the influence of the military and political shocks on

Journal of Entrepreneurship Education

Volume 21, Issue 2, 2018

BUILDING ENTERPRISES OF ENTREPRENEURS AS A FACILITIES OF INTERACTION FOR SMALL BUSINESS ACTIVITIES IN DEALING WITH FREE MARKETS Putu Artaya, Narotama University M. Ikhsan Setiawan, Narotama University Made Kamisutara, Narotama University ABSTRACT Local and global economic activities are increasingly supported by the development of advanced information technology will certainly bring a good impact for the development of a local economy that is with the life and development activities of small and medium business actors in a region or country. Such conditions must be well anticipated by all small business actors to take advantage of these technological advances for the development of business in the future. There are many determinants of the success of business actors in carrying out their business mission, but with technological advances, the gap to make good use of technology is the key to its own success, since the world today has been in the digital communication order. The more able to adopt advanced technology, certainly bring success for its business actor. This study was conducted on a group of small business actors who have started pioneering their business with the use of information technology in cooperating with business partners and customers through cross-provincial routes in Indonesia. Keywords: Small business actors, sales network, free market INTRODUCTION Local government in an effort to improve the competitiveness of SMEs in the free market, has made real efforts undertaken by the government as Pasuruan. By launching a program application Service Center for Strategic and Economic Benefit or known by Satrya Gold. In the Presidential Decree No. 61/TK/Year 2017 on awarding of Honor Medal of Development, noted that the Pasuruan district is committed to alleviating poverty, unemployment, and consistency in facilitating capital flows, exhibitions and mentoring BDS (business development service) with clinic SMEs innovation, partnerships, and grants of equipment, internships and technical guidance is given as a stimulant or driving an increase in turnover of SMEs. Up to this time there were about 4800 SMEs in the city of Pasuruan, to realize SMEs healthy and competitive in the free market (MEA), then one of the roads to be taken of MSMEs must be members of the cooperative, and today there are about 950 cooperatives are still active as a forum for the development activities of SMEs. Gold Satrya program has an important role in introducing and promote SME products to be able to enter into a free market. This program is considered effective because Pasuruan benefited from its position in the golden triangle area which has the potential of the economy and considerable investment, this is a distinct advantage for the district in the future development of SMEs. Unlike the case with the Pasuruan district in Mojokerto regency until April 2018, there are around 155,354 SMEs, the classic problem faced by SMEs in Mojokerto is access to marketing and capital is relatively 1

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weak. While both of these factors still hamper the strength and capability of SMEs in Mojokerto in the face of free market competition. To turn activity and competitive advantage of SMEs in the city, the focus of government attention more focused on the development of SMEs through its CSR program of SOEs and private companies. As for Gresik regency, until today there are 186,000 SMEs, of these nearly 70% of SMEs in Gresik has been able to enter the international market. But the weakness is still become obstacles to Gresik in developing strength and competitive ability of SMEs is the standardization of products, intellectual property rights and the use of technology. Discussing a competitive strength of SMEs in a region is something that cannot be ignored because every year, enough to give contribution to SMEs are not small on the growth of gross domestic product. With the start of the era of free competition and enforcement mechanisms for more open markets between countries such as AFTA and MEA, then it creates a competitive advantage for SMEs is not to be ignored anymore. SMEs in Indonesia must have a balanced competitiveness with foreign SMEs are already widely market their products to Indonesia. Minimal with competitive advantage the Indonesian SMEs atmospheres exist in the international market. KNOWING SALES NETWORK In accordance explanation Farisy (2015) of the methods that have been applying in building a network in the sale is through technology information. Google pays a commission of 60% of revenue for the publisher AdSense ads. And this makes Google's income from advertising is so great, and became one of the sources of funding to grow the business. With the amount of commission so great, many people are interested in becoming publisher of Google's ads. Not only of amateur and professional blogger community, had even news portals become the publisher of Google AdSense ads. Google has an advertising publisher network that is so great, and this is the power of Google AdSense ads. One business lines that provide the greatest revenue. That is one example of the shape of a sales network. With a sales network which is so great, of course turnover of sales has increased dramatically. Artaya (2013) in his book salesmen, describing the sales network of a form of communication with others, and a form of cooperation with another person, or a commitment by others to perform and promote an activity of sale of a product or some kind of product or service seriously. People who want to communicate with and committed may live far away or very far apart with where we live. The important thing is: we do sales effort can bring economic benefits to the owners or businesses and is able to benefit for others who are invited to cooperation. Furthermore da main requirements that must be met in a sales network: 1. Collecting and encounters people who are reliable, have the honesty, friendly, willing to work hard, committed, have dedication and have the ability or skills to sell! People type is what we should invite to cooperate in selling products and/or services. Where are they? Around us and you have to find the right people are keenly and carefully, so that they can be used as a good cooperation partner in the long term. 2. Decide well, in an area where (city, county, province of, island, continent) of your product salable to sell and there are consumers who are willing to buy. if in a place or location there are people who are willing and able to buy and use your product means that there is open a market gap, then maintain your market well, with full commitment and hard work and is ready to serve all the time.

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3. Product you are selling is not ordinary products, the product must have a distinctive high (if necessary hard to match the quality or benefits or efficacy or brilliance), so that your product relative without competitor (although there are competitors, competitors' products cannot match your products), products could have such a high privilege Cosmetics, Herbal Health Products, Goods shipping services between the islands, Culinary Products for Health and so on. If you have a special product then that the primary capital to be successful, if your product is ordinary product then you will repeat the failures that others have done, with exceptional product, the consumer or the customer will be satisfied, happy, believe and acknowledge that your products are nice and consumers or customers would have been willing to wear or use in the long term even consumers or customers will preach, preach this product to others that have the potential to be a consumer (customer) recently. This name sales network. 4. Provide distribution (inventory and delivery process) Nice over time so that our products are not rare at a time, if this is the case then the customer or customers will switch to the products of our competitors, remember communication and commitment is an investment whose value cannot be valued in money, Both of the above key is the basic requirement for success. ENTREPRENEURIAL NETWORK According Nitisusanto (2010) entrepreneurial network synonymous with the understanding that invite, notify the advantages of a product, introduce the product, test piloted the product to others, this is the beginning of the process in building. Without this process then a sales network will be hard pressed to be formed and the products likely to fail in the marketplace. If you manage to convince someone, then it is very likely the person is to convince others to do the same. If you are not able to convince others that your products are likely to fail. Thus arose Communication, Relations and Cooperation as well as possible, meaning that everything felt disadvantaged, do not you just feel lucky but others feel not enjoy anything in terms of dividing the profit, share the benefits, share success. People who are entering into a partnership must have a high sense of understanding over time, so that the network has been formed to run and work well all the time. Meanwhile, according Artaya, (2013) entrepreneurship can be defined as the accumulation of actions based on the strength of the network businesses to build desire, willingness and courage in running its business focus in order to expand the market. KNOWING YOUR ENTREPRENEURIAL ROLE Entrepreneurial can be defined as the ability to stand alone pursue opportunities that require the ability to manage and experience to spur creativity. It was an inspiring entrepreneurs in the form of creative, innovative, have the will, and spirited leader. However, the subject did not become a necessity. But the high willingness able to serve only one capital to entrepreneurs. In this research the teacher's creativity refers to the use of techniques, tools, creative material of teachers, learning methods that develop student creativity, using methods that make students think actively and creatively; assigning tasks to students that enable them to use different ways of solving problems, such as brainstorming, reflection, analysis and causality; providing activities that train students' creative and imaginative thinking; giving students a situation where they can explore resources and ideas innovatively; provides the task of allowing students to make alternatives and achieve new styles and giving of props and materials to provoke students' learning curiosities and be imaginative (Jeffrey & Craft, 2004).

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AWARENESS OF THE FREE MARKET The free market is one form of market where all forms of good policies or any other price there are no standards or coercion of another party or government. As the name suggests is free, so that all parties have the freedom in the activity as well as establish a policy and others. You need to know that price determined in the free market of supply and demand that occurs between buyers and sellers. In general, the free market is an economic concept that guided on a sale of products carried between countries without any taxation levied on exports and imports or other trade barriers (Dian, 2017). Next we will discusses the advantages and disadvantages possessed by the free market. Strengths and weakness is due to the freedom that is foremost in the free market, while the advantages and disadvantages of a free market namely: Advantages of a Free Market: 1. Right to recognized individual and all parties have the right to own property and production resources, with this concept all the non-government feels acknowledged and appreciated its existence. It makes the people of a country will be more aware and productive in carrying out its activities mainly in economy study. In addition to a recognition of this community will fully support the economic progress of a country. 2. Creativity and innovation society can be developed, the existence of a freedom given society will bring a wide range of creativity and innovation in the world economy. They will get the freedom of thought, opinion and thus there will be more creativity and innovation that will help advance the country's economy. 3. High motivation to compete in an effort to get produce a quality product, free competition into the daily diet in a free market. It can make a positive thing for the trip economy. With the tough competition it will be a high motivation of each individual to create a quality product and good. This must be done if you do not want to lose competitiveness with other parties. 4. All forms of action directed at economic principles so that effective and efficient, although relatively freely but in a free market there is also a rule that any measures based on the principles of economics. With so freedom that occurs will maximum produce because it is in accordance with economic principles? Disadvantages of a Free Market: In addition to having advantages, sales network in the free market also has its disadvantages, namely: 1. Exploitation is done by the rulers of the weak economic community, there were some negative impact free markets, one of which exploitation committed by the authorities to the people poor that the ruler is free to act as they pleased and weak parties have to cooperate. This could occur because the weak party requiring it to meet their needs so they are willing to accept anything desired by the authorities. Another factor that caused this to happen because there are no regulations or policies of the government so that the weak do not get protection. 2. Monopoly that led to the loss, Monopoly will occur in a free market, because it is given the widest freedom on all sides. With the existence of this monopoly will enrich those who have the power and make the weak get poorer. 3. The emergence of economic inequality, in a free market economy are also easily arise gap, where the top and bottom parties can’t work together. But between these two parties think of himself so that those who have power will definitely powerful and the weak will become increasingly weak.

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4. Many problems occur in the market, making the free market economy of a country tends to be unstable because the market is often a problem because many people are competing so they scramble to get the best. RESEARCH METHODS Research Object Observation activities, interviews and survey data is done in three main places, namely: 1. Surabaya Handicraft center is housed in the Royal plaza Surabaya, there are 30 SMEs from various types of handicraft products. The workshop is for the product category of SMEs. The handicraft center founded in 2013, some of the featured products appears here that the various crafts and Knick knacks typical of the city of Surabaya. 2. For the city of Denpasar, handicraft centers concentrated in the three places, namely Krishna center Bali souvenir dish with a wide range of products, which are both in the store grants, this place is no different from Krishna and almost the same, which serves a variety of goods handicraft. And the last one is in the market Kumbasari, just like the other two, the market Kumbasari well as crafts or handicrafts center is quite large in Denpasar. With product offerings souvenirs and other items typical Balinese patterned. This location there are 24 businesses that successfully met. 3. There are two great locations handicraft center in the city of Yogyakarta, which since 1758, Beringharjo been used as a place of purchase. Now, almost every tourist who comes to the city of Yogyakarta definitely visit Beringharjo market, because it is a favorite hunting souvenirs especially various batik material. It is also very easy to reach because it is located on the road Malioboro. For you lovers of batik and antiques, Beringharjo market is the best market to buy souvenirs batik. The collection is complete and the price is affordable and the second is a big city that has long been known for its silver crafts to jewelry model. There are 22 businesses that succeed in the interview at this location. Study Sample Of the three locations the number of businesses that used a sample of 76 businesses that most of its products are mainly small handicraft market is a market of ASEAN region (Brunei, Malaysia, Vietnam, Thailand and Taiwan). Sampling pricing model using probability sampling methods namely the determination of a random sample (Santoso, 2015). Data Collection Process For purposes of analysis and decision making would require data with shapes and types. The data used in this research is quantitative data which is the result of measurement of the perception of businessmen/entrepreneurs in three cities Denpasar, Surabaya and Yogyakarta. The process measurement data using a scale consisting of five categories: (Santoso, 2015): 1. Not important = score 1 2. Less important = score 2 3. Important = score 3 4. Very Important = score 4 5. Absolute Essential = score 5

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Model Data Analysis In the process of decision-making on issues this study, (Gudono, 2011) one of the methods of analysis used is the estimation process through statistical analysis approach that is estimated using the results of multiple linear regression analysis model form the following equation: Y = b0.x1 + b1.x2 + b3.x3 + b4.x4 + b5.x5 + b6.x6 + e Where:Y = Network Entrepreneurial X1 = Infrastructure X2 = Government Regulation X3 = Market Power X4 = Distribution Network X5 = Technology Progress X6 = Availability Energy Resources b0 is a constant whose value is the amount does not changed for the variance of variables. b1, b2, b3, b4, b5, and b6 is the coefficient which plays a role in the estimation process. While e = a confounding variable, which amount is not covered in the model are formed above and values tend to be ignored. The above analysis tool merely a tool and the basis for discussion, decisionmaking and action. Conceptual Framework To be able to create a network for small businesses entrepreneur then some supporting factor is needed to create an interrelation among small businesses, according Echadar (2013), the application form a network of entrepreneurs can be seen in the figure below: Small Medium Enterpreneur

SIX TRIGGER FACTORS Infrastructure, Government Regulations, Market Power, Distribution Network, Technology Advances, Energy Sources.

Interaction and Communication

Entrepreneurial Network In The Free Market

Sources: Echadar, Saban. 2013, the Management Entrepreneurship, Ways of Being Entrepreneur, Publisher: Andi Publisher, Yogyakarta

FIGURE 1 THE STIMULUS FACTOR IN ESTABLISHING A NETWORK OF SMALL BUSINESS ENTREPRENEURIAL ACTORS

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RESULT AND DISCUSSION Based on the results of multiple linear regression analysis of the data is successfully collected from interviews and measuring perceptions of businesses in three city locations namely Denpasar, Surabaya and Yogyakarta, obtained output analysis as follows: Adjusted R Square of 0.856 means that the emergence of the network or the creation of a network of entrepreneurs 85.6% influenced by the availability of infrastructure, government regulations that support, the strength of the market for small business products, distribution networks, technological advances are adopted, and the availability of resources enough energy. While the remaining 14.4% were caused by factors/other forces that do not exist in the model. The test results simultaneously (ANOVA) showed the number 75.607 with an error rate of 0.000 means that all six of the above factors a real influence on the network of entrepreneurs, with the contribution of all six factors above, businesses easily establish a network of entrepreneurs to strengthen their market in a free market. Partial test analysis results showed that all six of the above factors all have an influence on the strength of the formation of entrepreneurial networks for small businesses, because of all the six factors has an error rate below 5%. (Sig column. In the second Coefficients a table, appendix, page 3). The graph shows the regression results of the normal curve because all the data used in the analysis are linear with respect to network entrepreneurs, marked by the movement of data from lower left to upper right. Discussion Observing the analysis that has been discussed above, creating a network of entrepreneurial businesses do require forces capable of stimulating an interaction between small businesses to move together to create a common interest in the market so that they can have a joint force in getting the consumer. The most prominent factor of the analysis results are infrastructure and market forces, because it has the greatest coefficient value, which means that a trigger/creation of a network of cooperation among entrepreneurs is infrastructure constancy and strength of the product on the market. While other factors (government regulation, distribution networks, advances in technology, and energy resources) can be considered as a contributing factor for entrepreneurs in the establishment of good network to build sales network, network marketing, communication networks and network transactions. CONCLUSION AND RECOMMENDATIONS Conclusion From the analysis and discussion, it can be a main conclusions are: 1. Establishing a network for entrepreneurs is important in the open market gap and keep it off, amid fierce competition in the business and trade in the free market. 2. The availability of power and resources for the businesses will spur the creation of a new opportunity to enter in the market openly. Without having to compete with other entrepreneurs, but otherwise a competitor may be a relationship that will facilitate the entrepreneurs to well-established in the destination market. 3. The main strength of success for entrepreneurs in forming a network in the free market can be created if the create interaction nice with six main strengths are: the availability of infrastructure, government regulations that favor the entrepreneurs, the brand a strong product

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on the market, distribution networks between businesses, technological advances adequate and strength of energy resources in each country. 4. All six of these factors can be used as the main capital for businesses to use as tools or power in the interaction so that they have a togetherness in maintaining their market. Recommendations 1. Network entrepreneurs in each country is different, because the business climate and culture, distinct, and therefore to be able to support the interaction or cooperation among them businessmen, in the future every business from various countries who want to expand their markets across the country need to make an exchange of commodities specific needs country market destination. So that commodities are traded between countries can be absorbed by each of the markets, commodity exchanges at the time is now beginning to intensive because it can save means to pay in transaction activity. 2. Government regulations every country should be able to accommodate all types of barriers to trade between businesses, the goal that no country is harmed by the presence of co-operation in the form of a network of entrepreneurs who move or into the free market. These symptoms are often followed up by action cooperation and exchange of essential commodities between countries as well as to support business and economic growth among countries that conduct such cooperation. REFERENCES Artaya, IP., Kamisutara, M., Baktiono, RA. 2018. Pengaruh Citra Produk Berdasarkan Analisis Persepsi Konsumen Pada Kelompok Usaha Aneka Pangan Di Sidoarjo, E-Jurnal Tata Sejuta STIA Mataram, Vol. 4, No. 1. Artaya, IP. 2013. Wiraniaga-Membangun Jaringan Penjualan, Narotama University Press, Surabaya. Artaya, IP. 2018. Dasar-Dasar Manajemen Operasi dan Produksi, Narotama University Press, Surabaya. Dian, Ahmad, 12 Februari 2017, Pengertian Pasar Bebas: Ciri-Ciri, Kelebihan dan Kekurangan, (https://dosenekonomi.com/bisnis/pengertian-pasar-bebas). Farisy, Al Salman, 09 Mei 2015, Membangun Jaringan Penjualan, CGI Network, (https://id.linkedin.com/pulse/membangun-jaringan-penjualan-salman-al-farisy). Gudono, 2011, Analisis Data Kualitatif, Penerbit BPFE, Yogyakarta. Santoso, Singgih., 2015. Mengukur Sikap dan Kepuasan Konsumen Aplikasi SPSS, Penerbit Elex Media Komputindo, Jakarta. Suherman, Eman. 2015. Business Enterpreneur, Penerbit: Alfabeta, Bandung. Sudradjat, 2012. Kiat Mengentaskan Pengangguran Melalui Wirausaha, Bumi Aksara, Jakarta. Nitisusanto, Mulyadi. 2010. Kewirausahaan Dan Manajemen Usaha Kecil, Penerbit: Alfabeta, Bandung. Echadar, Saban. 2013. Manajemen Enterpreneurship, Kiat Sukses Menjadi Wirausaha, Penerbit: Andi Publisher, Yogyakarta. Kardimin, Ahmad. 2014. Menumbuhkan Jiwa Wirausaha, Penerbit: Pustaka Pelajar, Jakarta. Yusuf, Ria Mardiana. 2017. Wirausaha dan Daya Saing UMKM, Nas Media Pustaka, Ujung Pandang.

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