E-ISSN : 2963-4946

Vol. 1 No. September 12, 2023 https://ajosh.org/

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1285

Evaluation Of Program For Funding Assistance For Beginner

Entrepreneurs: A Case In Universitas Terbuka

Durri Andriani

Universitas Terbuka, Indonesia

E-mail: durri@ecampus.ut.ac.id

*Correspondence: durri@ecampus.ut.ac.id

KEYWORDS

ABSTRACT

Entrepreneurship;

Financial Assistance;

Training; Monitoring.

This research examines the impact of the Entrepreneurship

Development Assistance Program initiated by the Ministry

of Cooperatives and SMEs through the Field of

Entrepreneurship Development and Human Resource

Development on Open University (UT) students. In 2015,

the Ministry provided financial support and limited training

and mentoring to UT students to foster entrepreneurship.

The program is monitored over two years, from the student

submitting a business proposal to funding, and is extended

to the following three semesters. Students interested in

starting their own business must submit a proposal, which is

evaluated for feasibility and potential funding. This research

involves contacting students who have participated in the

2015 Program. A total of 266 program participants were

identified as the target population for the study. These

participants came from Bandung, Batam, Denpasar, Jember,

Jogjakarta, and Semarang. By equipping student

entrepreneurs with adaptability and resilience, the program

has the potential to foster a culture of entrepreneurship and

contribute to economic growth and innovation in the long

run.

Attribution- ShareAlike 4.0 International (CC BY-SA 4.0)

Introduction

Amidst the constantly changing economic landscape, entrepreneurship has become

a cornerstone of innovation and economic growth (Oanh & Huy, 2024). As universities

strive to nurture the entrepreneurial spirit among their students, Universitas Terbuka (UT)

stands out for its collaboration with the Ministry of Cooperatives and Small and Medium

Enterprises (SMEs) in fostering student entrepreneurship through the "Program

Wirausaha Pemula Kementerian Koperasi dan Usaha Kecil dan Menengah (Ansar &

Rahayu, 2019)." As a pivotal part of UT's strategy for entrepreneurship education, this

program has aimed to empower and inspire students to embark on entrepreneurial

journeys by providing training and funding assistance (Engidaw, 2022).

Entrepreneurship education has long been recognized as critical in equipping

students with the skills and mindset needed for business success (Manafe et al., 2023).

During 2014-2016, UT joined hands with the Ministry of Cooperatives and SMEs to

Durri Andriani

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1286

implement this initiative, granting working capital to students venturing into business. A

systematic approach was adopted to ensure the program's funds were utilized effectively,

involving training sessions, proposal development guidance, proposal evaluation,

program monitoring, and validating the suitability of the proposed business types for

financial assistance (Miço & Cungu, 2023)v.

Across a span of three years, 87 students from various regions, including Semarang,

Batam, Jogjakarta, Denpasar, and Jakarta, participated in this program and received

funding support after completing training and submitting their business proposals

(Ahmad, 2018). The financial aid extended to students ranged from IDR 8 million to 25

million per individual.

The initiative's initial success story reveals that approximately 75% of students who

engaged in this program ran their businesses profitably after two years (Wahyuni &

Ikasari, 2022). However, what occurred beyond this point remains uncertain, as neither

UT nor the Ministry of Cooperatives and SMEs continued to monitor their progress.

Therefore, the objective of this study was to observe and evaluate the program's impact

on participants’ businesses.

Research Methods

Data Collection

The study involved contacting the students who had participated in the 2015

Program. A total of 266 program participants were identified as the target population for

the research. These participants are from Bandung, Batam, Denpasar, Jember, Jogjakarta,

and Semarang.

Contact Procedure

The participants were contacted through digital platforms, specifically WhatsApp,

SMS, and email. These communication channels were chosen for their convenience and

widespread usage among the target population.

WhatsApp Contact Procedure

Out of the 266 participants, 91 (34,2%) were contacted via WhatsApp, with a

detailed questionnaire provided to collect data regarding their experiences and outcomes

as entrepreneurs following their involvement in the program. Of those contacted on

WhatsApp, 24 (26,3%) respondents responded to the questions and provided valuable

insights.

SMS Contact Procedure

SMS messages were used to reach out to the remaining 175 (65,8%) participants.

However, only 4 participants responded to the messages.

Email Contact Procedure

All 266 Program participants had email when they first joined the Program.

However, none of them responded to the email sent for this Evaluation.

Table 1

Distribution of The Program Population & Samples

Regional

Centre

∑ Grant

(Rp.000)

∑

Student

Contacted via WA

Contacted via SMS

Successfully

Contacted

Respond

Successfull

y Contacted

Responde

Bandung

411,000

Semarang

534,500

Jogjakarta

560,000

Jember

603,000

Evaluation Of Program For Funding Assistance For Beginner Entrepreneurs: A Case In

Universitas Terbuka

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1287

Denpasar

478,180

Batam

509,000

TOTAL

3,095,680

266

175

Responses were obtained from 28 out of the 266 participants, constituting

approximately 9% of the target population. These responses formed the basis for

evaluating the program's long-term impact, including sustainability, the magnitude of

success, and business profitability.

Results and Discussions

The findings of this study shed light on the trajectories and outcomes of participants

in the "Program Wirausaha Pemula Kementerian Koperasi dan Usaha Kecil dan

Menengah" at Universitas Terbuka. The analysis of participants’ responses to the

interview revealed diverse pathways taken by program beneficiaries, providing valuable

insights into the evolution of their entrepreneurial journeys.

Figure 1. Distribution of Participants' Business Status

As seen in Fig. 1, among the participants, 10,7% chose to continue with the business

they initially proposed during the Program, while a significant 57,3% opted to change

their business type. On the other hand, 31,2% decided to discontinue their entrepreneurial

ventures.

Business Resilience

Participants in the "Program Wirausaha Pemula Kementerian Koperasi dan Usaha

Kecil dan Menengah" proposed diverse business ventures, reflecting their entrepreneurial

aspirations and the explored opportunities. As illustrated in Figure 2, these ventures span

various sectors, including service, culinary, trading, animal husbandry, and printing.

Through these visual representations, we offer a glimpse into the multifaceted

entrepreneurial landscape cultivated by program participants, each image encapsulating

the distinctiveness of their chosen business endeavors.

Durri Andriani

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1288

Business in Service Industry

Business in Culinary

Business in Trading

Business in Animal Husbandry

Evaluation Of Program For Funding Assistance For Beginner Entrepreneurs: A Case In

Universitas Terbuka

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1289

Business in Printing

Figure 2 Participants’ Business Endeavours

While these proposed business ventures initially represent the participants'

entrepreneurial aspirations, the journey from proposal to manifestation is marked by

changes shaping their ventures' trajectory. Upon evaluation, shifts in business focus were

evident. For example, while initially, 35.7% of participants proposed ventures in the

service industry, only 31.8% remained in this sector. Similarly, there was a decrease in

the proportion of participants engaged in culinary (from 32.1% to 31.8%) and trading

(from 21.4% to 27.3%) businesses. These findings underscore the dynamic nature of

entrepreneurship, wherein participants demonstrate adaptability and resilience in

response to evolving market dynamics and personal circumstances (Stoica et al., 2020).

Upon closer examination, many participants opted to pivot or discontinue their

initially proposed businesses; for example, among participants who initially proposed

businesses in the service industry, 37.5% transitioned to other business types, while

44.4% discontinued their ventures altogether. Similarly, among participants in the

culinary sector, 55.6% decided to stop their ventures, while only 33.3% continued with

their culinary businesses. Interestingly, while no participants continued their initially

proposed animal husbandry businesses, none discontinued this venture either, with all

participants opting to change the direction of their businesses. Similarly, participants in

the printing business remained consistent, with 33.3% continuing their ventures without

any changes or discontinuations.

Durri Andriani

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1290

Figure 3. Distribution of Business

Further analysis of the data reveals a notable trend regarding the discontinuation of

businesses, particularly in the culinary sector. Among participants who initially proposed

culinary businesses, a significant majority (55.6%) decided to discontinue their ventures,

followed by 44.4% who stopped their business in the service industry. Meanwhile, no

participants have discontinued their trading, husbandry, and printing business. This stark

contrast in discontinuation rates compared to other sectors highlights the unique

challenges and dynamics within the culinary and service industry.

These findings highlight the adaptability and resilience of program participants in

response to evolving market dynamics and personal circumstances. Despite facing

challenges or encountering shifts in their initial business proposals, participants are

willing to explore alternative opportunities and adapt their entrepreneurial endeavors

accordingly.

Figure 4. Distribution of Business Sustainability Based on Business Type

Timing of Business Changes

The timing of business changes was noteworthy. A similar pattern can be observed

between changes in the business type and discontinuation of the business through Fig. 3.

0,0%

33,3% 33,3%

0,0%

33,3%

37,5%

18,8%

31,3%

12,5%

0,0%

44,4%

55,6%

0,0% 0,0% 0,0%

Services Culinary Trading Husbandry Printing

Continue with The Proposed Business

Change The Proposed Business

Stop the Business

Evaluation Of Program For Funding Assistance For Beginner Entrepreneurs: A Case In

Universitas Terbuka

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1291

Figure 5. Distribution of When the Business Changes is Implemented

It was observed that 6,3% of those who transitioned to different business types did

so in 2016 and 2017. Meanwhile, 25% of participants reported making this shift in 2018,

and no participants made the change in 2019, while the majority, approximately 62,5%,

embarked on new business types in 2020. Interestingly, no participants reported

discontinuing their business in 2016, while the number of participants who stopped their

business was relatively high (22,2%) in 2027. The number of people who stopped

business decreased to 11,1% in 2018 and 2019. Like those who changed their business,

the majority (55,6%) stopped in 2020.

Reasons for Business Changes or Stop

Figure 6. Distribution of Reasons to Change or Stop Business

As highlighted by the data, participants who opted to change their business types or

discontinue their ventures cited various reasons that shaped their decisions. The COVID-

19 pandemic emerged as the most prevalent factor, with 54.17% of participants attributing

their business changes to its economic impact. Furthermore, 41.67% cited a slow market

as a contributing factor, reflecting challenges related to consumer demand and economic

conditions. Family-related issues also played a significant role, with 25% of participants

citing them as influencing factors. Additionally, 12.5% mentioned experiencing financial

loss, while 4.17% cited capital running out as reasons for their business changes. Other

Durri Andriani

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1292

causes, accounting for 8.33% of responses, encompassed a range of factors not specified

in the data. These findings underscore the multifaceted nature of entrepreneurial decision-

making, influenced by personal circumstances, external factors, and strategic

considerations.

Reasons to Restart Business

Upon questioning participants who opted to restart their businesses, it emerged that

various motivations influenced their decisions. The data revealed a nuanced spectrum of

factors driving their choices. Notably, 42.86% of respondents identified a pursuit of

profits as their primary motivation for restarting their businesses, underscoring the

significance of financial sustainability in entrepreneurial pursuits. Additionally, 28.57%

cited seizing opportunities arising from favorable market conditions or emerging trends,

indicating a strategic approach to capitalizing on potential growth prospects. Moreover,

14.29% expressed an availability of specific tools or skills essential for business

operations, highlighting the importance of acquiring requisite resources to enhance

performance. Similarly, another 14.29% articulated a necessity to generate income,

reflecting a pragmatic response to financial exigencies. Furthermore, 28.57% mentioned

other undisclosed reasons, suggesting diverse influences shaping their decisions. These

findings illuminate the multifaceted nature of entrepreneurial motivations, encompassing

financial aspirations, strategic planning, skill acquisition, and pragmatic responses to

prevailing circumstances, collectively contributing to the resilience and adaptability of

entrepreneurs in navigating the dynamic business landscape.

Figure 7. Distribution of Reasons to Restart Business

42,86%

28,57%

14,29% 14,29%

28,57%

Looking for

Profit

Take

Advantage of

the

Opportunity

Have the

Tools/Skills

Must Earn

Money

Etc

Evaluation Of Program For Funding Assistance For Beginner Entrepreneurs: A Case In

Universitas Terbuka

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1293

Suggestions for Program Improvement

Figure 8. Distribution of Participants’ Suggestions for Program Improvement

Several key points emerged in the participants' suggestions to improve the program,

encompassing various support aspects needed for entrepreneurial success. Financial

assistance emerged as a primary concern, with 16.67% of participants advocating for

extending financial support to graduates, recognizing the ongoing need for assistance

beyond the initial stages of entrepreneurship. Additionally, 8.33% highlighted the

importance of more considerable business capital, emphasizing the significance of

adequate funding for business operations. Another 8.33% expressed a need for assistance

expanding their businesses, underscoring the importance of continued support for scaling

ventures.

Regarding training, participants emphasized the importance of acquiring essential

skills for business success. Specifically, 11.11% advocated for training in promotion

strategies to enhance market visibility, while 5.56% emphasized the need for digital

training to leverage digital platforms effectively. Additionally, 5.56% expressed a desire

for training in pricing strategies to optimize profitability.

Mentoring and guidance emerged as critical elements for participants seeking

ongoing support and advice in navigating the complexities of entrepreneurship. Notably,

11.11% of participants highlighted the importance of intensive mentoring to receive

personalized guidance and support tailored to their business needs. Similarly, another

11.11% expressed a need for additional motivation, underscoring the importance of

encouragement and support in sustaining entrepreneurial endeavors. Additionally, 2.78%

advocated establishing partnerships with companies, recognizing the potential benefits of

collaboration and networking opportunities (Yuliastuti, 2024).

In terms of administration, participants identified the need for streamlined processes

and clear communication to facilitate program participation effectively. Specifically,

13.89% highlighted the importance of transparent information dissemination to ensure

participants are well-informed about program details and requirements. Additionally,

5.56% expressed a desire for faster administrative processes, emphasizing the importance

Durri Andriani

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1294

of efficiency in program implementation to support timely business development

initiatives.

Participants' suggestions for program improvement underscore the multifaceted support

needed for entrepreneurial success, ranging from financial assistance and training to

mentoring, guidance, and administrative efficiency. These insights provide valuable

guidance for enhancing the program's effectiveness in supporting aspiring entrepreneurs

in their business endeavors.

The findings of this study offer valuable insights into the trajectories and outcomes

of participants in the "Program Wirausaha Pemula Kementerian Koperasi dan Usaha

Kecil dan Menengah" at Universitas Terbuka. Entrepreneurship, as evidenced by the

experiences of program beneficiaries, is characterized by its dynamic nature and the need

for adaptability in response to evolving circumstances. The diverse pathways participants

take, including changes in business types and discontinuations, underscore the complexity

of entrepreneurial decision-making and the multifaceted factors influencing business

outcomes.

Notably, a significant proportion of participants demonstrated resilience by

continuing with their initially proposed businesses or making strategic shifts to adapt to

changing market dynamics and personal circumstances. Their experiences highlight the

enduring appeal of entrepreneurship and the importance of flexibility in business

strategies. Conversely, those who opt to discontinue their ventures provide insights into

the challenges and barriers that entrepreneurs may encounter, emphasizing the need for

ongoing support and resources to address these issues.

The timing of business changes, particularly the substantial shifts observed in 2020,

may reflect the disruptive impact of external factors such as the COVID-19 pandemic on

the business landscape. This underscores the importance of constant monitoring and

support to help entrepreneurs navigate challenges and seize opportunities in a dynamic

and unpredictable environment. The resilience and adaptability demonstrated by program

participants, especially during challenging times, indicate the essential qualities required

for entrepreneurial success.

Overall, the findings contribute to understanding entrepreneurial dynamics and the

factors influencing business outcomes. They underscore the importance of ongoing

support and resources for aspiring entrepreneurs and the need for programs and initiatives

that foster resilience and adaptability in changing circumstances. This research aligns

with existing literature emphasizing the significance of entrepreneurial resilience and

adaptability in navigating the complexities of the business landscape (Harel, 2021).

Conclusion

In conclusion, the findings highlight the fluid and dynamic nature of

entrepreneurship. While the program's initial success is promising, it underscores the

importance of sustained support and mentorship for student entrepreneurs to navigate the

ever-evolving entrepreneurial landscape. The participants' suggestions for program

improvement, including the need for financial assistance, training, mentoring, and

streamlined administration, offer actionable insights to enhance the program's

effectiveness. By equipping student entrepreneurs with adaptability and resilience, the

program has the potential to foster a culture of entrepreneurship and contribute to

economic growth and innovation in the long run.

Evaluation Of Program For Funding Assistance For Beginner Entrepreneurs: A Case In

Universitas Terbuka

Asian Journal of Social and Humanities, Vol. 1 No. September 12, 2023 1295

References

Ahmad, A. (2018). Evaluasi program mahasiswa wirausaha dengan model cipo di

Universitas Brawijaya dan Universitas Negeri Malang. Jurnal Penelitian Dan

Evaluasi Pendidikan, 22(2), 154–167.

Ansar, A. B., & Rahayu, E. (2019). Evaluasi Program Wirausaha Pemula di Kementerian

Koperasi dan UKM RI. Journal of Social Welfare, 14(1).

Engidaw, A. E. (2022). Small businesses and their challenges during COVID-19

pandemic in developing countries: in the case of Ethiopia. Journal of Innovation

and Entrepreneurship, 11(1), 1.

Harel, R. (2021). The impact of COVID-19 on small businesses’ performance and

innovation. Global Business Review, 09721509211039145.

https://doi.org/10.1177/09721509211039145

Manafe, M. W. N., Ohara, M. R., Gadzali, S. S., Harahap, M. A. K., & Ausat, A. M. A.

(2023). Exploring the Relationship Between Entrepreneurial Mindsets and

Business Success: Implications for Entrepreneurship Education. Journal on

Education, 5(4), 12540–12547.

Miço, H., & Cungu, J. (2023). Entrepreneurship education, a challenging learning process

towards entrepreneurial competence in education. Administrative Sciences, 13(1),

22.

Oanh, N. T. K., & Huy, L. N. (2024). Atmospheric Emissions from Electricity Generation

in Southeast Asia: Development Trend and Policy Responses. Current Pollution

Reports, 1–16.

Stoica, O., Roman, A., & Rusu, V. D. (2020). The nexus between entrepreneurship and

economic growth: A comparative analysis on groups of countries. Sustainability,

12(3), 1186.

Wahyuni, S., & Ikasari, N. (2022). Unveiling The Impact of Covid-19 And The Policy

Implications On Indonesian Small Businesses: Where Do They Hurt The Most?

BISNIS & BIROKRASI: Jurnal Ilmu Administrasi Dan Organisasi, 29(1), 5.

Yuliastuti, A. (2024). Strategi Peningkatan Kesempatan Kerja Berbasis Potensi Wilayah:

Evaluasi Tenaga Kerja Mandiri Pemula. Journal of Social Movements, 1(1), 70–84.