Int. J. Productivity and Quality Management, Vol. 35, No.

3, 2022 415

Entrepreneurship orientation in the handicraft

industry in Bali, Indonesia using the triple helix
concept

Ni Luh Wayan Sayang Telagawathi

Faculty of Economics,
University Pendidikan Ganesha,
Singaraja, Bali, Indonesia
Email: wayan.sayang@undiksha.ac.id

Made Setini*
Faculty of Economics and Business,
Udayana University,
Bali, Indonesia
Email: made.setini@student.unud.ac.id
*Corresponding author

Ni Made Suci and Ni Nyoman Yulianthini

Faculty of Economics,
University Pendidikan Ganesha,
Singaraja, Bali, Indonesia
Email: made.suci@undiksha.ac.id
Email: ninymyulianthini@gmail.com

Daru Asih
Faculty of Economic and Business,
University Mercu Buana,
Jakarta, Indonesia
Email: daru_asih@mercubuana.ac.id

Ni Made Satya Utami

Faculty of Economics and Business Mahasarawati,
Bali, Indonesia
Email: utamisatya4@gmail.com

Abstract: The handicraft industry in Bali faces serious challenges in

developing entrepreneurial orientation. Therefore, the purpose of this research
is to examine the triple helix concept in locally cultured businesses. Data were
obtained from craftsmen in the handicraft industry of Bali, through direct
interviews, which showed the absence of entrepreneurial orientation. This study
argues that the development of entrepreneurial orientation requires the synergy

Copyright © 2022 Inderscience Enterprises Ltd.

416 N.L.W.S. Telagawathi et al.

of the triple helix ecosystem, which underpins the handicraft industry in Bali.
Furthermore, craftsmen need the collaborative effort of the triple helix concept
which comprises of academic, business, and government. However, the triple
helix concept is unable to provide the required result due to inadequate capital
and poor training. When the government acts as a source of contractual
relations with stable interactions and exchange, the handicraft industries
become production houses. In addition, the government is also a source of
contractual relations that ensures stable interaction and exchange, while
universities act as a source of new knowledge and technology. The synergy
associated with these three sectors is a generative principle used to build a
knowledge-based economy, which enables a tighter economic integration.

Keywords: synergy; entrepreneurial orientation; business ecosystem; triple

helix; handicraft industry.

Reference to this paper should be made as follows: Telagawathi, N.L.W.S.,

Setini, M., Suci, N.M., Yulianthini, N.N., Asih, D. and Utami, N.M.S. (2022)
‘Entrepreneurship orientation in the handicraft industry in Bali, Indonesia using
the triple helix concept’, Int. J. Productivity and Quality Management, Vol. 35,
No. 3, pp.415–428.

Biographical notes: Ni Luh Wayan Sayang Telagawathi is a Lecturer at the

Faculty of Economics, University Pendidikan Ganesha, Singaraja, Bali,
Indonesia. She has published many national and international articles.

Made Setini is a Doctoral student at the Faculty of Economics and Business,

University of Udayana in Bali, Indonesia. She has published many national and
international articles.

Ni Made Suci is a Lecturer at Faculty of Economics, University Pendidikan

Ganesha, Singaraja, Bali, Indonesia. She has published many national and
international articles.

Ni Nyoman Yulianthini is a Lecturer at the Faculty of Economics, University

Pendidikan Ganesha, Singaraja, Bali, Indonesia. She has published many
national and international articles.

Daru Asih is a Lecturer at the Faculty of Economic and Business, University

Mercu Buana, Jakarta, Indonesia. She has published many national and
international articles.

Ni Made Satya Utami is a Lecturer at the Faculty of Economics and Business

Mahasarawati, Bali, Indonesia. She has published many national and
international articles.

1 Introduction

According to several studies, discussions on the entrepreneurship of micro, small and

medium enterprises (MSMEs) involve various perspectives, such as grouping;
Borowiecki and Siuta-Tokarska (2020) stated that economic activity tends to cluster,
while Uskova et al. (2019) reported that most of the industrial groups in Indonesia appear
spontaneously, and are stimulated by the abundance of raw materials as well as skilled
 Entrepreneurship orientation in the handicraft industry in Bali, Indonesia 417

labour. There are three concepts related to industrial localisation, namely the cluster
industry, industrial district, and agglomeration economy. According to Molina-Morales
et al. (2019), the first two concepts are often used interchangeably. Furthermore, the
concept of economic agglomeration is associated with industries that benefit from
urbanisation and the localisation in accordance with Thisse’s (2019); Kawiana et al.
(2021) economy theory. The most important factor in the industrial cluster is the
relationship between companies with other supportive sectors. Borowiecki and Siuta-
Tokarska (2020) researched the relationship between the context of public-private –
partnership that occurs in a triple helix, known as ABG or academic, business and
government to obtain a stable and interactive academic system with new knowledge and
technology. The synergy of these three sectors is a generative principle used in building a
knowledge-based economy, for tighter economic integration (Al-Sharhan et al., 2019).
The spread of these MSME centres does not guarantee business continuity and
independence due to their poor integration with the triple helix concept. The study of
entrepreneurial ecosystems, which enables the creation of climate and institutions that
support MSMEs, has not been seriously conducted. Previous studies partially analysed
the complexity of problems faced by MSMEs without integrating them into an
ecosystem. Therefore, this research uses an integrated approach to determine the
construction of MSME entrepreneurship ecosystem models.
The Gianyar Regency in Bali Province is known for their woven fabric crafts
industries located in visible areas along the road, or in villages that depend on their lives
on the handicraft industry. These craftsmen try to compete to create competitive
advantage (Rahyuda et al., 2018). However, the problem associated with this industry is
the ability to determine whether a conducive business ecosystem is created in the cluster.
Critics of this group approach are responded by an entrepreneurial ecosystem perspective
that determines the dominant factors associated with the development of integrated
entrepreneurship in an area with significant capital, knowledge, and innovation (Ratten,
2020). One important concept from an entrepreneurial ecosystem perspective is the triple
helix collaborative system concept which is an interaction between universities, industry
and government. Furthermore, this is a framework for understanding the interactions
between key actors in developing innovative systems (Ji-xiang et al., 2020). The purpose
of this study is to determine the three components, namely academy, business and
government, must be able to blend into one form the entrepreneurial ecosystem well.

2 Literature review

2.1 Entrepreneurship ecosystems and entrepreneurship orientation

Ecosystems are the integration of various components, namely business, government, and
academics to form a business culture that runs optimally in a growing economic system
(Semeraro et al., 2020). Silicon Valley is one of the role model pilots used to determine
the entrepreneurial system in the world. According to the opinion of Singh et al. (2019),
Several studies have been carried out to determine the reasons behind the success of
Silicon Valley in fostering an entrepreneurial culture. These studies stated that some of
the reasons are linked to the culture of favourable technology adoption, such as a legal
and taxation system associated with the participation of Stanford University; this is also
418 N.L.W.S. Telagawathi et al.

used to develop a culture of learning from previously failed strategies (Rola‐Rubzen

et al., 2020).
According to Wangwacharakul et al. (2020), entrepreneurial orientation is a company
that has principles used to identify and exploit opportunities. In this process, the
entrepreneurial ecosystem with the collaborative triple helix model requires MSMEs to
possess entrepreneurial orientation which is used in the innovative market to take risks
and be proactive towards changes (Migliori et al., 2019). Setini et al. (2020), Arzubiaga
et al. (2018) and Yasa et al. (2020) stated that MSMEs have a strong entrepreneurial
orientation which enables them to possess stronger innovative strategies compared to
other companies. Stated that MSMEs with strong entrepreneurial orientation tend to be
braver in taking risks and not just surviving on past strategies (Gorantiwar and
Shrivastava, 2014). Furthermore, in a dynamic environment, entrepreneurial orientation
is very important for the survival of MSMEs (Bouncken et al., 2016).
Entrepreneurial orientation comprises of three dimensions, namely innovativeness,
pro-activeness, and risk-taking (Gupta and Sebastian, 2017; Koe, 2016; Dirgiatmo et al.,
2019). In accordance with these three dimensions, MSMEs need to initiate new products
in the market, possess innovative courage to take risks, and always be proactive towards
changing demands for new products. In research, Gupta and Sebastian (2017) stated that
SMEs with an entrepreneurial orientation tend to achieve market targets and market
positions more than their competitors. According to Zeebaree and Siron (2017), MSMEs
is always needed to observe market changes as seen from the ability of MSMEs to be
proactive and courageous in taking risks, thereby, leading to the creation of innovative
products capable of satisfying customers and identifying factors that affect their needs.
Competitive advantage is a technique used by companies to formulate and implement
strategies with superior performance relative to other competitors in the same industry.
Therefore, competitive advantage is the ability of an organisation to add value to its
customers, in order to achieve a relative advantage. Barney (1995) and Kamble et al.
(2020) stated that MSMEs with sustainable competitive advantage need to pay attention
to four factors. Firstly, MSMEs need to use the entrepreneurial marketing dimension to
develop its competitive advantage and create value. Secondly, they need to focus on
being innovative due to its ability to help them compete adequately. Thirdly, the
emphasis needs to be on the focus of choosing the right corporate opportunities to
determine success, and identify the need to make SMEs competitive. Fourthly, value
creation is the most important element for SMEs to focus more on creating quality
products for them to compete adequately.

2.2 Start-of-the-art
According to previous qualitative studies especially those focused in Indonesia,
entrepreneurship development, MSMEs development models are based on a conventional
or rigid understanding of the entrepreneurship concept and marketing. Conventional and
rigid in this context means that the concept has not been properly applied to the field
process, therefore, it is important for the proper development of entrepreneurship in
industrial clusters (Maysami and Elyasi, 2020). However, it is ideal to produce an
entrepreneurial spirit that can determine and assess business opportunities, gather the
right resources needed to take appropriate action, and take advantage to achieve success,
without strong contextualisation (McMullen et al., 2020). This situation is very
problematic in transmitting in the form of nature, character, and innovative ideas. The
 Entrepreneurship orientation in the handicraft industry in Bali, Indonesia 419

impact of entrepreneurial orientation on the performance of MSMEs is absolute (Karami

and Tang, 2019). The important problem of entrepreneurship studies is associated with
the provision of context, which is applied to selected cases. The values of creativity,
risk-taking, innovation, achievement orientation, ambition, and independence test the
integrity of creativity and innovation for future ventures (Calabrò et al., 2019). The
principle of entrepreneurship targets the personal area, which instils the spirit and values
of entrepreneurship in each person. Therefore, one of the applications of entrepreneurial
values can be seen from the courage to make decisions for entrepreneurs to determine the
potential that exists in them and their environment for further development. Aside from
innovation, it is equally important to underlie through initiatives to capture business
development opportunities. The estuary of all entrepreneurial orientations is the courage
associated with making important and risky decisions. It, therefore, becomes important to
make appropriate considerations before making important decisions (Moss et al., 2015;
Ferreira et al., 2017).
Studies were previously carried out on the collaborative role of stakeholders.
Therefore, this study is based on the development of an entrepreneurial orientation based
on the ecosystem triple helix in the handicraft industry in Gianyar Regency, Bali
Indonesia. The MSMEs handicraft located in this area were challenged to transform
entrepreneurial values to their members and the surrounding environment. This led to the
mobilisation of MSMEs and the formation of independent as well as competitive business
groups. Entrepreneurial orientation is the view and vision of the future that needs to be
mastered and at the same time applied by economic actors to drive their business.
Renewal ideas need to be strengthened despite because it is indispensable and originates
from a far-sighted vision for business development.

2.3 Research framework

This is in line with the perspective of triple helix, which was popularised by Rosenlund
et al. (2017) and Datta et al. (2019) in constructing the entrepreneurial ecosystem of
weaving handicrafts. This theory is an approach used in creating a synergy of cooperation
from three factors namely academic, business, and government to build a
knowledge-based economy. From the synergy that is built, it is expected that knowledge
circulation arises between the actors, and also gives birth to various knowledge
innovations with the potential to be capitalised or transformed into products or services
that have economic value as shown in Figure 1.
The complexity of the problems of small and medium industries in Indonesia is
conically associated with two important components, which are related to the potential of
the region and resources. Identified the mapping of actors involved in empowering
MSMEs, namely academics, government, companies/private sector, and tourism industry
players to form an entrepreneurial ecosystem (Widjajanti and Sugiyanto, 2020).
Craftsmen need an entrepreneurial orientation with a spirit of independence and
entrepreneurship to independently manage their businesses without depending on capital
and marketing assistance.
Entrepreneurship education provides a theory about the concept entrepreneurship but
also shapes the attitudes, behaviour and mindset of entrepreneurs and helps prepare to
start a business. Equipping skills, essential knowledge and integration experience can
help develop and expand the business being undertaken. Entrepreneurship education in
420 N.L.W.S. Telagawathi et al.

increasing entrepreneurial motivation and how to foster entrepreneurial motivation (Yi

and Duval‐Couetil, 2018).

Figure 1 Development model triple helix ecosystem-based entrepreneurship orientation

Regional Potential of
Potential Hand Craft Industry the
Community

Entrepreneur Orientation
Triple Helix Ecosystem

Government
MSMEs agencies
Entrepreneurship
academics and -Deperindag
and private parties
observers and -Depkop
-Local
entrepreneurship -Tourism and
Entrepreneurships
-National Culture
entrepreneur
-Tourism
Entrepreneurs

To overcome problems related to access to finance, access to marketing, bureaucratic

regulations, and the capacity of MSMEs, the government has issued a number of policies
and programs to help the entrepreneurial world. The role of the government makes a
positive contribution to achieving sustainable MSMEs (De Sousa Jabbour et al., 2020).

3 Research methodology

This is a qualitative research with the rapid assessment procedures (RAP) combined with
participatory observation. RAP is a research activity carried out in a participatory manner
among members of the community or a broader social sphere to encourage transformative
actions such as changes in better living conditions. Therefore, RAP does not stop at
research activities; rather it continues to empower community members to take action to
improve their living conditions. Also, RAP does not stop at the publication of research
results and recommendations for further development, rather it is oriented to changing
situations, by increasing the knowledge and ability of citizens to understand and change
their situations for the better. In summary, this research method takes part in the process
of community awareness and empowerment. Therefore, in RAP, planning activities are
importantly related to the interests of the public or the wider community. This means that
a planner needs to pay attention to various public interests, by mastering a variety of
community empowerment approaches (Byrne et al., 2020).
Participation in observations was made to build arguments and theories from field
data from the research subject. The reflective method along with the research subject
 Entrepreneurship orientation in the handicraft industry in Bali, Indonesia 421

builds a relation pattern to jointly formulate the problem that occurs and provide its
argument. This research method is classified alternative because it is believed that it is
created with the relationship of mind and the environment. According to Butcher and
Dickens (2016), this is also known as ‘critical subjectivity’ that occurs through
participatory transactions with the environment.
The qualitative research method combined with the RAP participation observation
holds several basic principles, namely:
1 changes objects into research subjects
2 research topics, need to start from the actual issues found in the field
3 the research flows from the bottom up
4 qualitative research is very accommodating among those that worked together, and
respected each other interdependently
5 the method that is widely developed is participation observation with placement of
personal experience as a material.
The study was conducted from July to December 2019, in Gianyar Regency, Bali
Indonesia which included Singapadu, Batuyang, and Sukawati Villages as centres of
small handicraft industries. These places were selected as a representation of the mapping
areas from the flourishing of the handicraft industry which is the central pulse of the
people’s economy. Tegalalang Village is a centre for handicrafts made of bamboo and
kite, while the Batuyang is associated with silver, coconut shells (coconut shells),
bamboo, coin, metal, and sculptures made of wood. Sukawati Village famous for its art
market produces various types of handicrafts from Prada; clothes for souvenirs,
handicrafts made of bamboo, metal, coin, and statues of wood.
The choice of location in Gianyar regency is as much as the object of research
because it is the centre of the creative handicraft industry in Bali, and the three selected
village locations are labour-intensive villages with handicrafts and almost all
communities in the three villages their activities are creative industry craftsmen who still
using the traditional way. In taking the sample, the authors immediately mingled with
industry players from the craftsmen village, namely Singapadu, Batubulan and Sukawati
and selected several informants who represented the business actors of each village.
Samples are selected based on the length of effort and productive activities carried out.
The author has three informants from each village where the study is located so that
nine are taken, the determination of the informants is determined in terms of the length of
the business they are engaged in and the productivity of their business, because they have
almost the same information, the author only takes one representative in each village.

4 Results and discussion

4.1 Result
Results of dialogue from informants in Gianyar Regency, Bali. One of the factors that
have hampered the empowerment of the small handicraft industry in Bali and Indonesia,
in general, is the absence of modern integrated management to support productivity and
innovation. Generally, this industry has not been handled seriously, especially in the
422 N.L.W.S. Telagawathi et al.

overall production and support of the people’s economy for proper management, because
the various components that drive the small industries have not been thoroughly
organised. Initially, entrepreneurship-based management was not embedded as the basic
foundation that drives the small and medium industries. Entrepreneurship-based
management is the awareness and practice of business management based on
independence and optimisation of self-potential and the surrounding environment.
Entrepreneurship refers to the independence of developmental efforts to produce
innovative steps.
The handicraft and creative industries as a whole need entrepreneurial management.
For instance, the small handicraft industry in Gianyar Regency faces various serious
problems in the production of woven cloths related to capital, marketing, and
innovations. As a handicraft business, the opportunities for labour absorption are very
large with many rural residents dependent on this industry. However, this industry
requires a breakthrough, especially regarding its holistic ways of dealing with problems
related to capital, marketing, human resources, product innovation, etc.
Craftsmen in Gianyar Regency, still find it difficult to carry out their activities due to
lack of initial capital funds for their business. Secondly, their inability to market and
obtain raw materials needed for their businesses is also interrelated. However,
irrespective of these draw-backs, these craftsmen are enthusiastic about developing their
business independently. In this situation, the development of an entrepreneurial
orientation based on their experience becomes important. The formation of the
entrepreneurial ecosystem depends on their needs and support of the academics,
government, and private sector. This section started with an in-depth presentation of data
descriptions related to craftsmen scattered all over Gianyar Regency. This descriptive
data is essential for further analysis.
Informant one: Ni Wayan Sudi (41) is one of the craftsmen of the silver handicraft
industry in Singapadu Village, Gianyar Regency. The following interview excerpt was
presented by Sudi.
“My family and I developed our businesses in our beautiful home with
approximately five employees. Previously I worked on silver crafts, as an
employee at an art shop in Sukawati Art Market, Gianyar Regency. My
husband, named Wayan Rata (43) is a silver craftsman in our village, and he
encouraged me to learn this craft, which I accepted by assisting in little way
such as gluing pairs, etc. Everything was taught by my husband.”
Sudi started to pursue the silver handicraft business after getting married to Wayan Rata
in 1992. It took Sudi only four years to learn the process of working on silver handicrafts,
before looking for potential customers to place their orders, which was initially in small
quantities. Usually, the buyer delivers the material to the craftsman and the process takes
place at Sudi’s place and after completion, it is delivered to the customer. Some of the
workers are residents of Singapadu Village that have been struggling with silver for a
long time, while others have worked for Sudi for almost 4 years. They are all housewives
in the village of Singapadu, Gianyar with hereditary knowledge of silver. Sudi’s husband
learned the handicraft from childhood, which enabled them to start the business and
accept orders from larger entrepreneurs working on various kinds of silver goods.
As the number of orders and production costs increased, various problems arose, such
as late payments, which also stalled the production process. Employees also complained
of uncertain situations where they needed money to sort their various expenses and also
 Entrepreneurship orientation in the handicraft industry in Bali, Indonesia 423

for the costs of further production. Sudi also complained of the need for more capital to
pay employees and maintain costs for the production machines.
Sudi’s story shows that small industries are very vulnerable to capital constraints;
therefore, their production process is dependent on buyers’ capital. As a group of home
industries, their capital is small and dependent on payment from previous orders, which
makes them mediator groups that are usually played by the private middle bridges as well
as guides the craftsmen. This private middle-class group has strong capital and an
extensive marketing network. Therefore, for the initial step of such coaching, it is very
important to motivate the craftsmen to continue to develop their businesses. However,
they depended on private middle groups, which hampered the entrepreneurial process.
Similar to Sudi, the second informant, Ni Nyoman, Meteri (45) stated the following:
“I started this business in the field of handicrafts by selling at Sukawati Art
Market in Gianyar Regency, Bali Indonesia. In 1980, I opened an art shop with
a small business capital before getting help from my parents. I made abstract
sculptures and was assisted by my husband. The materials are obtained directly
from my regular customers that are carpenters. These abstract statues made me
have a Balinese partner that gave me thousands of orders.
A similar story was told by a third informant, named I Ketut Ardita (43) and a
woodworker in the village of Batubulan Gianyar. Ardita was one of the carving craftsmen
that is respected in the village for introducing the art of woodcraft. Ardita lives in a wood
carving craftsman environment, although the place is not as advanced as the village.
Ardita started studying carving in the early 1980s along with five other friends, and by
then, there was only three household in the carving business. Ardita was determined to
acquire more skills, from childhood and looked for opportunities to learn how to carve in
other places. The urge to acquire more skills led to Ardita’s ability to learn how to
decorate eagles and other sculptures made of sandalwood. This type of sculpture is
certainly more complicated than carving statues of garuda made from ordinary wood.
Therefore, from then on, Ardita started working on sandalwood carvings, which has
gained popularity over the years. This type of wood carving is excellent because, besides
its fragrant smell, the quality of its carvings can compete with others. The cost of making
sandalwood carvings is also far more expensive than ordinary wooden sculptures. During
those early years, there was a carving businessman from Batuyang Village that developed
sandalwood raw materials when the act was still new in the neighbouring village of
Batubulan Kangin. At that time, there were absolutely no obstacles to the issue of raw
materials and carved orders were carried out immediately. However, Ardita had long
stopped engraving as a labourer.
The narratives of Ni Wayan Sudi, Ni Nyoman Metri, and Ketut Ardita reflected the
craftsmen’s uncertainty in developing their business. Furthermore, the interventions by
various parties are only temporary and not sustainable with the collaboration created by
the supporters of the craft business not running optimally.
According to the first informant (Sudi, 40):
“Running a home-based business requires adequate capital to buy silver and
make goods that can be sold independently. Sudi stated that there are lots of
designs yet to be developed due to insufficient funds. The intended capital is to
purchase raw materials in the form of silver. Sudi further stated that he intends
exhibiting the various to silver handicraft products at the national and
international levels. However, all seems like a dream due to the large capital
needed and a broad marketing network.”
424 N.L.W.S. Telagawathi et al.

Other obstacles in the independent development of an entrepreneurial spirit are clearly

stated by I Ketut Ardita.
“Ardita stated that the biggest obstacle faced by small industry craftsmen,
especially wood craftsmen, is capital. According to Ardita, this problem is
similar to tangled yarn that is difficult to solve. Some years ago, the
Department of Industry and Trade of Gianyar Regency, Bali Indonesia made a
program to stimulate craftsmen to make sculpture designs. However, the
purpose was not properly directed as officers from the Department of Industry
advised them to create sculpture designs without the provision of capital or
marketing assistance. This was a disappointment to the craftsmen because there
was absolutely no way to solve the problems. The government in the context of
empowering small industries can only make short-term programs without long-
term solutions. According to Ardita, the government needs to initiate
comprehensive methods to handle problems associated with the handicraft
industry by ensuring that the Ministry of Industry and Trade determines the
roots of these problems. For example, problems associated with capital are
handled by providing assisting craftsmen to encourage their entrepreneurship
spirit. In addition to the alternative marketing networks developed by mid-sized
industries that mediate between craftsmen and consumers, art markets are also
saturated. Ardita revealed that the current state of the art market is not very
conducive, especially for craftsmen because the collection of items offered is
similar without changes. However, changes tend to also occur in bulk, with
very few opportunities to market their products due to increasingly fierce
competition among traders. Therefore, the Department of Industry and Trade in
the Province of Bali as well as in the Regency of Gianyar established contacts
and made steps to assist craftsmen in various ways. Ardita, for example, was
assisted with a sanding machine and oven in Batuyang Village. However, the
assistance provided by the government only targeted a small portion of the
craftsmen and groups that existed. They also failed to educate them on ways to
independently carry out their activities to maximize profit and minimize cost.”
The factors faced by the creative industry actors are:
1 Human resources
Limited knowledge of the craftsmen as a result of a lack of knowledge and lack of
education has a very broad impact on various fields of activity. The skills possessed
in production are usually acquired from generation to generation or are self-taught.
So that it has an impact on marketing insight, optimal company management, access,
and information as well as many other activities will be limited.
2 Marketing
Technology has an important role in today’s business development, technology
knowledge becomes a problem. Educational and training factors are needed. The
source of inspiration for improving working methods, quality of product design that
suits consumer tastes is done here. Mastery of technology is very profitable and adds
enormous value to its production capability, marketing system, and facilitates access
to information related to the development of the handicraft industry. Because it still
relies on hand-held, production limitations are an obstacle.
3 Capital
Handicraft players that will improve product quality and expand the marketing
network require additional funds. Likewise, several types of new businesses thrive
 Entrepreneurship orientation in the handicraft industry in Bali, Indonesia 425

and have the potential to be developed due to a lack of collateral capital which is not
sufficient to obtain bank credit. Most of the additional capital can be obtained in a
short time and an easy process. This condition is usually used by them to lend it with
the chuckle or middleman.
4 Management
Handicraft players only with husbands, wives, or close neighbours who come from
close relatives, although their abilities are lower than those of non-family employees.
The less favourable things are looking at competitiveness, discipline, and
responsibility.

4.2 Discussion
The role of triple helix is to increase the growth of the SME business and entrepreneurial
orientation:
1 Academics
Intellectuals here act as agents for the dissemination and implementer of science, art
and technology, as well as agents that form constructive values for the development
of the creative industry in society. Intellectual property as part of the scientific
community in higher education institutions and research institutes has a major role in
developing the creative economy.
2 Business
Business actors are craftsmen, investors and creators of new technology, as well as
creative industry consumers. Business actors also need to pay attention to and
support the sustainability of the creative industry in any role that does not mind. For
example, through the use of priority inputs between domestic creative industries,
such as creative industry services in research, advertising and others.
3 Government
Involvement in the development of the creative industry is needed, the bureaucracy
of access to permits, training and capital. The government can assist the craftsmen by
coaching them on ways to determine solutions to problems. However, the situation
of small industries in Bali is still very weak among groups of artists due to limited
capital and poor marketing techniques. Usually, those that obtain orders do it
themselves with profit reasons.

5 Conclusions, limitations, and future research

In conclusion, the condition of MSMEs in Bali, especially the handicraft industry in

Gianyar Regency, is highly dependent on the collaborative efforts of various parties to
solve their problems. However, these problems cannot be solves assuming there is no
synergy between academics, government, private sector, tourism actors, and craftsmen.
They also need the collaborative role of triple helix comprising of academic, business and
government sectors. In this concept, the handicraft industry act as a production house,
while the government is a source of contractual relations that ensures stable interaction
426 N.L.W.S. Telagawathi et al.

and exchange, meanwhile the universities are where new knowledge and technology are
acquired. The synergy of these three sectors is a generative principle in building a
knowledge-based economy, which enables the possibility to achieve tighter economic
integration. The initiative and creativity of the craftsmen are associated with the spirit of
entrepreneurial orientation and independence. This research showed that the role of the
three important components of academia, government, and the private sector need to be
able to blend into one to properly form the right entrepreneurial ecosystem.
This research only focuses on handicrafts in Gianyar Regency. What about the
creative industries in urban areas, or the comparison of areas that are more rural and not
covered by infrastructure. Future research can reach out to several areas in the regency in
Bali or creative industries throughout Bali.

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