The Effect of Innovation, Risk-Taking, and Proactiveness on Business Performance Among MSMEs in Jakarta

Abstract

The purpose of this study is to determine empirically the effect of innovation, risk taking, and proactiveness towards business performance. The sample used in this study were owners of micro, small and medium enterprises (MSMEs) in North Jakarta. The sampling technique used is probability sampling with a total sample of 80 respondents who were collected through an online questionnaire using google form. The data obtained and analyzed using Structural Equation Modeling (SEM) and processed using SmartPLS application version 3.3.3. The results found in this study are that innovation and risk taking have a significant positive effect on business performance, while proactiveness has an insignificant positive effect on business performance.