Business Clinic Program Analysis on Increasing the Income of Small

Entrepreneurs in Tebing Tinggi

M. Umar Maya Putra and Windy Aginta

Department of Management, Universitas Al Azhar, Jl. Pintu Air IV No. 214, Medan, Sumatera Utara, Indonesia, 20142

Keywords: Business, Income, Innovation, Tebing Tinggi

Abstract: The research originated from the concept of innovation carried out by MSMEs (Micro, Small and Medium

Enterprises) which was determined by the quality of human capital and the relationship between the

government and the world of education in the business world. Quality Human Resources (HR) can be the best

solution for managing a business through a business plan fostered by the government in Tebing Tinggi City.

It aims to analyze the opportunities of the programs that have been implemented in the form of

entrepreneurship training, business capital assistance, roadshow study tours and marketing through business

exhibitions as the dependent variables in increasing the income guided by the Business Clinic (KLIBI) Tebing

Tinggi. The method used is Descriptive and quantitative one used to analyze and describe the data that has

been collected. Probit Model gives the result in the opportunities of training and marketing through exhibition

as the significant factors as well as capital and tour study for the insignificant factors. Its journey can give the

high impact in the business factor and location empowerment for its MSMEs in Tebing Tinggi.

1 INTRODUCTION

Tebing Tinggi is dominated as majority by

settlements (53.32%) followed by agriculture

(29.66%). This condition provides a potential for

housing development. However, this area has also

considerable for other sectors such as small industry

(https://tebingtinggikota.bps.go.id, 2017). The

progess of small industry can be the alternative to

make the best business factor in making the best local

empowerment.

If we study the MSMEs movement in making the

improvement in the local area, the entrepreneurship

training is to set to make the empowerment, then the

skillful attitudes can create the dependence in absorb

the job seeker in private sector as the government

program for citizen, especially in terms of financial

ability to get the victory movement in the sustainable

business (Syarifah & Putra, 2017).

Tebing Tinggi had the business clinic called

Klinik Bisnis (KLIBI) Tebing Tinggi, which had been

made by the government program as well as the

university research for business. It had the best

program from 2013 to 2015 to make the business

breakthrough in making the best result for Asean Free

Trade Are that combined the business actors around

Tebing Tinggi to make the good mentality business.

Business education can make the good mentality

and local wisdom culture. It has the research

performance in improving the MSMEs to make the

best result in social economic strength and get many

absorbtion for the job seekers. The area community

will be got into the qualified product with

comprehensive research (Bati,et al, 2018).

As the Good mentality in the business area, it

make the local landscape. The citizens will be created

not only to consume but also produce the product

based on the talent ability. They will get the best

performace in making the best abilty in technology in

getting the mileneal consumers.

A good approachment in empowering them will

get the young generation need. They presented with

innovative products with social media such as

youtube, instragram, facebook and etc that can get

them in a whole day selling with the efficient cash out

(Malawat & Putra, 2019).

Based on data explained with rapid development

of the trade sector in Tebing Tinggi City, researchers

are interested in taking some indicators to consider

the income of MSMEs in Tebing Tinggi City from the

Program implemented the Business Clinic Tebing

Tinggi so the we take the title "Business Clinic

Program Analysis On Increasing The Income Of

Small Entrepreneurs In Tebing Tinggi ". The main

296

Maya Putra, M. and Aginta, W.

Business Clinic Program Analysis on Increasing the Income of Small Entrepreneurs in Tebing Tinggi.

DOI: 10.5220/0009202802960300

In Proceedings of the 2nd Economics and Business International Conference (EBIC 2019) - Economics and Business in Industrial Revolution 4.0, pages 296-300

ISBN: 978-989-758-498-5

issues that will be analyzed are the extent to which the

KLIBI Tebing Tinggi Program is developing to create

the high income probablity for MSMEs.

2 LITERATURE REVIEW

2.1 Business Factor

The level of risk of work in the MSMEs is greater

than other industries which require employees to have

a high focus of their safety and need to make their

own stategy in business (Siagian & Putra, 2019).

The growth of MSMEs in the past monetary

crisis, has no effect of large ones especially about

exports focus. They get difficulty in competing in

reasonable economic conditions. It can be seen from

2007 to 2011 although there is an increase of export

amount is less result, They are important to face the

business level of the development in facing the

globalization era (Dilham & Putra, 2017).

Business ethics is necessary in getting many

customers. They will give the business result to as the

need for a best based on Research and Development

(R & D) program continuously so that it can develop

well in running the community ( Wahyuni & Putra,

2017).

There is a probabilty for human capital has a

significant factor the make the best target in

corporation. It is important to map the feasibility

study in order to be suitable in making their business

impact (Malawat & Putra, 2018).

2.2 Location Empowerment

Realizing the best target of the company that can be

connected with the local people who later also

improved to the location prosperity. The main focus

is to make the MSMEs elements to improve the

process of community approachment (Putra & Ami,

2017).

The role of university approachment in

community, it can improve a social economic

condition that can empower the region strength. With

the information obtained programmatically, that

some things for socioeconomic mapping has

decision- programmed with the structure of society

(Dilham & Putra, 2016).

The creative business start ups are necessary in

making the best capacity in making the economic

growth. The action in mapping the research and

development (R&D) about creating the new product,

will improve the employment productivity during the

best movement the newest firms in the local area

(Stam & Wennberg, 2009).

A strategy for making the best workforce to drive

best target for the corporates has become a best

activity. Firms will make the breakthrough

approachment. Human capital feasibilty mapping

programmes not only getting the best business targets

but the best result for the sustainable action (Maran,

et al, 2009).

3 METHOD

The population was taken for KLIBI-assisted

MSMEs in Tebing Tinggi as many as 221 assisted

MSMEs began from 2012 to 2017. For the sample,

the researchers selected MSMEs samples based on

considerations believed in purpusive ones to

represent all units analysis of their activities in

conducting business supervision/mentoring in

improving entrepreneurship education, borrowing

funds by getting closer to the state-owned enterprises

as well as directed entrepreneurial exhibitions so that

the researchers set 100 MSMEs.

The data used is primary one from the results of

questionnaires and interviews related to all variables

of MSMEs in Tebing Tinggi, while the secondary one

is obtained from the general description of the results

of library studies used as supporting theories relevant

to the research. Descriptive analysis method is used

by analyzing what has been collected to be able to be

described to to see the truth as general generalization.

The quantitave analysis is used with the probit

model based on the assumption that the dependent

variable studied follows the normal cumulative

distribution of the normal cumulative distribution

function. It is a probability unit make the normal

probability distribution. The form of the probit model

Y = βj

+ βj

+ e

The parameter estimation method used for its

regression analysis is the same as that used by logistic

regression analysis using e-views 4 which can be

translated: increased msmes income

MSMEs Income = βj

+ βj

Training +

βj

Capital + βj

Tour Roadshow Study +

βj

Marketing + e

The hypotesis test that can be explained such as:

1. The Goodness Of Fit test used the likelihood Ratio

(LR) statistics test, which is a statistical test that

tested the combined hypothesis of all slopes that

Business Clinic Program Analysis on Increasing the Income of Small Entrepreneurs in Tebing Tinggi

297

the magnitude is all zero except for the constant

of the results.

2. The Z test to test partially with alpha 5% (005)

where the probability. (Z Statistic) < alpha, there

are significant results but probability (Z Statistic)

> from alpha level, then there are no significant

result of the independent variable on the

dependent variable.

3. McFadden Determination Coefficient (R

) is to

measure how far the ability of the model can

explain the dependent variable by calculating the

coefficient with a value of 0 <R

<1.

4 RESULTS AND DISCUSSION

4.1 Descriptive Analysis

KLIBI Tebing Tinggi is an entrepreneurship coaching

clinic as a solution for all MSMEs in Tebing City that

have problems in increasing it. A union among

MSMEs, the government and other external parties is

needed to be able to increase the market share to lead

the competition. It was a formation initiated by the

Mayor of Tebing Tinggi Bpk. Mr. Ir. Umar Zein

Hasibuan with the collaboration was formed between

Trade Service Officer in Tebing Tinggi as well as the

Faculty of Economics and Business, University of

Sumatra in 2013. It is expected to be able to provide

a new repertoire in the quality of product, packaging,

and marketing until the concept of online trading is

made which presents the superior product of Tebing

Tinggi.

Its Journey is effectively run from 2013 to 2015

with collaboration with Faculty of Economics and

Business, University of Sumatra. In 2016 until 2017,

It is run autonomously by the trade service of Tebing

Tinggi.

4.2 Quantitative Analysis through

Probit Model

The programs are carried out by KLIBI to develop its

members through training on MSMEs incorporated

such as Business Training in all modern aspects until

later they will visit culinary tours in other cities to see,

feel and assess, how all marketing concepts are made

in the city so that it can provide inspiration to improve

business innovation. The partnership pattern will be

formed through collaborative activities between

entrepreneurs who have been successful in doing

business and also other entrepreneurs who want to

collaborate with entrepreneurs in Tebing Tinggi as

many as 100 assisted focus and give the probit result

is :

MSMEs Income = -13,5961 + 0,901843Training +

0,139481Capital + 0,172254Tour Roadshow Study

+ 1,069491βj

Marketing + e

Table 1. Probit Model Analysis Results From E Views 10

The model estimation results in the table obtained

LR Statistic of 30.46220 with the goodness of fit or

probability (LR Statistic) of 0.000004. It infomed that

that the independent variables are among training,

capital, tourstudy and marketing affected the

dependent one that is MSMEs income.

From the results of Partial Z test explained that

independent ones on the dependent one that :

1. Training has both value and regression coefficient

of z statistic : 0,901843 with probability: 0.0441

which gives significant value at the level of α =

5% or 0,05.

2. Capital has value and regression coefficient of z

statistic: 0.139481 with probability: 0.3476 is not

significant at the level of α = 5%

3. The tour study has value as well as regression

coefficient : 0.172255 with probability: 0.3607

which results no significant on the level of α = 5%.

4. Marketing has both value and regression

coefficient of z statistic: 1.069491 with with

probability 0.0054 which gives significant effect

on the level of α = 5%.

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The coefficient of mc fadden determination (R

)

is used in the rate of 0.930000 or 93 % to analyze how

many contributions of independent variable such as

training, capital, tour study and marketing can

simultaneously explain dependent variable that is

MSMEs then 7 % is explained other variable which

can be added later.

4.3 Discussion

According to the descriptive and quantitative result in

the year 2013 until 2017, it can be said that there are

two variables that give the significant factors for

increasing the MSMEs Income such as :

1. Training. The average of the KLIBI MSMEs

income is giving the duration from 8 until 10

times as the education target for entrepreneurs for

getting the soft as well as hard skill to make them

high focus of their safety and need to compete

each other. As the business factor, The R&D must

be the real target to improve the business etichs in

getting the market share and feasibility target. The

contidition of this variable is similar to the

empirical theory of (Siagian & Putra, 2019),

(Dilham & Putra, 2017), (Dilham & Putra, 2017),

(Malawat & Putra, 2018).

2. Marketing. The best target of the company that

can be joined with location empowerment. In

getting the mind of market in community must be

related to the good marketing strategy. Social

economic condition can increase in the

employment productivity during the penetration

its capacity. The strength in human capital in

getting the market knowledge can be gained with

the duration of 4 until 7 times as the marketing

strategy in exibition around inner or outer Tebing

Tinggi with the best innovative product. The idea

of reasearch is the same as (Putra & Ami, 2017),

(Dilham & Putra, 2016), (Stam & Wennberg,

2009), (Maran, et al, 2009).

However, in the research, there are two

insignificant variables that must be improve as the

business and location factor, such as:

1. Capital. It is one of the insignicant one that must

be focused in getting in the level industries so that

it requires employees in Tebing Tinggi. The

donation got from the Trade Service Officer In

Tebing Tinggi. It can give around 8 until 10

Millions Rupiahs. The entrepreneurs don’t need it

anymore because they can manage their company

professionally. It is one of their strategy to get the

high penetration of business, but they can allocate

it well because they need the coaching as business

education. It can make the good character of their

location empowerment. A good approachment in

coaching them will make the area contribution for

economic development. The analysis is similar to

the idea of (Siagian & Putra, 2019), (Syarifah &

Putra, 2017), (Bati,et al, 2018), (Malawat & Putra,

2019).

2. Tour Study. Realizing for the best community in

one of the area must be done the inspiration

business for the best one to arrange it. As the The

role of academic role to run it, it can offer the

company to give the education directly through

road show in all over areas. the Faculty of

Economics and Business, University of Sumatra

in 2013 gives the business connection tour

duration from 2 until 8 times to visit some

innovative home industry in Medan. The random

frequency must be improved for the next program

so that it can give the best effect in market

contribution. The concept of research is the same

as (Putra & Ami, 2017), (Dilham & Putra, 2016),

(Stam & Wennberg, 2009), (Maran, et al, 2009).

5 CONCLUSIONS

Based on the discussion, it can be concluded that :

1. KLIBI Tebing Tinggi is an entrepreneurship

coaching clinic as a solution for the problem for

getting the income probability for its member as

many as 100 for the assiting focus.

2. There are two significant factors that can improve

the income probability for its member such as

training and marketing throuh exhibition.

3. For the insignificant factors for increasing the

income probability such as capital and tour study.

4. The probit model shows that the goodness of fit

gives the high probability for all varibles such as

training, marketing, capital and tour study.

5. The contribution of independent ones can

influence dependent one with the highest range

untul 93%.

6. Its progress from 2013 to 2017 can increase high

income probablity for MSMEs as the focus in

business factor and location empowerment.

ACKNOWLEDGEMENTS

The authors gratefully acknowledge that the research

is a Beginner Lecturer Research scheme funded by

the Directorate of Research and Community Service,

Directorate General of Strengthening Research and

Development of the Ministry of Research,

Business Clinic Program Analysis on Increasing the Income of Small Entrepreneurs in Tebing Tinggi

299

Technology and Education in 2018 in accordance

with the Research Contract Number :

T/44/L1.3.1/PT.01.03/2019

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