A Framework of Entrepreneurship Incubator for University Students in Indonesia
Abstract
The pandemic phenomenon triggers some challenges to be adapted and opportunities to be leverage especially among the new entrepreneurs. Entrepreneurial resilience is found as a solution for face any challenges and take up any opportunities in phenomenal situation. Globally, universities have set one of their goals is to ensure the students sustainability in future. Improving resilience among the students could facilitate universities achieving sustainability goals. Entrepreneur and resilience are the focus for this paper. This paper aims to develop a framework on entrepreneur and resilience by involving incubator. This framework is developed for university young entrepreneur. The development of framework based on observational research method. This method allows researcher to explore their participants selections and their reaction to the situation in natural setting. Among two best entrepreneur Universities in Indonesia are referred. The two universities are in Tangerang, Indonesia. The framework of this incubator has two supports; external and internal that are crucial in generating a successful resilience entrepreneur.
Keywords: Entrepreneur, resilience, university, external support, internal support
Introduction
The pandemic phenomenon triggers some challenges to be adapted and opportunities to be leverage among the entrepreneurs; a social start up is one of the solution that might assist entrepreneur grows well (Mai et al., 2022). Entrepreneurial resilience is found as a solution for face any challenges and take up any opportunities in phenomenal situation (Montoro-Fernández et al., 2022). This research anticipates that learning process in university is crucial and the best fit learning input providing make a best transition from a student hood to adulthood, for a betterment and sustainable wellbeing. Hence, this research aims to explore the incubators in two selected universities in Indonesia.
Understanding of Resilience
Originally the concept of resilience was introduced in the field of ecology by a researcher named Holling. He defined resilience as “a measure of the persistence of systems and of their ability to absorb change and disturbance and still maintain the same relationships between populations or state variables” (Holling, 1973, 2013, p. 14). This definition shows that resilience the ability that may absorb all the changes or disturbance had happened but still retain how its function, original structure and nature (Adger, 2003). agrees that resilience makes people able to persist and to adapt. Walker et al. (1981) notes that with resilience, individual exploit the instability due to adapt the changes occurred.
Another scholar (Carpenter et al., 2001) highlight that three main important character that may best describe resilience is. The characteristics are 1) how much of disturbance can be accepted by a system and remain as it was, 2) how much of the system is capable having self-organizing and finally 3) able to build and increase the capacity of adaptability and able to learn.
Pisano (2012) intent to connect resilience with sustainable development. While Westley et al. (2011) adds that the objective of sustainable development is creating and sustaining system for social, economic, and ecological. Humanity relies on services of ecosystems for its wellbeing; clearly shows that humanity is critically related with ecosystem. Pisano (2012) also highlight that humanity needs persistence; it contributes resilient for a sustainable development of socio ecological system.
Resilience and entrepreneur
Resilience is a construct that has been used in various subject such as disaster management (Manyena, 2006), engineering (Hollnagel et al., 2012), psychology (Bonanno, 2004), business administration (Sutcliffe & Vogus, 2003), sociology (Adger, 2003), and ecology (Holling, 2013; Walker et al., 1981). In addition, resilience has received greater attention in the field of entrepreneurial; in both perspectives, individuals and organizations (Ayala & Manzano, 2014; Reinmoeller & van Baardwijk, 2005). Interesting note, the concept of entrepreneurship contributes to the resilience within communities, regions, or economies (Boettke et al., 2007; Westley et al., 2011).
Korber and McNaughton (2018) conducted a systematic literature review and revealed that there are two reasons why resilience is relevant to the field of entrepreneurship. First, resilience is treated as preparation method to ensure they obtained well business performance. Conversely, they added that entrepreneur with no resilience would not get success in their business. Secondly, due to cognitive and behavioral entrepreneurial traits, it will make them versatile and ready to adapt with any given situation (Biggs et al., 2012).
Scholars agree that resilience is crucial and able to assist entrepreneurs particularly in uncertain scenario (Markman et al., 2005). The entrepreneur exploring upcoming opportunities and with resilience they seem able to take the challenge and adapt and attempt to learn the new changes (Luthar & Zelazo, 2003). In relation with the above discussion, resilience entrepreneurial can be defined as an interpretation for any negative experience gained via a person, group, community or environment to become opportunities, hence to improve from better to the best (Welsh, 2014).
Previous findings considering resilience is beneficial for entrepreneur. The benefits are:
Resilience can be a function of entrepreneurial individuals or firms (Ayala & Manzano, 2014; Bullough & Renko, 2013; Corner et al., 2017; Dahles & Susilowati, 2015; Ingram et al., 2016; Javadian et al., 2020; Korber & McNaughton, 2018; Lin et al., 2017; Linnenluecke, 2017).
Resilience helps to create entrepreneurial intentions (Branicki et al., 2018; Bullough & Renko, 2013; Corner et al., 2017; Lin et al., 2017; Wall & Bellamy, 2019).
Resilience been boosted by entrepreneurial behaviour (Ayala & Manzano, 2014; Branicki et al., 2018; Bullough & Renko, 2013; Corner et al., 2017; Korber & McNaughton, 2018; Lin et al., 2017; Wall & Bellamy, 2019).
Boosting the entrepreneurial culture (Corner et al., 2017; Javadian et al., 2020; Korber & McNaughton, 2018; Santos & Liguori, 2020).
Resilience act as recovery agent for entrepreneurial failure (Branicki et al., 2018; Bullough & Renko, 2013; Corner et al., 2017; Ingram et al., 2016; Korber & McNaughton, 2018; Linnenluecke, 2017; Wall & Bellamy, 2019).
Resilience able to transform into the betterment in entrepreneurship (Ayala & Manzano, 2014; Corner et al., 2017; Ingram et al., 2016; Korber & McNaughton, 2018; Santos & Liguori, 2020).
The above findings aim on interaction between resilience and entrepreneurship. Resilience sustains the entrepreneurial development individually or collectively. This research aims to study the resilience and entrepreneur from university perspective.
Resilience and entrepreneur within university context
As per discussion above, it shows that cognitive, experience and behaviour generate resilience among the entrepreneurs. Regardless of place, individual background, those with resilience will look further and thinking forward in facing and handling the new situation surrounded them. In recent time, digital business phenomena are on trending.
Many scholars assume that is worth if young entrepreneurs were given all these experience and lessons to make them technology entrepreneurs. University or any tertiary education play a major role to motivate young graduates to involve more in entrepreneurial world (Gozali et al., 2015).
To agree with this, those young entrepreneurs need to master all entrepreneur elements and having most entrepreneurial related training, thus boosting the confidence and upgrading the knowledge (Brownlee, 2014; Javadian et al., 2020). With fully endowed, the entrepreneurs may create resilience.
Research Method
Observational research method is employed in this research. The participant observation is vital to obtain the understanding the ecosystem of entrepreneurial (Tillmar, 2020) particularly on incubator and how it relates to resilience entrepreneur. Two private universities were chosen to observe their entrepreneurial activities including their facilities provided. All information obtained through the observation will be used to develop the framework (See Figure 2).
Research Findings: Elements from Findings for a Framework of Entrepreneurship Incubator for University Students
The findings show that these two universities have apply resilience concept through entrepreneurial lesson for their students. The findings are gathered through the participant observation and structured observation. The similarities that they have is providing business incubators. For example, the university has ready number of rooms/ offices for new start-up or for renting. In other words, the space not only for internal students, also applicable for existing business outside university. The offices compound is fully equipped with necessity such as toilet, room for leisure, pantry, internet facilities and telephone. All these facilities are shared among the tenants as well as the students. Indirectly, it generates network among the entrepreneurs, for new or existing ventures. For internal students, the capital is provided for them to start up their business. Top management also has developed certain policies as guideline to support this business incubators.
Apparently, the university is ready and prepared some crucial support for the implementation business incubators. These external supports indirectly open up opportunities for students, ultimately enrich their skilling and exposing to more real business situation. This situation is important due it able generate resilience among the students; generate a pool of resilience entrepreneur. Hence, facilitating approaching target for sustainability wellbeing.
Meanwhile, the university provides an update academic curriculum; covers latest entrepreneur character and on demand criteria of entrepreneurship. This might expose students with the right knowledge and information and fit the purpose for business incubators. Figure 1 below shows the elements that are used in their business incubator ecosystem.
Conclusion: A Proposed Framework of Entrepreneurship Incubator for University Students
In relation with the above findings, this research proposed a framework for entrepreneurship incubator for university students and its indirect impact for the entire university community. The findings indicate that the elements are in aspect of i) external support of the business and ii) internal aspect of the business. The idea of this framework inspired from Herzberg (1959) motivation theory. Within Herzberg theory, individual is motivated with two source of motivation i) inner/ internal factors and ii) external factors – environment for entrepreneur. Inner factors or support has strong influence on motivating entrepreneur to perform better (Lai Ling Yee et al., 2022). Hence, Figure 2 below propose a framework of entrepreneurship incubator for university students.
Acknowledgments
We are grateful for the Universiti Tenaga Nasional, Malaysia, Universitas Multimedia Nusantara, Indonesia and Universitas Pamulang, Indonesia. They were so helpful in sharing and suggesting their idea in bringing and completing this case study.
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Ridzwan, I. U., Muslim, N. A., Arinto, B., & Abd Razak, M. Z. (2023). A Framework of Entrepreneurship Incubator for University Students in Indonesia. In A. H. Jaaffar, S. Buniamin, N. R. A. Rahman, N. S. Othman, N. Mohammad, S. Kasavan, N. E. A. B. Mohamad, Z. M. Saad, F. A. Ghani, & N. I. N. Redzuan (Eds.), Accelerating Transformation towards Sustainable and Resilient Business: Lessons Learned from the COVID-19 Crisis, vol 1. European Proceedings of Finance and Economics (pp. 687-693). European Publisher. https://doi.org/10.15405/epfe.23081.61