International Journal of Innovations in Business

Street Vendor In Entrepreneurship Perspective: Characteristics, Motivation, and Business performance

Iwan Mulyawana and Deddy Saefullohb
a. Universitas Padjadjaran, Indonesia, Email: imulyawan56@yahoo.com b. Universitas Padjadjaran, Indonesia, Email: dedysae@yahoo.com Abstract It has been long recognized that the street vendor has important role in social and economic aspect. It is interesting for academics to uncover their entrepreneurial behavior on operating micro business scale, as entrepreneurial theories have been quite established. So this research is to answer the question about their characteristics and motivation and how far they have relationship and influence on business performance. Descriptive method is used as research method. The population is all street vendors operate around Bandung city. The respondents were 197 people taken using judgmental sampling technique as accidental sampling. Dependant variable are average sales and profit per month, and independent variable consist of six (6) dimensions of characteristic variable and four (4) dimensions of motivation variable. Likert scale 1-5 is used as measurement tool covering 21 statements. Business performance inquiries uses ordinal scales, plus eight (8) questions asking respondents profiles. Validity and reliability test use Factor Analysis Cronbach Alpha. According to validity and reliability test all items are valid and reliable to measure all dimensions representing independent variable. The result of descriptive statistic illustrated that street vendor have high characteristics and motivations, mostly have value above 3.5 at 1-5 scale. The profiles indicated that they come from lower class level, low educational background, lack of capital. Even though they quite have long operated as street vendor they can not improve their income level as they gain small profit and small amount of sales. The regression with stepwise method and anova resulted only team and creativity dimension of characteristic variable showed significant relationship but with small level of influence on business performance. Furthermore, motivation variable has no significance relationship with business performance, thus it cannot become predictor of business performance. Beside general constraints hindered small scale business performance, other possibilities are that the street vendor cannot fully operate their business normally as they constraints by factors specifically conditioned in Indonesia. Keywords: Entrepreneurship, Characteristics, Motivation, Performance
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Introduction Indonesia has been suffering from the multi-dimensional crisis for over a decade and has given significant impact to the aspects of social, politic and, particularly, economic which has rocked the boat of the business practitioners in the formal sectors of the large-scale industries within any forms of their conglomeracy. This has led to the deterioration of their performance and even liquidation. On the contrary, the businesses in the informal sector have survived quite well including the micro and small-scale businesses such as in trading and transportation. In fact they have shown their growth. (World Bank, 2005 and URDI, 2005).

Small scale businesses, or micro enterprises, are often included into the informal sector, and are mostly categorized into entrepreneurship. These businesses have important and strategic role in all countries including Indonesia. As stated by Kasali, et.al, (2010), the economic relying on only large scale business with the conglomeracy system has been proven to be incapable of coping with the multi-dimensional crisis which causes unemployment problems. Whereas the micro or small scale businesses are more sustainable as they are not susceptible to the crisis. They are more independent, flexible, and efficient since they are loose from possible debts and liabilities. In addition, the operation is based on the local resources.

Because of the above facts, the entrepreneurs have potential role for the people (Luke, Kearins and Verreynne, 2010); in addition it is also stated that they are regarded as individuals who are of specific characteristics in terms of the nature (Sandjojo, 2004). Moreover, Carree and Thuric (2002) assert that there are three roles played by the entrepreneurs. Firstly, they consist of innovators who are ready to change and sometimes come up with innovations. Secondly, they always try to find and make use of any potentially profitable opportunity. Kyrgidou (2009) also states that a manager of an entrepreneur will simultaneously maximize, develop and apply his/her prime capacity to reach the

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sustainability. Thirdly, entrepreneurs are risk takers. Furthermore, this specific quality is described in a pioneer research by Joseph Schumpeter (1950) who emphasizes that new business practitioners motivated by their creativity will result in innovative works and new products of the market demand. They will also find new method in production or create new market and even a new organization. In addition, they can also be regarded as ones who organize and manage a business, and who are ready to take a risk for profit. (Wheelen, Hunger, 2008)

According to the West Java Cooperative Office, the informal sector of micro to mid-scale businesses (termed UMKM) in the West Java Province has absorbed 86.67% as opposed to the formal sector which only takes 13.33%. At the national level, according to Zuhal (2010: 151) this UMKM the small scale business has absorbed as much as 88.9% of employment generating 42 per cent of added value. The medium scale absorbs 10.5% of employment generating 14 per cent of added value. On the other hand, the large scale only absorbs 0.6 per cent although it generates 44 per cent of added value. This means that the employment structure is pyramidal where most of the employment is at bottom with low productivity and income.

If the focus of the Indonesian development is on pro-poor, pro-growth and pro-rural orientation, then the guiding and counseling should prioritize the development of the small scale businesses. Zuhal (2010) asserts that the 99.4% of the employment is the basic capital to start developing the technology for better productivity. The contribution of UMKM to GNP (Gross National Product) in 2010 was as significant as 57.12% out of which 33.81% is from the micro businesses, 9.85% from small scale, 13.46% from medium and 42.88% from large scale.

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The employment contribution is as high as 97.23% out of the national total employment, and if UMKM is optimized, it can prevent up to 32.5 million poor people or about 14% of the total population including 9.26 million unemployed or 9.7%.

As mentioned earlier, in the informal sector of trading, the businesses have experienced rapid growth in the time of the crisis particularly in the urban area. These are the street vendors. The growth has been motivated not only by the survival but also the fact they are highly accessible need providers. Formerly, the street vendors had been overlooked since they have no concern about the quality and considered to be the underdog urban economic feature. However, these vendors offer wide range of products in competitive prices compared with the formal traders. Gradually, the jobless people started to try their luck and the fast rate of urbanization was then inevitable. This business opportunity practically needs no distinctive skills and has low risk but promising.

The challenge faced by this business consists of two ways, namely high competition among the vendors since the population of vendors is getting higher, and as well as with the formal business; and in getting the customers who varies in terms of their needs which it is not easy to meet all the wants. This is important then in order that they keep surviving and develop, they need ability to identify the customer needs with competitive price products.

The above fact also shows that street vending is a highly potential micro business not only in terms of the employment absorption but also an opportunity to develop the entrepreneurship skill. Thus a study focusing on an analysis of the issue will bring valuable benefit to the informal sector both academically and practically.

In 2005 the population of the street vendors in Bandung reached 16,832 (Kompas, Monday 6 March 2006). Given the relatively limited area of the city, it affected the high density and

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often caused problems related to these vendors occupying the pedestrian facilities such as side walk pavement, city parks, overfly crossings and even on the street body. The municipal Government has indeed tried to reinforce the regulation over and over again since their activity has caused traffic congestion and the city order and cleanliness. The effort to regulate this was last under the Regional Regulation number 11 of 2005 regarding cleanliness, beauty and order; but this has no effect. This has even led to a claim that the fast growing business is an indicator of the Government failure in creating job opportunities for the poor (Rukmana, 2005). Rather than reinforcing the regulation, the street vending will turn strategic since it has factually supported the economic life and employment. If this is well developed, it will even improve the people income.

A number of studies have been conducted on similar issue on the characteristics and motivation as potential achievement in entrepreneurship (Morris, et.al., 1996; Thompson, 2004; Hisrich, et.al., 2005). However, that of specifically focusing the Bandung situation as the study background has not been widely conducted. Thus the potential of the street vendors is not well identified as yet. It is for this reason this study has been conducted and focused on the research question as follows: What is the potency of the street vending business in Bandung?

The purpose of the study is firstly to identify the characteristics, motivation and performance of the business in Bandung. Second is to determine the degree of significance of the relation between characteristics and motivation and the effect on the business performance.

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Literature review and hypothesis

Concept of an Entrepreneur and Entrepreneurship Hisrich, Peters, Shepherd (2005) define entrepreneur as an individual who takes risks and starts something new. Similarly, Thompson (2004) defines one as a person who habitually creates and innovates to build something of recognized value around perceived opportunities. To sum up, a street vendor can be categorizes into an entrepreneur. They, who mostly come from the low class of society, dont give up easily. With their limited resources and capability, they strive to start the business on their own or with the family and relations. They try to provide the product which they think it to be in demand, and it can be produced by themselves (innovation).

If an entrepreneur is individual, then entrepreneurship tends to refer to the process carried out by an entrepreneur. Festo (2000), for example, defines entrepreneurship as a process that motivate someone and all the resources he/she has to be creative, to develop and work out a solution to problems related to human needs. Whereas Hisrich, et. Al. (2005) defines entrepreneurship as process of creating something new and assuming the risks and rewards. Both of the definitions show that as a process, the practice includes an effort to create new value that needs time, work and take risks but rewarding for the entrepreneur.

Entrepreneurial Performance

Any form of business has a goal both of profit or non-financial matter, and the accomplishment is the indicator of the performance in the organization. Morris, Pitt and Berthon (1996), in their entrepreneurship study, view the business condition not only as an indicator but also prediction of the future condition of the entrepreneurs. To measure the performance, they have used indicators of the number of employees, monthly turnover and

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the business performance as a whole. Whereas the future outlook to predict entrepreneurial performance includes the business situation in the next three years, the potential business opportunity, intention to obtain additional financial support and possibility to quit the business if they get a permanent job.

Unlike other studies, the literature study conducted by Osborne (1995) tends to use customer satisfaction as the performance indicator. He is of the opinion that the success of an entrepreneur is indicated through the customer satisfaction over the products he/she provides since it is through the satisfaction that all, such as the entrepreneur, workers, customers and the people will get the benefit. To accomplish this, an entrepreneur should be able to produce good quality product or service (Kandampully and Suhartanto, 2003; Zeithaml and Bitner, 2004). The following model describes how Glancey and Pettigrew (1997) develops the concept.

Figure 1. Small scale business model Market in which Firm operate Entrepreneur's objectives

Entrepreneur's characteristic

Financial Performance

Managerial Practice

The above model shows that the objectives accomplishment refer to a business performance which is affected by the factors of entrepreneurial, the business environment, managerial practice and the financial performance. This model suggests that an objective is not served

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merely as the goal but as the media to achieve it. In line with this concept, Osborne (1995) also suggests that the essence of the successful entrepreneurship is determined by the strategy and creativity within the business environment. Furthermore, this model shows that of all the factors, the characteristics of the entrepreneurship is a determining factor to accomplish the objective since all aspects within the entrepreneur directly and indirectly affect the other factors.

The Character of Entrepreneurship Character refers to behaviors that are the most natural, instinctive and habitual to us (Thompson, 2004). One can easily turn an entrepreneur provided that one has conducive quality and has been trained. Certain qualities characterizing an entrepreneur enable him/her to be a potential successful entrepreneur. On the other hand one who do not have these qualities have little possibility to strive. Since these qualities are important, generally studies focusing on this issue have emphasized on two approaches both to the theories and methodology, namely, personality which refers to the personal qualities and the personal disposition, and secondly the demographic factor consisting of sexes, marital status, education, role modeling and experiences (Staffu, 2003).

The study conducted by Osborn (1995) and Littunen (2000) indicate that the personal qualities of an entrepreneur include strong motivation based on the need of achievement and risk taking. The study shows that this type of quality has a strong motivation to accomplish the objective. The hardship to pursue is also supported with the willingness to take risks. Littunent (2000) classifies the risks into four types all of which fit an entrepreneur, namely, economic risks, career development risks, physical and psychological risks. Another factor identified is the innovative personal quality (Osborne, 1995; Littunen, 2000; Thompson 2004). The latter quality refers to the ability of working out new solutions which enable an

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entrepreneur to find new ways to prevent or go around the problems under restricted circumstances of resources as well as new paths to fulfil the customer demands.

A comparative study conducted by Bolten as sited in Thompson (2004) offers a framework that defines personality as follows:

Focus is manifestation of the integrity of an entrepreneur to pursue the objective. This splits into focus on the target, time and actions.

Advantage is the value made and added based on the existing opportunities. Creativity is the source of ideas employed by an entrepreneur to perform better in the business.

Ego consisting of inner and outer ego, the former, serves as the want to accomplish something, and the latter determines his/her own destiny including responsibility and courage to step back (Internal locus control).

Team consists of elements, recruits and selects the right people to be trained and become entrepreneurs. They know when they need assistance and from whom. They build network with people who can give added value.

Social is the ability to view and influence as well as decide the business activity which is oriented to the people. For example how far an entrepreneur feels that the workers should share their success of the organization.

The study conducted by Hudderfield Business Generator (Thompson, 2004) through a deep interview indicates that there are five qualities and the weighting of successful entrepreneurs as follows: Creativity 83%, ego 76%, focus 69%, advantage 61%, and team 50%. The high rate of the creativity in this study is resulted from the fact that the research object is a creative business. Interestingly, the first three qualities have insignificant difference in weighting. This shows that there is weakness in appreciating strategic and competitive advantage related
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to the creativity. The mean weighting of these qualities is 71%, less then the key emotion (ego) at 76%. Next, the study also indicates that there is a strong relation between creativity and ego, whereas weak relation between focus and team. Meanwhile, the study conducted by The Global Entrepreneurship Monitor in New Zealand on the 242 respondents by telephone show in ranking position as follows: (1) advantage (2) creativity (3) focus (4) team, and (5) ego (Bolton in Thompson, 2004).

Unlike previous studies, Saffu (2003) conducted a study on the characteristics of successful entrepreneurs by involving the role and influence of the South Pacific culture. Based on the four dimensions of culture collectivism, power distance, masculinity-femininity, and uncertainly avoidance the study shows that flexibility, adaptability and the need to be rich and in power are important determining factors of successful entrepreneurs. In terms of demography, this study also shows there is a probability that male entrepreneurs are more successful than the female.

Motivation

Motivation in this sense refers to something that drives an entrepreneur to perform something (Hirich, et. al, 2005; Morris, et.al, 1996). Consequently, the form and strength of the motivation will very much determine the degree of the success of an entrepreneur. In other words, how strong the motivation will show the likelihood of the success in the future. Mostly the theory of entrepreneurship is taken from McClellands need of achievement (Morris, et.al., 1996) whereby the individual who has strong will for accomplishment is of those who strive to solve the problem by him/herself, set up his/her own target and persue it. This theory suggests that this sort of individual often finds out the way better than those whose motivation is weak.

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Glancey and Pettigrew (1997) classify motivation in entrepreneurship into push and pull factors. The push factor includes redundancy, job insecurity, and the need for extra income. Whereas the pull factor refers to the desire to be your own boss, the need for more i ncome, taking the opportunity and winding down to retirement. The studies conducted in small-scale hotels in United Kingdom show that the majority of the samples they involved (65%) are motivated by the pull factor, i.e. profitability, growth, stability and consolidation.

Unlike the study by Glancey and Pettigre (1997), Orhan and Scott (2001) have found out that both pull and push factor motivate the entrepreneurs of their samples. Their study is to find the answer related to the female motivation in the work field of entrepreneurship through indepth interview to obtain understanding about something complicated and sensitive related to personal problems. This method is meant to reveal the issues which are more than just some clich as commonly found in the female entrepreneurs. The result from 25 French female entrepreneurs shows that they are mainly motivated by the family, role models, and their spouses entrepreneurial business. Thus, the pull factor is their own desire to become their own boss.

Lee (1997) researches into a number of female entrepreneurs to explore their motivation to own business more than just employees. The study examines how far the demographic factor (personal qualities, educational levels and their family background) affects the four psychological needs including achievement, affiliation, autonomy and dominance by comparing between their state of being an entrepreneur and an employee. The result shows that female entrepreneurs in Singapore are mostly motivated by their need of achievement and low degree of the need of dominance. Whereas the need for affiliation is relatively rated fair, the educational level is the element related to the need of the female intensity in the entrepreneurship.

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Conclusion from the literature study

The above study shows that the accomplishment can be measured with the present condition as well as the potential performance in the future. The present performance can be measure with the achievement of the business indicator such as the turnover, number of employees and the investment. Meanwhile, the possible development in the future is the prospective performance ahead. Among the factors, the personal qualities of entrepreneurship and motivation, which indicate the potential entrepreneurial qualities, are highly determinant of success. In addition, the study also indicates a direct relation between personal characteristics and the entrepreneurial motivation and the business performance.

Hypothesis

Based on the literature study, the model framework to be applied in the research is as follows:

Figure 2. Model of relationship between Character, Business performance and entrepreneurship

Entrepreneurial Potency Character Motivation

Business Performance Business performance

The above model shows that the entrepreneurial qualities of aither the demographic characteristics or the personal qualities are related to the entrepreneurial business both at present and in the future. The literature study also shows that the relationship is direct and positive (Saffu, 2003; Thompson, 2004). This means the stronger an individual has the quality the higher probability to accomplish the business. Based on this concept, the first hypothesis to test is as follows:

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H1: The Characteristics of the Street Vendors has positive and significant correlation with the business performance.

The similar correlation between the entrepreneurial personal qualities also appears between the motivation (need for achievement, affiliation, autonomy and dominance) with the business performance, and it is direct and positive (Lee, 1997; Littunen, 2000). The stronger the motivation is the higher the probability of accomplishment. Thus, the second hypothesis goes as follows:

H2: The motivation to run the street vending entrepreneurship has positive and significant correlation with the business performance.

Based on the above hypotheses, it can be stated that the two factors, namely, the Character, motivation are the determining and affecting factors of accomplishment. Thus, the third hypothesis to be tested is as follows:

H3: Character of street vending business are synergic ally in positive and significant correlation with the business performance.

Procedure of data collecting

In general, this study is to comprehend the entrepreneurial behavior and performance in the informal sector. Specifically, it attempts to analyze the correlation between the personal qualities of the street vending business to the performance. Thus, the analysis unit is the individual street vendor to measure the potential capability of becoming a successful entrepreneur through the personal qualities, motivation and performance. The study has used cross sectional data collected directly from the vendors occupying throughout Bandung but

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limited to the sub-districts as it is expected that the result of the study will be of significance for the regional Government.

The pilot test has been conducted prior to the data collection through the questionnaire distribution. This test is to assure the reliability of the interview questions to see how much the respondents are able to understand them. The test has been directly applied to the street vendors for feedback and improvement. Thus the data have been collected based on the tested questions. This method has been chosen to make sure that the responses are what they intend to reveal. Since their education is relatively low, guidance and facilitation have also been provided to prevent misunderstanding.

Data Analysis

A set of procedure is required to analyze the data such as preparation, tabulation and processing. The preparation consists of examining how they filled out the questionnaire, and then the result is tabulated according to the values. The media of analysis includes:

Analysis Factor

The personal quality refers to the potency of an entrepreneur and the entrepreneurial motivation in the informal sector such as street vending. It is a new constituent which has not been tested so that the treatment of both elements is explorative. Therefore factor analysis is required to accurately and validly identify the two variables (Hair, at.al, 1998). The result indicates the manifest satated variables which give whether or not the affect is significant, whereby this can generate another variable.

Multiple Regressions

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The multiple regressions refer to the media of statistical test applied to investigate the correlation between the dependent variable and independent variable. This method has been chosen to predict the forming factor of street vending performance both for the present and the future (independent variable). Secondly, the multiple regressions enable the researcher to obtain the description of effect of the personal quality and motivation factors toward the business performance for the present and the future. Thus the multiple regressions serve the most compatible method to test the hypotheses H1, H2 and H3.

The variant analyses (ANOVA) has been applied to test whether there is significant correlation between the independent variables to the dependent variable. If the value of the statistical test (f) is greater than the critical point from the F distribution, then it can be stated that it is evident of the correlation between the dependent variable and independent variables. The multiple coefficient of determination (R2) has hereby been applied to measure the variation proportion of the dependent variable described by the combination of the independent variable. The greater the value of R2 the better the regression fits the data.

Population and Sample

The data collected from the municipal officials shows that the population of street vendors in 2005 is 16,832 vendors (Kompas, Monday 6 March 2006). With the assumption of 5% growth rate within the last year, the estimate population is 17,6736 vendors. To obtain robust result, the study applies fixed rate of 95% and the margin of error of 5%. In line with Saunders, Lewis and Thorhill (2003), out of the population of 10,000, the required sample amounts to 370 respondents (Appendix 1). Sekaran (1992) recommends that for the use of the analytical analysis and multivariate analysis, the research should require a multiplication of 10 to 20 at each variable of 11. The required number of sample ranges between 110 and 220 respondents. Thus, based on the two theories, for reliable sampling, the sample population
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should range between 110 and 375 respondents. To maintain the reliability and avoid bias the sampling process is in random throughout Bandung. The final sampling process for this study finally results in 197 respondents which fits the above criteria.

Operational Variable

To achieve the study objective, the operational variable is required. Based on the research model and the theories as earlier discussed, the operational variable used in the study is as presented in the following Table.

Table 1. Operational Variable construct Character Variable 1. focus Description The ability to do focus on what have to be achieved/to get something 2. advantage The ability to choose the opportunities and do better than competitors do 3. creativity The ability to generate and develop ideas for developing business 4. ego The ability to restore/determine their own destiny 5. team The ability to establish and cooperate as part team 6. social The ability to determine their own activities base on society orientation 1.need for wishing to achieve highest achievement performance in the job field 2.need for Wishing to cooperate with affiliation other party to achieve the goal Scale Ordinal reference 1.Bolton and Thomson, 2003 2. Osborne, 1995 3. Littenan, 2000 4. Thomson, 2004 5. Hisrich, dkk 2005

Ordinal

Ordinal

Ordinal Ordinal Ordinal

motivation

Ordinal Ordinal

3. need for Wishing to do and control all Ordinal autonomy of activities 4. need for Wishing to lead other people to Ordinal dominance achieve the goal performance 1. current Performance street vendor is ordinal performance measured base on income and selling omzet.

1. Hisrich, at.al 2004 2.Orhan and Scott Scot, 2001 3. Lee, 1997 4.Glancey and Pettigrew 1997 1. Osborne, 1995

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Result

Validity and Reliability test

Measuring validity and reliability of measurement tools for character and motivation variables is based on component matrix values of each question item of the both variables. Descriptive statistics with mean is used to explain what is being studied in this research. Correlation and regression are then computed to find out the relationship as well as the contribution of independent variable to dependent variable.

Factorial weight of advantage is 1, 2, 3 as dimension variable of character surpass the weight limit of 0.5 (at least factor weight is 0.586 and the highest 0.895) and so do for other question items. Therefore, all of three items of the questions represent the advantage dimension and other questions are considered valid as measurement variable as well.

The analyses process of descriptive statistics on entrepreneurship character and motivation of street vendor can be shown on the following table:

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Table 2 Description of character and motivation dimension

N P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14 P15 P16 P17 P18 P19 P20 P21 Valid N (listwise) 197 197 196 197 195 197 197 197 197 195 195 196 197 197 194 197 191 192 190 189 189 181 Minimum 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 1 1 1 1 1 1 Maximum 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 Mean 3.22 4.2 3.49 4.04 4.11 3.92 3.69 4.5 4.28 3.67 3.83 4.03 4.11 4.42 4.46 3.88 3.76 4.02 4.17 3.67 3.52 Std. Devation 1.101 0.747 0.768 0.752 0.742 0.863 0.778 0.682 0.904 0.9 0.848 0.708 0.713 0.622 0.612 0.854 .1.039 0.759 0.623 0.844 0.885

There are 11 items of the sub dimensions to reach mean value above 4, and 8 items above 3,5, and the rest 2 items get mean above 3. The highest mean is on P8 item with mean of 4.50, followed by P15 with mean 4.46 and P14. Those values clearly indicate that they are hard worker people to make his living and their family. The least mean value of 3.22 on P1 is relevant with their statement during the interviews that they were still looking for a suitable business type for their self-employment career. This condition also fits with the

entrepreneurship spirit to seek new and better opportunities.

What they are doing is actually a process of entrepreneurship as the core of entrepreneurship is a process or entrepreneurship behavior. However, as an entrepreneur also needs appropriate skill and knowledge to manage a business, these can be done through a formal training. The main problem is that they are generally lack of education. Therefore, there is a gap between

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characters already built through hardship and the skills on opportunity recognition and organization which need systematic, creative and critical thinking. Thus, there is a good opportunity to train the street vendors in order to develop their businesses.

The description of performances and demographics:

1. Eighty percent (80 %) reach sales volume below Rp 7 million/month; and 20 % gain sales volume above Rp 7 million. From this point of view the majority of the street vendor is below middle class society. 2. Seventy percent (70 %) obtain profits below Rp 2 millions/month; 25 % gain between Rp 2 millions Rp. 5 millions; and only 5 % reach profit above Rp. 5 millions. 3. From the financial perspective particularly on their financial capital, street vendor are having only limited capital, for instance there are 80 % only having Rp 7 million. Therefore, they find it hard to improve their business performances. 4. In terms of demographic perspective, the average age is 30 years old ( 57 % ), while 30 % are ranging from 25 until 30 years old. Based on this perspective the street vendor must be mostly married and have family for whom they are responsible for. 5. Education: About 60 % street vendors have low educated background level such as elementary and junior high school. This implies they lack of skill and knowledge. Whilst only 35 % are graduated from the senior high school. 6. Period of running business: Most of them ( 75% ) have been running business more than 3 years, only 25 % of them have run the business less than 3 years. 7. Varieties of products sold: Mostly (60%) they prefer to sell food and beverage. 8. The figure of street vendor demographic give us perspective about job opportunities, social impact, economic, government role and function etc. Based on age data, level

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of education, period time of business are clear that street vendor role positively reduce the unemployment rate. In terms economic development it is clear that street vendors role provide goods such as food, clothes and service for below middle class people. Street vendor daily selling activities offers cheap food and beverage through special service in face to face selling without any business license or business permission. By contrast In Developed countries people buy something in fixed place and licenced business.

In Bandung, municipal official generally consider that street vendor as subject who make the place untidy, messy and dirtier of the city, so that why very common it create social unrest between municipal police and street vendor. The problem is how to harmonize between human right of the people to get the job and law enforcement of the law/regulation. This condition is still becoming homework for the local government. The result of multiple regression of entrepreneurship characters street vendor is as a predictor of street vendor performance as follow :

Table 3 regression analyses result Model summary

Model 1 2 R 0.173 0.252 R Square 0.03 0.063 Adjusted R Square 0.024 0.053 Std. Error of the Estimate 0.99554326 0.98088298

R value 0.063 in model 2 stepwise method shows that 6.3 % performance is explained by team and creativity in character variable. While 93.7 % is explained by other factors which it is not a subject in this research.

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Table 4 analyses value of variance ANOVA

Model 1 regresion resudial Total 2 regresion residial Sum of Squares 5.563 181.372 186.935 11.827 175.108 df 1 183 184 2 182 5.914 0.962 6.146 0.003 Mean Square 5.563 0.991 F 5.562 Sig. 0.019

a. Predictors: constant, team b. Predictors: constant, team, creativity c. Dependent variable: performance

The result of Anova test shows F test of 6.146 and the level of significant of 0.003. As the level of significance under the critical limit values or <0.005, it means that the common performance is influenced by the team dimension and creativity in character variable, and the rest such as focus, advantage, and social cannot be as predictor for the performance variable.

Table 5. The influence of dimension variable team and creativity toward performance Coefficients
Unstandarized Coefficient B 1 2 (Constant) Team (Constant) Team 0.018 0.172 0.013 0.218 Std. error 0.073 0.073 0.072 0.074 0.218 0.173 Standarized coefficient Beta 0.251 2.363 0.186 2.952 0.802 0.019 0.853 0.004

Model

Sig.

The value of the standardized coefficient beta shows that the improvement of street vendor performance is influenced by 0.218. However, in the contrary the improvement of performance is influenced by declining of creativity 0.189. Creativity may need promotional activities to build customers awareness, and also need the right time and method. The
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problem is that every street vendor does not have fixed time and place to market the product, therefore it is difficult to promote his/her selling point.

Therefore, it is only the team and creativity character have correlation and influence business performance of the street vendors. So that, from those finding we can draw new model as follows:

Figure 3 relationship model between entrepreneurship character and business performance Entrepreneurship character Team Business performance Creativity Business performance

Table 6. Regression analyses result Model Summary

Model 1 R -147a R Square Adjust R Std. Error of the Square Estimate 002 001 1.00674985

a. Predictors: Achievement.

(constant),

Dominance,

Affiliation.Autonomy,

Table 7. Analyses value of variance ANOVAb

Model Regression Residual Total Sum of Squares 3.843 174.330 178.173 Df 4 172 176 Mean Square .961 1.014 F .948 Sig .438a

a. Predictors: (constant), Dominance, Affiliation, Autonomy, Achievement b. Dependent Variable: performance R value 0.022 ( adjust square-0.001 ) shows that there is no relationship between the variable of motivation dimension and performance. The Anova test result shows the level significance > 0.05, it means that the regression model is not fit to predict the change on the performance variable by the variable of dominance, affiliation, autonomy, and achievement dimensions as a motivation variable. Therefore, there is no positive and significant correlation between motivation and business performance of the street vendors.

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Those findings above prove that the characters and motivation are not enough to influence the business performances. The business performance of micro enterprises is a complex problem, multidimension in scope and types. ( Scase and Goffe, 1984 ), And only part of characters that have correlation to performance, this is in line with Begley, T.M. & Boyd, D.P. (1987) who stated that the relationship between psychological attributes and performance reach only certain level, and the rest is dysfunctional and weak. Other determinant factor is educational level (Bates, 1990; Lussier and Pfeifer, 2001). The fact is that the level of education of the street vendors is generally low.

Furthermore, In Indonesia in particular the street vending business is faced with the problems as follows:

Internal Factor o Limited skills and education o Limited access to financing sources o Types of business which is not competitive and do not meet with market demand

External Factor o Uncertain vending venues since the existing locations are regarded to breach the regional regulation, and yet the changing of location can cause losing customers. o Uncertain operational time due to the law and order operation by the regional enforcement causing commercial delay especially for food which can go bad. o Allocated venues which are limited and not strategic which have little customers. o The growing population of vendors due to lay-off

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o Weakening buying power of customers due to the hike of fuel price and necessities.

Conclusions

Based on the above analysis, a conclusion can be drawn as follows:

Conclusion

a. In General the personal qualities and motivation of street vending business have proven to give clear argument that street vending is significantly potential as a part of the peoples living which needs the Governments attention as well as other competent related parties.

b. The performance and motivation do not at the same time affect the performance, but specifically the dimension of team and creativity has positive correlation and very little effect on the performance.

Recommendation

a. The street vendors as part of the society and as the employment opportunity should be well attended by the Government and othe potential institutions in the following ways:

1. They should establish cooperation with universities to develop the potential skill through training programs or on-the-job traing in a firm related to the business field. A university or further educational institution can initiate an approach to the street vendor association and related governmental offices.

2. The Government-owned companies and other well established companies are recommended to support and develop the street vending in the same way as they do to

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UKM (Small to medium scale business) at present through fostering the street vendors.

3. The financing bodies should participate in developing the micro financing organizations as initiated by Professor Yunus, an expert in social entrepreneur, who provides soft loans through his bank (Grameen Bank) to small traders in Bangladesh.

4. The Government should allocate permanents venues for the street vendors in such a way that they do not breach the law and order as well as the cleanliness of the city.

b.

It is recommended that a further study is conducted in regard with the team

characteristics and creativity which are the main characteristic of the street vendors. In relation to the dimension of team, generally, they tend to do the business together with their family (wife and children), and their creativity is actually not in the level of innovation of product and service.

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