How does the entrepreneurial behavior intention of small and medium enterprises (SMEs) in Indonesia grow-up?

Abstract

Entrepreneurial passion is the central pillar of running a business. Managers of small and medium enterprises (SMEs) must be passionate about recognizing their opportunities and enhancing their self-efficacy, self-leadership, and SME entrepreneurial intentions. This study aims to estimate whether entrepreneurial passion increases entrepreneurial intentions supported by self-efficacy and self-leadership in SMEs. The study population included 191,312 SMEs in East Java, Indonesia; the final sample comprises 334 SME actors determined by the Slovin formula. Data are processed through SmartPLS software and analyzed using the SEM approach. The test results show that entrepreneurial spirit positively affects self-efficacy, with a t-statistic value of 60.267. In addition, entrepreneurial passion positively affects entrepreneurial intentions, with a t-statistic value of 29.806. Entrepreneurial passion positively affects self-leadership with a t-statistic value of 7.502. Furthermore, self-efficacy positively affects entrepreneurial intentions with a t-statistic value of 3.438. Finally, self-leadership positively affects entrepreneurial intention with a t-statistic value of 2.295. In conclusion, this paper expands the relevant literature on the impact of entrepreneurial passion, self-efficacy, and self-leadership on entrepreneurial intention.