The who has an entrepreneurial orientation and now an

The current
national economic development has improved after the monetary crisis that
occurred in Indonesia since 1998. The crisis has made economic changes for
laid-off employees working in various companies. For those who have been
dismissed must immediately get a new job so that income is still obtained and
can improve the welfare by opening a business, either business that produces
products or that services. The effort developed by the people of Indonesia in
overcoming the economic conditions by developing micro, small and medium
enterprises both in urban and rural areas.

Business
development undertaken by the community, whether micro, small and medium
enterprises can improve the Indonesian economy. These improvements in the
economy include income earned, employment opportunities resulting in reduced
unemployment and regional development through these efforts. Although micro,
small and medium-sized enterprises are very large but still there are low
productivity businesses, it is due to small business capital, mistakes in running
the business, knowledge of the owner of the business, and lack of knowledge
about the business being run and the share the market faced by the resulting
product or service.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

The low
productivity of the business is due to the lack of knowledge from entrepreneurs,
the absence of entrepreneurial spirit, the level of education and the lack of
experience about the business undertaken. But for those who want to learn and
be patient in running their business will gain business success and ultimately
can increase business scale from micro business to small business even to
medium business. Then entrepreneurs can expand their business by looking at
market orientation through entrepreneurial orientation.

The
entrepreneurial orientation is the ability to create something new and
different. Basically the entrepreneurial spirit and attitudes are not only
owned by the entrepreneur but everyone who has a creative and willing idea can
be expressed as a person who has an entrepreneurial orientation and now an
entrepreneurial orientation can be encountered in the business world.
Orientation of entrepreneurship can be run with the support of the market or
see the market orientation of the business to be run.

Market
orientation is one part of marketing. Marketing is an activity that gives
direction to all business / commercial activities that include marketing mix in
which product either goods or services as well as marketed ideas is a
manifestation of the concept of experiencing the process of development and
production addressed to the end user. The market orientation in every micro,
small and medium enterprises related to business performance. The business
performance of each entrepreneur for micro, small and medium enterprises is
still very minimal which is indicated by its limitations. The performance of
the Micro, Small and Medium Enterprises (MSMEs) sector in the economy has a
good contribution because it can increase people’s income and reduce
unemployment.

MSMEs for
trading types in Langsa City and Kuala Simpang consist of food and beverage
traders, clothing, shoes and sandals. Type of business among others there are
survive and develop and there are also just survive and even close his
business. SMEs trading is constrained by the ability of an entrepreneur in
running a business in this case is the ability to manage businesses such as how
to obtain merchandise, has not been able to compete with similar businesses.
Then another obstacle is the source of capital is too minimal and difficult to
obtain the source of capital in business development. For that orientation
Entrepreneurs need an increase through human resources is the ability to manage
businesses that can pay attention to market orientation of products traded by
Entrepreneurs. The interesting fundamental difference of these two cities is
the characteristics of the city, where Langsa city tends to Heterogeneous
(Aceh, Java, Melayu, Gayo) while Kota Kuala Simpang tends to dominate by the
Malay (80%). Several previous studies and in line with this research concerning
UMKM entrepreneurs who have been studied in the city Langsa, one such research
conducted by Rizal (2016) who saw about the factors that affect women
entrepreneurship in the city of Langsa, the factors observed is the variable of
capital, independence, emotional, and education.

The
formulation of the problem as follows:

1.   
How is the effect of Entrepreneurial Orientation on the
Performance of Micro Small and Medium Enterprises (MSMEs) in Langsa City and
Kuala Simpang.

2.   
How is the effect of Market Orientation on the
performance of Micro Small and Medium Enterprises (MSMEs) in Langsa City and
Kuala Simpang.

3.   
How is the influence of Entrepreneurial Orientation and
Market Orientation simultaneously to the performance of Micro Small and Medium
Enterprises (MSMEs) in Langsa City and Kuala Simpang.