INFLUENCE OF THE KEY SUCCESS FACTORS OF FEMALE ENTREPRENEUR'S TOWARDS BUSINESS PERFORMANCE IN JAVA URBAN AREA SME FOOTWEAR INDUSTRY

• Main Author: Jessie Melody, Aurelia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78643
• Institution: Institut Teknologi Bandung

Since the pre-1965 era, feminist movement makes a significant change through extensive female entrepreneurs that spread across all countries. In Indonesia, 43% from total formal SMEs are owned by female in 2013. Female’s SMEs have contributed about 9.1% country’s GDP, 20 to 30 million females classified capable to grow their business. Align with growth of female entrepreneurs, footwear industry becoming one of the promising choice for female entrepreneurs to start their business. From the book of Ministry of Trade, footwear industry production are worth 2.5 billion US dollars a year and employed about 440 thousand people. Even the female entrepreneurs are promising for economic growth, there are still limited data of their distribution in developing country like Indonesia. Hence, there is limited literature research that conducted in specific field industry such as footwear industry. So that, this empirical research is conducted to identify the correlation between key success factors of Indonesian female entrepreneur towards their footwear business performance. We specifically examine about 51 female entrepreneurs who have business in Indonesia’s SME footwear industry with domicile in Java region with snowball sampling method. Preliminary research conducted by pilot test to 30 respondents continued with questionnaire survey through targeted female entrepreneurs to understand related critical success factors and indicate the correlation with the business performance by multiple linear regression analysis. The contents of the questionnaire are list of indicators from independent variable from live balance, entrepreneurial ability, and managerial ability as key success factors and business performance based on compiled previous study that accompanied with 4-point Likert scale, where enable female entrepreneurs to determine their success factors and measure business performance through leadership result. The result of this research prove that key success factors significantly influence about 49.1% for the business performance of female entrepreneurs with statistically significant equation F(3,47)= 13.338, p<0.0005. Most key success factors that influence was only Managerial Ability with p- value 0.003<0.05 which lead to their performance improvement of business. So it is really important to develop the managerial ability of female entrepreneurs in footwear SME for a long run and sustainable business.