The Role of External Environment, Owner Characteristics and Mentoring for Entrepreneurship in Improving the Business Performance of Zakat Recipient in East Kalimantan - Indonesia

Abstract

The purpose of this study is to analyze and explain the role of external environment, owner characteristics and mentoring for entrepreneurship in improving the business performance of zakat recipient (mustahik) of  the National Board of Zakat (Badan Amil Zakat National, abbreviated as BAZNAS) in East Kalimantan, Indonesia. The design of this research is explanatory research. The type of the study is observational research with cross sectional study design. The method that is used to collect the data in this research is survey method. The population of this research is the whole of 65 mustahik for business, and the sample in this study is all population. This research used Partial Least Square (PLS) approach to analyze the data. The results of this study are as follows. The external environment has no significant effect to entrepreneurship. The owner characteristics have no significant effect to entrepreneurship. Mentoring significantly affects entrepreneurship. Furthermore, external environment is not significant to business performance. The owner characteristics significantly affect business performance. Mentoring has no significant effect to business performance as well as entrepreneurship has no significant effect on business performance. The finding in this study is that mentoring is not always successful in changing the level of performance measurement effort.

Keywords: business performance, entrepreneurship, external environment, mentoring, owner characteristics