FACTORS AFFECTING ENTREPRENEUR CHARACTERISTICS: A STUDY OF SMALL MEDIUM ENTERPRISE IN GARUT

Abstract

The aim of this study was to identify factors which affect the characteristic of entrepreneur in small medium enterprise in Garut. Proportional random sampling was used to select participants from 4 region in Garut. The study used 54 traditional cap crafters in Garut who has been in the business in the last 5 years. We used descriptive and factor analysis to analize the data. The result showed that traditional cap crafters had good entrepreneur characteristics. Based on factor analysis, the initial 27 variables can be reduced to 8 variables and form new construct consist of three factors which had correlation above 0.5. Such factors were (1) innovativeness in producing new knitted prodcts, able to develop new ideas and keep up with the industry trends, (2) eager to take risks which consists of high independency, not affraid to face price competition, and able to manage the workers, and (3) focus on profit which reflected on two variables of pursuing profit and not easily satisfied.