The Influence of Self-concept and the Utilization of Social Media

toward the Interest of Entrepreneurship amongst Female Small and

Medium Entrepreneurs in Medan Labuhan District

Ritha F. Dalimunthe

, Frida Ramadini

Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia

Keywords: Self- Concept, Social Media and the Interest of Entrepreneurship.

Abstract: This research aims to analyse the influence of self-concept amongst women in utilizing the social media

toward the interest of entrepreneurship amongst female small and medium entrepreneurs in Medan Labuhan

district. This research is quantitative that involves 32 small and medium women entrepreneurs. The method

of data analysis used multiple linear regression technique. The result of this research exposes that partially,

the self-concept and the utilization of the social media significantly influence the interest of entrepreneurship

amongst female small and medium entrepreneurs in Medan Labuhan district. Simultaneously, the self-concept

significantly influences the interest of entrepreneurship amongst female small and medium entrepreneurs in

Medan Labuhan district. Meanwhile the variable of utilizing the social media insignificantly influences the

interest of entrepreneurship amongst female small and medium entrepreneurs

1 BACKGROUND

Entrepreneurship plays a very important role in the

growth of economy in a country. Entrepreneurship is

one of the solutions to create new employment and

reduce the unemployment number in the country. By

doing entrepreneurship, the person can find new ideas

and innovation, get more profits compare to work or

hired by someone else, and eventually possess

financial and time freedom. According to Hisrich &

Peters (2005) entrepreneurship is the creation process

of something different to produce value by devoting

time, effort, money, physic, risk to produce

recompense in the form of money and self-freedom

and satisfaction. In managing one’s entrepreneurship,

an entrepreneur is obliged to comprehend

entrepreneurship principles. These principles are

important foundations for entrepreneurs to run the

business smoothly.

Growing the entrepreneurship’s interest is one of

the alternative solutions to reduce unemployment.

The entrepreneurship’s interest is the initiative that

needs to be understood from a process of the

establishment of a business which usually takes long

process (Lee & Wong, 2004). A person who possesses

the interest of entrepreneurship has a better readiness

in running the business compared to someone who

starts the business without interest.

In order to grow the interest of entrepreneurship,

the understanding about the self-concept is needed.

By understanding the self-concept, someone can

recognize his personality and potency, discover

himself, ensure himself about the ability that can be

developed in order to do self-employment and see the

opportunities (Setiawan in Rouf and Laily, 2012).

The self-concept for the entrepreneurs drives how an

individual enables himself to think and create the

interest, confidence, and ability. When an individual

believes on his own ability, he will be motivated to

take action which is triggered by the intention or

motive and confidence. High confidence on self-

ability is needed to increase the interest of

entrepreneurship. In order to be a successful

entrepreneur, self-confidence is needed to complete

the task properly, set the future goal, and have the

willingness to maintain the values and the goals of the

business (Sahabuddin, 2013).

The interest of entrepreneurship can be predicted

through self-concept that enables individuals to

comprehend and accept the ability and physical

deficiency as well as the ability and deficiency of the

psychological to interact with the environment and

society positively. Individual with positive self-

concept will feel confident that the effort and hard

work that he strives will bring him into future’s

success (Ananta & Djalali, 2014).

1574

Dalimunthe, R. and Ramadhani, F.

The Inﬂuence of Self-concept and the Utilization of Social Media toward the Interest of Entrepreneurship amongst Female Small and Medium Entrepreneurs in Medan Labuhan District.

DOI: 10.5220/0010089315741579

In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches (ICOSTEERR 2018) - Research in Industry 4.0, pages

1574-1579

ISBN: 978-989-758-449-7

Besides self-concept, the utilizing of social media

can also influence the interest of entrepreneurship.

The vast development of Internet and social media

contribute to the economy activities as well as

business. Social media changes way of thinking,

especially the small and medium entrepreneurs.

Social media also assists the entrepreneurs in

marketing their products widely without any cost.

Nowadays, everyone can utilize social media to run

the business and get the maximum profit with

minimum capital. In the middle of the social media

development, more business is released through the

platform of social media such as facebook, instagram,

whatsapp, youtube and path. This can be the business

opportunity for the entrepreneurs to explore the

potential of entrepreneurship through social media.

Based on the pre-survey conducted, the interest of

female small and medium entrepreneurs in doing

entrepreneurship is high in Medan Labuhan district.

This can be seen through the entrepreneur activity

even though in simple ways by producing snack such

as cassava chips, cakes, cookies, traditional cakes and

etc. this phenomenon shows that not all of female

small and medium entrepreneurs understand about

the self-concept and social media. This interests the

researchers to comprehend more and to analyse the

situation further. The objective of this research is to

analyse the influence of self-concept and the

utilization of social media toward the interest of

entrepreneurship of female small and medium

entrepreneurships in Medan Labuhan District.

2 DESCRIPTION OF THEORY

2.1 Self-concept

Self-concept for the entrepreneur directs how the

individual is able to think about himself which refers

to the intentions, beliefs and abilities possessed. The

whole self-concept individual views of physical

dimensions such as physical, moral, family, personal,

and social (Partosindo in Anggraheni, 2006).

According to Symonds in Ananta and Djalali (2014)

the perception of the self does not arise directly at the

time the individual is born, but gradually develops

along with the emergence of the ability perspective.

During the beginning of the life period, the

development of self-concept is completely based on

perceptions about yourself. As we get older, self-

perceptions begin to be influenced by the values

gained from interaction with other individuals. The

link between self-concept and the peak of

entrepreneurial achievement is when the individual

has beliefs about himself. Self-concept is a set of

beliefs that individuals have about themselves.

Julianti (2005) defines self-concept as a concept

of totality which is consistently composed of various

self-awareness and relationship with others with

various aspects of life as well as the value associated

with the appreciation. Thus, it can be concluded that

self-concept is a comprehensive view of oneself both

on the physical aspects, social aspects, and

psychological aspects based on his experience and

interaction with others (Rouf and Laili, 2012). There

are 3 reasons that can explain the important role of

self-concept in determining behavior. (1) self-concept

has a role in maintaining inner consistency, (2)

attitudes and individual views of him greatly

influences the individual in interpreting his

experience, (3) self-concept determines individual

expectations (Mc Candless, in Pudjijogyanti 1993).

There are 2 (two) types of self-concept that is (a)

positive self-concept, eg confident to overcome

problems, feel equal to others, receive praise without

shame, realize that everyone has feeling, able to

improve himself, (b) negative self-concept, eg not

resistant to criticism, responsive to the test, being

hypercritical, feeling unpopular, being pessimistic

about competition (Rahmad, 2008). Factors affecting

self-concept include: (1) factor of the perpetrators

(parent, friend , community) (2) substantial factors,

consisting of learning, association (studying

relationships), and motivation (Alex, 2003).

2.2 Social Media

Kartajaya (2008) explains that social media is a

combination of sociology and technology that

transforms monologues (one to many) into dialogues

(many to many) and information democracies that

transform people from content readers into content

publishers. Social media has become very popular

because it gives people the opportunity to connect

with the online world in the form of personal

relationships, politics, and business activities.

Kaplan & Haenlin (2010) classifies social media

into 6 types: (a) project collaboration, there are two

sub categories in the social media type ie wikis &

social bookmarking apps, (b) blogs are websites that

convey expressions from authors, opinions or travel

from authors, (c) community content, the main

purpose of community content is to share media

content among users such as youtube, slideshare, etc.,

(d) social networking sites are apps that enable users

to connect by using private profiles includes all kinds

of information including photos, videos, audio files

and blogs, such as facebook, twitter, instagram, path,

The Inﬂuence of Self-concept and the Utilization of Social Media toward the Interest of Entrepreneurship amongst Female Small and

Medium Entrepreneurs in Medan Labuhan District

1575

(e) virtual gaming world, ie 3 dimensional links

where users can interact by using private avatars.

2.3 Entrepreneurship Interest

Entrepreneurship Interest is the heart tendency within

the subject to be interested in seeing and assessing the

business opportunities by collecting the information

resources needed to take appropriate action to make it

happen (Winkel in Meredith, 2005). A person with an

entrepreneurial interest will take the steps in

entrepreneurship, namely: (1) expressing the desire to

entrepreneurship, (2) having an idea on certain

business field, and (3) seeking information about the

business field of interest (Sarosa, 2004).

Wirasasmita in Suryana (2006) proposes several

reasons to grow an entrepreneurial interest, namely

(a) financial reasons, to earn a living, to be rich, to

seek additional income and as a guarantee of financial

stability, (b) social reasons, gain prestige or status to

be famous and respected by many people, be a role

model for others and to meet many people, (c) reasons

of service, in order to open employment and help

improve the economy of society, (d) reason of self-

fulfillment, to become a superior, something to be

desired, avoiding dependence on others, being more

productive and using maximum personal potential.

According to Mudjiarto at all. (2006) most people

are interested in opening up their own businesses for

the following reasons: (a) having the opportunity to

gain profit, (b) fulfilling personal interests and

desires, (c) opening up the opportunity to become the

boss for oneself, and (d) freedom in management.

Zimmerer (2008: 34) states that there are 8 factors

to encourage the growth of entrepreneurial interest,

namely (a) the opinion that the entrepreneur is a hero,

(b) entrepreneurship education, (c) economic and

demographic factors, (d) shift from industrial to

industrial economy service economy, (e)

technological progress, (f) free lifestyle, (g) e-

commerce and the world wide web, (h) opening of

international business opportunities.

Several studies have been conducted on variables

affecting entrepreneurial interest. Roff and Laily

(2012) found that self-concept significantly affects

entrepreneurship interests. Al Faruq (2016) states that

the use of social media has a significant effect on

entrepreneurship interests. Based on previous

literature and research review, the following

conceptual framework is made:

Figure 1: Conceptual Framework.

Based on previous literature review and research, the

research hypothesis is made as follows:

H1: The self-concept has a positive and significant

impact on entrepreneurial interest in female

entrepreneurs of small and medium enterprises in

Medan Labuhan District.

H2: Social Media has positive and significant impact

on entrepreneurship interest in female entrepreneurs

of small and medium enterprises in Medan Labuhan

District.

3 RESEARCH METHODS

This research is conducted with associative research

with quantitative approach. Associative research is a

study that aims to determine the relationship between

two or more variables, where the relationship

between the variables will be analyzed by using the

relevant statistical measure size of the data to test the

hypothesis (Sugiyono, 2008). In this method, it will

be observed the aspects that are closely related to the

problems studied, so it will obtain primary data that

support the preparation of this research report. The

obtained data will be processed, analyzed so as to

clarify the description of the objectives of the study

so that it can draw conclusions. The population of this

research is 32 female entrepreneurs of small and

medium enterprises in Medan Labuhan Subdistrict.

Sampling technique of the research is probability

sampling with census method (saturated) where all

population are used as sample of the research.

Analysis model used in this research is multiple

regression analysis with equation model as follows:

Y = a + b1X1 + b2X2 + e

(1)

Where:

Y = Interest in Entrepreneurship

X1 = Self-concept

SELF-CONCEPT

THE USE OF

SOCIAL MEDIA

ENTREPRENEURSHIP

INTEREST

ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramiﬁcation Researches

1576

X2 = the Use of Social Media

a = Constants

b1, b2, b3 = Regression coefficients

e = Error term.

To analyze and test the hypothesis, the researcher

uses multiple regression analysis, because it has more

than one independent variable. Multiple regressions

are used to know the direction of relationship between

independent variables and dependent variable. The

tool used is SPSS program 22.00 version. Here is the

result obtained from multiple regressions:

Table 1: Table R Square.

Summary Model

Model R

uare

Adjusted

R S

uare

Std. Error of the

Estimate

,847

,717 ,696 1,41887

a. Predictors: (Constant), UTILIZATION_ SOCIAL

MEDIA_SELF CONCEPT

R = 0.847 means that, the relationship between self-

concept and utilization of social media to interest in

entrepreneurship is equal to 84,7%. R square is equal

to 0,717 means that 71,7% from the interest in

entrepreneurship variable can be explained by self-

concept and the utilization of social media, while the

rest of 28.3% can be explained by the other factors.

By looking at the residual value of R square which

is big enough that is 28,3%, so actually there are many

other factors that influence the interest in

entrepreneur starting from internal factors such as

family background, willingness, ability and

knowledge. In addition, there are also external factors

that can affect the interests in entrepreneurship such

as subjective norms are individual beliefs to obey the

directions or suggestions of people around to

participate in entrepreneurial activity.

In table 2 above reveals that the value of F

arithmetic is 34,227 with a significant level of 0.000.

It shows that the influence of independent variables

in self-concept and the utilization of social media

simultaneously are significant to interest in

entrepreneurship.

Tabel 2: Tabel Anova.

ANOVA

Model

Sum of

Squares df

Mean

Square F

Sig

1 Regression

137,811 2 68,905 34,227

,00

Residual 54,356 27 2,013

Total 192,167 29

a. Dependent Variable: INTEREST IN

ENTREPRENEURSHIP

b. Predictors: (Constant), UTILIZATION_ SOCIAL

MEDIA

SELF CONCEPT

Soure: Data Processed (2018)

Table 3: Coefficients.

Coefficients

Model

Unstandardize

d Coefficients

Standardized

Coefficients

t Sig.B

Std.

Erro

Beta

(Const

ant

)

-,613

1,43

-,427 ,673

SELF

CONC

EPTS

,970 ,151 ,738 6,442 ,000

UTILI

ZATI

ON OF

SOCI

MEDI

,150 ,086 ,200 1,747 ,092

a. Dependent Variable: INTEREST IN

ENTREPRENEURSHIP

Source: Data Processed (2018)

Y = -613+0,970 X1+0,150 X2+e (2)

a. Self-concept variables have a positive and

significant effect to interest in entrepreneurship.

It is seen from the significance value of 0.000

<0.01 means that if the self-concept variable

increases by one unit then interest in

entrepreneurship will increase by 0.970 units.

The higher of the self-concept that an

entrepreneur possesses for his ability to be

entrepreneurship, has a firm belief in starting a

business, and mental maturity will be the greater

in the interest to become an entrepreneur.

Entrepreneurs who have positive self-concept

have great potential to succeed. The higher level

of self-concept, it means that the higher level of

The Inﬂuence of Self-concept and the Utilization of Social Media toward the Interest of Entrepreneurship amongst Female Small and

Medium Entrepreneurs in Medan Labuhan District

1577

interest in entrepreneurship. Entrepreneurs who

have high self-concept will be able to find his

identity and be able to convince himself that he

has the ability that can be developed, so

confidence will appear that he can do the

independent business without always relying on

others and always keep optimistic (Furhman in

Widodo, 2004).

This is in accordance with the results of

Rouf’s and Laily’s (2012) research which found

that self-concept significantly affects the

interest of entrepreneurship. To be able to

achieve success of entrepreneurship requires

self-concept in doing his job. The individuals

with positive self-concept will feel convinced

and confident that the effort and hard work will

bring success in the future (Ananta & Djalali,

2014).

b. The variable utilization of Social media has

positive and insignificant effect on

entrepreneurship intention. It is seen from the

significance value of 0.092> 0.01 means that if

the variable utilization of social media increases

by one unit then interest of entrepreneurship will

also increase by 0.150 units. This unsignificant

variable shows the utilization of social media

does not affect the interest of entrepreneurship.

This is due to the perpetrators of UKM female

have not been optimally utilizing the features

available in social media accounts to promote

goods/products to be sold. In addition, social

media is used more for non-productive activities

that are entertaining (entertainment), not to open

new opportunities. In today's digital era,

technological developments have made

consumer behavior changed and at the same

time it opens up new opportunities as well

(Kartajaya, 2008).

4 CONCLUSIONS

Based on the result of this research, it can be

concluded that: 1) Partially, self-concept and the

utilization of social media use have significant effect

to interest in entrepreneurship of female SMEs UKM

in Medan Labuhan. 2) Simultaneously the self-

concept has a significant effect on the interest in

entrepreneurship of UKM in Medan Labuhan, while

the variable utilization of social media has no

significant effect on the interest in entrepreneurship

of female UKM in Medan Labuhan.

Based on the conclusion of this research, it is

suggested that: 1) Entrepreneur must be able to

develop positive self-concept in order to be successful

in improving the attitude of self-acceptance, building

self-confidence and honeing ability to do what is

desired and establish relationship with others. 2)

Entrepreneur must utilize social media optimally for

entrepreneurship activities and able to open new

opportunities. Entrepreneurs should be wise to use

social media accounts not just for entertainment

alone. Entrepreneurs need to change more productive

behavior to promote goods/products to be sold.

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The Inﬂuence of Self-concept and the Utilization of Social Media toward the Interest of Entrepreneurship amongst Female Small and

Medium Entrepreneurs in Medan Labuhan District

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