THE INFLUENCE OF ENTREPRENEURIAL CHARACTERISTICS, BUSINESS CAPITAL, AND ENTREPRENEURIAL LEADERSHIP ON THE PERFORMANCE OF MSMES
Keywords:
MSME Performance, Entrepreneurial Characteristics, Business Capital, Entrepreneurial Leadership
Abstract
Introduction/Main Objectives: MSMEs play an important role in local economic growth. This study aims to examine the influence of entrepreneurial characteristics, business capital, and entrepreneurial leadership on the performance of MSMEs in Jepara City. Background of the Problem: Although the number of MSMEs is increasing, many have not shown optimal performance. This raises questions about the role of internal factors such as character, capital, and leadership in determining business performance. Novelty: This study is unique because it tests all three variables simultaneously in one model, especially in the context of post-pandemic MSMEs in Jepara, which has not been widely researched before. Research Method: Using a quantitative approach with a survey of 140 MSME actors selected purposively. The data was analyzed using Partial Least Square (PLS). Findings/Results: Characteristics of entrepreneurship and entrepreneurial leadership have a significant positive effect on the performance of MSMEs. Business capital has no significant effect. Conclusion: The success of MSMEs is determined more by the quality of individuals and leadership than the amount of capital. Soft skills training is an important strategy for improving the performance of MSMEs.
References
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Auliandari, Tasya. (2022). Determinants of E-Commerce Adoption and Its Influence on MSMEs in Pekanbaru. Journal of Accounting, Vol. 6(2), 153–170.
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Dwiastanti, A., & Mustapa, G. (2020). The Influence of Entrepreneurial Characteristics, External Environment and MSME Survival Strategies in Maintaining Business Continuity in the Covid 19 Pandemic Season. Journal of Business Education and Accounting, 1(3), 228–240.
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Junedi, Gopar, IA, & Kosim, M. (2024). The Influence of Learning Orientation, Entrepreneurial Leadership Style and Promotion Effectiveness on MSME Business Performance. Αγαη, 15(1), 37–48.
Khaira, M., & Jalalluddin, J. (2021). The Influence of the E-Commerce Sales System on the Financial Performance of Micro, Small and Medium Enterprises (MSMEs) in the City of Banda Aceh. Student Scientific Journal ..., 3, 93–103.
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Murni, S., & Humaira, Q. (2021). Analysis of the Role of Women and the Government in the Development of MSMEs in the City of Banda Aceh in the Perspective of Islamic Economics. Ekobis Shariah, 5(1), 1.
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Purwanti, E. (2012). The Influence of Entrepreneurial Characteristics, Business Capital, and Marketing Strategy on the Development of MSMEs in Dayaan and Kalilondo Salatiga Villages. Lipid, 12(1), 66–74.
Puspitasari, R., & Astrini, D. (2021). The Impact of Financial Literacy and Inquiry on the Performance of MSME Actors in Bogor City. Scientific Journal of Unit Management, 9(2), 181–190.
Putri, G. A., Santoso, H. A., & Purwanto. (2023). Contribution to Accelerating Financial Inclusion and Literacy for the Performance of Culinary MSMEs in Surakarta City. 6(1), 10–17.
Ratnawati, K. (2020). The effect of financial inclusion on the performance of MSMEs through financial intermediation and access to capital. Asian Journal of Finance, Economics and Business, 7(11), 205–218. https://doi.org/10.13106/jafeb.2020.vol7.no11.205
Safitri, H., & Khasan Setiaji. (2018). The Influence of Business Capital and Entrepreneurial Characteristics on the Development of Micro and Small Enterprises in Kedungleper Village, Bangsri District, Jepara Regency. Journal of Economic Education Analysis, 7(2), 792–800.
Sari, C.P., Nurhayati, & Nirwana, I. (2023). The Influence of Entrepreneurial Competencies and Characteristics on the Development of Micro, Small and Medium Enterprises (MSMEs) (Case Study of Micro, Small and Medium Enterprises (MSMEs) in Koto Baru). Journal of Creative Student Research (JCSR), 1(1), 55–68.
Surya, S., & Triherzaki, A.H. (2023). Study of the Development of MSMEs in Padang City. Journal of Management and Entrepreneurship- Vol. 14 No. 1 (January 2023), 1(January), 1–9.
Tunjung Sari, U., Artha, B., & Manggal, S. (2022). The Influence of Entrepreneurial Characteristics and Entrepreneurial Commitment on Business Performance. Management Insights: ISSN Management Scientific Journal, 17(2), 274–287.
Utami, R., & Murniningsih, R. (2020). The Influence of Social Capital and Entrepreneurial Characteristics on the Growth of MSMEs (Study on MSMEs in the Tourism Sector of Magelang Regency). Conference on Business and Economics in the Utilization of Modern Technology, 1, 664–669. https://bit.ly/3OTb9zl
Yeni, A., Nasrah, R., Azizah, N., Ekonomi, F., Mahaputra, U., Yamin, M., Yeni, A., Nasrah, R., & Azizah, N. (2024). The Impact of Entrepreneurial Characteristics and Creativity on Improving the Performance of MSMEs in Solok City The Impact of Entrepreneurship Characteristics and Creativity on Improving the Performance of MSMEs in Solok City. 10(02), 187–199.
Akuba, A., & Hasmirati. (2022). The Role of Business Capital and Human Capital in Improving the Performance of MSMEs in Boalemo Regency. Exchange Rate : Journal of Accounting, Entrepreneurship and Business, 7(1), 59–67.
Anggriani, Y. Y., & Kistyanto, A. (2021). The Influence of Entrepreneurial Leadership on the Performance of MSMEs in Surabaya City through Innovation. EQUITY (Journal of Economics and Finance), 5(3), 407–427.
Apriliani, M. F., & Widiyanto. (2018). The Influence of Entrepreneurial Characteristics, Business Capital, and Labor on the Success of Batik MSMEs. 7(2), 761–776.
Auliandari, Tasya. (2022). Determinants of E-Commerce Adoption and Its Influence on MSMEs in Pekanbaru. Journal of Accounting, Vol. 6(2), 153–170.
Ayu Susanti, D., & Nida Laili, K. (2023). The Influence of E-Commerce, Accounting Knowledge, Business Capital, and Entrepreneurial Characteristics on the Performance of MSMEs in Demak Regency. Journal of Educational Accounting Nusantara ICMA, 01(01), 23–29.
Dhamayantie, E., & Fauzan, R. (2018). entrepreneurship to improve. Journal of Management, Business Strategy and Entrepreneurship Vol. 12, 120 No. 2, August 2018, 11(1), 80–91.
Dwiastanti, A., & Mustapa, G. (2020). The Influence of Entrepreneurial Characteristics, External Environment and MSME Survival Strategies in Maintaining Business Continuity in the Covid 19 Pandemic Season. Journal of Business Education and Accounting, 1(3), 228–240.
Esmer, Y., & Faruk, D. A. (2017). Entrepreneurial leadership: a theoretical framework * gi̇ri̇şi̇mci̇ li̇derli̇k: a bi̇r çerçeve theory. Mehmet akif ersoy üniversitesi İktisadi ve İdari bilimler fakültesi dergisi, 4(2), 112–124.
Herawaty, N., & Yustien, R. (2019). The Influence of Capital, Use of Accounting Information and Entrepreneurial Characteristics on the Success of Small Businesses (Survey on Pempek Production Home Businesses in Jambi City). Indonesian Scientific Journal of Accounting and Finance, 3(1), 63–76.
Hertadiani, V. W., & Diyan, L. (2021). The Influence of Financial Inclusion and Financial Management on the Performance of MSMEs in the Culinary Sector in East Jakarta. Kalbisocio, Journal of Business and Communication, 8(2), 19–31.
Indriyani, D. (2019). The Influence of Entrepreneurial Leadership on Employees of PT. Top Central Transportama Central Transportama. Journal of Business Administration Economics & Entrepreneurship, 1(1), 48–60.
Islami, A., Suryani, I., Study, P., Faculty, M., & Kuala, A.S. (2024). The Role of Dynamic Capabilities Mediation on the Influence of Entrepreneurial Leadership on MSME Performance. 9(3), 782–796.
Istinganah, N. F., & Widiyanto. (2020). The Influence of Business Capital, Education Level, and Entrepreneurial Characteristics on the Development of SMEs. Journal of Economic Education Analysis, 9(2), 438–455.
Junedi, Gopar, IA, & Kosim, M. (2024). The Influence of Learning Orientation, Entrepreneurial Leadership Style and Promotion Effectiveness on MSME Business Performance. Αγαη, 15(1), 37–48.
Khaira, M., & Jalalluddin, J. (2021). The Influence of the E-Commerce Sales System on the Financial Performance of Micro, Small and Medium Enterprises (MSMEs) in the City of Banda Aceh. Student Scientific Journal ..., 3, 93–103.
Kurniawati, M. (2022). The Influence of E-Commerce and Business Capital on the Performance of MSMEs during the Covid 19 Pandemic with Human Resources (HR) as a Moderation Variable. September 2022.
Liantifa, M., & Fiqri. (2023). The Influence of Entrepreneurial Characteristics, Business Capital, and Marketing Strategies on the Development of MSMEs. Journal of Management: Small and Medium Enterprises (SMEs), 16(3), 665–673.
Melani Kadar, Vivi Usmayanti, Febby Nanda Utami, & Yossinomita. (2023). The Influence of Entrepreneurial Leadership on the Performance of Jambi Batik SMEs with Innovative Work Behavior as an Intervening Variable. Scientific Journal of Management and Entrepreneurship (JUMANAGE), 2(2), 244–256.
Mukoffi, A., & As'adi, A. (2021). Characteristics of entrepreneurship, business capital and technological sophistication on the performance of MSMEs during the Covid-19 pandemic. Journal of Economic Paradigm, 16(2), 235–246.
Murni, S., & Humaira, Q. (2021). Analysis of the Role of Women and the Government in the Development of MSMEs in the City of Banda Aceh in the Perspective of Islamic Economics. Ekobis Shariah, 5(1), 1.
Perkasa, DH, & Abadi, F. (2020). The relationship model of entrepreneurial leadership, entrepreneurial culture and entrepreneurial mindset to organizational performance through innovation as a mediating variable. Journal of Management and Business Research (JRMB) Faculty of Economics UNIAT, 5(2), 15–28.
Purwanti, E. (2012). The Influence of Entrepreneurial Characteristics, Business Capital, and Marketing Strategy on the Development of MSMEs in Dayaan and Kalilondo Salatiga Villages. Lipid, 12(1), 66–74.
Puspitasari, R., & Astrini, D. (2021). The Impact of Financial Literacy and Inquiry on the Performance of MSME Actors in Bogor City. Scientific Journal of Unit Management, 9(2), 181–190.
Putri, G. A., Santoso, H. A., & Purwanto. (2023). Contribution to Accelerating Financial Inclusion and Literacy for the Performance of Culinary MSMEs in Surakarta City. 6(1), 10–17.
Ratnawati, K. (2020). The effect of financial inclusion on the performance of MSMEs through financial intermediation and access to capital. Asian Journal of Finance, Economics and Business, 7(11), 205–218. https://doi.org/10.13106/jafeb.2020.vol7.no11.205
Safitri, H., & Khasan Setiaji. (2018). The Influence of Business Capital and Entrepreneurial Characteristics on the Development of Micro and Small Enterprises in Kedungleper Village, Bangsri District, Jepara Regency. Journal of Economic Education Analysis, 7(2), 792–800.
Sari, C.P., Nurhayati, & Nirwana, I. (2023). The Influence of Entrepreneurial Competencies and Characteristics on the Development of Micro, Small and Medium Enterprises (MSMEs) (Case Study of Micro, Small and Medium Enterprises (MSMEs) in Koto Baru). Journal of Creative Student Research (JCSR), 1(1), 55–68.
Surya, S., & Triherzaki, A.H. (2023). Study of the Development of MSMEs in Padang City. Journal of Management and Entrepreneurship- Vol. 14 No. 1 (January 2023), 1(January), 1–9.
Tunjung Sari, U., Artha, B., & Manggal, S. (2022). The Influence of Entrepreneurial Characteristics and Entrepreneurial Commitment on Business Performance. Management Insights: ISSN Management Scientific Journal, 17(2), 274–287.
Utami, R., & Murniningsih, R. (2020). The Influence of Social Capital and Entrepreneurial Characteristics on the Growth of MSMEs (Study on MSMEs in the Tourism Sector of Magelang Regency). Conference on Business and Economics in the Utilization of Modern Technology, 1, 664–669. https://bit.ly/3OTb9zl
Yeni, A., Nasrah, R., Azizah, N., Ekonomi, F., Mahaputra, U., Yamin, M., Yeni, A., Nasrah, R., & Azizah, N. (2024). The Impact of Entrepreneurial Characteristics and Creativity on Improving the Performance of MSMEs in Solok City The Impact of Entrepreneurship Characteristics and Creativity on Improving the Performance of MSMEs in Solok City. 10(02), 187–199.
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