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A STRATEGIC MODEL FOR DEVELOPING SUSTAINABLE
WOMEN'S ENTREPRENEURSHIP IN THE DIGITAL ERA
Introduction:
Micro, small and medium enterprises (MSMEs) are one of the most popular business
practices among Indonesians. MSMEs are one of the drivers of the country's economy and as
one of the largest economic sectors in Indonesia. The role of MSMEs is as a provider of
means of equalizing the economic level of the small people because of the existence of
MSMEs in various places or various regions that reach rural and urban areas which function
to help improve the economic quality of rural and urban communities.
Another indirect role of MSMEs is to overcome poverty in Indonesia. Indonesia as a
developing country with a high poverty rate is a challenge in improving the quality of
economic sector development. Therefore, MSMEs are one of the solutions in poverty
alleviation programs because they can absorb a fairly high workforce. Furthermore, along
with the increasing population in Indonesia, MSMEs are one of the solutions in improving
the quality of individuals to be able to compete and create new businesses and opportunities
for other communities. Creating businesses and providing employment opportunities for
other communities is a solution in reducing unemployment.
Facts show that the growth of MSMEs every year experiences very rapid growth.
Based on growth data, Indonesian MSMEs in 2017 recorded 62.9 million business actors, and
in 2018 there were 64.2 million MSME business actors with an absorption capacity of
116,978,631 total labor force. This figure is equivalent to 99 percent of the total business
units in Indonesia. The percentage of labor absorption in the economic sector is equivalent to
97 percent, the remaining 3 percent is in the large business sector (Kemenko and UKM
2018).
The extraordinary occurrence of the Covid-19 pandemic which began at the end of
2019 has an impact on all businesses, both positive and negative in nature on the growth of
MSMEs. In the economic aspect, it is clear that the pandemic will paralyze economic
activities, causing a worldwide crisis. This can be seen throughout 2020 that more and more
countries are experiencing economic recession, including Indonesia.
Indonesia's economic recovery due to the Covid-19 pandemic based on data from the
Central Statistics Agency (BPS), shows that gross domestic product (GDP). Q3-2021 seen
from sluggish retail sales, consumer confidence, credit growth, and low inflation in the third
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quarter of 2021 shows that Indonesia's economy grew around 3.51 percent year-on-year (y/y)
in the third quarter of 2021. Q3-2021 can see the normalization of economic growth. More
details of gross domestic product (GDP) growth per quarter from 2016 to 2022 can be seen in
Table.
On the other hand, Indonesia is starting to develop the potential of digital technology
for economic growth and social inclusion by making digital transformation one of the three
presidential priorities, despite perceived constraints on digital accessibility. Digital
transformation can change the way small and medium enterprises create and capture value
(Bharadwaj et al. 2013). Digital transformation can also be a process used to restructure
economies, institutions and societies at the system level (Unruh and Kiron 2017). For
example, social media can change the way companies interact with customers, deliver their
services, and integrate their IT systems. Digital transformation is not about optimizing
internal processes or incorporating new technologies, but can fundamentally change the
business model of SMEs (Loebbecke and Picot 2015).
Efforts to accelerate the digitalization of MSMEs in Indonesia are carried out by the
government by seeking to collaborate with various parties, especially existing business start-
ups, such as Tokopedia, Bukalapak, Shopee, Hij'up.com and others. This effort is also to
encourage and provide access to MSMEs to develop their business so that it can be
sustainable. The use of digitalization can encourage increased productivity and a sustainable
economy, especially MSMEs owned by women and young people.
Based on a Bank Indonesia survey, digitalization can boost MSME businesses by 20
percent of the total MSMEs in Indonesia during the Covid 19 pandemic. Then in 2021 around
17.25 million MSME players have been on boarding into the digital ecosystem, and the next
target in 2024, is around 30 million MSMEs (KemenkopUKM 2021). In 2022, the Ministry
of Cooperatives and SMEs focuses its agenda on transformative recovery, which can be
explained including around 70 percent of priorities targeting MSME and cooperative actors,
young people, and women. About 20 million MSMEs have been connected to the digital
ecosystem. By 2022, it is expected that around 70 percent will have experienced business
recovery (KemenkopUKM 2022).
Indonesia is a potential market with a population of 270,203,917 people with
proportions based on gender, namely men 136,661,899 people and women 133,542,018
people, where women dominate compared to men from the proportion. The population of
women and men in Indonesia has a relatively balanced percentage with the number of women
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49.42 percent and men 50.58 percent. When viewed based on the generational classification
of the Indonesian population as of 2020, the population of productive or working age (15-64
years) reached 70.72 percent, the majority dominated by generation Z as much as 27.94
percent, and the millennial generation as much as 25.87 percent of the total population o f
Indonesia. Meanwhile, around 17,263,282 people are included in generation Z post and
around 34,717,318 people in generation Z are filled by women (BPS 2020). The large
proportion of women provides opportunities for this group to become economic drivers as
entrepreneurs or business actors. Based on the issue of gender equality and the perceived gap,
the government made efforts to ratify CEDAW which aims to protect women's rights,
establish Gender Mainstreaming (PUG) as a national strategy, conduct economic training,
create employment opportunities, and others (kemenpppa.go.id 2021). T he r e f o r e ,
consideration of w o m e n 's participation is one of the stated targets of SDGs target 5.5
Ensure women's full and effective participation and equal opportunities for leadership at all
levels of decision-making in political, economic and public life (United Nations 2021).
Presidential Regulation (Perpres) No 59 of 2017 concerning the Implementation of Achieving
the Sustainable Development Goals, Indonesia has the responsibility to realize target 5.5
regarding women's participation. To facilitate the implementation of the SDGs and realize the
existing targets, the first step taken by the Government of Indonesia is to divide the 17 goals
of the SDGs into four development pillars which include economic, social, environmental,
and legal and governance (Kemenpppa 2020b). Meanwhile, another view from Sihol
Aritonang, who is the Chairman of the Indonesia Business Council for Sustainable
Development (IBCSD), said that steps t o develop gender equality and women's
empowerment show improvement from year to year. Overall Gender Empowerment Index
(IDG) can be presented in Table.
Based on Table 1.3, the IDG has increased every year. It can be seen that in 2019 the
increase in IDG of 75.24 has successfully exceeded the IDG target set at 73.24 (Kemenpppa
2020a). Meanwhile, the achievement rate of each indicator explains that there needs to be
further efforts to maximize the participation of Indonesian women in the economic and
political fields. Government efforts to increase women's participation in the economic sector,
in particular, need to create employment opportunities, one of which is by developing the
creative economy. The creative economy was chosen because this sector emphasizes
unlimited human resources such as creativity, technology, and culture, as well as its 17
subsectors and of course the creative economy will provide many opportunities for Indonesia,
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both opportunities for women's participation and the economy (Kemenparekraf 2020b).
The creative economy has become an important part of national development. Law
Number 24 of 2019 concerning Creative Economy which aims to regulate all matters related
to the creative economy which was initially run by the Creative Economy Agency (Bekraf)
then in 2019 there was a change in name to the Ministry of Tourism and Creative Economy
(Kemenparekraf 2021). Furthermore, the Government of Indonesia has made MSMEs a
means to increase women's participation as creative economy actors. This decision is based
on the consideration that MSMEs are an important pillar of the Indonesian economy through
their contribution to the national GDP of 60.51% and also the high labor absorption of
96.62% (Coordinating Ministry for Economic Affairs of the Republic of Indonesia 2021).
Based on data, the total number of MSMEs is 65 million, around 64% of which are run by
women (Kemenparekraf 2022). Based on this data, the dominance of women can further
convince the Government of Indonesia that MSMEs are the right means for women's
participation in the creative economy. Therefore, there are several concerns that need to be
addressed by the government to maximize women's participation in the creative economy,
namely increasing the capacity and quality of women as creative economy actors by
providing infrastructure for business actors, training and competency certification, product
marketing training, digital training, and assisting business actors in obtaining intellectual
property rights (Kemenparekraf 2020a) and facilitating access to capital financing. These two
things are considered important because they can hinder women from participating in the
creative economy.
Awareness of how important the role of women is for development, the government
must further maximize women's participation in the creative economy. Based on their
conditions, women in the creative economy are still faced with various vulnerabilities or
weaknesses. The weaknesses or vulnerabilities faced by MSMEs run by women can be seen
based on aspects: 1) Domestic regarding women's roles and traditions, patriarchal culture, and
decision-making, 2) Public about policy, culture, banking, and politics. Furthermore, when
looking at the domestic aspect, patriarchal culture is still an obstacle for Indonesian women to
develop their business potential. There are still many women who limit their career and
business development to a certain level in order to provide more time for the household, so
women prefer to stay in mid-level management because they think it will be difficult to
balance the two.
Women's understanding as business actors, especially in managing businesses,
certainly has differences with men. A study tries to identify the characteristics that distinguish
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women and men in doing business, women are different in seeing business, women are more
about emotions, relationships, cooperation, and care, not just pursuing profitability and
business growth. The process of developing women's businesses still seems to limit the
movement of women in terms of their abilities (Gondokusuma 2020). Meanwhile, when
viewed based on perceptions of success, success for women entrepreneurs pays more
attention to work-life balance and work-life balance.
Meanwhile, the weaknesses in the public aspect in the context of banking policy,
Rekha Lena ( December 2022), a permanent member of Kadin Indonesia stated that women
in Indonesia are still very difficult to access banking programs and women are still considered
as high-risk parties. Research results from a number of universities also show that there is a
gender bias in lending. This is reinforced by the explanation of the Minister of Finance
(Menkeu) Sri Mulyani (March 2022) who stated that the average total credit channeled by
banks to women is still less than 50 percent. Nevertheless, when viewed based on the
contribution of women to MSMEs in Indonesia, the number continues to increase, reaching
14.3 million people in 2018 (Katadata 2018).
The Ministry of Cooperatives and MSMEs (2019) noted that in 2019, specifically in
micro business units managed by women reached 14 million units, while in 2020 it increased
to 30.6 million units (IFC 2020). Meanwhile, in 2021, around 64.5 percent of MSMEs are
managed by women (BPS 2021) and around 60 percent of business actors at the micro scale
are dominated by women, so that in order to develop and move up to the next scale, special
attention is needed so that the talents and skills of women business actors can be developed.
Based on this data, the potential of women's economic strength needs to be encouraged,
especially in the micro business sector, which is indeed mostly engaged in by women.
The creation of PP No. 2 of 2022, related to the development of national
entrepreneurship, is a regulation that can encourage women entrepreneurs to develop their
businesses more broadly and inclusively. The regulation opens up space for women
entrepreneurs to gain access to entrepreneurship (Kemenko PMK 2020). PP No. 2 of 2022 is
a legal umbrella that can open access for women to contribute positively, especially in the
digital era, where more and more micro, small and medium enterprises (MSMEs) are
growing and entering the digital ecosystem. This information is further strengthened by the
statement of the Minister of Communication and Information, Johny G. Plate, in the Digital
Talent Scholarship (DTS 2022) program, that around 63 percent of DEA DTS 2022 digital
entrepreneur training are women. Women are expected to utilize digital technology in order
to become Go-digital entrepreneurs.
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Based on current technological developments, some women entrepreneurs in
performing their two roles, namely as housewives and economic actors, should benefit from
this technological development (Primadhita 2018). For some women entrepreneurs,
technology can be useful and helpful for digital marketing and this has proven to have a
positive impact in increasing sales (Febriyantoro et al. 2020). Based on research by United
Nations (UN) Women (2020), around 54 percent of women sell their products via the internet.
At the small-scale business level, the proportion of internet utilization for business
development carried out by women reached 68 percent or 12 percent higher than businesses
managed by men at around 52 percent. The Minister of Women's Empowerment and Child
Protection (PPPA 2021), Bintang Puspayoga, stated that increasing women's access to
information technology is key. Achieving the priority issue of empowering women in
entrepreneurship can only be achieved if women have resilience to rapid changes in the times,
so it is necessary to provide understanding and ability to women business actors regarding the
use of the latest technology because this is very important (Katadata 2022).
In the business process, business death or failure generally occurs. One of these
failures is more due to the way of planning how the business and product is built
inappropriately. This process is a stage that is often referred to as the valley of death
phenomenon. This stage is usually passed by most entrepreneurs both in newly formed
businesses and long-running businesses. The fact reveals that this stage is often rarely
understood by novice and old entrepreneurs, so that not a few entrepreneurs experience total
failure. Failure to pass through this valley of death phenomenon is more due to ignorance.
The stages of the valley of death cycle as shown in Figure 1.1.
Problem Formulation :
There is an interesting fact, that in addition to the rapid development of technology,
the death rate caused by failure to pass through the "Valley of death" in micro, small and
medium enterprises (MSMEs), especially in the first three years of an average of 50-60
percent is relatively high, but after three years, the death rate of MSMEs decreases to 30-40
percent (Yuyun 2019). The gap between opportunity and start-up is the Valley of death for
both male and female entrepreneurs. The Valley of death is not the only factor that can cause
business failure. Other research states that MSMEs that find it difficult to pass through the
valley of death phenomenon generally find it difficult to survive more than five years in
operation (Brush 2012; UNDP 2021; Natsheh et al. 2021) The limitations of women's
entrepreneurship in running a business are a weakness that can affect the unstable
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entrepreneurial motivation of women in expanding their network and developing their business
scale.
Some of the weaknesses and challenges that are often faced and felt by women
entrepreneurs when viewed based on the quality of their business, include lack of resources,
lack of experience and business management, lack of knowledge and business skills, lack of
confidence, risk aversion, lack of social support, conflict between work and household, and
many other limitations that are felt to affect the quality of their business women's
entrepreneurship is less developed in running their business (Mohamed 2018).
A different finding from another study revealed that many women entrepreneurs did
not survive to reach five years in operation. In fact, when viewed based on the ability to
manage MSMEs that can survive, women have more ability to survive than men (United
National Development Program 2020), but the businesses built by women are mostly in the
micro and small categories, while medium and large (macro) businesses are still dominated
by men. The failure rate of women-owned businesses is higher, especially in the first two
years of operation. This statement is reinforced by another study which states that only about
69.5 percent of women-owned businesses make it to three years, meaning that the rest cannot
survive (Montague 2017). Meanwhile, other challenges related to the unusual work of women
entrepreneurs, especially those related to the challenging aspects of the digital world, require
special measures so that women entrepreneurs can survive and be sustainable.
Given the relatively high mortality rate of micro, small and medium enterprises
(MSMEs), especially in the first three years of operation, this research is very important to
prepare future generations, especially millennials or generation Z in order to prepare
themselves for the Valley of death cycle and other weaknesses in women's entrepreneurship
in order to be sustainable. Some of the ways that can be done to survive in business include
having the right business sustainability model. Therefore, this research aims to find a model
of sustainable women's entrepreneurship development strategies in the digital era, especially
at the micro business scale.
Several steps were taken in order to formulate its business sustainability strategy: The
first stage was to identify and map the business model by considering the nine business
elements in the business model canvas (BMC), namely Consumer segments, Value
proposition, Customer relationships, Distribution channels, Key resources, Cost structure,
Key activities, Key partners, and Revenue streams (Osterwalder 2010), as well as weaknesses
in their implementation. These nine elements are considered capable of representing elements
that are considered important in a business, whether the business has not yet been done or the
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business has been done. The representation of the nine elements in the business model canvas
owned by the informants is the basis for the formulation of ideal women's entrepreneurship
projections in running their business in the future as well as the contribution of technology in
women's entrepreneurship business. Based on the phenomenon of women's entrepreneurship
and the projection of ideal women's entrepreneurship in running their business in the future, it
will certainly produce a gap, so that it can be known what factors affect women's businesses
cannot survive.
The rapid development of women's entrepreneurship as well as the weaknesses faced
by women entrepreneurs in running their businesses described earlier, indicate the need for
the implementation of successful strategies to overcome these weaknesses (Chinonye 2015).
Women entrepreneurs may not have effective strategies to overcome the weaknesses to run
their businesses (Chinonye 2015) maintaining a profitable business (Mohammed 2017), so
that these conditions make women's businesses survive on a micro scale. Business
sustainability development strategies are formulated based on the benchmarks of ideal
women's entrepreneurship conditions in managing their business in the future. The business
sustainability strategy model that is considered effective is one that can be applied by
women's entrepreneurship and has an impact on the business implications of women's
entrepreneurship.
2.1 Concept Entrepreneurship
The definition of entrepreneurship based on experts can be interpreted differently
depending on the context of the study. Some experts in this case define that entrepreneurship
can be interpreted as the process of doing something new in a creative and innovative way
that is beneficial to others and provides more value. Entrepreneurship is also defined as the
result of disciplined efforts in a systematic process of applying creativity and innovation to
market needs and opportunities (Zimmerer 2008). Based on the above statement, it can be
concluded that to be able to meet the needs and be able to read market opportunities as an
effort that needs to be made by entrepreneurs, it is in line with the application of creative and
innovative entrepreneurship.
The definition of entrepreneurship as an independent discipline is characterized by a
body of knowledge (theories, concepts, and scientific methods) which is divided into venture
start-up and venture growth, while based on the object of the discipline related to the Ability
to create new and different things. The development of the concept of entrepreneurship as a
scientific discipline has special characteristics related to the ability to create creativity and
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innovation, organization, risk, result orientation, opportunity, personal satisfaction, and
freedom for business actors (Prawirokusumo, 2012).
Meanwhile, from a business context, based on the view of business people, an
entrepreneur is a new business creation carried out by someone by risking and realizing
uncertainty. The goal to be achieved is to increase profits and growth by identifying
opportunities (Zimmerer 1993). Another definition is also presented in relation to
entrepreneurship and business risk, namely that someone who can organize, manage, and
assume the risks that will occur in a business or venture is an entrepreneur. Entrepreneurs are
individuals who understand and know the financial, material, and resource risks in the new
business concept they will create based on opportunities in their company (Burgess 1993).
The statement that an entrepreneur is someone who can create creatively to build
something that has value from practicality regardless of whether there is an opportunity from
resources or a lack of resources (Jeffrey 1994). Vision and passion or desire, and the
commitment to be able to lead others in carrying out that vision, as well as the need to take
calculated risks is a necessity for entrepreneurs (Peggy 1999). In terms of role and function,
entrepreneurship can be grouped into routine entrepreneurs who tend to focus on solving
problems and traditional improvements by producing goods, markets, technologies, and
arbitrage entrepreneurs who are always looking for opportunities to discover knowledge and
its utilization. Opportunities to buy cheap goods and then sell them at high prices without
carrying out production processes or production activities. Furthermore, innovative
entrepreneurs who always innovate with their ideas and creations that have value as a
differentiator. When viewed from the main function of micro entrepreneurship,
entrepreneurship as a pioneer and development of companies in taking risks, facing
uncertainty, good resource management. material, human, and financial according to the
target to be achieved (Roopke 1995).
The characteristics of successful entrepreneurs that can be described usually have
competence in the knowledge of the business to be carried out, the business environment,
roles and responsibilities, as well as business management and operations. Conceptual skills
that include how to set strategies and calculate risks, and formulate ideas to add value to the
business which of course must also be understood as the use, methods, processes, and
strategies that are appropriate for managing and leading the business to be carried out.
Technical skills such as adjusting or optimizing resources, producing new products,
marketing, calculating risks and others. Other skills such as communication and interaction
skills, creative skills such as generating new ideas and ideas related to the business to be
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created or developed (Suryana 2014).
2.2 Entrepreneurship Female
The trend of entrepreneurship among women has given rise to diverse perspectives
among the public. Gender understanding is the difference between men and women. The
difference is built based on social and cultural. Gender is always related to the roles,
behaviors, and traits that are considered appropriate for both men and women. Gender
activities are always associated with the women who are considered a disadvantaged group
compared to men in the decision-making process, important positions in politics, government,
and in the family (Azisah et al. 2016).
Gender has traits and behaviors that are expected of men and women based on the
values, culture, and norms of society at a particular time. Gender roles relate to what men and
women should, should and should not do based on the values, culture and norms of society at
a certain time. Gender space is a space for men and women to perform their roles either in the
domestic sphere (family area) or public (Azisah et al. 2016).
Indonesia is still steeped in Patriarchy, a system of social structures and practices
where men dominate, oppress and exploit women (Walby and Sylvia 1990). Men's
dominance over women stems from their biological differences. Men are considered strong
because they have muscles while women are considered weak. As a social structure and
practice, patriarchal culture has shifted following social changes in society (Azisah et al.
2016).
Currently, biological differences are not a reason to make women helpless creatures,
the development of science and technology can empower women to perform their duties
(Azisah et al. 2016). Gender-based division of labor can vary based on certain community
groups, such as agricultural communities, fishing communities, merchant communities, and
urban worker communities (Azisah et al. 2016). Specifically for the urban worker
community, this society emerged along with the process of modernization and
industrialization that created urban areas with various productivity based on salaries and
wages. This society gives rise to a new form of society that is modern in nature by leaving a
patriarchal culture (Azisah et al. 2016). However, with the opening of equal education for
men and women, they can also take part in the public sector. Ideally, with equal opportunities
for education, self-actualization and career, the gender-based division of labor no longer
follows the old division of labor of the early 20th century (Azisah et al. 2016).
The analytical and multitasking skills that women tend to possess can place them
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above men. However, patriarchal culture still has little influence on gender roles in urban
society. Gender traits, roles, work, positions and domains can change due to societal changes
in education, politics, economics that require changes in cultural values and social norms
(Azisah et al. 2016). Gender-related issues in Indonesia are still a problem today (Theboud
2010).
A study states that business-oriented women have a high level of satisfaction (Jyoti
2011). Push factors are higher in satisfaction than pull factors in women's entrepreneurial
motivation in making their decision to want to do business. Women entrepreneurship in terms
of doing their work often requires them to be everywhere in order to fulfill their
responsibilities and continuously integrate work and life roles (Engen 2018).
2.3 Entrepreneurial Strategy Women
The success of a business is certainly influenced by the strategies used in the
entrepreneurial process. Strategy can be defined as determining the framework of a
company's business activities and providing guidelines for coordinating activities so that the
company can adjust and influence the ever-changing environment. Strategy can explain the
environment that the company wants and what kind of organization it will run (Itami 1987).
Entrepreneurial characteristics and the strategies used are certainly a package that
needs to be looked at. Some studies that support the concept of women's entrepreneurial
strategies include the finding that entrepreneurs must be able to record and pay detailed
attention to the start of the business, making policies and operating strategies that will grow
the business. Women entrepreneurs often interpret success as economic growth, in this case
financial. Beliefs play a strong role in providing motivation and confidence to women
entrepreneurs (Awadzi 2019). Women's entrepreneurial success offers a competitive
advantage to the business market (Chamorro and Premuzic 2014). Successful women
entrepreneurs know the market, take calculated risks, understand product pricing, and take
full advantage of profit growth opportunities (Chamorro and Premuzic 2014).
Women entrepreneurs experience success when they develop and launch new
products, create aggressive business models, hire highly trained employees, and use good
information (Eisenmann 2013). Strategic success factors and entrepreneurial growth can
grow rapidly. Other findings reveal that entrepreneurship can be a positive force in women's
lives and empower women by structuring their own growth (Hug 2019).
Women's entrepreneurial approach to business can be built by building a production-
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centered community, creating consumers, engaging with consumers, and making customers
see their vision (Young Entrepreneur Council 2018). In the process of exploring women's
entrepreneurial attitudes and views on mentoring relationships, women often face many
challenges when building a business. Building mentoring relationships can help women
increase their chances of business success, organizational growth, and leadership
development. Mentors in the mentoring process can serve as guides, problem solvers,
sounding boards and teachers. Mentors can also be influential in increasing self-efficacy in
new entrepreneurs so that mentors can be a connector and encourager (Rollins 2017).
Additionally, women entrepreneurs align themselves with mentors in their desired
industry to help avoid key mistakes. Mentors are recognized to help women entrepreneurs
uncover problematic areas in their business and bear the necessary pivots to make the
business successful (Young Entrepreneur Council 2018). Each strategy built in women
entrepreneurship is of course different and is usually customized based on the business cycle
which can be explained as follows:
2.3.1 Women's entrepreneurial strategies in starting a business
Starting a business is an activity that requires a lot of identification of various
resources to meet both internal and external needs. To achieve success women entrepreneurs
must see and emphasize what is missing in their business and identify problem areas to find
suitable innovations. Women entrepreneurs must be open to communication both internally
and externally in order to create a strong network, networking is one of the opportunities to
make a business successful (Young Entrepreneur Council 2018).
Furthermore, to achieve successful entrepreneurship, women entrepreneurs must
know what strategies to use to start a business, what techniques are needed to grow the
business, and how to overcome challenges that arise during its operation (GEM 2017). Four
strategies that can be used to start a business are information, implementation, learning, and
communication. Information must be obtained before making a decision. Meanwhile,
implementation strategies should detail plans to guide decision-making, and learning is the
process by which entrepreneurs look at past scenarios and examine past decision-making
techniques in the hope of learning from past experiences. Communication refers to the
process of communicating the decision with all necessary parties (Teti 2017).
Business models play an important role in helping entrepreneurs succeed. A good
business model is the key to starting a successful business, a good business model can help to
get financing from outside parties (Slatter 2018). The business model is a guide for
entrepreneurs to help make decisions and reduce risks, of course, the business model must go
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through the next stage to be used by the company. The explanation of the business model will
be described in a separate sub-chapter on the business model and business model canvas as a
strategy and tool for mapping elements in the business to be executed or developed.
The next approach that can be developed is related to action steps through research.
Action steps can be carried out with a suitable method, of course, the method must also be
adapted to the research objectives or to the objectives in building and developing the
business. The process of establishing action steps in addition to research methods, teams, and
leadership that entrepreneurs must have can also affect the success in creating a successful
new business (Slatter 2018).
2.3.2 Women's entrepreneurship strategies in growing a business Business growth is
the initial stage that must be carried out by Entrepreneur. In this context the entrepreneur
oversees various aspects of the business. The work often done by the entrepreneur at this
stage is to develop or grow (Mancuso 1990). Growing a business always requires a detailed
business plan. The business plan details funding and marketing components related to
location, competition and brand equity (Fleishman 2015). The business plan should also
include strategies for growth, communication with customers, relationships with staff and
vendors, product delivery, and customer identification (American Marketing Association
2013).
Business growth is built through securing locations and networks. Creating a network
for a business whether in the growth or development stage is not expensive, networking is a
skill that entrepreneurs can learn through training or other educational programs that can
strengthen the network itself (Phillipson 2018). The benefits of business networking are
information sharing, building credibility, developing relationships, marketing, making
connections, and promoting products and services (Karrera 2015). Networking with the right
people helps entrepreneurs build the right connections, get ideas to grow their business, and
get educated on sustainability techniques (Madonsela NS 2016).
Based on profitability in business, profitability is one that is fostered through extrinsic
(external reward-driven behavior) and intrinsic (internal reward-driven behavior) platforms
universally among women entrepreneurs. Each platform is always supported by the different
building blocks of each female entrepreneur, then the different platforms are put together and
become a platform that can help to grow the business (Dalborg 2015). There are five rules for
growing a business that entrepreneurs can follow to be successful (Mancuso 1990), namely:
1. Hire employees according to their competence and be reliable and responsible in the
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implementation of business activities;
2. Helping employees to be trained to have skills so that they can have good performance as
expected by providing training and others;
3. Engage in meaningful planning to determine where the business is, where it wants to be,
and how it will get there;
4. Motivate employees by sharing the vision and gaining commitment from employees.
Meanwhile, when viewed based on the motivation of women's entrepreneurship in
developing countries, in the context of developing economies, the motivation of women's
entrepreneurship is due to economic factors, whereas in the context of developed economies,
women's motivation is more towards social factors. Women's entrepreneurship in the context
of developed economies aims to satisfy office holders, while in the context of developing
economies aims to satisfy shareholders. When viewed from the context of both things that
can appreciate is the aspect of relationships in business development, employees, investors,
suppliers and customers (Solesvik et al. 2018).
Another study revealed that there are five factors that influence women's
entrepreneurial motivation and growth: survival, stability, creative work, appreciation, and
personal development. These factors are hierarchical in their achievement. It takes step by
step to get to the highest level, each factor providing a different level of motivation to grow a
business (Dalborg 2015). Other pull factors for women entrepreneurs are the drive for
creativity, innovation, self-identity and independence, and service to the community (Shastri
et al. 2019). Other factors such as perseverance, providing customer service, personality,
tenacity, customer loyalty, refusal to fail, and product quality can help women entrepreneurs
in running their business (Rieger 2012).
2.3.3 Women's entrepreneurial strategies for business sustainability
The complexity of the concept of business sustainability affects the definitions issued,
making it very difficult to find a suitable concept that can be applied to this research.
Sustainability can be understood as a building or framework for meeting the needs of the
present as an effort to meet the needs of the next generation (Brutland report 1987). A
sustainable business relies on continuous innovation (Madonsela 2016). It usually leads to
long-term survival and relies on approaches to innovate new processes (West 1996 and Wong
2009). In reality, sustainable business practices require a long process and continuous
innovation in accordance with the business culture exemplified by the organization.
A sustainable business requires an approach that has a systematic workflow (efficient
15
and effective) in order to be able to adapt and be flexible to the business environment that
changes every time (Madonsela 2016). There are four elements in sustaining a business,
among others:
1. Adaptive ability to monitor, measure and respond to internal and external variations,
2. The leadership capacity to make choices and deliver plans necessary to achieve business
goals,
3. Management capacity that utilizes resources proficiently,
4. Technical capacity addresses program, business and community strategies (Carsrud
2010).
Sustainable businesses adapt to challenges and generate resources within
environmental constraints (Carsrud 2010). The existence of competition that can be profitable
for entrepreneurs can actually maintain business growth. Competitiveness is always related to
sustainable business, the occurrence of competition always creates challenges for
entrepreneurs in running their business and finding ways to be able to maintain business
growth (Madonsela NS 2016). Four categories emerged from research on the techniques
entrepreneurs use to sustain their businesses, including: 1) entrepreneurship, 2) leadership, 3)
organizational culture, and 4) organizational learning. Successful entrepreneurs master these
techniques and apply them to innovative practices to sustain the business (Foster 2016).
In cycles of business growth, there is always a need for an innovative workforce with
high skill levels to improve business sustainability. Entrepreneurs must prepare for the
activities of planning, monitoring, and controlling the business through a sustainable and
aggressive environment (Madonsela 2016). Meanwhile, in order to measure and make a
comparison of what potential to target, entrepreneurs must be able to discover what other
businesses in their market are doing to attract and retain customers (Fleishman 2015). Ways
that can currently be done to help business sustainability such as building a social media
platform are essential for sustainability (Nelowet 2013).
Sustainability can also be understood as a skill, knowledge, ability, and attitude
possessed by venture entrepreneur leaders for the long term. Based on the results of the study,
it was found that the skills needed are the creation of a positive work climate, the skills of the
business community, the leadership team, planning skills, and leadership skills. The
knowledge dimension of the most dominant thing is learning from previous experiences that
come from mentors, colleagues, leadership team members, and parents. The ability
dimension produced four abilities related to competence, including 1) the ability to persist
and persevere, 2) the ability to control emotions, 3) the ability to change, and 4) the ability to
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look forward (vision). Meanwhile, the attitude dimension was found to include willingness to
take risks, failure, willingness to change, refusal to quit, willingness to sacrifice, and
perceived satisfaction (Stevenson 2018).
The ultimate goal of her entrepreneurship is generally to be profitable and sustainable
for at least five years (SBA n.d.). Women entrepreneurship sustains the business through
recognition and innovation. Sustainable entrepreneurship refers to innovation and
exploitation of opportunities to create demand for goods and services that will provide
business growth (Khumalo SD 2014).
Business sustainability leads to a stronger financial foundation supporting and
enriching a business's ability to deliver value (Bryson and Carsrud 2004). Sustainability
achieves identifiable goals towards specific impacts. Sustainability involves business
components and objectives along with key decision-making techniques that promote business.
2.4 Sustainability Business
One of the characteristics of entrepreneurial success is being able to maintain
profitable business operations for five years or more. Entrepreneurs can innovate and survive
for five or more years by modifying conventional ways, creating new products, establishing
production methods, and creating new markets (Schumpeter 1983). Strategies that can be
used by entrepreneurs in improving five-year benchmark opportunities are related to
inspiration, achievement, business value, and human relations (Hughes 2019).
The approach that can be taken to maintain business for more than five years
according to recommendations (Solis 2017) can be done with five steps, namely 1) customer-
centered, 2) human relations, 3) motivation, 4) innovation, 5) skills and education in business
operations. Of the five stages in the approach to sustaining a business, there are three sub-
categories that are quite influential, namely 1) focusing on motivating influences, 2) focusing
on building successful business operations, and 3) focusing on human resource relationships.
2.5 Business Model
The concept of business models began to develop in the late 1990s. The development
of this concept was followed by the development of e-business, which indeed has a different
business model from conventional business models.
The understanding of business models is very diverse, but the understanding of
business models can be adjusted based on three groups, namely business models as methods
or ways, business models that have elements that can be analyzed with a specific purpose,
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and business models as business strategies.
The assertion of a business model that can help owners and professionals initiate an
abstract business and then take action to test it so that it becomes real (Magretta 2002). A
business model refers to a plan or diagram, which talks about how a company uses its
resources, how it competes, how it develops business relationships, how it deals with
consumers, and how it creates value to generate sustainable revenue. A business model
speaks to how a company competes in a competitive market (Barringer and Ireland 2008). In
general, a business model is an illustration of the relationship between a company's resource
advantages. Business activities aim to acquire and create value, so that the company is able to
generate profits. The elements contained in a business model are usually related to the target
to be served, the things to be offered, the process of producing products, the process of
making money or profit, and the process of providing strategic differentiation from
competitors (Osterwalder 2005).
A business model can be said to be a detailed description of the strategy created in a
business either to be created or to be developed. A business model is a strategy that deals with
many aspects of a business including regulating the purpose of relationships with suppliers,
with distributors or with customers directly. Some types of business models that commonly
exist in the business world today include: 1) Distributor business model with its main activity
is to distribute products to be offered, 2) franchise business model. which has the concept of
an existing model from the field of business owned by others by paying compensation as a
form of cooperation, 3) white label business models designed for the freedom to use their
own brands to resellers, 4) e-Commere business m od e l s , 5) marketplace business models
that function to facilitate meetings between sellers and buyers online, 6) dropship business
model, which is an online business model without carrying out physical stock activities and
not having more availability of goods, 7) manufacturing business model, which is a business
model where the production of goods using tools or machines, even to sell their own products
is carried out at their own outlets or outlets that have collaborated to sell these products
(Kurniawan 2020). Some of the business models that have been described above are often a
reference for starting a business. Which one is more suitable to choose, of course, must be
adjusted to the needs and abilities and resources available so that the business becomes
appropriate.
2.6 Business Model Canvas (BMC).
The business model canvas is one of the tools to model a business that will be created.
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The business model canvas (BMC) serves to visualize important elements in the business,
namely the customer segment, value proposition, customer relationship, distribution
channels, key resources, cost structure, key activities, partners, and partners.
key partnerships, and revenue streams (Osterwalder 2010). The process of designing
a business model canvas can be done according to the explanation in his book Business
Model Generations (Osterwalders 2014), namely:
1. Fill in the value proposition based on the suitability of the target customer. Define
customer segments that are the elements that will keep the organization alive in order to
survive or thrive,
2. Value propositions are the values (functions, benefits, uniqueness) of a product,
3. Describes how organizations can communicate, deliver products through distribution
channels,
4. Create a customer relationship strategy so that the organization can retain existing
customers and develop new customers in its organizational activities,
5. Assuming a revenue stream at this stage is mandatory. A good revenue stream can
result in the organization's success in bringing in profits,
6. Key resources, key activities, and key partners alike must be managed efficiently in
order to optimize the cost structure.
Based on its application, the nine elements in the business model canvas are grouped
into four, namely 1) management infrastructure consisting of key resource groups, key
activities, and key partners, 2) products consisting of value propositions, 3) customer
relationships consisting of consumer segments, distribution channels, customer relationships,
and 4) financial aspects, namely cost structures and revenue streams. The business model
canvas framework is illustrated as shown in Figure 2.2.
2.7 Classification of Micro and Small Businesses
Based on PP 7 of 2021 concerning the application of criteria for business capital and
annual sales results according to article 36 paragraph (1) explains the application of criteria
Micro, Small and Medium Enterprises. The business criteria that are the focus of this research
are micro business units that can be classified as follows:
2.7.1 Micro Business
Based on government regulations related to business, it is contained in article 35
paragraph (3) of PP 7 of 2021 concerning micro, small and medium enterprises. Micro
enterprises are defined as productive businesses owned by individuals with the following
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criteria: 1) has a maximum business capital of IDR 1 billion and does not include land and
buildings as a place of business, 2) has a maximum sales revenue of IDR 2 billion per year.
Based on their development, micro businesses are classified into two types, including: 1)
Livelihood Activities, which are microbusinesses that are conducted for the sole purpose of
earning a living. This type of micro business is the informal sector such as street vendors,
resellers, and others, 2) Micro Enterprise, a micro enterprise that has developed sufficiently,
but does not yet have an entrepreneurial nature, and is not yet able to accept sub-contractor
work and export activities.
2.7.2 Small business
Small businesses are productive economic businesses that stand alone and can be
carried out by people or individuals who are not subsidiaries owned by medium or large
businesses. The value of small business success comes from enabling people to access
entrepreneurial dreams. Small businesses have the following criteria: 1) has a maximum
business capital of Rp 1 billion to 5 billion and does not include land and buildings as a place
of business, 2) has a maximum sales revenue of Rp 2 billion to 15 billion per year.
2.7.3 Medium-sized business
The determination of a medium-sized enterprise is based on a workforce of at least 50
to 150 employees. The requirements for the establishment and registration of medium-sized
businesses have the following criteria: 1) having a business capital of more than Rp 5 billion
up to a maximum of Rp 10 billion excluding the land and building of the business premises.
2) has annual business revenue between Rp 15 billion and 50 billion.
2.8 Digital Era
Digitalization is often understood as a form of change from analog mechanical and
electronic technology into digital technology. The application of digitalization has been
carried out since the 1980s until now. The occurrence of the digitalization era was caused by
a revolution triggered by a generation of teenagers who were born in the 1980s and became
the beginning of the digital information era or better called technological development. The
digital era is an era in which the implementation of life is inseparable from the existence of
technology that serves to facilitate human activities and replace some of the past technologies
that are more practical and modern.
The digital era is often characterized by the massive penetration of social media in
various aspects of economic, political, cultural and defense and security life. The
development of information and communication technology that is developing at this time
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can be exemplified such as Bluetooth (2001), Mozilla (2002), Skype (2003), MySpace (2003),
Facebook (2004), Youtube (2005), Twitter (2006),
Apple-iPhone (2007), Google-Android (2008), Apple-iPad ( 2010), Instagram
Instagram (2010), Google-Glass (2012), Sophia the artificial intelligence robot (2015), Tesla
Model 3 (2016), and other new technologies. In addition to businesses that As exemplified
above, social media has also influenced the development of marketplaces, e-commerce, and
business start-ups.
Some positive impacts in the digital era such as being able to provide fast and easy
access to the information needed, can stimulate the growth of innovation in various fields that
are oriented towards digital technology that serves to provide convenience in the work
process, help people to access sources of knowledge and information, improve the quality of
human resources through the development and utilization of information and communication
technology, as an online library and online learning media, and the development of business
models such as e-business (online shop) which can provide various needs of goods or
services practically and easily.
2.9 Capital Social
Social capital is a pattern of active relationships between communities Coleman
defines social capital as a representation of resources that have reciprocal relationships,
social networks that institutionalize trust. Social capital is also a resource (something that can
be used for consumption, saving and investment) that can be seen as an investment to obtain
new resources (Hasbullah and Jausari 2006).
The term social capital is always related to society or community. Community is part
of a person's self-concept and is an important aspect of perspective or behavior (Ife and
Tesoriero 2008). There are six elements that form social capital (Hasbullah and Jausari 2006),
namely trust, networks, reciprocity (exchanging kindness between individuals in a group or
between groups), social norms, social values, and proactive actions.
In previous research, it was stated that social capital can mobilize internal resources
and build networks outside the community. This also applies to the business environment.
Other research illustrates the positive relationship between social capital and
entrepreneurship. This suggests that government policies can be designed to create and
aggregate social capital that can enhance cultural openness and diversity within a community
or region (Doh and Zolnik 2011).
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2.10 Position Research
Previous research related to the process that marks the involvement of women in
entrepreneurship in Indonesia, namely the increase in the number of women involved and the
increase in the number of fields that women can enter, namely creating a business according
to their passion (Abdullah 2016). Table 2.3 presents previous research conducted by Nunley
(2021), Shastri et al. (2019), Stevenson (2018), Tamara (2015), Solesvik et al. (2018), Setini
et al. (2020), Nasution et al. (2020), Primadhita (2018). women's entrepreneurship that has
been carried out in both developed and developing countries related to several elements in
women's entrepreneurship that have the potential to become key success factors for women's
entrepreneurship to survive more than five years.
2.11 Conceptual Framework
The conceptual framework in this study was built by considering that
entrepreneurship built by women (women's entrepreneurship) begins by looking at the
potential and level of women's entrepreneurial participation in Indonesia, which has increased
quite rapidly every year. Women's awareness of the potential competencies that can be
developed and the demands of the needs that require women to help families in meeting their
needs are the causes of increasing women's participation in entrepreneurship.
The limitations of women's entrepreneurship in running a business is a weakness that
can affect the unstable motivation of women's entrepreneurship in expanding the network and
developing the scale of their business. Some other weaknesses that are often faced and felt by
women entrepreneurs that can be concluded based on the description in chapter two, one of
which is the quality of their business. The quality of business can be concluded, among
others, related to lack of resources, lack of experience, lack of business management, lack of
business knowledge and skills, lack of confidence, risk aversion, lack of social support,
conflict between work and household, and many other limitations that are felt to affect
women's entrepreneurship is less developed (Mohamed 2018; Budastra 2020).
Departing from the conditions of women's MSMEs above, the conceptual framework
starts from the mortality rate caused by the failure of entrepreneurs, especially women, in
passing the "Valley of Death" phenomenon in micro, small and medium enterprises
(MSMEs), especially in the first three years of operation, which is on average 50-60 percent
relatively high. Meanwhile, statements from several studies reveal that only about 69.5% of
women-owned businesses make it to three years, meaning that about 30.5% do not make it to
three years and the failure of women's businesses is believed by entrepreneurs to be
22
businesses that do not grow or cannot survive for five years or more (Montague 2017; Brush
2012).
This conceptual framework tries to describe the phenomenon of women's
entrepreneurship by considering the nine elements contained in BMC, namely customer
segments, value propositions, customer relationships, channels, key resources, cost
structures, key activities, key partnerships, and revenue streams (Osterwalders 2014). The
nine elements are predicted to be able to support in formulating and creating a business
sustainability model for women's entrepreneurship in the digital era. In addition, the use of
nine key elements in BMC is done to find out what causes women's businesses to not survive
more than five years (sustainable) partially. The selection of nine key elements in BMC is felt
to be representative enough to describe what is in the business which then becomes a
parameter to answer research questions. BMC can be a management strategy to translate
concepts, consumers, infrastructure, and company finances. The description of the nine
elements in the business model canvas in women's businesses and their weaknesses is the
main basis.
The next stage, to be able to find out the extent of the problems experienced by
women entrepreneurs in running their businesses, as well as the solutions that need to be
applied, the analysis component is complemented by THIO (Technology, Human,
Information, Organization). Furthermore, the formulation of the ideal business sustainability
model projection in the future still considers nine elements. This formulation aims to see the
opinions of experts regarding the ideal conditions that will occur in the future, so that from the
opinions of the experts it can be seen that there is a gap between the current conditions based
on the phenomenon with projections or estimates of ideal conditions in the future. Hope
from this stage can produce answers that women's entrepreneurial businesses cannot be
sustainable due to certain factors.
The formulation of the ideal women's entrepreneurship sustainability model projection
in the future is a benchmark in formulating the sustainability model of women's
entrepreneurship in the digital era. Furthermore, the diamond analysis strategy or commonly
called Hambrick's Diamond Strategy Models is adopted to provide answers or strategic
solutions that are both thorough and comprehensive by covering basic aspects of strategy,
such as (1) Arenas, (2) Differentiators, (3) Vehicles, (4) Staging and Pacing, and (5)
Economic Logic in order to see the impact on women's entrepreneurship, especially on the
next generation of women entrepreneurs (millennial generation or generation Z).
This research uses a qualitative approach which is an approach to describing
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phenomena based on the point of view of key informants in finding diverse realities and
developing a holistic understanding of phenomena in a particular context (Hilal and Alabri
2013). Meanwhile, research with a qualitative approach tries to understand phenomena
related to what is experienced by research subjects such as behavior, perception, motivation,
action holistically by means of descriptions in the form of words and language, in a special
natural context and by utilizing various natural methods (Moleong 2011).
There are five approaches in qualitative research (Creswell 2007), namely narrative,
biographical, grounded theory, case study, ethnographic, and phenomenological. Based on
these five theories, a narrative approach based on case samples from the buying and selling
community (bejubel) in Bogor city is used to answer the objectives in this research, namely
the phenomenon of women's entrepreneurship related to weaknesses in the application based
on nine business elements in women's entrepreneurship (Osterwalder 2014) until it can finally
formulate a model of sustainable women's entrepreneurship development strategies in the
digital era.
3.1 Collection Methods data
Data collection aims to answer research objectives related to the phenomenon of
women's entrepreneurship in running their business, which is analyzed based on the nine
business elements in BMC, and the weaknesses in its application in women's
entrepreneurship (Osterwalder 2010), as well as the formulation of women's entrepreneurship
strategies that can last more than five years or are sustainable, requiring data collection
methods as:
3.1.1 Preliminary Survey/ Identification of Subject Profile.
Preliminary data was conducted to find the subjects to be determined in this study, so
a survey was conducted to sources that could provide relevant information (key informants).
The information provided by the source can be an access to find the subject to be studied. The
subject comes from the "Bejubel" community in Bogor city with an entrepreneurial
profession for the products it develops, in this case the products are culinary and fashion.
The initial survey was conducted in May 2022. This process was carried out to
provide confidence that the subjects determined in this study had really gone through the
selection stage and direction from reliable sources including in accordance with the
predetermined qualifications.
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3.1.2 Literature Study
The next data collection technique is a literature study of sources of information
derived from previous studies, scientific reports from accurate sources, textbooks as a basis
for theoretical reference, thesis and dissertation results, and expert information related to
women's entrepreneurship, challenges and weaknesses and growth.
3.1.3 Interview
The process of conducting interviews is carried out if each party agrees and
understands the research objectives that are targeted for achievement. Interviews were
conducted in a semi-structured manner where the questions to be asked already had general
guidelines although in practice there was the potential for development of general questions
according to the conditions of the subject so that the information that could be received was
more comprehensive and in-depth. Interviews were not conducted only once, depending on
the adequacy of the information obtained. If the information was felt to be sufficient, then the
interview was only conducted once, but if the information was felt to be insufficient, then
another interview was conducted at a time and in a way that was adjusted to the conditions.
Interviews were conducted with participants to answer research objective number one,
namely an overview of their entrepreneurship, objective number two, namely an overview of
their business model, and objective number three, namely the technological contribution of
their entrepreneurship. In addition, interviews were also conducted with experts to see the
assessment and ideas in answering research objective number three, namely the contribution
of technology, number four, namely the projection of women's entrepreneurship in the future.
3.1.4 Participant Observation.
Participatory observation is carried out by observing the activities of participants in
the culinary and fashion fields carried out in the company (place of business) or at home.
This observation looks at the physical form (shop or online shop), facilities used, products,
production processes (in certain businesses in the culinary and fashion fields according to the
owner's approval), and special promotional activities in the Bejubel group or community.
Observations were made at the same time as the interviews were conducted, but it did not rule
out the possibility of direct visits outside the interview schedule. This was done to be able to
be more convincing of the activities carried out by the subject or participant and hope to
understand the real activities of the participants or subjects in the study, so as to produce
additional information about the subject's activities.
25
3.1.5 AudioVisual Materials
Documentation studies that use audio visuals (tape recorders, photo cameras) serve to
provide an overview and clarify which is useful to ensure the accuracy that this research has
been carried out. Documentation produced through photo cameras includes an overview of
the business model canvas based on each participant's business model, images of products
created by participants, and participant profiles. Meanwhile, a tape recorder was used to
extract information and ideas from participants and resource persons either through direct or
indirect in-depth interviews. The material generated through tape recorders from participants
related to with information on the nine aspects of the business model canvas, namely
customer segment, value proposition, channels, customer relationships, key activities, key
resources, key partnerships, cost structure, and revenue streams in entrepreneurship that have
been carried out by participants. Meanwhile, the material generated through resource persons
is related to the assessment of technology contribution and ideas for the projection of
women's entrepreneurship in the future.
3.2 Stages of Implementation Research
The stages of research implementation are levels or levels in a research activity.
Stages have a process that is carried out in a structured, coherent, standardized, logical and
systematic manner. In detail, the stages of research implementation are as shown in Figure
1. The preliminary study was conducted through a literature review related to the
theme of women's entrepreneurship which includes the characteristics, weaknesses, and
problems faced by women entrepreneurs in running their businesses. The literature used
includes previous articles or journals. Issue The current issues in women's entrepreneurship as
well as looking at previous research recommendations from studies that have been conducted have the
potential to create further research gaps. The description of problems that have been found from
previous research can be used as a reference for research problems which can then become the basis
for formulating research questions, determining research objectives, and conceptual models built
based on literature reviews that are considered relevant.
2. The process of collecting data in the field, in this case female entrepreneurship,
is in accordance with the predetermined criteria. Through in-depth interviews information can
be obtained which is then processed with the stages already described. To obtain accurate
data, research instruments can be validated in advance and optimize all tools to help facilitate
data collection and data analysis until the reporting stage.
3. The process to generate an overview of the nine business elements and their
26
weaknesses in businesses managed by women is assisted by using a business model canvas
(BMC), then analyzed and mapped using descriptive analysis. BMC results are analyzed by
looking at the results of the feedback grid to see the current condition of women's
entrepreneurship to find out the positive things that have been able to run well, questions that
arise, changes that must be made, and ideas for the future. In addition, the analysis
component is also complemented by technology, human, information, organization (THIO)
to determine the extent of the contribution of technology to women's entrepreneurship
businesses.
4. The process of generating ideal conditions for women's entrepreneurship in the
future. The data is taken based on the views of the experts who have been determined, a semi-
structured questionnaire becomes the instrumentation in this process through interviews. The
next process is to analyze the data through descriptive analysis to produce a projection of the
ideal condition of women's entrepreneurship in running their business so that it can be
sustainable (can last more than five years).
5. Business implication process, in this process the sustainable business
development that has been made and recommended to women entrepreneurs will be
confirmed again to expert resource persons to finally form a model based on Hambrick's
strategy model that explains where these women entrepreneurs can run their business (arena),
how to get there (vehicles), how to win competition (differentiators), how the strategy to win
competition (staging) and how to get profit (economic logic).
3.3 Analysis Methods Data
The data analysis procedure in this study adopted the principles of descriptive analysis
model, Osterwalder's (2010) business model canvas (BMC) and feedback grid, THIO
Analysis, and Hambrick's Diamond Strategy Models.
3.3.1 Business Model Canvas (BMC).
The process of generating a picture of the nine business elements and their
weaknesses in women-managed businesses was assisted by using business model canvas
(BMC), then analyzed and mapped using descriptive analysis. BMC results were analyzed by
looking at the results of the feedback grid to see the current condition of women's
entrepreneurship to find out the positive things that have been able to run well, questions that
arise, changes that must be made, and ideas for the future.
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3.3.2 THIO Analysis
THIO analysis is a process to generate an overview of the extent of technology
contribution and determine technology needs in women's entrepreneurship businesses. The
THIO process is carried out based on the results of nine business elements (BMC) and
weaknesses in women's entrepreneurial businesses to become the basis for determining the
analysis of technoware, humanware, infoware, orgaware (THIO). The THIO analysis method
refers to the definition of technology based on UNESCAP 1989 (The Economic and Social
Commission for Asia and the Pacific (ESCAP) of the United Nations) which divides
technology into four interrelated aspects. The four aspects include:
1. Technoware (T), is an embodiment in facilities or equipment in the production process.
2. Humanware (H), is an embodiment in human resources as implementers of activities or
acting as movers or operators.
3. Infoware (I), is an embodiment in the process of operations or procedures in these
activities.
4. Orgaware (O), is an embodiment in the process of company management / company
managerial.
The process of generating an overview of the extent of technology contributions and
technology needs in women's entrepreneurial businesses was conducted through interviews
with experts. Questions about the four aspects to be analyzed (technoware, humanware,
infoware, orgaware) were asked to the experts in turn. Each expert provided a response to the
four aspects asked, and of course, the current condition of the women's entrepreneurship
business was also informed. The next process is to rank the input based on each of these
aspects. The results of the analysis of the four aspects will illustrate the extent of the current
contribution of technology and the need for technology in women's entrepreneurial
businesses in the future.
3.3.3 Diamond Strategy Analysis
Diamond strategy or commonly called Diamond Strategy adapted by Hambrick, is a
framework for examining and communicating accepted strategies by integrating positional
views and resource-based views, strategy formulation and implementation, and the company's
internal selection environment into one relatively simple conceptual framework of the
dynamic forces driving the company's evolution. Diamond Strategy is also a concept that can
provide answers or strategic solutions that are both thorough and comprehensive by covering
basic aspects of strategy. This strategy model sees the company's base strategy in competing
28
as a link in the environment, this model also emphasizes the industrial structure and is
analyzed by five major forces that can determine the extent of competition and the company's
profit potential. There are five elements of the Diamond Strategy, namely (1) Arenas, (2)
Differentiators, (3) Vehicles, (4) Staging and Pacing, and (5) Economic Logic:
1. Arenas
The arena is the area in which the company will be active. Decisions about the
company's arena can include products, services, distribution channels, market segments,
geographic regions, technologies, and even stages of the value creation process. In contrast to
vision statements, which tend to be quite general, arena identification should be very specific.
It clearly tells managers what the company should and should not do. Moreover, since
companies can contract with outside parties for everything from employees to manufacturing
services, the choice of arena can be quite narrowly defined for some companies.
2. Differentiators
Differentiators are the features and attributes of a company's product or service that
help it beat its competitors in the market. Companies can succeed in the market through a
number of common dimensions, including image, customization, technical excellence, price,
quality, and reliability.
3. Vehicles
A vehicle is a means to participate in a targeted arena. For example, a company that
wants to go international can do so in a variety of ways. In a recent attempt to enter a specific
international market. Or it may choose to form an alliance with a competitor or supplier that
already has the technology, accelerating the integration of the missing piece into its pool of
resources and capabilities. Finally, it could simply buy another company that owns the
technology.
4. Staging and Pacing
Staging and tempo refer to the timing and speed, or pace, of strategic moves. Staging
choices usually reflect available resources, including cash, human capital, and knowledge.
Staging decisions should be driven by several factors such as: resources, urgency, credibility,
and the need for early wins. Since few companies have the resources to do everything they
want to do immediately, they usually have to fit the opportunity to the available resources.
Also, not all opportunities to enter a new arena are permanent, some only have a short
window. In such cases, early wins and credibility of certain key stakeholders may be required
to implement the strategy.
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5. Economic Logic
Economic logic refers to how the company will make a profit, i.e. how it will generate
positive returns in excess of its cost of capital. Economic logic is the "fulcrum" for profit
creation. Generating normal profits, of course, requires the company to meet all fixed,
variable, and financing costs. Achieving the desired return on the company's cost of capital is
a difficult task for any organization. In analyzing the economic logic of the company, think of
costs and revenues.
3.4 Data Validity Test
Data validity is carried out to prove whether the research conducted is truly scientific
research as well as to test the data obtained. The data validity test in this study includes:
3.4.1 Validity.
Validity is the process of the extent to which the instrument can accurately measure
the things it wants to measure (Patton 2015). Instrument validation can be done through the
review of experts who have been determined according to their criteria. In addition, sample
interviews can be conducted to strengthen the instruments to be used.
1. Expert Review
The expert panel consisted of three members who have a scientific background in
entrepreneurship, hold doctoral degrees, and are particularly familiar with conducting
qualitative research. The experts were expected to provide feedback on the questions to be
used in this research. The experts helped to ensure that the interview questions were relevant
to the research problem and would answer the research questions.
2. Pilot Interview
Pilot interviews can be conducted after obtaining expert feedback on the
instrumentation. Pilot interviews are used to ensure that the procedures for obtaining data are
appropriate and produce useful data.
3.4.2 Reliability.
A research instrument is reliable if it provides consistent results over time. Reliability
can increase data confidence. The instrument is considered reliable if participants can give
good responses. Instrument reliability if it produces stable and consistent assessments (Patton
1990).
1. Internal Data Reliability
Internal data reliability relies on the robustness of data collection, analysis, and
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interpretation with a high level of internal reliability, other researchers should be able to
replicate the study and draw similar conclusions from the data (Creswell 2009). In support of
internal reliability, the researcher conducted interviews. Merriam and Tisdell (2016) suggest
using each set of findings to build on its own, examining interview responses, stories, and
patterns across participants to increase reliability.
2. Reliability of External Data
External data reliability can be characterized by whether the findings from the study
can be generalized to a larger population (McMillan and Schumacher 2010). In qualitative
research external data reliability is intended to consider in depth the entrepreneurial
experiences of women (McMillan and Schumacher 2010). External data reliability is not the
purpose of this study. However, it is more important to see the research focus on the
uniqueness of women's entrepreneurial success factors and that they can share their
experiences.
4.1 Current state of women's entrepreneurship
Based on the results of the study, the characteristics of participants based on the field
of business undertaken in women's entrepreneurship are culinary and fashion businesses.
Promotional activities and sales of products offered are carried out by direct sales through
outlets 50 percent and indirectly by utilizing social media (Instagram, Facebook, WhatsApp
groups), social communities, and religion by 50 percent. More details in Table 4.1 explain the
characteristics based on the two business fields based on aspects of business type, number of
employees, length of business, business capital, and annual turnover.
Furthermore, an overview of women's entrepreneurial business based on the results of
interviews with 10 participants can be seen based on aspects: 1) how entrepreneurial women
interpret their business, 2) business motives, 3) perceived weaknesses, and 4) women's
strengths in managing and making decisions in business. More details of these aspects are
explained as follows:
1. Business Interpretation
Business is interpreted as an expression of oneself, doing business is not just looking
for material, but aims to gain knowledge of trade and business as a whole. Business
knowledge is felt not only in the form of material products There are other things beyond that,
such as how to monitor current business trends due to the dynamic business system that has
become a world trend, especially digital or online, updating the online world such as if you
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want to offer products through photos, you need to understand how to make photos look alive
and how consumers can be attracted and buy by looking at these photos, as well as the
closeness of sellers to buyers who make business sustainability. Therefore, understanding
business is understanding the dynamic business world that is willing to learn and adapt
according to current needs (digital world). In conclusion, doing business is a very dense
learning for yourself regarding adjustments to the market, agents, resellers, the world of trade
in the products we sell because business not only makes money but can generate networks, as
well as positive things that will generate connections and other profits. This is certainly very
helpful for women entrepreneurs to be able to run their business sustainably.
2. Business Motive
Women's motives for doing business are mostly due to the economic situation and
willingness to take risks to get out of their comfort zone. Meanwhile, the chosen fields are
culinary and fashion more because culinary and fashion have a more general target market
and are easy to target, and have a small risk in terms of product durability. The love for
products from a region, and wanting to preserve them, as well as the hobby of collecting
fashion items are the motives for women's entrepreneurship to open a business. In addition,
the strong desire of women entrepreneurs to be able and continue to learn to know and
upgrade their business skills in order to recognize current and future market needs. Changes
in consumers from time to time require entrepreneurial women to continue to develop their
competencies because the situation continues to change, technology changes so that we must
be able to adjust to current needs, considering that consumers continue to change as well from
gen Y to gen Z. Mentally, women's flight hours are more important. It is not always that
women have to rely on men, but it is also not easy for women to walk alone in business,
therefore always trying to join hands with other partners to build a bigger business. doing
together is much more effective than doing alone and growing rapidly. This is one of the
solutions that can be implemented to avoid failure in business.
3. Weaknesses
Perceived weaknesses while managing the business include: 1) Raw material prices
are rising, while product prices must be maintained consistently. Consumers are sometimes
very concerned about sudden price increases, although not all consumers are always
concerned about price changes. This applies to both culinary and fashion businesses. 2)
Maintaining existing consumers to remain consumers. Maintaining existing customers is a
weakness due to fierce competition and changing consumer tastes. 3) It is difficult to find
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human resources who can commit and have the required competencies, the high
unemployment rate and limited job opportunities are not the reason for this to easily get the
human resources we need. In fact, it still feels difficult.
4) The risk of obstruction of business development in the culinary and fashion fields
in the last three years due to the pademi, the culinary and fashion business is classified as a
very promising business because it has a wide enough market. 5) Digital communication is
increasingly becoming a trend among women entrepreneurs to help the process of promotion,
sales, to the transaction process, but the fact is that the digital trend triggers more and more
cyber crime, so that for some women entrepreneurs there are not a few who experience the
risk of loss that affects consumers. Digital fraud is very diverse, for example, when viewed
from consumers, consumers often have fickle habits, transactions that should be smooth and
certain suddenly in a matter of minutes or hours suddenly canceled for no apparent reason, as
well as agents (specifically in the fashion sector), for example, in watch products that often
commit fraud. The inconsistency of the trading parties (agents, couriers) who commit fraud is
due to poor attitude and other manipulative practices. 6) Limitations on the ability to stock
more free or many products with the capital that must be owned to buy continuously updated
raw materials or products, so that it becomes a big obstacle during promotions and consumer
demand has a big impact on consumer confidence in the business being managed.
The power of women in managing and making decisions in business. One of the
advantages that women have is that they can multi task in their daily lives, women can have
more than one role in their lives. Women can act as a wife and mother for their family, and
women can also act as business owners t h e y manage at the same time. In the business she
manages, women have advantages in several things such as negotiating, doing financial
management, having strong business instincts, and having a taste that is good strong.
Based on participants' statements, women can be situational in determining decisions
in business. In certain matters, such as determining markets, segments, raw materials,
production, promotion, and even decisions in designing packaging on products to be offered
are still women's decisions. While the partner or husband is only complementary to activities
that cannot be done by the wife (woman), such as distribution, supervision, and others.
Although most reveal that women have an important position in decision-making in business,
there are several different statements conveyed, that if in the business the biggest and main
skill or competence is in women from the beginning of the business establishment, then it is
clear that women can be important decision makers for their business, but if it is men who
have an important role in the business, then it is certain that the man (her husband) has a role
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in decision-making in the business, and the family as a support for the business being run so
that it can be consistent in innovating the products offered, expanding capital, and wider
promotion.
The role of women in this business is very important, because this business is a
passion that comes from the heart. In addition, women must can be independent and can
create a work or create a product that can be produced and benefit many people. Women have
very sharp and detailed instincts. Women are accustomed to thinking in detail, when things
happen that are not appropriate, then women will know quickly.
Instincts are very important for entrepreneurs to have. Instinct can help how to survive
economically. At the time of economic instinct, the entrepreneur must choose in quality not
only in the form of goods but also the quality of consumers as well as the quality of courier
services, as well as relationships with agents. So the instinct in seeing quality from all sources
is very sharp. Women have the potential and play a very large role in development, especially
in the economic field, at least for family resilience, even though it started as a hobby, but
during the co-19 pandemic in the overall worst economic situation in Indonesia, women can
still see and take advantage of opportunities by creating and offering different strategies
tailored to market needs, especially in culinary products can target segments that are in
independent isolation or who cannot carry out normal activities (for the culinary field).
Likewise with fashion products, changes in style, purchasing power, and consumer needs can
also be adjusted. Consumers who are at home because of the implementation of PSBB and
the inactivity of business activities can also be used as an opportunity by offering
comfortable, cheap, and simple home clothing models.
The role of women in business is very important to help the family economy. One
participant in creating her product was inspired by a friend who sells batik cloth products that
use coloring motifs derived from leaf colors. Women's sensitivity and instinct to see business
opportunities like this certainly arise. Products created with raw materials that come directly
from nature (ecoprint) are a low-risk and low-cost business model. Nature already provides a
lot of raw materials that can be utilized, ecofriendly. In addition, support from friends and
family is also very helpful, making women not unyielding and discouraged in the face of
obstacles. The role of women in the business wheel is not something easy but everyone who
has the ability will certainly be earnest and try and will never give up.
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4.2 Business Model Overview of Women's Entrepreneurship at Micro Scale
Based on the general description described above, the following is a description of the
women's entrepreneurship business model illustrated through the business model canvas
(BMC) in the culinary and fashion business fields. Based on the results of interviews with 10
participants consisting of 5 women entrepreneurs in the culinary field and 5 women
entrepreneurs in the fashion field. Furthermore, each business field can be explained as
follows:
4.2.1 Culinary Field
The following is the BMC of each business run which is mapped into nine categories
can be explained as follows:
1. BMC "F" (culinary snacks).
Customer segments in business "F" which is a micro-scale culinary business are still
not balanced. It can be seen from the segments that are still The products are very general and
not yet focused on specific segments that are in line with the products offered. However,
judging from the value proposition, the products produced are very varied and on the other
hand, entrepreneurs already understand the favorite variants of customers. With a lower
selling price than competitors, the products are sold directly and also marketed online using
social media such as Facebook and Instagram. This micro business has established a strong
relationship with its customers by listening to customer suggestions and maintaining good
communication. The source of income from this business is because this business is still
classified as micro, so the source is only from the sale of products that are done by the family
itself. Meanwhile, key activities are still done by themselves and their families for the
manufacturing and promotion process, while to maintain outlets or snack carts are done by
employees who are not permanent. Key resources are still constrained in terms of human and
financial resources. Key partnerships are quite well established between resellers and
consistent raw material suppliers. Revenue streams are still from product sales both directly
and indirectly (resellers).
2. BMC "A" (culinary mpek Davin).
The pempek davin business has a segment of mothers in productive age, where
mothers are the decision makers in buying food that will be consumed by their families. The
value proposition of this business is the uniqueness of the products produced from high-
quality raw materials and does not use MSG and also vacuum packaging that is ecofriendly.
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This macro business places great importance on quality and excellent customer relationships,
by providing product replacements if there are complaints from consumers. In addition, it
also routinely provides promotions in the form of discounts on birthdays to postage subsidies
as an effort to strengthen customer relationships. Channels still optimize communities and
social media, do not yet have outlets or physical stores to display products, even so the way
to encourage consumer attention and interest is done by updating the website status through
social media continuously. Key activities carried out in promotional activities, sales,
production are still carried out alone, but in sales activities have begun to employ employees
who are not permanent. Key resources in this business are still relatively ordinary, the
weakness is in human resources which are difficult to obtain according to needs and
mandates. Cost structure is still classified as low cost, still done by myself and several non-
permanent employees. Cost structure in this business is the purchase of raw materials,
employee salaries, distribution, electricity, and promotion costs. Meanwhile, revenue streams
are still from direct and indirect product sales.
3. BMC "W" (catering and traditional food).
Another culinary business is "W" (Catering and traditional food) with a customer
segment for all ages. The micro business that he runs has a value proposition, namely quality
products and consistent flavors. Channels built for product sales are both directly using social
media assistance and entrusting to cake shops. Customer relationships are built by making
discounts and always making survey questionnaires to find out customer satisfaction with the
products sold. In addition, actively communicating in groups or communities and always
updating products. This is done to retain old customers and attract new customers. Channels
that are built are carried out by cooperating with selling to fellow business people who have
outlets and have similar types of products in the hope that the products that are entrusted can
complement the products that already exist at the outlet. Meanwhile, key activities have begun
to analyze competitors, carry out marketing activities, and carry out production activities.
However, all of these activities are still dominantly carried out alone. Some are assisted by
employees but never as expected, so it must be done alone is still done in-house. Therefore,
based on these key activities, this business has difficulty finding human resources that meet
the needs and are creative to be able to create interesting content, attractive promotional
communications, and be creative in product presentation. Meanwhile, the cost structure in
this business is the purchase of raw materials, employee salaries, rent (consignment), PDAM,
electricity, commissions, and promotion costs. Revenue streams are still in product sales both
36
directly and indirectly. Overall, the business model canvas of business "W" (Catering and
traditional food) as shown in Figure 4.3.
4. BMC "K" (Catering and Frozeen Food).
The customer segment of this catering business is households, factory employees. This
micro-scale business builds a value proposition by always maintaining quality and also the
price offered is cheaper than competitors. In addition, another uniqueness of this micro
business is that it always discusses the menu desired by its consumers. Building good
relationships with consumers is a key to success for micro businesses, as is done by "K"
(Catering and Frozeen Food). In terms of channels, this micro business still markets directly
to its consumers and does not use online sales. Meanwhile, key activities are still dominantly
done by themselves in terms of building relationships and identifying consumer needs. Key
resources because the activities are still carried out alone, the dominant human resources
themselves are assisted by employees for product sales only. Cost structure is still classified
as low cost because it is still very simple and small and revenue streams still rely on direct
product sales. The overall business model canvas (BMC) of business "K" (Catering and
Frozeen Food) as shown in Figure 4.4.
5. BMC "S" (Restaurant).
The café business run by "S" (Restaurant) targets all groups ranging from junior high
school students to adults aged 55 years (customer segment). The concept offered is a
gathering place that can be used for work, study, discussion and business meetings. How to
establish closeness with consumers (customer relationship) by always asking opinions from
consumers and ensuring good communication is always established. The value proposition
created is the quality of raw materials used and all food served without MSG. The coffee
menu which is the flagship menu is also 100% robusta original. Channels as a means of
selling products are carried out directly for dine-in, take-away and also delivery with
grabfood or gofood. Key activities such as production, marketing, distribution, and outlet staff
have been carried out by employees, but key resources, especially in terms of human
resources, still have difficulty getting creative and appropriate human resources. Therefore,
continuous supervision is needed. Revenue streams are still obtained from product sales only.
The overall business model canvas of the "S" (Restaurant) business is as shown in Figure 4.5.
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Based on the description of the business model canvas (BMC) of the five participants
above, the strengths and weaknesses of each business model can be identified. Furthermore,
the strengths and weaknesses of the business model canvas in the culinary business sector can
be seen in Table.
Figure 4.6 is the result of the feedback grid from the five participants in the culinary
field, where based on the results of the interviews conducted, the feedback grid matrix is
divided into 4 matrices. The advantage of the culinary business run by women entrepreneurs
is the quality of the products produced, namely always maintaining quality and using quality
ingredients. The atmosphere created in the business is also created comfortably because of
the hospitality provided and by routinely providing surveys to consumers so that they can
quickly find out the complaints felt by consumers. In addition, the leadership of women
entrepreneurs is very good in managing their business. Good leadership from women
entrepreneurs should be a strength to maintain the sustainability of the business.
The question is how to get loyal suppliers where so far the main problem of this
culinary business is the difficulty of getting suppliers who can always provide the raw
materials needed with good quality. In addition to suppliers, the key to success in business
development is resellers, where resellers can help enlarge the culinary business that is
currently running. To be able to continue to develop the business, of course, a good chef is
needed and for the packaging of culinary products, packaging design is also needed which is
attractive. In the culinary business, the tester is one of the things that needs to be improved in
order to attract more customers.
The thing that needs to be done is change. However, the thing that needs to be
improved is the service that must be continuously improved in order to reach a wider area so
that it will expand and increase customers. In addition, the way of promotion also needs to be
changed, no longer relying only on word of mouth but must utilize social media more
actively. Overall, the results of the culinary product Feedback Grid what has been done, what
are the questions, and what changes are made as shown in Figure 4.6.
Furthermore, based on the results of interviews with five participants, namely women
entrepreneurs, development ideas were also obtained which will certainly have an impact on
future business improvement. The first factor is social media, which is the most important
factor in introducing and marketing products. In addition, talking about quality is the key to
the success of a culinary business. For this reason, it would be better if you can work with a
38
pest supplier to spray the kitchen regularly. Regarding employees, it is necessary to provide
bonuses for employees so that employees can be more enthusiastic in working. Consumers as
one of the main stakeholders in business success need to be paid attention to by being asked
their opinions on the quality of products and services provided, so in addition to surveys it is
necessary to make customer complaint services as well. To ensure standardization, it is
necessary to make SOPs for each activity, so that the results are always consistent. Another
thing for the development of this culinary business would be better if you can collaborate so
that this culinary business can develop further. In addition, the existence of standardization
will certainly be very helpful so that business continuity runs well. With the SOP for each
activity, of course, the quality will be maintained which has an impact on customer
satisfaction, which in turn will ensure the sustainability of this culinary business.
6. BMC "M" (ecoprint fabric)
As one of the businesses that carries the natural factor where the products produced are
very environmentally friendly because all the raw materials come from nature without using
chemicals, this product is also produced zero waste. The customer segment is women who
care about the environment and currently there are many customers from government
agencies. The value proposition of the products produced is unique, there is only 1 and no
exact match. The fabric and leather raw materials produced are of high quality. Customers
know this product because of TV coverage, clothing shows both at home and abroad and
through social media. The key resources of this business are the owner who also doubles as a
designer and tailor. The key partnerships are the tailors, mothers in the neighborhood as
employees who help produce, models, Event Organizers (EOs) of clothing shows and
government agencies that help introduce products to the wider community both at home and
abroad. Revenue streams come from direct and indirect product sales (exhibitions).
7. BMC "M" (Clothing)
The customer segment of this product is the upper middle class, because the price of
the product offered is quite expensive, which is above Rp. 500,000.00 per unit. Consumers in
this middle class have high tastes because they are accustomed to using branded goods so that
special efforts are needed to be trusted by consumers. The value proposition of this business
is to use high-quality raw materials, namely using genuine leather and authentic Indonesian
wastra. In addition, the products produced are unique, there is only 1 of each model and can
be ordered according to consumer desires. Product sales are carried out directly or through
social media, sales at the dekranasda gallery and also in the marketplace (channels). The
39
approach taken to establish a good relationship with consumers (customer) is as follows
The relationship is carried out on an ongoing basis, starting with asking for
impressions and suggestions after purchasing the product, where all of these products are
given a warranty. Furthermore, consumers are also asked about product needs in order to
produce according to consumer desires. Key Structure in this business needs to understand
the current needs and trends, so that it can produce according to the needs and desires of
consumers. Key activities and key resources are still dominantly carried out alone, although
some activities are assisted by employees but need strict supervision so that activities can run
well. Revenue streams are still in direct product sales. The overall business model canvas
(BMC) of M" (clothing) business as shown in Figure 4.8.
8. BMC "V" (accessories and clothing)
Customer Segments of this business are women who like to change watches as
accessories and fashionable men who make watches as accessories and clothing. The value
propositions of this business are that the designs produced can be customized according to
consumer desires at competitive prices and good quality. Product marketing is carried out by
resellers and dropshippers by giving prizes for sales achievements from their resellers
(channels). Customer relationships that are carried out include providing discount programs,
such as price cuts and also buy one get one free programs. In addition, consumers are also
pampered by being accompanied personally. Key activities are still promoting, marketing,
and direct selling using social media and optimizing networks and communities. Key
resources in terms of human resources are still dominantly done by themselves, but some
activities are assisted by non-permanent employees. The cost structure spent is more on the
purchase of raw materials, employee salaries, promotion (endorse), and also production.
Meanwhile, the revenue streams are still obtained through direct product sales and product
marketing.
4.3 Projections of Micro-scale Women Entrepreneurship in the era of
digitalization
Business projection can be translated as an estimate of future business conditions based
on current business data. To find out the projection of women's entrepreneurship micro-scale
businesses in the future, interviews were conducted with experts, where the results obtained
from 10 experts were intended to confirm the challenges and development of culinary and
40
fashion business ideas that had been discussed previously. Based on the results of the
interviews, it is known that the business model for fashion and culinary is much different so
that a different approach is needed for business development. However, talking about this
micro business, although initially it seems simple, so that in running this business, women
entrepreneurs usually do not predict how complicated the obstacles faced are, which are
usually known when the business has started running, so it is necessary to anticipate from the
beginning of the business development.
Based on the results of the interviews conducted, it was found that the role of women
in running a business plays a very important role, where women are a source of assets in
running a business and the flexibility of these women is very high, as evidenced by the
persistence of women entrepreneurs and always adapting and learning. The potential
weakness in this digital era is the ability of women entrepreneurs in the field of technology,
because not all women entrepreneurs have an understanding of digital technology, besides the
ability to see opportunities and also product development according to the segment and
wishes of the customer. The main problem of micro-entrepreneurs is that they do not have
market skills and understand segmentation clearly so that women entrepreneurs do not know
who their consumers are. This will be a problem, because in the end they only follow the
existing trends so that it may not be in accordance with the intended consumers.
Based on the results of the interviews, there are three statements conveyed by three
respondents and one expert that it turns out that women's entrepreneurship is unique, namely
women who are successful entrepreneurs are single moms (women who are married but
divorced from their husbands and have children). The statement was conveyed by the
participant by comparing herself with other business actors in the same community. The main
consideration for this statement is more about flexibility in decision-making to determine
everything related to business decisions. For example, considerations and decisions in
determining and developing products and markets, considering and deciding with regard to
human resources and activities, and considering and deciding with regard to purchasing
physical facilities or other material assets for business needs. In addition, there are no
demands from spouses, so they have more freedom in terms of time and become more
flexible. However, the reality is that the image factor of Indonesian society today still has a
tendency to limit the space for women to run their businesses.
The key factors that can determine the sustainability of women entrepreneurs'
businesses in the digital era are the desire to continue to develop, never give up (self-
motivation) and the ability to adapt to the new environment. In addition, women
41
entrepreneurs must also continue to be willing to learn, join communities and continue to
develop their businesses in a supportive ecosystem. In the digital era, it will certainly have a
tremendous impact, such as the current condition where all sales have utilized online. Judging
from the existing conditions, resellers in the future will experience difficulties because
everyone can find products easily, not limited by time and distance, and there will be more
technology-based entrepreneurs (social media specialist, tecnopreneur, youtuber, blogger,
and affiliate marketing). Therefore, women entrepreneurs in the future must continue to learn
and try to understand technology in order to continue to compete.
Another problem is that in terms of labor, microbusinesses use labor that is unable to
carry out or create new ideas or innovations that present products according to market needs.
Micro businesses only follow what is done by similar businesses or those that have already
taken place, so that in the long run, of course, this strategy cannot provide maximum profit.
Further gap analysis of current conditions with the future seen based on nine elements can be
explained as:
1) Customer Segment
Based on the results of the interview, the customer segment element is the most
important thing in the success of both culinary products and fashion products. The
importance of knowing the segment of consumers, because in reality without understanding
the exact segment of consumers, the products offered will certainly not be well received by
consumers. Thus, not only knowing who the consumers are but going deeper into what the
wants and expectations of these consumers are, so that the products produced really match
the needs and expectations of consumers. Of course, if consumers are satisfied, business
continuity will run well. For this reason, it is important to conduct user persona mapping to
obtain data on the characteristics of each customer and empathize with customers to find out
their detailed needs for the products offered. The main problem faced by micro businesses in
general is the inability to determine who the intended customers are and not equipping
knowledge about the needs and desires of consumers. The problem with the customer
segment is the difficulty in retaining existing customers and developing new ones. This needs
special attention to maintain existing businesses and mitigate business failure.
Meanwhile, problems in the value proposition element, especially in food products,
are often a matter of product creation and consistency in the selling price of the products
offered into consideration. Women entrepreneurs need to know the developments that occur
outside so that they can create contemporary food products and continue to create new types
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so that consumers are not bored and continue to want to try their products. In addition, in
terms of price and content, of course, it must also be adjusted to the intended consumer
segment, as well as the importance of understanding the characteristics of consumers so that
the products offered can be well received by consumers.
Furthermore, for fashion products, the problem is not much different from culinary
products. Women entrepreneurs need to understand the development of trends so that they
know the fashion models that suit their consumer segments. This will certainly make
consumers satisfied and loyal to the product. In terms of production, it is necessary to
determine the customer segment to decide whether to produce based on orders or make their
own models and then market them massively or limitedly. If you look at the success of
various fashion brands today because of the foresight of entrepreneurs to see consumer
behavior, they understand that how many times a year these consumers buy clothes, then also
see the pricing applied to these products. Thus the price can be adjusted to the quality of the
products offered.
2) Value Proposition
The value proposition of the product offered is certainly tailored to the intended
segment, the price offered, how to get the product, and the value offered which is the
uniqueness of the product offered and the impact on consumers. Value proposition in the
future is more directed to the impact generated for consumers, not just low prices. Judging
from the products that are successfully accepted by consumers are products that have
uniqueness and creativity, then of course in determining the value proposition, it is necessary
to analyze in detail how uniqueness and creativity are needed by consumers. The character of
the user and the mission of the product are things that need to be told in relation to the value
proposition.
For culinary products, the value proposition is closely related to the packaging of the
product. The same product with different packaging will certainly increase the value
proposition, so it is important to pay attention to the appearance of the products offered. In
addition to packaging, the cleanliness and quality of the raw materials used. For fashion
products, the value proposition is closely related to the quality of the materials used, colors,
models, and of course the price of the product. The success of selling fashion products
certainly depends on the trend and also needs an in-depth analysis of what kind of fashion is
offered, whether it is daily wear, work or party. For this reason, the value proposition must be
very detailed for the consumer segment. The clearer the value proposition, the better the
43
business, which of course can maintain the sustainability of the business.
3) Channels
Determination of channels depends on the capacity and value proposition offered. For
products in the upper middle or premium segment, of course, the suitable channel approach is
in a personal way so that the channels certainly follow the segmentation and value
proposition of the product. Based on the interview results, the conditions and weaknesses
faced by participants in determining channels are in trying to switch to online, so that extra
effort is needed to be able to develop their business towards digital. In current conditions,
suitable channels are combining offline and online and also utilizing social media in
marketing their products considering that one of the challenges in businesses run by these
women entrepreneurs is in terms of digitalization.
In food products, the suitable channels are multichannels. Sales are made not only
directly but also through online sales in collaboration with various online platforms.
Currently, it is a must for all food products to be sold on various online platforms, either in
collaboration with e-commerce such as shopee, Tokopedia, etc., or through grabfood, gofood,
traveloka eats, and others. So for culinary products, you should no longer rely solely on
offline sales.
In fashion products, although offline sales channels still dominate, but by looking at
the current development, online sales must also be improved. The way to increase online
sales is by providing education to consumers by providing size details for each type of
clothing offered, so that consumers can choose the appropriate size. For fashion products,
clothing shows are one of the mainstay channels in addition to offline and online product
sales. Thus, the sustainability of the fashion business will be greatly supported by the support
of digitalization.
4) Customer relationship
Customer relationships are very important, because in micro businesses, of course, the
approach to customers is a determining factor in the success of the business. Thus, it is
necessary to ask about the wishes and expectations of consumers so that the products
produced match the expectations of consumers. A suitable customer relationship is of course
one that can increase sales, for example creating content on social media so that the product is
more widely known and goes viral so that more potential customers are looking for
information about the product and want to try it. Customer relationship in small and micro
businesses is a concept of friendship, where there is no distance between consumers and
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entrepreneurs. Consumers can convey their wishes, hopes and complaints directly so that this
closeness must be maintained. Another way is to create a good perception so that good word
of mouth will arise among consumers and of course this will attract new consumers to try the
product. Another marketing strategy to attract new consumers is to make the product go viral
so that everyone who hears it has the desire to try the product. This will certainly be
beneficial in maintaining the sustainability of the business run by women entrepreneurs,
where by making the product viral, more and more people will know about the business.
In culinary products, customer relationships that need to be considered are close to
consumers. Based on the results of interviews and observations, there are many culinary
businesses that suddenly become very famous because of the impact of social media which
makes the culinary business viral. As a result of the viral culinary resulted in all the people
who saw it wanting to try it. Thus the need to create something like this. In fashion products,
of course, the approach is different from culinary customer relationships. Fashion products
need to follow the tastes of their consumers by making to order or creating models according
to trends in the segment in accordance with the value proposition of the fashion product.
5) Revenue Streams
Revenue streams in a business are the backbone of the sustainability of the business.
Without a clear source of income for a business, of course, the business cannot run for the
long term. Revenue streams for micro businesses are of course only derived from product
sales, but later developments may cooperate with other parties to open branches in other
places such as the concept of Microfranchising. The concept of Microfranchising is the
development of micro and small businesses with the concept of cooperation. This
Microfranchising concept will certainly provide benefits in terms of branding that is more
widely known and branches of the products offered are in many areas so that they will be
easily found by consumers, but the application of Microfranchising is not as easy as
imagined, of course, there are many obstacles that must be faced. However, the benefits of
Microfranchising can certainly maintain the business in the long term.
6) Key Activities
In relation to key activities, based on the results of the interviews conducted, it was
found that the need to find alternative substitutes/substitute raw materials or a more efficient
process. Regarding business sustainability in this digital era, it is necessary to pay attention to
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the sustainability of online sales. For this reason, it is important for women entrepreneurs to
further improve the capabilities of human resources, capital and raw materials. The key to key
activities is the ability to manage teams that are used effectively and efficiently. This can be
well realized if supported by the leadership skills of women entrepreneurs and appropriate
technology. In fact, in these small and micro enterprises, all activities are carried out by the
women entrepreneurs themselves. Even though if you look at these activities very well, so of
course the results are not maximized as seen from the development of small and micro
businesses usually grow quite difficult and long, because the entrepreneurs are not focused
and the courage to develop their business is hampered. Therefore, women entrepreneurs
should only become coordinators and further develop their strategies for the future that must
be done. Thus, the business has a strategy to survive because the internal and external
analysis carried out will have an impact on the sustainability of the business.
In culinary businesses, the key activities that need to be developed are alternative
product development and finding other raw materials according to consumer desires. For
example, if consumers are concerned with health or use special ingredients such as gluten-
free, sugar-free, or made from organic ingredients and so on, so that in determining key
activities, of course, it must be adapted to the lifestyle of its consumers, so it is necessary to
know the habits and expectations of consumers. In fashion products, key activities are not too
different from culinary. The need for in-depth knowledge of consumers, to know the trends
that match the desires of consumers. In the case of fashion, the tastes of consumers show the
identity of these consumers, so it is necessary to understand the characteristics of consumers
and the types of activities in order to match the trends offered.
7) Key Resources
The main problem in many businesses, especially micro businesses, is the difficulty in
managing and obtaining competent and trustworthy workers. If building a human resource
base, one must understand the direction of orientation. It is not easy to get human resources,
although in reality, women entrepreneurs are relatively more able to get close to their
employees so that all employees feel comfortable and work for a long time. But the problem
is, finding the right resources is the most difficult thing. This happens because the perceptions
of the owners and workers are not the same, this happens because of the difference in
generations so that the mindset and motivation are also different. Thus, women entrepreneurs
must continue to learn to be good leaders so that they can find and maintain quality human
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resources to ensure the long-term success of their business. In the culinary business, cooks
are key resources that are rare and difficult to find. The selection of human resources is
subjective, because it is in accordance with the type of consumer. So that the results will be
maximized and last in the long run if the food / drink is in accordance with consumer tastes.
Key resources for fashion businesses are designers, pattern makers and competent
tailors. These three parts are interrelated so that if one of them is not good, it will certainly
have an impact on the results of the product. In the fashion business, it is usually difficult to
find people who are able to design, as well as make patterns and sew them. This is because it
takes very high skills to be able to master all three. Back again according to the segmentation,
for everyday clothes, of course, it is not as difficult as for party clothes.
8) Key Partnerships
Key partnerships in micro and small enterprises are very important and should be
created more widely. All potential targets should be studied for their negative and positive
impacts on the business. The cooperation model must be tailored to the most important needs.
In the concept of cooperation, it is necessary to establish the principle of mutual benefit, not
unilateral domination. In addition, the selection of partners is the most crucial stage, so it is
necessary to make conditions in accordance with existing needs. Partners in running this
business concept are sharing profits and losses, so there needs to be a commitment from both
parties for long-term sustainability. Key partnerships are not only limited to suppliers and
resellers, but cooperation can be developed both in the production process and business
development. For business development, one of the key partnerships is Microfranchising for
business development in various locations. One of the advantages of women entrepreneurs is
that they are more flexible and relatively easier to partner both as suppliers and vice versa.
In the culinary field, key partnerships can start from upstream, namely raw material
suppliers in order to get good quality raw materials at lower prices. In addition, women
entrepreneurs can also be suppliers of their culinary products to catering owners, cake shops,
and others, but the weakness of this strategy is that there is no branding of the products
produced. Another strategy is to work with Cloud kitchens to reduce production costs and
reduce costs culinary products can be marketed online. Thus, costs can be reduced and
business development can run faster and better. Unlike culinary products, for key
partnerships for fashion products, it is necessary to consider the uniqueness of the key
partnership because it requires g r e a t e r capital to be able to develop its business and of
course greater risks as well. Regarding key partnerships for fashion products, special
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consideration is needed when wanting to leave products on consignment, and for the type of
fashion products that are medium to high and have uniqueness, it is better to collaborate with
clothing shows to be able to increase the branding of the product and of course related to
current conditions to be able to sell their products online as well.
9) Cost Structure
Regarding the costs incurred, of course, it depends on the business model and the
scale of the business. In the micro and small scale, most of the activities are carried out by
women entrepreneurs and their family members in managing their business. This is usually
not considered as a cost, whereas all activities that support business activities should be
included as costs. One of the things that is often debated is in calculating the cost structure. If
all activities are counted as costs, the reality will be difficult because it will be impressed that
the business is very far from being profitable, so this will have an impact on the motivation of
women entrepreneurs. However, this needs attention, so that all people involved in business
development can be more focused and motivated to work to enlarge the business.
Meanwhile, the cost structure for culinary businesses includes raw materials,
production processes, HR costs, packaging costs, shipping costs and all supporting costs such
as promotions, commission fees if working with online platforms. It would be better if the
cost structure in the business is more as a variable cost, because of course this will be more
profitable so that the burden borne depends on the amount of production. However, if the
business is getting bigger, it needs to be reviewed, for example, whether using a cloud kitchen
still provides benefits, or vice versa. Regarding the cost structure in the fashion sector, it
consists of raw material costs, production costs consisting of designer fees, pattern cutters,
tailors, and for sales costs ranging from packaging costs, promotions, sales commissions,
shipping costs, and others. Similar to the culinary business, the cost structure should be
charged more as a variable cost because it does not become a large burden. Overall, the
business projections of women entrepreneurs are summarized as shown in Table 4.9.
CONCLUSIONS:
The results prove that the Valley of death (VOD) phenomenon and the view that
women's entrepreneurial ventures cannot continue for three years or more are not found in
this study, this can be proven based on the findings:
First, finding the general conditions of women's entrepreneurship that have strengths
in terms of roles as business owners, managers, and also housewives at the same time.
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Women can situational determine decisions in their business. All of these strengths are based
on friendship which eventually forms social capital. Based on the process of the business,
social capital can be the strength of customer relationships, customer retention, key
partnerships, and value propositions, especially in accessibility so that it has an impact on
business sustainability.
Second, finding a description of the women's entrepreneurship business model. In
general, the business model of women's entrepreneurship excels in the aspects of establishing
value proposition, customer relationship. However, the problems faced in women's
entrepreneurship are more due to the weakness of key resources and channels so that the
recommended development ideas are partnership development, customer relationship
development, and channel development. Third, finding the highest and lowest aspects of
technology contribution in women's entrepreneurship. The highest aspects are infoware and
humanware, so in the future it is necessary to make an effort to improve the lowest aspects,
namely technoware and orgaware in women's entrepreneurship.
Fourth, finding projections of women's entrepreneurship in the digital era that have
potential are entrepreneurship that can optimize online sales (E-Commerce. Webb-store),
entrepreneurship that uses more strategies that minimize human resources (Maklon, Cloud
kitchen), entrepreneurship that emphasizes more cooperation and more technology-based
entrepreneurs, entrepreneurship that emphasizes more on partnership programs and utilization
of social capital. Fifth, the development strategy model recommendations are compiled based
on the results of the analysis of all aspects mentioned above by considering the five aspects in
the diamond strategy framework, namely user persona, differentiator, staging, economic
logic, and vehicles. Based on the recommended aspects, the recommended stages of
development are optimizing social capital, building the mindset and standards of micro-scale
businesses to adapt to the needs of the digital era, optimizing resources, implementing
partnership strategies, and preparing more technology-based entrepreneurs.
