Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
How Entrepreneurial Competence and Leadership Style Affect Business Performance Nining Yuningsih*1.
Ilham Muhammad Mardi Putra2.
Pupung Purnamasari3.
Dian Rachmawati Afandi4 Universitas Pelita Bangsa.
Indonesia*1234 yuningsih@pelitabangsa.
id*1, ilham.
mm@pelitabangsa.
pupungpurnamasari@pelitabangsa.
id 3, siska_tita@pelitabangsa.
Abstract: This research is based on the importance of entrepreneurial skills and leadership style in influencing business performance, especially for women In the age of globalization and increasingly intense competition, women entrepreneurs must possess sufficient skills and apply efficient leadership styles in order to achieve the best business outcomes.
The purpose of this study is to determine the extent to which entrepreneurial skills and leadership styles impact the business performance of women entrepreneurs.
This study involved women entrepreneurs in Bekasi district with 100 respondents randomly selected as the research sample.
Information was collected using a questionnaire and analyzed using the Smart PLS (Partial Least Square.
technique to test the research model and hypotheses.
The analysis found that entrepreneurial ability and leadership style have a major impact on firm performance.
The entrepreneurial capability has been shown to make a significant contribution to improving operational efficiency and the ability to innovate, while a flexible and inspiring leadership style is able to improve team motivation and performance.
It was found that it is important for women entrepreneurs to develop appropriate competencies and leadership styles to support their business success.
Keywords: Business Performance.
Entrepreneurial Competencies.
Leadership Style.
Women Entrepreneurs INTRODUCTION Based on data obtained from the Ministry of Cooperatives and MSMEs, by 2023 there will be around 65.
5 million businesses, an increase of 1.
7% when compared to the previous year (Kemenkopukm, 2.
Of this number, 64 percent are owned and led by women, which amounts to 40.
9 million MSMEs.
According to the Global Entrepreneurship Index.
Indonesia ranks 5th in ASEAN and 75th in the world.
Indonesia's ranking is still below some ASEAN countries, the closest being Singapore 7% entrepreneurs.
Thailand and Malaysia ranked above Indonesia.
However, the Ministry of Cooperatives and Small and Medium Enterprises (KemenKopUKM) is pushing the start-up growth target in 2024 to 3.
95% or 4%.
The presence of women entrepreneurs in MSMEs is an inevitable fact in the economy of the majority of Indonesia's population.
The role of women in the MSME sector is generally related to trade and processing industries such as restaurants, small shops .
, food production, and craft making.
These businesses can often be run at home, thus still paying attention to women's roles as housewives.
Women entrepreneurs are an underutilized resource with great potential to drive economic growth and prosperity in many countries (Rizvi & Ahmad, 2.
According to research by (Bayisenge et al.
, women's participation in the economy can increase employment opportunities even though they are involved in small-scale businesses.
Indicators used to measure competency (Asyifa et al.
, 2.
are knowledge, skills, and abilities.
In addition to entrepreneurial competence, the running of an MSME business cannot be separated from a leader in succeeding in a goal.
Competent leadership is the ability to inspire all members of the organization to act in accordance with the vision.
Submitted: June 26, 2024.
Revised: -.
Accepted: August 02, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2605 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
mission, and goals of the organization.
In addition, they can also influence others to act We believe that entrepreneurs with strong leadership capabilities can be the main guide for their companies toward achieving successful goals (Galadanchi & Sani Stores, 2.
Indicators used for leadership (Asyifa et al.
, 2.
Business is increasingly competitive, so business people must continue to adapt their strategies to the development of the business environment in order to stay ahead of competitors and stay in the market.
MSME entrepreneurs must be able to develop effective business plans to improve their business performance.
Indicators used to measure the business performance of micro and small enterprises (Asyifa et al.
, 2.
are: .
production growth.
development of business units.
increase in income, and .
Previous research conducted (Sugandi & Suhaeni, 2.
stated that there is a positive and significant relationship between entrepreneurial competence and business There is a positive and significant relationship between entrepreneurial competence and business performance.
(Lekniyanto et al.
, 2.
stated that women's leadership has an influence in MSMEs on the performance of their employees.
This study targets women entrepreneurs because there are still few studies that emphasize the role of women in managing small and medium enterprises and further research is needed on the role of women entrepreneurs in improving the performance of small and medium enterprises through their leadership skills and styles METHODS This study uses a quantitative approach to examine the impact of entrepreneurial competencies and leadership style on business performance among women The research sample consists of women entrepreneurs who are actively running their businesses in various industrial sectors in Bekasi Regency.
The research sample involved 100 respondents who were drawn using a purposive sampling method to ensure that they have appropriate experience and knowledge.
Data was obtained through a survey specifically designed to assess entrepreneurial competencies, leadership styles, and business performance.
Data processing was conducted using Smart PLS (Partial Least Square.
, a structural analysis technique that allows researchers to simultaneously test for correlations between variables.
This approach was chosen for its ability to address research models with hidden variables and medium to small sample sizes.
The results of the evaluation are expected to show how much entrepreneurial skills and leadership style affect the improvement of company performance and provide practical ideas for designing training programs and leadership strategies specifically for women entrepreneurs.
RESULTS AND DISCUSSION
Analysis of the Research Model Analysis of the research model is conducted to evaluate the accuracy of the tested variables and the overall concept of the research.
The evaluation of the results will determine whether the research model is feasible to proceed to the next phase of the In this study, all the variables involved have been analyzed using Smart PLS software version 3.
0 The results show that the level of correctness has reached the required standard, exceeding 0.
Therefore, the study can proceed to the next level.
Submitted: June 26, 2024.
Revised: -.
Accepted: August 02, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2605 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
Figure 1.
Research Model on Smart PLS Source: data processed 2023 Measurement Model Results (Outer Mode.
Outer loadings refer to a group of variables that have specific outcomes.
To declare that a marker variable has an internal value to ensure sufficient consistency, the composite reliability value must exceed 0.
708 (Marliana, 2.
In this study, the data was analyzed using Smart-PLS to validate the variable indices.
Evaluation of indicator validity showed that all variables met the validity standards by having values that Therefore, each measurement in this study is considered valid if its value is higher than 0.
Table.
1 Outer Loading Test Results X1.
Entrepreneurial Competencies X1.
X1.
X1.
X1.
X1.
Leadership Style X2.
X2.
X2.
X2.
X2.
Y1.
Y1.
Y1.
Business Performance Y1.
Source: Data processed .
Submitted: June 26, 2024.
Revised: -.
Accepted: August 02, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2605 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
Average Variance Extracted (AVE) Convergent validity can be measured using the Average Variance Extracted (AVE) value where the AVE must qualify for a value of more than 0.
If the AVE value exceeds 5, then the overall construct adequately explains more than half .
%) of the variability of each indicator.
If the AVE value is less than 0.
5, it indicates that most of the variance is not explained by the construct.
That is, there is more error than the variance explained by the construct (Marliana, 2.
The results of data processing show that the AVE values of all variables meet the criteria for significant validity because they all have a value greater than 0.
In this way, all notes are considered valid because they meet the standard AVE value greater than 0.
Table 2.
AVE Result Variable AVE Leadership Style Business Performance Entrepreneurial Competencies Source: Data processed .
Ket Valid Valid Valid Reliability Test In the PLS-SEM method, in addition to checking validity, it is also important to check the reliability of the data used.
Reliability testing is useful for showing the accuracy, consistency, and accuracy of a measuring instrument in the measurement concept.
Two methods can be used to assess construct reliability using reflective indices using composite reliability and Cronbach's alpha.
As a general rule, a construct can be considered reliable if its composite reliability value exceeds 0.
However, using Cronbach's Alpha to evaluate construct reliability tends to provide values that are too low, so using composite reliability would be better (Marliana, 2.
Table 3.
Cronbach's Alpha and Composite Reliability Values Variable Leadership Style Business Performance Entrepreneurial Competencies Cronbach Alpha's rho_A Source: Data processed .
Composite Reliability Ket Reliable Reliable Reliable Cross Loading In this study, cross-loading is used to evaluate discriminant validity by looking at the cross-loading value.
Analysis using Smart-PLS shows that each cross-loading value for each construct is higher than other constructs (Marliana, 2.
The results of the table analysis show that each index in this study meets the cross-loading requirements.
In this context, each survey item or question must be able to effectively distinguish other constructs or factors to ensure that the instruments used in this study have a satisfactory level of discriminant validity value.
Submitted: June 26, 2024.
Revised: -.
Accepted: August 02, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2605 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
Table 4.
Cross Loading X1.
X1.
Leadership Style Business Performance Entrepreneurial Competencies X1.
X1.
X1.
X1.
X2.
X2.
X2.
X2.
X2.
Y1.
Y1.
Y1.
Y1.
Source: Data processed .
Structural Model Test Results Direct effect refers to the direct relationship between two factors, such as the independent variable and the dependent variable, in the context of the study.
assessing possible linkages or theories, we apply the t-statistic where the test number must exceed 1.
96 and the p-value must be below 0.
(Marliana, 2.
Conversely, the relationship is considered significant if the t-statistic value exceeds 1.
96 and the pvalue is less than 0.
The path coefficient is a method to assess how significant the relationship or correlation between the independent variable and the dependent variable is (Marliana, 2.
In the table below all hypotheses show significance.
Table 5.
Test Result Path Coefficient Variable Original Sample (O) Leadership Style -> Business Performance Entrepreneurial Competencies -> Business Performance Sample Mean (M) T Statistics Standard Deviation (STDEV) P Values 2,153 10,424 Source: Data processed .
R-Square Test Results R-square is used in a study to evaluate how much the research model contributes and its ability to explain the relationship between the independent variable and the dependent variable.
The business performance variable in this study shows a very high level of strength with a value of 0.
790 which indicates that the magnitude of the influence of the leadership style variable and entrepreneurial competence on performance is 79%.
Submitted: June 26, 2024.
Revised: -.
Accepted: August 02, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2605 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
Table 6.
R-Square Result Variable R Square R Square Adjusted Business Performance Source: Data processed .
Leadership Style and Business Performance This research shows that leadership style has a profound impact on business performance in women entrepreneurs.
Inclusive and collaborative leadership styles create a harmonious and helpful work atmosphere, which in turn increases employee satisfaction and retention.
Women who run businesses and use adaptive leadership are better able to deal with market challenges and industry changes.
This makes their businesses more flexible and able to withstand economic shocks.
The findings of this study suggest that investing in leadership skill development is a key factor in achieving sustainable business success for women entrepreneurs.
Other research conducted (Budi Cahyono & Nur, 2.
shows that there is a significant influence between leadership style on optimizing employee performance.
This means that the increasing value of leadership will increase the optimization of employee performance.
Other research conducted (Akparep et al.
, 2.
also shows that there is a strong relationship between leadership style and organizational performance.
For employee performance to be better, the steps that need to be taken are to inspire employees through the use of appropriate leadership styles (Nalim et al.
, 2.
Effective leadership positively impacts employee motivation, engagement, and productivity, thus leading to improved organizational outcomes (Meiling et al.
, 2.
Entrepreneurial Competence and Business Performance This study suggests that entrepreneurial skills play a critical role in determining business performance for women entrepreneurs.
Women entrepreneurs with entrepreneurial competencies are better at recognizing business opportunities, setting more accurate strategies, and overcoming obstacles more effectively.
These skills also help in developing solid relationships and maximizing the use of resources, which will ultimately improve the efficiency and competitiveness of the firm.
Therefore, enhancing entrepreneurial skills is important in improving womenAos business outcomes, giving them the opportunity for continued success and growth.
The results of this study are in line with research conducted (Nuryanti & Hanifah, 2.
that entrepreneurial competence has a significant influence on business performance.
Other research conducted (Hasbiah, 2.
also shows that entrepreneurial competence has a positive and significant effect on business success.
Competence in entrepreneurship is very influential in driving business success and is the main key to achieving growth and Entrepreneurs can increase their chances of growing and sustaining their business in a competitive market by recognizing specific areas that need improvement, and focusing on improving their skills.
(Yuldinawati & Yelliantty, 2.
Leadership Style.
Entrepreneurial Competence, and Business Performance This study proves that leadership style and entrepreneurial ability have a significant influence on business performance among women entrepreneurs.
An accommodating and cooperative leadership style enables women entrepreneurs to form a solid and peaceful working group, creating a supportive work environment for creativity and At the same time, entrepreneurial skills, which include management skills, strategic decision-making, and preparedness for market changes, also have a significant impact on determining business success.
Women entrepreneurs who can combine an Submitted: June 26, 2024.
Revised: -.
Accepted: August 02, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2605 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
efficient leadership style with high entrepreneurial skills generally show better business outcomes, including increased profits, business growth, and competitiveness in the The findings of this study highlight the importance of enhancing the leadership abilities and entrepreneurial skills of women in business in order to achieve the best business outcomes and remain sustainable.
The results show that women who lead businesses have significant skills in technical leadership, building strong social networks, and also have a deep understanding of managing organizations conceptually.
These findings emphasize the importance of recognizing and enhancing women's leadership roles in a changing economy (Aisyah et al.
, 2.
Other studies have shown the link between leadership style, skills, and employee outcomes with an emphasis on the organizational environment.
According to the results of the study, successful leadership styles and high skill levels significantly contribute to improving employee performance.
This implies the importance of selecting and developing the right leadership and enhancing employee skills as a strategy to improve the overall performance of an organization (Sulantara et al.
, 2.
CONCLUSION
This study found that entrepreneurial skills and leadership style have a major influence on women's business productivity.
Women who become entrepreneurs and maximize their entrepreneurial skills can face various business challenges more On the other hand, a leadership style that encourages participation and innovation from its team members can improve performance and job satisfaction.
combining these two factors, women entrepreneurs can drive sustainable growth of their businesses and increase their competitiveness in the market.
The importance of developing leadership skills and entrepreneurial capabilities is a key factor in building a solid foundation for long-term success for women entrepreneurs in an increasingly fierce and changing business environment.
REFERENCES