Business Owner’s Expertise and Business Performance of the Finalists of the Young Entrepreneurs Competition and the Role of Employee Skills Training as a Moderating Variable


The problem of unemployment is still a crucial issue in Indonesia. Lack of jobs that exist today is the main reason of the increasing unemployment in this country. This condition can be reduced if all job seekers try to create jobs rather than looking for a job. Entrepreneurship is an attractive option, but the presence of ASEAN Economic Community (AEC) in December 2016 is also a challenge for businesses in Indonesia. Competition does not only occur among domestic businesses, but also businesses throughout ASEAN. Enactment of AEC decreases the chance of SMEs to survive. This study explores the relationship between business owner’s expertise, employee skills training, and the business performance of finalists of the Mandiri Young Entrepreneurs Competition in Indonesia. The sample collection is done by giving questionnaires to 31 finalists of the competition. This study uses Partial Least Square as statistical tool. The results of this study show the existence of significant relationship and direct influence of business owners’ expertise on business performance. The significant results are also obtained with moderating effect of employee skills training on the relationship between the business owners’ expertise and business performance.



Keywords: business owners’ expertise, business performance, employee skills training

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