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Factors that influence the formation of Indonesian SMEs' social entrepreneurship: a case study of West Java

Author

Listed:
  • Herlina Herlina

    (Universitas Mandiri, Indonesia)

  • Disman Disman

    (Universitas Pendidikan Indonesia, Indonesia)

  • Sapriya Sapriya

    (Universitas Pendidikan Indonesia, Indonesia)

  • Nana Supriatna

    (Universitas Pendidikan Indonesia, Indonesia)

Abstract

This study aimed to identify the formation of SMEs’ social entrepreneurship in rural communities. The majority of people living in rural areas have their businesses. However, their welfare level is relatively low. This study tried to examine how the efforts to form SMEs’ social entrepreneurship facilitate improving community welfare. The authors employed a deductive approach. They collected data in a cross-sectional manner; quantitative data processing was done using the Structural Equation Model (SEM) for 340 respondents in Indonesia who have SMEs. The results of this study showed that the influence of such factors, as intention, digital innovation thinking, and leadership attitudes have a significant effect on social entrepreneurship. However, the risk perception did not significantly affect SMEs’ social entrepreneurship because of rising operating expenses. This research contributes to existing knowledge by providing novel insights facilitating social change.

Suggested Citation

  • Herlina Herlina & Disman Disman & Sapriya Sapriya & Nana Supriatna, 2021. "Factors that influence the formation of Indonesian SMEs' social entrepreneurship: a case study of West Java," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 65-80, December.
    • Handle: RePEc:ssi:jouesi:v:9:y:2021:i:2:p:65-80
    DOI: 10.9770/jesi.2021.9.2(4)
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    References listed on IDEAS

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    3. Lee, Lena & Wong, Poh Kam & Foo, Maw Der & Leung, Aegean, 2011. "Entrepreneurial intentions: The influence of organizational and individual factors," Journal of Business Venturing, Elsevier, vol. 26(1), pages 124-136, January.
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    More about this item

    Keywords

    social entrepreneurship; intention; digital innovation; leadership attitude; risk perception;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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