Analysis of the Influence of Internal and External Factors on the Entrepreneurial Behavior of UMKM in Northern Kalimantan Province

Abstract

Increasing entrepreneurial behavior to improve the national economy is of great importance. Approximately 99.9% of the national economy is contributed by the UMKM sector, which also creates job opportunities. Moreover, UMKM contributes 60.34% to the GDP, and there is a potential for further growth as long as the number of entrepreneurs increases. However, the internal aspects of entrepreneurship still lack competence, particularly in entrepreneurial competence and social competence. Entrepreneurial competence encompasses various components rooted in an entrepreneurial background, such as traits, characters, attitudes, social roles, and self-image. External factors, such as training, education, and work experience, also contribute to the development of entrepreneurial skills. Entrepreneurial behavior is the core of entrepreneurship, and entrepreneurial value is a prerequisite factor that shapes such behavior. The research method used in this study was qualitative with an associative approach. The study was conducted through a survey, and data analysis employed a descriptive approach. Quantitative analysis included multiple linear regression analysis and an individual parameter significance test (t-test). The study involved 67 young UMKM entrepreneurs in North Kalimantan Province. The results of this study indicate that entrepreneurial values significantly influence entrepreneurial behavior. Furthermore, entrepreneurial behavior has an impact on the continuity of UMKM businesses in North Kalimantan province. Keywords: UMKM, influence, entrepreneurial values, entrepreneurial behavior