International Conference on Business and Management 2014 – Penang, Malaysia Page 1
Indigenous Entrepreneurship: The Social, Cultural and Economic Values
Influence the
Balinese’s
Entrepreneurial Development
Eristia Lidia Paramita
eristia.paramita@staff.uksw.edu
Faculty of Economics and Business, Satya Wacana Christian University, Salatiga, Indonesia
I Wayan Damayana
wdamayana@gmail.com
Dhyana Pura University, Bali, Indonesia
Christantius Dwiatmadja
christantius.dwiatmadja@staff.uksw.edu
Faculty of Economics and Business, Satya Wacana Christian University, Salatiga, Indonesia
Abstract
Culture is unique. The interaction between culture and conception of cultural dimensions allow to see greater complexity in relation to the other characteristics of the environment. In such a context, this study has not been made; especially engage the culture and customs typically in Bali. The
purposes of this research are to describe the perception of Balinese’s people on entrepreneurship; find
out the values of social, cultural and economic influence of the Balinese entrepreneurship; find the supporting and inhibiting factors in entrepreneurship (entrepreneurial) of Balinese.
The qualitative method was used. This study involved participants of Bali employers, traditional leaders as key informants related to indigenous entrepreneurship in Bali. Naturalistic observation and field research were used to obtain the data.
The findings showed that there were only a little numbers of Balinese entrepreneurs. Most of the activities conducted were influenced by the Balinese social and cultural values. According to the economics value, the entrepreneurs had the effort to achieve their best economics condition. The entrepreneurial of Balinese was still influenced by the social and cultural values.
Keywords: indigenous entrepreneurship, social value, culture value, Bali
BACKGROUND
Economic Resilience karma (residents) Bali is absolutely necessary for humans Bali. Because of this, empowering movement to further pursue the informal sector is very important, as well as to respond to the fact that "the Balinese sell land to buy meatballs, while newcomer sells meatballs to buy land". Cooperative Krama Bali is a place and move the human identity of steady economic Bali (Naradha: May 2002)
International Conference on Business and Management 2014 – Penang, Malaysia Page 2 loans, received overwhelming response and attracted a lot of manners to practice it. But after nearly 10 years running is not easy we meet again sellers meatballs, Coto, and manners Balinese satay, even by the centre-by Cooperative manners Bali in Kuta, has been occupied by merchants of the entrants.
Starting from the phenomenon, related to the gap theory of social construction of entrepreneurship, and has not been sufficient publicity involving cultural / traditional Balinese with regard to entrepreneurship. Although in general a lot of studies have shown variable has an influence on entrepreneurial culture, has even become a theory and models, but greater attention should be given to the interaction between cultural dimensions and conceptions which allows to see the other characteristics of the environment. This is the reason for doing this research.
The purpose of this study are to describe how society's view of Bali (Balinese) about entrepreneurship, knowing the values of social, cultural and economic influence entrepreneurial Bali, knowing the process of formation of entrepreneurial people of Bali, and describe the enabling and inhibiting factors in the (entrepreneurial) Bali.
LITERATURE REVIEW
The Importance of Entrepreneurship
In the early 20th century, entrepreneurship becomes an important role in economic development. Schumpeter (1934) said that if a country has a lot of entrepreneurs, the country has a high economic growth, which will bear the high economic development. Entrepreneurship is a driving force behind economic growth. Further, Kirzner (1973) says that entrepreneurship is an important part in the development.
International Conference on Business and Management 2014 – Penang, Malaysia Page 3 economic growth, formulating new economic combination by (1) developing new products; (2) developing new sources of materials; (3) accumulating capital resources; (4) introducing new products and new production functions; and (5) developing or reorganizing a new industry.
Entrepreneurship was also very instrumental in the development of SMEs. Past research has shown, small industrial low performance due to several factors such as lack of entrepreneurial characteristics (entrepreneurial poor). Entrepreneurship becomes a driving force that plays a role in the construction industry. Entrepreneurship can also directly influence the performance of the business. Baum et al. (2001) says that the nature of a person (which can be measured from the link in the face of problems, proactive attitude and passion in work), general competencies (which can be measured from the organizational skills and the ability to see opportunities), its specific competencies such as industry expertise and technical skills, and motivation (which can be measured from the vision, objectives and growth of self efficacy), positively influence the growth of the business. Similar to Baum et al. (2001), Lee and Tsang (2001) concluded that the entrepreneurial elements such as internal locus of control, need for achievement, extroversion, education and self reliance experience affect business growth.
According to behavioural experts (behaviourist), entrepreneurship is very instrumental in the success of a person (Kets de Vries, 1977). Someone who has a high entrepreneurial and managerial capabilities combined with sufficient will lead him to success in his business (Priyanto, 2006). Entrepreneurship is also instrumental in developing a person that has want to maximize economic achievement (Mc Clelland, 1976) and causes a person could stand the test, be flexible, trustworthy, able to overcome his problems. Meanwhile Barkham, 1989; Pollock, 1989 in Ghosh (1999) says that the skills, attitude and information search market is a factor that contributes to the success of the company.
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Entrepreneurship
The long history of the meaning of entrepreneurship has been done. Starting from the 11th century, the meaning of entrepreneurship is merely "to do something" and yet has an economic dimension. Further, it has known as entrepreneurship. In the 13th century, the meaning of entrepreneurship means adventurer or an undertaker, which means adventurous and brave. Making of entrepreneurship continues to grow. So that, in the 17th century, it comes the meaning of improving the economics of entrepreneurship as developed by Say and Cantillon. In the 18th century, Say continued exploration of the meaning of entrepreneurship as an activity to carry and bring together the factors of production to be processed into the production that has value.
Entrepreneurship is the personal development of the individual to be able to have creative, innovative, dare to try, independently and desire to move forward which enabled him to collaborate with others and develop their business. Meanwhile, Stevenson (1983) also distinguishes between entrepreneurship definition entrepreneurship, and business managers. All three are different but it could be a close connection to run a business. According Priyanto (2005), the success of a business can be achieved if employers have an entrepreneurial spirit and capacity management together. Making of entrepreneurship developed by Saint Louis University (1994) provide a more holistic meaning associated with the definition of entrepreneurship.
“The combination of skills, aptitudes and attitudes within individuals resulting in new
ideas, innovations, and the ability to turn opportunities into reality through the creation
of new ventures. The best entrepreneurs invent new ways to live, work, and achieve. Successful entrepreneurship blends independence and collaboration, vision and action,
the individual and the community”.
International Conference on Business and Management 2014 – Penang, Malaysia Page 5 deal-making or negotiation, logical or analytical thinking, decision-making and goal-setting, also business plan preparation.
Entrepreneurial Learning
In the learning cycle theory, Munford (1995) states that the learning gained from the process of learning on the experience gained in the daily activities and then summed into the concept and value system that is used for future success. Hall (1996a) states that in the short term learning will change a person's attitude and performance, while in the long run be able to nurture a person's identity and power adaptability is very important for its success.
Cope and Watts (2000) states that the critical incident (critical-incident) experienced entrepreneurs in their daily business activities contain a very high emotional content and a high level of learning. Moreover, the importance of mentoring (mentoring) to interpret critical events encountered as learning, so that learning becomes effective results. Sullivan (2000) emphasizes the importance of client-mentor matching the success of coaching. He said that the knowledge, skills, and learning can be facilitated when needed entrepreneur. Having regard to the level of entrepreneurial life cycle. Furthermore, Rae (2000) illustrates that the development of entrepreneurial skills is influenced by motivation, individual values, abilities, learning, relationships, and goals he wants. Meanwhile Minniti and Bygrave (2001) prove the dynamic model of entrepreneurial learning, entrepreneurial failure and success that will enrich and renew the stock of knowledge and entrepreneurial attitude so that he becomes more capable in entrepreneurship.
In connection with efforts to maintain the business, an entrepreneur needs a strong positioning strategy and consistent in a dynamic competitive environment. This requires a continuous improvement to manage change is to be effective so it requires a learning process both single-loop learning to strengthen the current position and double-loop learning to find sturdy foundation to build competitive advantage.
Whittlesea and Wright (1997) states that the accumulation of learning is one of the intangible assets that make the capability of individuals or companies that cannot be replicated (inimitable), especially the subtle technical knowledge (tacit knowledge).
International Conference on Business and Management 2014 – Penang, Malaysia Page 6 experts on entrepreneurial learning (Rae, 2000; Minniti and Bygrave, 2001), the process of education and training (Ulrich and Cole, 1987; Robinson and Sexton, 1994; Gibb, 1997; Leitch and Horrison, 1999) and entrepreneurial learning from experience (Henderson, 1993; Rae, 2000; Cope and Watts, 2003). Learning can be seen as a process of change and the creation of knowledge, skills, attitudes and abilities of an entrepreneur, whether through education, training, mentoring, or experience.
Entrepreneurial learning has positive effect on entrepreneurial competencies and business growth. This suggests that entrepreneurial learning is performed and experienced by small entrepreneurs in East Java leads directly to efforts to overcome the technical problems of everyday (tacit knowledge) in an effort to grow their business, not rambling on as many of the theoretical aspects discussed by experts.
Culture and Entreprenuership
Lambing and Kuehl (2000) state that someone level of entrepreneurship varies greatly according to its cultures. The impact of culture and customs can be found in several studies that show that different cultures have different values and beliefs as well. For example, the Japanese have the achievement-oriented cultures that help an entrepreneur in running his business so successful.
Culture also affects the image and status of the entrepreneur. One study of immigrant entrepreneurs in Canada found that the Indian view that entrepreneurship is something positive but otherwise Haiti respondents tend to see that entrepreneurship is a low job. In Indonesia too, the work of civil servants, office workers have seen the value of a higher status than the merchant or businessman.
International Conference on Business and Management 2014 – Penang, Malaysia Page 7 Based on several studies, it can be stated that there is a relationship between the entrepreneurial culture (Gamage, Cameron and Woods, 2003; Kreiser, Marino, Weaver, 2003). Saffu (2003) conducted a study on the role of culture on entrepreneurship. They say that culture has an important role in developing entrepreneurship, both local and national culture.
METHODS
A qualitative research is utilized in this study. This study involved participants of Bali employers, traditional leaders as key informants related to indigenous entrepreneurship in Bali. Naturalistic observation and field research were used to obtain the data. They were asked several questions related to the research questions. Content analysis and triangulation applied to analyze the data.
DISCUSSION
Balinese’s Point of View about Entrepreneurship
Balinese community are too complacent and belog ajum (attitude despite losing flattery) in the tourism industry and the flattery as an artist. As a result, most of the people do not have the skills and professional competence in the informal sector. The opportunities that available are filled by immigrants. The entrants traded on the sidewalk, set up a tent in the terminal merchandise, carrying his wares around the village. The goods are sold, such as meatballs, corn on the cob, fried bananas and even pecel lele that should be sold by the Balinese. The entrants who controlled the informal sector are ranging from roadside stalls, either wagon or semi-permanent use, not only in the city of Denpasar, but also in the whole of Bali.
International Conference on Business and Management 2014 – Penang, Malaysia Page 8 Lack of krama Bali involves in informal businesses such as opening a food stall, Jinggo rice; Bali but manners are more likely to buy food at informal businesses run by immigrants and happen to have a famous name. In contrast, the newcomers are very rarely wanted to shop in an informal enterprises (particularly food stalls) managed manners Bali for doubting halal food being served.
On the other hand, the tendency of the Balinese choose a job, which means not all the jobs will be taken, especially in the informal sector employment is fairly rough. Emptiness is the informal sector which is then taken and filled by immigrants. For example, a variety of jobs such as masons, carpenters dig roads, street vendors, barbers - everything is tenacious and creative exploited by immigrants as job opportunities, while the original Balinese people embarrassed and prestige. Krama Bali are less nimble in competing with entrants, other than because of the prestige, also confines of tradition, so there are anxiety eliminating or cutting tradition.
Knowing the Social, Cultural and Economic Values that Influence Entrepreneurial Bali
Bali Ajeg concept has been the basis for building a new economic concept (sort of Sharia Hindu), to strengthen the Hindu society economy and able them to compete with the newcomers. From this, it was born the concept of cooperative programs Karma Bali in May 2002 in order to establish revive the economy of the people of Bali (Balinese), thus empowering Ajeg Bali stronger. Karma Bali is an institution engaged in the field of entrepreneurship for people who only have limited capital. Karma Bali is called to embody the ideals and aspirations of manners Bali to find themselves. With the Karma Bali is expected to become the pillars of the economic revival of the people of Bali, so Ajeg Bali stronger and able to establish the identity of the bull Bali Krama economic resilience and social culture (Kiswardi 2006: 13).
Karma Bali program is prioritized to the local residents. Local residents are encouraged to pursue the informal sector, such as handicrafts, barbers, and electronics stores. The efforts to provide convenience for local residents in trying apparently accompanied by a variety of restrictions and discrimination against immigrants. Mariyah (2006 in Suryawan 2009: 140) notes that restrictions for immigrants, especially street vendors not to sell in certain places or there is extortion by Pecalang, in addition to official fees paid every day.
International Conference on Business and Management 2014 – Penang, Malaysia Page 9 Bali is rich in valuable cultural values, religion and harmony. This is not out of the basic potential contained in the basic concepts underlying building structure and culture of Bali (Mantra, 1996: 25-26; Mantra 1990: 41-42; Sulistyawati 2008: 50-51) as follow.
First, the RWA-bhineda. This concept is a two-lists and in life there are always two opposing categories, which is good and bad, sacred and profane, upstream and downstream. His influence in life is dynamic and the receipt of reality and cause the fight to go good. Literally, it defined as two different things, namely goodness (dharma) and bad (adharma). Balinese people believe that good will always win against evil. In practice, the meaning of evil and goodness is shown from Balinese cloth colour checked black-and-white chess, where the two colours are placed alternately. This shows that the Balinese recognition both of these will always be present in human life. In addition, also be interpreted as recognition of the people of Bali will be the difference, pluralism, and multiculturalism in terms of social structure and attitudes toward immigrants and others (Parimartha 2003 in Zuhro et al 2009: 208).
Secondly, Desa, Kala, Patra and Desa Mawa, Cara. Desa Kala Patra is the concept of space (desa), time (kala) and the real situation on the ground (patra); adjust to the circumstances and time in dealing with problems. This shows the acceptance of the fact of life that in the presence of diversity or uniformity in unity. This concept provides the basis flexible in its communication to the outside and into and accepts differences and variation by a factor, the time and circumstances. In other words, this concept led to the culture of Bali is flexible and selective in accepting and adopting external cultural influences. While the concept of desa mawa shows that the Balinese way acknowledge differences in the behaviour of habitual or customary every village and every citizen of Bali is therefore called upon to act in accordance with the place where it is located. It leads to an initial understanding of openness and tolerance embedded in the culture of Bali.
Third, Tri Hita Karana (Tri: three, Hita: happiness and karana: cause). Tri Hita Karana
International Conference on Business and Management 2014 – Penang, Malaysia Page 10 Fourth, Tatwamasi. It means I was you, you are me. Humans are intrinsically one, thus hurting the other person the same as hurting yourself. Fifth, Karmapala. That is, the result of an act. An outlook and belief that every act must bring certain results. Who would dare to do anything, he himself will get results. Sixth, Taksu. Taksu is power in which the members of intelligence, beauty and miracles. In relation to the activity of Balinese culture, creativity taksu
meant as a pure culture (genuine creativity) which gives spiritual power to one of the artist to express himself larger than his daily life
CONCLUSION
Based on the findings, we concluded that karma Bali less nimble in competing with entrants, other than because of the prestige, also confines of tradition, so there are anxiety eliminating or cutting tradition. They do not have a strong passion to be an entrepreneur. If it happen, there are only a little number of Balinese entrepreneur. Most of the activities conducted were influenced by the Balinese social and cultural values. According to the economics value, the entrepreneurs had the effort to achieve their best economics condition. The entrepreneurial of Balinese was still influenced by the social and cultural values.
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