The emergence of Go-Jek, Lazada, and several new startups lately shows that it is not difficult to develop a business as well as to be an entrepreneur. What makes it unique is that many of the start-ups started their business from Usaha Kecil Menengah (UKM) or Small and Medium Enterprise so called SME can actually gain a high profit. In several other fields, the number of SMEs continues to be on the rise and they are able to grow. However, is it indeed not difficult to develop entrepreneurship?
Several studies show that entrepreneurship is able to support the economic condition of a nation if the number of entrepreneur can reach 2 % of the total population. The power of entrepreneurship of those which commonly still belong to SME has been proven when most countries hit by economic crisis in 1998 and 2008. Compared to big companies, SMEs were actually stronger, particularly those supported by high local content.
Recently, the number of entrepreneurs in Indonesia has only reached 1.65% of the total population. It is different from Malaysia of which the total number of its entrepreneur has reached the point of 5% of its total population. In fact, Indonesia has a far higher population size.
One of the determining factors for the development of entrepreneurship, especially those which still belong to SME, is the existence of business incubator. It is what then underlies this study, i.e. what kind of business incubator that Indonesia should have- which can develop entrepreneurship, especially the one with Information and Communication Technology (ICT) basis?
The practice of business incubators as to improve the quality of SME has probably long existed. However, it has not been run purposefully and not focused as has been conducted by a number of developed countries. Consequently, the development of SME in Indonesia is as not fast as in other countries. This study then tries to find the case comparison pertaining to the business incubators which are assigned to assist SMEs, particularly that of ICT based entrepreneurship or so called technopreneur, in Indonesia and Netherland.It is to find the model for the development of entrepreneurship appropriate for Indonesia, as well as to find how business incubators can carry their duties well.
This study tries to compare as well as to study Ban- dung Techno Park (BTP) as the incubator that belongs to Tel-U and the oneofTwente, Netherland, i.e. Kennuspark. Kennispark as a business incubator has actually been more advanced, in terms of development of ideas to be proceeded into products, business incubation process as well as funding and investment.
Kennispark, Role Model on the Development of Business Incubator
Why does, in this study, Kennispark become one of the instruments used for the comparison and development of the study pertaining to the development of business incubator? It is because the University of Twente has been known as a university relatively expert in behavior, social studies as well as other humanities. Furthermore, the university has been known as one of The Most Entrepreneurial Universities in Netherland.
Kennispark is a business park created by the University of Twente in the city of Enschede, Netherland. Kennispark has been succeed in creating the atmosphere of entrepreneurship in the area and has produced not less than 800 successful entrepreneurs in the university. Therefore, Kennispark will be the framework for the development of business incubator for Indonesia in this study.
Considering that Kennispark has a better business incubator management system, there are many elements that can be taken as a lesson for a business incubator in Indonesia, especially in develop- ing technopreneurship which still belongs to start-up.
In its first year, this study tried to find the influence of Information and Communication Technology (ICT) in developing SME or entrepreneurship. This study uses Technology Entrepreneurship Model from Edward Elgar, asbothBTP andKennisparkare business incubators created by the universities they belong to.
A business incubator in universities is commonly created by the academicians (lecturers and students) where it initially comes from their ideas that may further be applied as to produce a product and released to the market.
Tel-U, for instance, has Brainstat as a product derived from the students’ idea for the Imagine Cup competition. The application can actually be implemented into a valuable product. It is similar to what happens atKennispark in Netherland. Moreover, Kennispark has incubated a business when it is still in the form of ideas.
However, most of the products at BTP have already been in the form of prototypes which are only a few steps to be marketed.
The strength of Kennispark is in the terms of business incubator management. Besides academicians, alumni have also been involved and focused. Besides, the funding and investment for start up have already met the needs by the involvement of angel capitalist (investor). Furthermore, the ecosystem for business incubator has already been created. The last, the involvement of stakeholders,including government, may support the regulation.
The lesson we can take from business incubators in Indonesia is that in order to ensure the potential investor (angel capitalist), the ideas to be proceeded into product are the ones that have value and they are good in accordance with the market review as well as a good in terms of product, and if they are marketed, they will have prospective consumers. It is not difficult to find angel capitalists since a good angel capitalistic able to realize that the fund invested can be returned or not. Meanwhile, if SMEs or start ups borrow some loan from the bank, for investation, they shall return the loan.
In general, there are three phases in business incubator at Kennispark, i.e pre incubation. Pre-incubation involves the preparation of ideas or the prototype to be incubated. The next phase is incubation. Similar to a premature infant, start ups are involved in the business incubator in the hope of a better life. It involves an intensive care, so that after the incubation, it will live an improved life. The last step is graduation. It is where the SMEs, after incubation, will be released so that they can survive and market their products. It is expected that when an SME coming to the graduation step it will have an investor and be ready to sell a product. Accordingly, the length of incubation process depends on the condition of SME.
Tel-U itself, through BTP, recently has already had several product prototypes that have been incubated, including garbage incinerator, vehicle detector at the parking gate, which has already been implemented in the university area which is also used as the display before the release.
Business in Indonesia Has Not Had Its Focus
One of the strengths of a business incubator in Nether- land is the focus in managing SMEs that will be involved in incubation. Furthermore, the focus in developing business is also taken by technopreneurs in Nether- land while in fact the condition and situation of SME in Netherland and Indonesia is not far different. Many start up businesses uses similar applications. Even, the business players come from the similar range of age, i.e. between 17 – 25.
It is for this focus that cannot be conducted by a number of SMEs being incubated in Indonesian business incubator. One of the weaknesses of SME- practitioner or start up in Indonesia is a lack of focus and the desire to try new things. Consequently, while they have not been fully into one thing, their focus has changed into another thing that wasting energy. The second is the establishment on ecosystem supporting entrepreneur business is not as good as that in Nether- land where the government and other stakeholders have known the importance of SME or entrepreneurship. Besides, the environment for investation in Netherland is also controlled by the government different from that in Indonesia which fully depends on the market.
In the first year, the research had gained some results that include the discovery of indicator set for the framework in technopreneur development model. It implemented Elgar Model on Technological Entrepreneurship (Technopreneur) wihch would then be developed by proposing other stakeholder components which also play an important part in a business incubator, including community.
In the second year, the study focused on SME practitioner that is also expected to create a local design model for the new business incubator study. It is because each country has its own cases. A local based study- will encourage then another studies. This study is also expected to be a solution for business incubator so it can run more effectively.
A brief summary of a study entitled “Toward a Frameworks for ICT-Based Entrepreneurs Development : Case Study of Incubator Business in Netherland – Netherland”
by Ir. Dodie Tricahyono, MM., Ph.D; Lia Yuldinawati, S.T., MM ; Dini Turipanam Alamanda, Stp., MSM ; and Grisna Anggadwita, S.T., MSM.
