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Technopreneur Intention To Build A New Startup: The Beginning Of Fintech

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 Technopreneur Intention To Build A New Startup:
The Beginning Of Fintech Startup

ABSTRACT
The emerge beginning of financial technology or fintech startup was founded by one or several
startup founders. How did a startup founder start until the fintech startup was established? This
paper is aimed at addressing this problem, which is the beginning of the founding of fintech
startups by technopreneurs, the intention behind them to establish a fintech startup. The
research method of this paper is a literature review by taking cases from several Indonesian
startup fintech companies. Data is taken from various sources, especially from online
references. Data analysis from the literature through an investigation of the topics discussed.
This study will reveal the behavior history of technopreneurs before establishing his or her
business. This paper is a valuable finding for researchers as well as people who are interested
in the field of entrepreneurship, technopreneur, and startup, especially the early history and
pre-founding behavior of fintech startup from technopreneurs.

Keywords: financial technology, technopreneur, startup, entrepreneur intention.

JEL Classification: D02, L26, M13

INTRODUCTION
A report from the Global Startup Ecosystem 2018, found that startups based on science and
technology drive prosperity and innovation in all countries globally (Startup Genome, 2018).
Even in 2017, the investment of global venture capital companies reached a high of more than
US $ 140 billion, with the creation of the total value of the global startup economy in the 2015-
2017 period reaching US$ 2.3 trillion. Startups that have also experienced an increase are
startups in the financial industry known as startups in the field of financial technology or
fintech.

Fintech startup is one of the industries of the future wherein this superficial era, fintech startups
helped revolution and innovate the financial sector with findings such as money coding, the
emergence of blockchain systems and banks becoming data technology companies (Ross,
2017). With the rapid growth of usage of mobile devices, as well as a variety of innovations
and technology-based solutions drive demand for financial and banking solutions, that can be
used individually through mobile technology devices. This strong need has caused the global
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fintech market to reach US$ 305.7 billion in 2023, and in 5 years, 2019-2023, the CAGR value
is 22.17% (Markets, 2019).

Startup fintech emerged and developed very rapidly throughout the world such as from the
United States there was Coinbase, and Stripe, from China Ant Financial and Lufax, from
Indonesia there was Bareksa, and Gopay. Currently, the startup of Fintech Stripe from the
United States is ranked sixth with the highest valuation in the world with a value of US$ 22.5
billion and has been named as one of the world's Decacorn startups (CBNINSIGHT, 2019).

This paper about the behavior of technopreneur before establishing a startup are still rare. This
may be because there is an assumption that technopreneur including fintech startup founders
suddenly appeared or not yet considered a crucial theme. Even though the fintech startup
founders had the intention from the start to establish a technology-based business and could be
used as a model and example to give birth and motivate young people around the world to
emulate these fintech startup founders. The purpose of this paper is to understand the various
factors underlying the intention and how the intention of these technopreneurs emerged to
establish this fintech startup. This paper is expected to provide enlightenment for researchers
in the field of entrepreneurship, especially on the topic of technopreneur behavior, and startup
companies.

LITERATURE REVIEW
Technopreneur

The word "Technopreneurship" is a combination of the words "Technology" and

"Entrepreneurship" which can be concluded as a process of formation and collaboration
between business fields and the application of technology as supporting instruments and as the
basis of the business itself, both in the process, system, parties involved, and the products
produced (Tim Pengembangan Technopreneur ITS, 2015). In general, the word Technology is
used to refer to the practical application of science to the industrial world or as a knowledge
framework used to create tools, to develop expertise and extract material to solve existing
problems. While the word entrepreneurship comes from the word entrepreneur who refers to
someone or agent who creates a business / business with the courage to bear the risks and
uncertainties to achieve profit and growth by identifying opportunities. The technopreneur is a
person who runs technopreneurship or someone who runs a business that has an entrepreneurial

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spirit by marketing and utilizing technology as its selling value (Scarborough and Zimmerer,
2002).

There is a difference between ordinary entrepreneurship and technopreneurship (technology

entrepreneurship). Technology entrepreneurship must succeed in two main tasks, namely:
ensuring that technology functions according to the target customer's needs, and that the
technology can be sold with profit (proft). Entrepreneurship is generally only related to the
second part, which is selling by getting profit (Tim Pengembangan Technopreneur ITS, 2015).

Fintech Startup

According to Graham (2012): “Startup is a company designed to grow fast”. According to Ries
(2011): “Startup is a human institution design that creates something new under condition
extreme and serenity. It doesn’t say about what size of the company or what sector of industry,
it just says we’re trying to do institution building when we don’t know what we don’t know”.
Startups are distinguished from the start-up and start-up businesses, namely in the business
model where the main ones are who is involved, how the value is created, the benefits obtained.
Startup is not only exclusive but a concept that differentiates it from other businesses (Kasali,
2017). This startup model was born from a large wave of sharing economy, as well as an
abundance era. This startup changes the supply chain and delivery methods so that new
business models and new markets are created.

Schueffel (2016) after reviewing more than 200 scientific journal articles conceptualizing the
definition of financial technology or fintech namely "fintech is a new financial industry that
applies technology to improve financial activities." Whereas Sanicola (2017) states that fintech
is a "new applications, processes, products, or business models in the financial services
industry, which are complementary financial services and provided end-to-end processes via
the Internet." Fintech, which is usually known as only payment, but Fintech has other specific
segments, which are (Forbes, 2019): personal finance, stock exchange, lending, investing, real
estate, crypto and blockchain, there are even other niche segments from fintech such as security
, artificial intelligence, data, insurance, banking, and much more.

Entrepreneurial Behavior Process

The process of entrepreneurship begins with the intention of entrepreneurship, followed by the
behavior and goals of entrepreneurship and ends with the goals and objectives of
entrepreneurship. The entrepreneurial process begins with the desire or intention of
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entrepreneurship followed by various actions and behaviors that lead to creating new
businesses or actions and behaviors in managing the business. All of this leads to the main goal
of entrepreneurship, namely the welfare of entrepreneurs in the form of benefits or benefits for
themselves and added value for consumers served by these entrepreneurs or the community in
general, both directly and indirectly related or related to entrepreneurship. (Mintardjo, 2011).

Figure 1 below is a continuum of entrepreneurial processes and activities. The range of

awareness in entrepreneurial behavioral activities begins the dichotomy from before discovery
and after discovery (Hindle et al., 2009).

Figure 1. The Entrepreneurial Cognition Process Continuum

Source: (Hindle et al., 2009)

Entrepreneurial Intention

Intention to conduct behavior, especially entrepreneurial behavior, is defined as the tendency

of someone to choose to do or not to do a certain behavior / goal, and in this case the goal is to
entrepreneurship or start / form a business / independent business (Mintardjo, 2010). Intention
is an awareness of future oriented thinking that includes both results (or a goal) and an action
plan to achieve these results (Tubbs and Ekeberg, 1991). Intention is a key construct in the
behavior of entrepreneurship and a determinant of the act of entrepreneurship. Intention can be
a determinant of the act of entrepreneurship, although the correlation between intention and
action in many empirical studies is still weak (Santos et al., 2017).

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Krueger and Carsrud (1993) state that intention is the best single predictor of entrepreneurial
behavior. According to Choo and Wong (2006), they further argue that individuals with the
intention to start a business can be identified and researched as their progress in the
entrepreneurial process is better prepared than people without intention.

METHODS
This paper is an article that uses literature review analysis methods from various references,
which are books, scientific journals article, conferences, report data, and articles in the mass
media online. Topics studied in the fields of entrepreneurship, technopreneurship, startup, and
fintech. The profile and historical review were carried out mainly related to the reasons for
fintech entrepreneurs in establishing their startups.

RESULTS AND DISCUSSION

Fintech Startup

Here are some startup finteches in Indonesia and how behaviors, both goal intention and the
implementation intention of the founder, namely the technopreneur behind this startup to set
up their business. Fintech is based on 5 startup fintech in Indonesia from various fintech
segments such as payment, lending, point of sales, and investing.

Investree

PT Investree Radhika Jaya (Investree) is a financial technology pilot company engaged in peer-
to-peer lending and headquartered in Jakarta, Indonesia. The company was officially
established in October 2015. The establishment of Investree was initiated by professionals in
the field of banking and technology who have worked for more than 20 years. Before forming
Investree with two other partners, Co-Founder & Chairwoman Aida Sutanto and Co-Founder
& CEO Adrian Gunadi had held crucial positions in national and international banks; Aida
with the last position as Executive Vice President of Bank CIMB Niaga, while Adrian as
Managing Director - Bank Muamalat Retail Banking. Aida and Adrian themselves have the
same reasons and objectives in establishing an Investree. They see that there are still many
communities, especially Small and Medium Enterprises, which are considered to be inadequate
to enjoy facilities from banks or unbankable. In fact, not a few of them have legitimate business
models. Armed with career experience at leading national and international financial
institutions, came the idea of building a digital platform that connects borrowers and lenders
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named Investree. This platform is also expected to be able to encourage the creation of financial
inclusion in Indonesia.

Ajaib

The Ajaib startup, founded by Anderson Sumarli, Yada Piyajomkwan, and Kevin Lee, is the
only Southeast Asian startup in the latest wave of Y Combinator. Magic is an application that
can make it easier for you to buy mutual funds. According to CEO Anderson Sumarli, they
made the application to overcome the problem of financial inclusion in the country. For the
founder reasons, many Indonesian people who have enough savings and want to invest in the
capital market, but they don't know how. They also did not know whom to ask, because their
parents and friends did not understand the matter of stock investment.

Bareksa

Bareksa.com is the first integrated online mutual fund marketplace in Indonesia, which is under
the auspices of PT Bareksa Investment Portal was established on February 17, 2013. Bareksa
was founded by Karaniya Dharmasaputra and Ady F. Pangerang who are former high-ranking
media group Viva News Media. Founded and manned by young people who are experienced
in the fields of capital markets, informatics technology, and digital media, Bareksa.com has a
vision and mission to help grow the investment world in the Indonesian community by utilizing
information technology and the Internet. Bareksa.com is also ambitious to participate in further
increasing the exposure of the world of national investment to the global market. In Sanskrit,
'bareksa' means tree. It is our dream, as the name implies, the presence of Bareksa.com can
help make the world of national investment grow lush and bear fruit for the welfare of the wider
community.

GoPay

GoPay was founded by PT Aplikasi Karya Anak Bangsa or better known as GO-JEK startup
is an Indonesian technology company that serves transportation through motorcycle taxi
services. The company was founded in 2010 in Jakarta by Nadiem Makarim. The forerunner
of Go-Pay is rooted in a feature called Go-Jek Credit, a kind of credit that can be used to pay
for Go-Jek services. Then, in May 2016, Go-Jek Credit changed to Go-Pay. Go-Pay stands
under the auspices of PT Dompet Anak Bangsa, a subsidiary of PT Aplikasi Karya Anak
Bangsa, and operates as an electronic money operator with permission from Bank Indonesia
No. 16/98 / DKSP dated June 17, 2014. The creation of GoPay is based not on taking over the

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role of banks but creating easy access. The creation of GoPay began with the establishment of
GoJek. As a person who often uses motorcycle taxi transportation, Nadiem sees that most of
the time spent by motorcycle taxi drivers are just waiting to wait for passengers. In reality,
motorcycle taxi drivers will earn a fair income if there are many passengers. Also, he sees the
availability of this type of transportation is not as much as other transportation, so it is often
quite difficult to find. He wants a motorcycle taxi that can be available whenever needed. From
his experience, Nadiem Makarim saw an opportunity to create a service that could connect
passengers with motorcycle taxi drivers.

Moka

Moka is a company of Software as a Service (SaaS) located in Jakarta, Indonesia and is engaged
in the cashier application field. Its products accommodate 3 main types of business, which are
food and beverage, retail and service. Moka was founded by Haryanto Tanjo and Grady
Laksmono at the end of 2014 the name "Moka" was taken from the term "Mobile Cashier.
Inspired by one of the cashier application systems in the United States, they returned to
Indonesia to build Moka. In February 2015, Moka was officially launched. Haryanto and Grady
made their first office in Jakarta, which is also the main office. The initial idea of this startup
began when Haryanto started an e-commerce company that focused on selling clothes in San
Francisco a few years ago. In addition to marketing it in America, Haryanto also markets this
product in Jakarta. But over time, Haryanto felt troubled to track his sales transactions in
Jakarta. The founder had to manually track product sales transactions in Indonesia because the
founder was unable to use a traditional POS system which at that time was very expensive.
Then, the founder thought why not design a POS mobile with integrated payment solutions that
can be used for various needs business. After meeting with Grady, Haryanto finally had the
opportunity to realize his dream, especially because his partner had had so much experience in
this world. These two young men have the ambition to develop a mobile point of sale in
Indonesia.

Technopreneur Intention to Build New Fintech Startup

The intention of entrepreneurship is the sole predictor of the act of entrepreneurship. Before
finding or establishing a startup business, the intention factor is the only determinant factor of
entrepreneurship behavior of the technopreneur. Whether someone is the founder of a
technology startup, a fintech startup or other types of startups all before setting up his business

8
has the intention and reason that becomes the background of the decision to establish the
startup.

Intention can be divided into two main stages, namely the goal intention and goal
implementation (Carsrud et al., 2017). When setting up a startup there are unique and specific
reasons for each technoprenur or startup founder who are their foundation in establishing their
business. Whether these reasons are personal, social humanity, social environment, spiritual,
but each of these reasons becomes one as a specific goal which will then become an
implementation intention which is manifested in the form of the establishment of a formal
organization, in this case, a startup.

In the case of fintech startup founders, all the fintech startup founders that have been described
previously are Investree which is engaged in fintech lending, Ajaib which is engaged in
investing, Bareksa is engaged in capital market investment, GoPay in the payment field, and
Moka in finance management for sme. Each of the fintech startup founders that has been
discussed has a reason, the fundamental goal intention is why they set up their business.

The first case of startups at Fintech Investree initially founders saw the needs of the community,
namely there are still many people and SMEs that are still unbankable even though they have
a very profitable business in the long run. This gave rise to a business idea to establish a fintech
startup in the field of lending that connects SME entrepreneurs with investors. The intention of
the founder of Investree is that goal intention is based on the goal of answering human social
needs, while implementation intention is the establishment of a fintech Investree startup that is
engaged in the field of credit lending.

The second case of the fintech Ajaib startup has a goal intention to answer the needs of public
financial inclusion, especially in Indonesia. The founder of the Magic fintech startup saw the
public's need to invest in the model market easily and they needed the information to invest
excess funds into the capital market without in-depth knowledge of the capital market. The
goal of the founder of the startup is to answer the social needs of the Indonesian people,
especially in the field of financial investment, while implementation intention is the
establishment of a fintech Magic startup that is engaged in individual investment into the
capital market.

The third case of the fintech Bareksa startup. The startup was established to have goal intention
to develop a world of digital technology-based investment in Indonesian society and expose

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Indonesian investment to global markets. Implementation of the intention founder is the
establishment of a Bareksa startup in 2013 which is engaged in investment, especially it’s
business model, is an online mutual fund marketplace platform.

The fourth case of the Fintech GoPay startup. The startup was initially established as a
transportation startup, namely GoJek in 2010. Then in 2014, this startup founded a subsidiary
of the fintech GoPay startup business to see developments and needs in the community. The
founder's goal was as part of the payment to make it easier for consumers to make payments
on online transportation without cash. The implementation intention is the establishment of a
subsidiary of the fintech GoPay startup business.

The fifth case of Fintech Moka startup. Moka which means "mobile cashier" that moves on the
POS application. The founder's goal was to facilitate transaction management for SMEs in
Indonesia, which was inspired by the cashier application system in the United States. The
implementation intention of the founder was the establishment of a fintech startup in 2015.

Based on the five cases described earlier of fintech startups and technopreneur founders, they
both have a goal intention to establish a business that helps people in Indonesia to provide
innovative solutions in the financial field by looking at previous community problems or seeing
the needs of the community in the field in general. Furthermore, from this goal intention, then
the implementation intention was created by the establishment of a fintech-based startup
business from the business founders.

With the rapid development and growth of the fintech industry in Indonesia, new fintech
business models will emerge that provide a variety of solutions in the financial sector to the
Indonesian people who respond to the diverse needs that arise in the community that brings
prosperity to the Indonesian people both now and in the future.

CONCLUSION
The intention to establish a fintech startup is important to learn to encourage the creation of
new fintech startups in the future from the younger generation. The establishment of the fintech
startup began with the intention to establish a startup. The intention of the startup is divided
into two, namely the goal intention to establish a startup and implementation intention to
establish a startup. This intention as a single predictor of entrepreneurial behavior has a variety
of goals, namely personal goals, spiritual goals and social and humanitarian goals. It is hoped

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that understanding fintech's startup behavior before its establishment can provide insight to
researchers and academics in the field of entrepreneurship to understand behavior around
entrepreneurship, startup, and technopreneurship.

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