Exploratory Factor Analysis: Entrepreneur Development in the Industrial Center of Sarung Tenun Ikat Lamongan

Abstract

Development of small and medium enterprises (SMEs) as a future Indonesian priority industry require locality approach and focuses on the endogenous development by involving local available resources. One model of SMEs development is to develop a center of industry. This study is aimed to identify the characteristics and factors that influence the development of industrial centers by using multivariate factor analysis. The industrial center of Sarung Tenun Ikat in Lamongan has had the characteristics of entrepreneurial development by utilizing local economy approach, except: the structure of the organization, R & D, legal entities, and cooperation with capital institutions. Based on the results of factor analysis found nine component factors which influence the development of the industrial center, they are: Product factor , craftsmen factor , marketing factors , the price factor , innovation factor , raw materials factor , capital factor , and the factor of business management. The concept of entrepreneurship development on industrial center is to improve the competitiveness through planning and specialization, while enhancing marketing plan by conducting training to artisans in the center of sarung tenun ikat in Lamongan.

Keywords: factor analysis, development of entrepreneurship