The Intellectual Capital Model towards Optimizing the Performance of Informal Sector Entrepreneurs in the City of Medan

DOI

10.2991/aisteel-17.2017.91How to use a DOI?

Keywords

Human Capital, Social Capital, Organizational Capital, Entrepreneurship Orientation, Informal Sector

Abstract

This study aims to formulate a suitable model in developing the capacity of entrepreneurs in informal sector at Medan City. More specifically, the research conducted through several steps including 1) to identify the condition of human capital, social capital and organizational capital within informal sector entrepreneurs in Medan City as well as to determine their entrepreneurship orientation; 2) to propose the best fit model that enabling the entrepreneurs of informal sector in Medan city to optimize their performance by considering the condition of their current intellectual capital and entrepreneurship orientation. The research was carried out using ex-post facto approach. Data were collected using questionnaires. The sample of the research consists of 100 entrepreneurs involving in the informal sector in Medan which was categorized based on the location factor and the type of business they are being managed. Data analysis in this research uses descriptive analysis and hypothesis test using t test. The result of the t test shows that t-count for Hypothesis 1, 2 and 3 are 2.18; 1.99; 2.43 respectively and are significant with < 0.05. This data analysis result underlines that the human capital, social capital and organizational capital influence the entrepreneurship orientation of entrepreneurs of the informal sector in Medan city significantly. It can be concluded that the low condition of each human capital, social capital and organizational capital of informal sector actors have the potential risk of decreasing their orientation of entrepreneurship leading to their low entrepreneurship performance.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - La Ane
AU  - La Hanu
AU  - Sahat Siagian
AU  - Abdul Hamid K.
PY  - 2017/10
DA  - 2017/10
TI  - The Intellectual Capital Model towards Optimizing the Performance of Informal Sector Entrepreneurs in the City of Medan
BT  - Proceedings of the 2nd Annual International Seminar on Transformative Education and Educational Leadership (AISTEEL 2017)
PB  - Atlantis Press
SP  - 424
EP  - 429
SN  - 2352-5398
UR  - https://doi.org/10.2991/aisteel-17.2017.91
DO  - 10.2991/aisteel-17.2017.91
ID  - Ane2017/10
ER  -