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Volume 3, Issue 9, September – 2018 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Entrepreneurial Effectiveness in Building Economic


Independence Family in Indonesia
Jamaluddin Andi Makassau Hasanuddin
High School Economics Lecturer Doctoral Program College of Lecturer At the Faculty of
Amkop Makassar Economics Economics
At South Sulawesi, Indonesia University of Indonesia Muslim University of Indonesia Ickhsan

Abstract:- Types of qualitative research approach Agency Creative Economy Indonesia (BEKRAF) on the site
through Phenomenology, the results showed that the BEKRAF.
ability to build economic independence through the
spirit not to depend on a monthly salary as an employee With entrepreneurship certainly has risks as well as the
or employees boils down to entrepreneurship capabilities work of others. The risk of loss in business is the classic
which in principle will give influence on the progress of spectre on people who want to entrepreneurship. It needs to
the economy and the improvement in the economic be emphasized again, that bad risks also exist in all the
situation of society Indonesia right now is because of self- work.
employment can create jobs, improve the quality of life
the community, increase equity income, utilize and As time goes by more and more the number of
mobilize resources to enhance national productivity, and communities that need jobs, but the place and the jobs that
to improve the well-being of the Government. Thus, the are available are very limited to date, this makes the
increasing development of entrepreneurship can community became difficult to get a job and resulted in the
improve the economy in Indonesia. self-employment can large number of unemployed. The demands of the quality of
be an alternative in alleviating poverty and human resources is getting old now and demanding the
higher specificity which is more difficult to be filled. The
unemployment in Indonesia. The Government is
limited jobs makes people look for a way to survive in order
expected to support the advancement of
entrepreneurship in Indonesia by way of providing to be worth living. By looking at those situations then the
capital so entrepreneurs can set up businesses without informal sector is an alternative which can help absorb
obstruction regarding the cost of capital. Search jobs unemployment and entrepreneurship is one of the best
that previously was only interested in the formal sector alternative way out. Social and economic changes have now
are also expected to change his view and switch on the been increased very rapidly, it is resulting from the process
informal sector that is entrepreneurial. of globalization in various sectors. On the other hand the
concerns appear by inflation and unemployment. One of the
Keywords:- Self-reliance, Entrepreneurship, economic, countries hit by the deterioration in various aspects such as
Formal, Government. Indonesia are experiencing food shortages as well as the
tragedy of humanity who are frequent examples such as the
I. INTRODUCTION existence of violence. It can be caused by the State of the
economy is not going well, then entrepreneurial activities
A. Background can provide the solution of economic, environmental, social
Talk about entrepreneurship cannot be released to do or humanitarian problems. Entrepreneurship has a very
with autonomy, because both influence each other with one important role in all aspects of life. According to the opinion
another. If the quantity and quality of a country's of the Ministry of economy that a country can develop and
entrepreneurship it is good, then it is certain that the country can be build, ideally, should have an entrepreneur of 2% of
is an independent country, in particular in the field of the total population. Presence and role of self-employment
economics. The independence of the nation with will give influence on the progress of the economy and the
entrepreneurship is important to prop up the economy of the improvement in the economic situation in Indonesia now
joints. Entrepreneurship into driving the spread of economic because, entrepreneurs can create jobs, improve the quality
benefits and improve well-being. Beside that also reduce the of life of the community, improve equity income, utilizing
level of unemployment, reduce the level of criminality, resources to increase productivity, and to improve the
improve living standards and also distribute income more welfare of national Government. Based on that opinion,
evenly. entrepreneurship may affect Indonesia's economic growth
rate. Until recently the economic problems in Indonesia will
Refer to the website of the World Bank Group (Low still be faced with a number of challenges and this will
and Middle Income) Indonesia is still entered in the affect the pace of economic growth in the next year.
countries with low incomes and below. Countries with low
income and under include in developing countries. One of B. Formulation of the problem
the Government's efforts stimulating the community Of how the role of the entrepreneurial community in
participating in building the nation's economy is by building economic independence in Indonesia.
supporting the entrepreneurial program. Part of its
realization is made with the shape of the container, i.e. the

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Volume 3, Issue 9, September – 2018 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
II. REVIEWS THE LITERATURE Schmitz (1989) makes the concept of theoretical models of
economic growth inspired by endogenous growth model
Of entrepreneurship is not something new in the developed by Römer (1986). In the model, the new company
economy. The term entrepreneurship has done at least since formations put Schmitz as variables determining
150 years ago, and the concept has been around since 200 endogenous economic growth and improvement of
years ago (Bygrave, 2004). However, the first time the idea individuals who choose to become entrepreneurs or
of entrepreneurship and economic growth have a employees. This theoretical model explains that increased
relationship very closely and positively communicated by levels of entrepreneurship in the economy generates an
Schumpeter in 1911. An increasing number of additional input-input economy. Then, how the level of
entrepreneurs are causing an increase in economic growth of entrepreneurial activity and economic growth is explained
a country. There are five reasons which aspects influenced with the use of empirical data? How to measure the level of
the idea of Schumpeter, namely: (1) promoting entrepreneurial activity?
entrepreneurial new products and a new quality of a product,
(2) new methods of promoting entrepreneurial produce a A. The theory and concept of the entrepreneurial
more commercial, both based on experience as well as the The Ministry of women empowerment and child
results of scientific study of a research (3) entrepreneur who protection of the Republic of Indonesia has launched a
opened new markets, whether in the country or in a country program of increased Economic Productivity of women
that previously there has not been a market (4) the (PPEP). This program is very strategic in its efforts to
entrepreneurial digging a new source of supply of raw improve the quality of life and the fulfillment of the
materials for the industry or industrial semi-finished end, economic rights of women through strengthening the
and (5) entrepreneur who runs the new organization of any economic productivity of women in order to reduce the
industry. The fifth case this is why entrepreneurs are burden of the cost of a poor family. The program also as one
pushing an increase in economic growth of a country, due to of the programs in poverty reduction efforts through self-
an increase in productivity. employment. In order to provide optimum contribution
towards poverty reduction efforts, PPEP is a program
By encouraging economic growth, entrepreneurial priority to improve the quality of life of women, setting
affects the entire economy, particularly its effects on the these priorities with regard to the consideration that poverty
labour market. Increased economic growth is very likely around the world are always impact on women and children.
will increase the chances of the opportunity of trying, but on PPEP is urgent efforts to realize the fulfillment of the
the other hand will lead to inflationary pressures that economic rights of women. In the condition of the national
influence directly on wage labor. But wage increases work economy are not yet conducive, the role of women to be
can not always derived from an imbalance in the labour very important in supporting the family economy. PPEP was
market the market. meant to gain access and market opportunities in order to be
able to compete with other businesses. The fulfillment of the
Davidsson (2003) and Kirzner (1973) argued that self- economic rights of women are increasingly perceived as one
employment is a competitive behavior that drives the of the basic needs that are capable of delivering women on
market, not only creates new markets, but create new an order of the struggle for the realization of Justice and
innovations into the market, as well as the real contribution gender equality. In a position that deserve economic well-
of self-employment as determinant of economic growth. being, then fresh position of women in the family.
Thurik and Wennekers firmer (1999) and Carree and Thurik
(2003) States that in essence, entrepreneurs are contributing B. Poverty and the role of the informal sector
to economic performance by introducing innovations, Poverty has demanded the woman as wife and mother
creating change, creating competition and increase to be able to sustain the economic resilience of the family.
competition. Thus, in the long term existence of The demands of being a strong encouragement for women to
entrepreneurship is crucial for economic growth (Cipolla, work outside the home. In the last few years is the
1981; Lazonick, 1991) and high productivity would increase involvement of women in small businesses and micro shows
efficiency (Weiss, 1976). In fact, the thought of connecting numbers Myang continues to increase. This suggests that the
entrepreneurs with economic growth makes the evolution of motivation of women to work outside the home of the higher
industry or economic evolution (Jovanovic, 1994 and the Mdi. In General, women in poor households have a
Audretsch, 1995). From this point of view, the self- relatively low level of education so that tend to look for jobs
employment act as agents of change, bringing new ideas to with low levels of education and low skills. Women with the
market and stimulate growth through competition processes level of education and low skills is what precisely a lot went
of the company. into work on the informal sector with motivation increase
Thurik and Wennekers (1999) building a framework of family income.
operational research linking entrepreneurship and economic Increased participation of women in economic
growth. Thurik and Wennekers clearly shows that a variety activities due to many things. First, there is a change in the
of entrepreneurial activities at various levels have an impact views and attitudes of the community about the importance
on economic growth. Assuming ceteris paribus, an increase of education for women and the need for the participation of
in the number of entrepreneurial lead to increased growth of women to participate in development. Second, there is the
the national economy. Due to the still sedikitknya economic willingness of women to be independent in the economy by
growth model that explicitly focus on self-employment, trying to finance the needs of life and those who become his

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Volume 3, Issue 9, September – 2018 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
charge. Third, an increase in women's participation in the the population are subsistence living below the urban stress
work force because the more the breadth of employment (Wahyudi, 2001). In addition, the informal sector is one of
opportunities that could absorb workers women, such as the fastest ways in increasing revenue and out of poverty.
crafts and light industry.
III. RESEARCH METHODS
The informal sector is a small-scale business units that
produce and distribute goods and services with the goal of Qualitative Research Approach Through Kind Of
creating job opportunities for himself. The informal sector is Phenomenology.
often referred to also by informal activities, job
opportunities were created (self employment), economic IV. DISCUSSION
underground (underground economy), causal work, shadow
economy (Subarsono, 1998). According to Tobing (2002) Building the economy of a country is surely expected
generally involved in the informal sector is the low to increase, we will find various theories that can help solve
educated, unskilled and mostly poor migrants, less able to them. These theories include the theory of Fredrich List
articulate and define their needs. Therefore limited their stating that the economic growth it has 4 stages. The first
horizons to provide job opportunities and generate revenue stage is the time hunting and wandering where people still
directly for himself, not the maximum profit. The activities rely on nature. The second stage is the raising and
of the informal sector is characterized by: (a) it is easy to cultivation. Next on the third stage, humans have started to
enter it; (b) sourced on local resources; (c) own efforts; (d) use the mind to farming and make crafts. At this time,
operations on a small scale; (e) the labor-intensive and human beings have had a permanent place to live. And on
technology are adaptive; (f) the skills obtained from outside the fourth stage, i.e. the stage of crafts, industry and trade. In
the school system; (g) not touched directly by government addition to meeting the needs of its own, people began
regulation; (h) market are competitive (Gilbert and Glugler: selling goods at her for selling. In this stage, the industry
1996). The perspective of the economy can be distinguished began to develop from the craft industry became a major
in two major groups, namely the business sector the formal industry.
and the informal sector. The formal sector is associated with Many people who need a job in an era of globalization.
the efforts of both small, medium and large body of law and But the place and field jobs available is limited, this makes
that have become part of the formal economic system. The the community became difficult to get a job so that the cause
informal sector is a sector of the economy which is of the existence of unemployment. The limited jobs makes
characterized by the absence of a legal entity as well as the people look for a way to survive in order to be worth living.
space outside the framework of legal rules. Look at the situation then the informal sector is an
Informal sector businesses are micro and small alternative which can help absorb unemployment that is
businesses as well. Subarsono (1998) posited the entrepreneurship. Entrepreneurship is the ability of moving
characteristics of the informal sector are: (a) the informal the people and various resources to create, develop and
sector is easily accessed; (b) does not require a permit to implement solutions to various problems in order to create
operate; (c) using simple technology and solid labor; (d) meaning and meet human needs. Presence and role of self-
there is no access to formal financial Institute; (e) operate on employment will give influence on the progress of the
a small scale and usually belongs to the family; (f) its economy and the improvement in the economic situation in
business units not organized; (g) employment opportunities Indonesia. Be entrepreneurial means having the ability to
in this sector are not protected because not regulated by find and evaluate opportunities gather resources – resources
government regulations. needed and act to take advantage of opportunities –
opportunities.
There are many reasons why a person entering the
informal sector, as the process of obtaining an opportunity to In addition to self-employment, a great many factors
enter the formal sector turned out to require a transaction fee cause the economy of a country is experiencing increased.
is too high for the majority of urban and rural communities. The following are those factors:
The motives of someone entering the informal sector
businesses are economic reasons (Winarno, 1996). The  The accumulation of capital. If the income on the tube
informal sector is currently growing which is partly a result and on the back with the aim of investing enlarge output
of the deterioration of the formal sector which resulted in a and income later in life, capital accumulation will occur.
lot of the work force who bounces from the formal sector  Population growth and labor force. Traditionally,
(Wahyudi, 2001). The informal sector has been able to population growth and labor force is a factor of
become a safety valve for the development of the labour economic growth. The greater the number of labor so the
force each year continues to increase (Haryanto, 2008). The chance to get creative workforce would be greater. So
existence of the informal sector is currently very important with population growth.
due to several factors. In addition to the informal sector as a  Advances in technology. This probably is one of the
provider of employment, also be the provision of most important factors because of all the field, good
Government needs in a wide range of products and services performance will be obtained if it is supported by an
produced. The role of the informal sector as an economic advanced technology.
populist base in some areas of major cities hold strategic
function as a buffer sector rescue and salvage the majority of

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Volume 3, Issue 9, September – 2018 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Self-employment has a great role in improving the welfare an important role in the development of economy in
of society in Indonesia such as: Indonesia. Small industries development contributes with
a wide path, creating employment opportunities, for the
 Job creation is one of the roles of an entrepreneur. With expansion of the work force, urbanization, and provides
the jobs created by the entrepreneurial tentuya can help the flexibility needs of and innovation in the economy as
the economy of the community, so that with the creation a whole. Empowering small businesses is key to the
of jobs for the community will be able to reduce the level survival of the majority of society Indonesia. Small
of criminality that exists in the community. businesses can be used as a prime mover in accelerating
 Reduce the level of unemployment in society. With the the recovery of Indonesia's economy and functioning as a
business which was founded by the entrepreneur's key export driver as well as an increase in welfare of
certainly can help people who don't have jobs by way of society Indonesia.
absorbing their labor to help the survival of business or
process which was founded by the entrepreneur. C. The attitude of independent entrepreneurship
 Increase the people's income. With revenue/result of self- In Behavioral independence indicate that an
employment, the public can at least meet their living entrepreneur always return the acts as its own responsibility.
needs. If the existing entrepreneurial in Indonesia can He is concerned with decision making and selection of
increase from year to year so poverty and unemployment activities in achieving the objectives. Dependence on others
can be reduced, and the life of society became is something that goes against him. He's more than happy
prosperous. working alone determines and selects the appropriate way of
working with her.
 Combine the factors – factors of production. An
entrepreneur is a person who is creative and innovative. The key to success lies in the entrepreneurial attitude
Because an entrepreneur is able to organize and process, and his ideas are realistic. An entrepreneur must have the
as well as combining human resources and SDA to ability to be self-sufficient. In carrying out its functions an
become useful. An entrepreneur is able to look for new entrepreneur should always believe in yourself, believe in
opportunities and never hesitate to try/creating new your own abilities and ideas and not be influenced by the
things. opinions of others.
 Increase productivity. The large number of self-
employment are popping up in the country of Indonesia An entrepreneur who wants to succeed in running his
certainly can increase the productivity of the various business has always been based on the following points:
products created by the entrepreneurial. These products  Run the work is based on:
can eventually be of benefit to the life of the community.  The talent and ability assets
So the entrepreneur saw opportunities may be vying to  Conviction and fervent work
seek innovation in more recent.
 The entrepreneurial also has an important role to make  Not affected by the work of others
the society more creative and independent. In Indonesia Independent human traits are:
alone the number of self-employment is amounting to  have the potential to berpretasi
19.3% of the total adult population. With the  Able to help himself in the address of her life
entrepreneurial community can have the ability to create  Able to overcome poverty born inner
and provide value-added products or new innovations so
as to make society more creative in conveying ideas and Realistic meaning of reality. Think realistically is a
his creation. They can create items where necessary and way of thinking that correspond to common sense, an
important for the well-being of the community itself so it entrepreneur who can develop a realistic person towards
does not need to import from abroad. success. These people have a more advanced, both to solve
 Besides communities not subject to the Government as the problem and trying to better. Always trying to
Labor Affairs (CIVIL SERVANTS) who are still on the intropecsion themselves to cover the deficiency giving rise
payroll by the Government, even an entrepreneur will to optimistic attitude and independence.
bring the turnover will be given to the State through
taxes. Indirectly the economic well-being of society A realistic entrepreneurs can easily adjust to the
could be stable. environment and needs so that it can give rise to the
 The existence of a business owned by the entrepreneurial initiative and creativity. The power of an entrepreneurship
course can attract foreign investors to invest in Indonesia comes from his own and ideas that are realistic and not from
or infuse capital. As an example of developed countries the actions of others.
i.e. Americans who invest in Indonesia. The presence of
foreign investors like it then will be able to add to the The existence of an independent attitude and realistic
country's foreign exchange and help the economy of means that entrepreneurs will be able to:
communities in Indonesia.
Neutralize the activity of his business over the ability
 It is also inseparable from the Entrepreneurial small
of their own
businesses. Self-employment is often associated with
situations of business activities of a person who started a  Know the opportunities, skills and ability
small business in scale and generally managed on its  Find out and realize the shortcomings of himself
own. SMES have always been portrayed as the sector has  Capital and Solidify the power of independently

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In Indonesia's economic problems alone may inhibit Entrepreneurship also have a vital role to make the
the attainment of community welfare. Unemployment society more creative and independent. In Indonesia alone
caused due to lack of employment opportunities that are the number of businesspeople is amounting to 19.3% of the
available to make the level of the community's economy total adult population. With the entrepreneurial community
became very low, and this makes a lot of the other problems can have the ability to create and provide value-added
of the emergence of one example, namely as the case food products or new innovations so as to make society more
shortages and social disparities. The above problem of the creative in conveying ideas and his creation, they can create
entrepreneurial is one of the solutions of the problems of items where necessary and important for the well-being of
handling the economy in Indonesia society. the community itself so there is no need to menimpor from
Entrepreneurship has an important role to make the society abroad. Besides communities not subject to the Government
more creative and independent. The existence of this as labour negri (CIVIL SERVANTS) who are still on the
entrepreneurial Community will have the ability to create payroll by the Government, even an entrepreneur will bring
and provide products and can also provide an employment the turnover will be given to the State through taxes.
opportunity for the community so that the future will be the Indirectly the economic well-being of society could be
economic problems in Indonesia's upcoming slowly will stable.
change for the better again. In the modern era, today there
are many opportunities and challenges that can take The third reason why the entrepreneurial influence on
advantage of by an entrepreneur. These opportunities are: economic growth in Indonesia is a fascinating foreign
invesrtor for berinverstasi or infuse capital in Indonesia. One
 Development of science and technology has driven the of the shortcomings of developed countries such as the
rapid acceleration of the acquisition of information. United State who invest in Indonesia. With the presence of
 Per capita Incomes and a growing population foreign investors like it then will be able to add to the
 The educational level of the community that the higher country's foreign exchange. Besides this entrepreneurial can
the encourage increased tourism sector in Indonesia.

The role of the entrepreneur for creating jobs so that For example: An entrepreneurial business development
unemployment is declining. opened hotels near Lovina Beach, the area of Buleleng, Bali.
With the hotel in front of Lovina Beach it will invite foreign
In the presence of such opportunities, leading to the tourists to visit Lovina Beach in addition because of the
existence of choice for our entrepreneurial actions to take if country's foreign reserves will increase, the entrepreneur
he got opportunities that match what he needed to start a will pay the tax from the amount of income that he earned
business or otherwise, is precisely the opportunities do not from the attempt to build a hotel
match what to be achieved. Opportunities may happen at
any time, however we are unable to accept or take the C. Entrepreneurship advancement and self-reliance.
chance of the raw-raw. Entrepreneurship also have a vital Why Indonesia still said as a developing country? But
role to make the society more creative and independent. In Indonesia in familiar with the country which is rich in
Indonesia alone the number of businesspeople is amounting natural resources (SDA). Because of the trend of developing
to 19.3% of the total adult population. With the countries is characterized by a society that has a per capita
entrepreneurial community can have the ability to create and income lower than developed countries and usually have a
provide value-added products or new innovations so as to dense population. Developing countries do not have the
make society more creative in conveying ideas and his social and economic conditions, most of the inhabitants are
creation, they can create items where necessary and poor, yet modern thoughts creep up into the villages, and the
important for the well-being of the community itself so there advancement of technology is still very rarely stop by get to
is no need to import from abroad. Besides communities not the villages, as well as the large number of unemployment.
subject to the Government as labour negri (CIVIL Looking at the conditions that Indonesia is one of the
SERVANTS) who are still on the payroll by the countries that are included in it. Low income and high
Government, even an entrepreneur will bring the turnover population level became a problem that must be addressed
will be given to the State through taxes. Indirectly the by Governments of developing countries in an effort to
economic well-being of society could be stable. prosper his people. In big cities like Jakarta, which counted
the population is very dense, a State like this have become a
The third reason why the entrepreneurial influence on common sight. Many people who are less fortunate life are
economic growth in Indonesia is a fascinating foreign forced to live as scavengers of garbage. Because he has very
invesrtor for berinverstasi or infuse capital in Indonesia. .. low income, his son cannot be schooled until the child's
With the presence of foreign investors it will be able to add level of intelligence is not developing. It also gives rise to
to the country's foreign exchange. Besides this sharp economic inequalities among people who earn high
entrepreneurial can encourage increased tourism sector in and people on low incomes. This led to the deterioration of
Indonesia the economy in the country of Indonesia. If the State of the
economy of the country at let Indonesia as it continues then
Thus the entrepreneurial role is indispensable to the the longer the country will increasingly poor and
growth of the economy in Indonesia. Why? There are underdeveloped, as well as the impact on national security
several reasons why entrepreneurship as a factor that could will be compromised.
push economic growth in Indonesia

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Volume 3, Issue 9, September – 2018 International Journal of Innovative Science and Research Technology
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The establishment of the independent attitude in V. CONCLUSION
entrepreneurship has 6 strength that can build a strong
personality, among others: One of the countries hit by the deterioration in
various aspects such as Indonesia are experiencing food
 Strong-willed shortages as well as the tragedy of humanity who are
Willpower hard interpreted the presence of high frequent examples such as the existence of violence. It can
commitment in a so that it will never give up before work. be caused by the State of the economy is not going well,
Some things that can be done to foster a strong belief in our then entrepreneurial activities can provide the solution of
souls by the terms: economic, environmental, social or humanitarian problems.
 we have to know ourselves as beings who have Entrepreneurship has a very important role in all aspects of
weaknesses but gained the gift of the power of the life. According to the opinion of the Ministry of economy
Almighty to overcome our weaknesses were. that a country can develop and can be build, ideally, should
 we must believe in the ability of ourselves, that we have have an entrepreneur of 2% of the total population. Presence
the potential of its own that is no less powerful than what and role of self-employment will give influence on the
is owned by someone else. progress of the economy and the improvement in the
 we must know clearly against the goals and needs of us, economic situation in Indonesia now because, entrepreneurs
where we can get one, how about ways to achieve or can create jobs, improve the quality of life of the
fulfill them, as well as when and how long the target community, improve equity income, utilize resources to
time to achieve it. improve national productivity, and to improve the well-
being of the Government. Based on that opinion,
 Holds strong over personal power entrepreneurship may affect Indonesia's economic growth
Holds strong over personal power, for it is necessary: rate.
 Introduction of myself
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