Effect Of Leadership And Entrepreneurial Knowledge On Business Success (Case Study On UKM Business On Jl. Dr. Mansyur)

Feb 27, 2025 by ADMIN 119 views

Effect of Leadership and Entrepreneurial Knowledge on Business Success in UKM on Jl. Dr. Mansyur

Introduction

In today's competitive business environment, small and medium-sized enterprises (SMEs) face numerous challenges in achieving success. One of the key factors that contribute to the success of SMEs is the leadership and entrepreneurial knowledge of their owners and managers. This study aims to explore the influence of leadership and entrepreneurial knowledge on business success, particularly in SMEs located on Jl. Dr. Mansyur. Through associative research methods, data were collected through interviews, questionnaire distribution, and documentation studies. The sample used in this study consisted of 63 SMEs in the region. To analyze the data collected, SPSS software was used, with descriptive analysis and hypothesis testing using multiple regression analysis.

The Importance of Leadership in SMEs

Leadership is a crucial factor in the development and success of SMEs. A good leader has the ability to motivate the team, make the right decisions, and establish good relations with customers and business partners. Effective leaders are able to create a positive work environment, which can encourage innovation and creativity in business operations. In the context of UKM on Jl. Dr. Mansyur, leaders who have strong leadership skills tend to be more successful in managing teams and responding to market changes. They are also better able to face challenges and find solutions to the problems faced. This leads to increasing business productivity and competitiveness.

Leadership Analysis in the Context of UKM

Leadership is a key factor in the development and success of SMEs. A good leader has the ability to motivate the team, make the right decisions, and establish good relations with customers and business partners. Effective leaders are able to create a positive work environment, which can encourage innovation and creativity in business operations. In the context of UKM on Jl. Dr. Mansyur, leaders who have strong leadership skills tend to be more successful in managing teams and responding to market changes. They are also better able to face challenges and find solutions to the problems faced. This leads to increasing business productivity and competitiveness.

The Role of Entrepreneurial Knowledge in Business Success

In addition to leadership, entrepreneurial knowledge is also an important pillar for business success. This knowledge includes an understanding of business strategies, financial management, marketing, and product innovation. UKM which is equipped with adequate entrepreneurial knowledge has a greater opportunity to adapt and survive in a competitive business environment. In the results of this study, it can be seen that SME owners who have knowledge about entrepreneurship are better prepared to make the right decisions, such as adjusting products to market needs or utilizing technology for operational efficiency. With sufficient knowledge, they can also manage risk better, which in turn will support the success of the overall business.

The Importance of Entrepreneurial Knowledge in UKM

Entrepreneurial knowledge is essential for SMEs to succeed in a competitive business environment. This knowledge includes an understanding of business strategies, financial management, marketing, and product innovation. UKM which is equipped with adequate entrepreneurial knowledge has a greater opportunity to adapt and survive in a competitive business environment. In the results of this study, it can be seen that SME owners who have knowledge about entrepreneurship are better prepared to make the right decisions, such as adjusting products to market needs or utilizing technology for operational efficiency. With sufficient knowledge, they can also manage risk better, which in turn will support the success of the overall business.

Conclusion

From the results of research conducted on UKM on Jl. Dr. Mansyur, it can be concluded that effective leadership and good entrepreneurial knowledge contribute to each other in achieving business success. Both of these factors not only affect simultaneously, but also have an individual significant impact. Therefore, the development of leadership capabilities and increasing entrepreneurial knowledge must be the main focus for SME owners and managers. With the right steps in these two aspects, UKM on Jl. Dr. Mansyur can increase their chances of success and develop in the long run.

Recommendations

Based on the findings of this study, the following recommendations are made:

Develop Leadership Capabilities: SME owners and managers should focus on developing their leadership capabilities, including communication, decision-making, and problem-solving skills.
Increase Entrepreneurial Knowledge: SME owners and managers should also focus on increasing their entrepreneurial knowledge, including business strategies, financial management, marketing, and product innovation.
Provide Training and Development Programs: SME owners and managers should provide training and development programs for their employees to enhance their leadership and entrepreneurial knowledge.
Encourage Innovation and Creativity: SME owners and managers should encourage innovation and creativity in their business operations, including product development and marketing strategies.

Limitations of the Study

This study has several limitations, including:

Sample Size: The sample size of this study was limited to 63 SMEs in the region.
Data Collection Method: The data collection method used in this study was limited to interviews, questionnaire distribution, and documentation studies.
Time Frame: The time frame of this study was limited to a specific period, which may not be representative of the overall business environment.

Future Research Directions

Future research should focus on the following areas:

Longitudinal Study: A longitudinal study should be conducted to examine the impact of leadership and entrepreneurial knowledge on business success over a longer period.
Large-Scale Study: A large-scale study should be conducted to examine the impact of leadership and entrepreneurial knowledge on business success in a larger sample size.
Mixed-Methods Study: A mixed-methods study should be conducted to examine the impact of leadership and entrepreneurial knowledge on business success using both qualitative and quantitative methods.

Conclusion

In conclusion, this study has provided evidence that effective leadership and good entrepreneurial knowledge contribute to each other in achieving business success. Both of these factors not only affect simultaneously, but also have an individual significant impact. Therefore, the development of leadership capabilities and increasing entrepreneurial knowledge must be the main focus for SME owners and managers. With the right steps in these two aspects, UKM on Jl. Dr. Mansyur can increase their chances of success and develop in the long run.
Frequently Asked Questions (FAQs) on the Effect of Leadership and Entrepreneurial Knowledge on Business Success in UKM on Jl. Dr. Mansyur

Q: What is the main focus of this study? A: The main focus of this study is to explore the influence of leadership and entrepreneurial knowledge on business success, particularly in SMEs located on Jl. Dr. Mansyur.

Q: What are the key factors that contribute to business success in SMEs? A: The key factors that contribute to business success in SMEs are effective leadership and good entrepreneurial knowledge.

Q: What is the role of leadership in business success? A: Leadership is a crucial factor in the development and success of SMEs. A good leader has the ability to motivate the team, make the right decisions, and establish good relations with customers and business partners.

Q: What is the importance of entrepreneurial knowledge in business success? A: Entrepreneurial knowledge is essential for SMEs to succeed in a competitive business environment. This knowledge includes an understanding of business strategies, financial management, marketing, and product innovation.

Q: How can SME owners and managers develop their leadership capabilities? A: SME owners and managers can develop their leadership capabilities by focusing on communication, decision-making, and problem-solving skills.

Q: How can SME owners and managers increase their entrepreneurial knowledge? A: SME owners and managers can increase their entrepreneurial knowledge by focusing on business strategies, financial management, marketing, and product innovation.

Q: What are the benefits of providing training and development programs for employees? A: Providing training and development programs for employees can enhance their leadership and entrepreneurial knowledge, leading to increased business productivity and competitiveness.

Q: How can SME owners and managers encourage innovation and creativity in their business operations? A: SME owners and managers can encourage innovation and creativity in their business operations by providing a positive work environment, encouraging experimentation, and recognizing and rewarding innovative ideas.

Q: What are the limitations of this study? A: The limitations of this study include a small sample size, limited data collection methods, and a limited time frame.

Q: What are the future research directions? A: Future research should focus on conducting a longitudinal study, a large-scale study, and a mixed-methods study to examine the impact of leadership and entrepreneurial knowledge on business success.

Q: What are the implications of this study for SME owners and managers? A: The implications of this study for SME owners and managers are to focus on developing their leadership capabilities and increasing their entrepreneurial knowledge to achieve business success.

Q: What are the implications of this study for policymakers and regulators? A: The implications of this study for policymakers and regulators are to provide support and resources for SME owners and managers to develop their leadership capabilities and increase their entrepreneurial knowledge.

Q: What are the implications of this study for researchers? A: The implications of this study for researchers are to conduct further research on the impact of leadership and entrepreneurial knowledge on business success, using a variety of research methods and designs.

Conclusion