneous Regression Test Results|
|Model||Sum of Squares||df||Mean Square||F||Sig.|
|a. Dependent Variable: Coffee Shop Business Performance|
|b. Predictors: (Constant), Entrepreneurial Motivation, Market Orientation, Entrepreneurial Competence|
Based on the results of the SPSS analysis, Table 4 shows the value of Fcount = 39.558 with a significance of 0.000 <0.05. With a significance value below 0.05, it shows that simultaneously entrepreneurial competence, market orientation, and entrepreneurial motivation effect toward the performance of the coffee shop business in Makassar City have a positive and significant effect.
b. The T-Test (Partial Test)
The requirement for the significance of the partial effect of the independent variable (X) on the dependent variable (Y) based on the t test is if t> of ttable. The significance is less than α = 0.05. Thus the null hypothesis (H0) is rejected and alternative hypothesis (Ha) is accepted. It idicates that. statistically, the data used proves that the influence of entrepreneurial competence (X1), market orientation (X2), and entrepreneurial motivation (X3) partially has a significant effect toward the performance of the coffee shop business (Y). Conversely, if tcount <from ttable and the significance value is higher than α = 0.05, then it is decided that the null hypothesis (H0) is accepted and the alternative hypothesis (Ha) is rejected. It means that statistically, the data used to prove the effect of entrepreneurial competence (X1), market orientation (X2), and entrepreneurial motivation (X3) partially have a significant effect toward the performance of the coffee shop business (Y). Data shows that the ttable's value with the degree of market orientation (df = 76) at a 5% alpha level means ttable = 1.6651.
c. Determination Coefficient Test
The magnitude of the simultaneous contribution of the variables' influence on the business performance of Coffee Shops (Y), as indicated by the R Square value of 0.924 or 92.4%. The 92.4% of the coffee shop business performance's variable (Y) is influenced by the independent variables of Entrepreneurial Competence (X1), Market Orientation (X2), and Entrepreneurial Motivation (X3). In comparison, the remaining 7.6% is caused by other factors not considered in this study. Based on the results of these calculations, the researcher concludes that the hypothesis which states that entrepreneurial competence, market orientation, and entrepreneurial motivation simultaneously have a significant effect toward the performance of the coffee shop business statistically can be proven (Table 5).
|Table 5 The Result of Coefficient of Determination Test|
|Model||R||R Square||Adjusted R Square||Std. Error of the Estimate|
|a. Predictors: (Constant), Entrepreneurial Motivation, Market Orientation, Entrepreneurial Competence|
Entrepreneurial competence affects in a positive and significant way on the SME Coffee Shop Business Performance
The finding confirms that the entrepreneurial competence had a positive and substantial impact toward the SME coffee shop business in Makassar City. The t-test statistical calculations obtained that tcount of the entrepreneurial competence variable (X1) is 9.869. While the ttable is 1.6651 or t count> ttable. The results of these tests show entrepreneurial competence has a substantial impact toward the performance of the coffee shop business (Y). Thus, each change in the entrepreneurial competency variable (X1) is 1, contributing to increased coffee shop business performance (Y) by 9.869. It can be seen in the significance column that the α value of X1 is 0.000 smaller than 0.05, so H0 is rejected and Ha is accepted, which means that the influence of entrepreneurial competence (X1) has a significant effect toward the performance of the coffee shop business (Y).
This study is similar to Nina Marlina (2013) research, which shows that entrepreneurial competence and market orientation together affect (0.730) in a positive direction on the business performance of the Paris Van Java Doll SME Center in Bandung, which is 53.3%. That the two independent variables of entrepreneurial competence and market orientation, are simultaneously able to explain changes that occur in business performance, compared to entrepreneurial competence. Entrepreneurial competence only partially affected 22.8% of business performance, while market orientation had a partial effect of 35.4% on business performance.
Research by Sri Palupi Prabandari and Nadiyah Hirfiyana Rosita (2013) is also in line with this study, concluding that motivation and competence simultaneously influence women entrepreneurs' success and motivation to provide a dominant influence on the success of women entrepreneurs. From the results of multiple regression calculations, competency does not significantly affect the success of women entrepreneurs.
The effect of market orientation on the SME Coffee Shop Business Performance is positive and significant. The results showed that market orientation had a positive and significant effect toward the performance of the SME Coffee Shop business. From the results of t-test statistical calculations, it is obtained that tcount of the market orientation variable (X2) is 8.357. While the ttable is 1.6651, where tcount> ttable so that the results of these tests show the effect of market orientation (X2) has a significant effect on business performance, Coffee shop (Y). Thus, each change in the market orientation variable (X2) is 1, contributing to increased coffee shop business performance (Y) by 8,357.
It can be seen in the significance column that the α value of X2 is equal to 0.000, less than 0.05, so H0 is rejected, and Ha is accepted, which means that market orientation (X2) has a significant effect toward the performance of the coffee shop business (Y).
It concluded that market orientation has a significant effect toward the performance of the coffee shop business (Y), which can be shown from the data obtained, namely tcount> ttable, namely 8.357> 1.6651 with a significance level (α) of 0.000 <0.05.
This study's results are similar to Hasan's (2013) research on market-oriented companies that results related to market-oriented relationships and business performance with a positive prediction on the assumption that market orientation provides a company with a better understanding of its environment and its customers.
Entrepreneurial Motivation Brings A Positive and Significant Effect On the SME Coffee Shop Business Performance
Entrepreneurial motivation brings a positive and substantial effect on the coffee shop business's performance in Makassar City. From the results of t-test statistical calculations, the t count of entrepreneurial motivation (X3) is 7.425 while the ttable is 1.6651, where tcount> ttable so that the results of these tests show the influence of entrepreneurial motivation (X3) significantly affect toward the performance of the Coffee shop business (Y). Thus, each change in the entrepreneurial motivation variable (X3) of 1 contributes to the increase in coffee shop business performance (Y) by 7,425. Thus it can be concluded that entrepreneurial motivation (X3) has a significant effect toward the performance of the coffee shop business (Y), which can be shown from the results of the data obtained, namely tcount> ttable, namely 7.425> 1.66515 with a significance level (α) of 0.000 <0.05.
The results of this study are connected with Wisda Apriana's (2013) research, which shows: Motivation, Managerial Ability, Competence, and Environment simultaneously have a significant effect on the Business Performance of Street Vendors in Bekasi, with a significance value of 0.000, variable motivation, managerial ability and competence towards The business performance of each is 0.017, 0.032, 0.069 with a significance value of> 0.05. This result shows a relatively small effect, but this effect is not significant in the street vendors' performance in Bekasi. The research of Sri Palupi Prabandari and Nadiyah Hirfiyana Rosita (2013) is also in line with this study, whose results show that motivation has a simultaneous effect on women entrepreneurs' success and motivation has a dominant influence on the success of women entrepreneurs.
Entrepreneurship Competence, Market Orientation, and Entrepreneurial Motivation have A positive and Significant Effect Simultaneously On the Business Performance of SME Coffee Shops.
Entrepreneurship Competence (X1), Market Orientation (X2), and Entrepreneurial Motivation (X3) have a positive and significant effect simultaneously on the Business Performance of SME Coffee Shops (Y) in Makassar City. The results of the SPSS analysis show that the value of Fcount = 39.558 with a significance of 0.000 <0.05. A significance value below 0.05 shows that together (simultaneously), the three independent variables (entrepreneurial competence, market orientation, and entrepreneurial motivation have a positive and significant effect toward the performance of the coffee shop business.
The magnitude of the simultaneous variable contribution to the coffee shop business performance (Y) is shown by the R Square value of 0.924 or 92.4%. So about 92.4% of the SME coffee shop's business performance variables (Y) are influenced by the independent variables of Entrepreneurial Competence (X1), Market Orientation (X2), and Entrepreneurial Motivation (X3). In comparison, the remaining 7.6% is caused by other factors not considered in this study. Based on these calculations' results, the researcher concludes that the hypothesis that Entrepreneurship Competence, Market Orientation, and Entrepreneurial Motivation simultaneously significantly affects the Business Performance of SME Coffee Shops in Makassar City can be proven.
This research is similar to the research of Nina Marlina (2012), which concludes that entrepreneurial competence and market orientation together affect (0.730) in a positive direction on the business performance of the Paris Van Java Doll SME centers in Bandung, which is 53.3%. The two independent variables consisting of entrepreneurial competence and market orientation, are simultaneously able to explain changes in business performance.
1. Entrepreneurial competence, including technical competence, marketing competence, financial competence, and human relation competence, positively and significantly affects the SME coffee shop business. With the high entrepreneurial competence possessed, it is easier to improve the ability of coffee shop management. Entrepreneurial competence can be seen through the desire to achieve goals, the belief that success is due to the efforts of oneself and openness. Coffee shop management abilities are manifested in communicating, being on time, making decisions, recognizing, solving problems, motivating employees, and delegating work to employees.
2. Market orientation, including market intelligence, marketing information, dissemination of information, and ability to respond positively and significantly toward the performance of the SME coffee shop business in Makassar City. With a high market orientation, it will make it easier for coffee shops to analyze the marketing environment and focus and implement business strategies, both in the form of business strategies: differentiation, low cost and focus, as well as marketing strategies. High market orientation is needed to improve the performance of the SME Coffee Shop business.
3. Entrepreneurial motivation, including profit, freedom, personal dreams, and independence, has a positive and significant effect toward the performance of the SME Coffee Shop business. Two things that affect the motivation of the SME Coffee Shop owner in entrepreneurship, namely pull and push. Pull is related to the opportunity to get more income, the desire to get a more potential position that is more decisive in decision making, and increased self-ability. Push, associated with self-motivation to expand business or make new businesses. Motivation has a crucial role in the success of a coffee shop.
4. Entrepreneurial competence, market orientation, and entrepreneurial motivation bring a positive and substantial impact on the SME Coffee Shop business performance simultaneously. The amount of influence between the independent variables on the dependent (performance) can be seen in the results of statistical analysis using the SPSS program, which explains that the three independent variables simultaneously affect the performance of the SME Coffee Shop business in Makassar City.
1. To improve business performance, SME Coffee Shops are expected to gradually increase entrepreneurial competence, including technical competence, marketing competence, financial competence, human relation competence, so that business competitiveness can increase.
2. The owner of SME Coffee Shops should innovate in their efforts to provide a new atmosphere for comfort and improve facilities in response to market demand for the need and touch of technology in every aspect of life.
This study provides clear information that market orientation (orientation to consumers, orientation to competitors, and coordination between functions) has a substantial effect on the company's performance. Orientation to competitors, customer orientation, and coordination between functions can improve business performance. This analysis indicates that entrepreneurs' ability to meet consumer needs, anticipate changes in competitors' strategies, and coordinate all company functions make a positive contribution to improving business performance. Therefore, SME Coffee Shops owners in Makassar City must pay attention to these aspects to maintain their business existence in facing increasingly fierce competition for coffee shops to improve their business performance.
The author understands that this research still has limitations. One of them is the measurement of business performance that is normative, and the assessment is carried out by each owner of the SME coffee shop (self-assessment) so that the size (good or bad) of business performance is not standardized and more (according to) personal opinion. It indeed has an impact on inaccurate research results. Based on this, the authors suggest that future researchers use a more objective measurement of business performance by adding other independent variables. It aims that the performance of the SME Coffee Shop business can be more measured and more accurate.