Determinants of Entrepreneurial Success on Indonesian Food Service MSMEs
RIBER: Review of Integrative Business & Economics Research, Vol. 3, Issue 1, March 2014, p. 81-98, ISSN # 2304-1013
18 Pages Posted: 25 Feb 2014 Last revised: 13 Dec 2019
Date Written: March 2014
Abstract
In developing countries, facts show that micro, small and medium enterprises (MSMEs) play an important role in the country’s economical development (Jasra, Khan, Hunjra, Rehman, & Azam, 2011, p. 274). Some contributions of MSMEs (Abimanyu, et al., 2011, p. 2) include substantial supports in reducing poverty, increasing gross domestic product (GDP), and in turns, the country’s economic growth (Tambunan, 2008, p. 41). As approximately 90% of the total Indonesian enterprises are considered micro, small and medium, it becomes essential to pay special attention on MSMEs (Abimanyu, et al., 2011, p. 1).
It is indispensable for entrepreneurs to have the proper combination of entrepreneurial competencies to sustain businesses (Neneh & Vanzyl, 2012, p. 8327; Krueger, 2012), particularly the proper entrepreneurial mindset (fixed and entrepreneurial mindset) and entrepreneurial characteristics (Anantadjaya et al., 2011; Neneh & Vanzyl, 2012, pp. 8329, 8340-41; Dweck, 2008). There are also factors that determine successful entrepreneurs; opportunity obsession, commitment and determination, and tolerance of ambiguity (Neneh & Vanzyl, 2012, pp. 8329-8330). It is supported by facts that most successful entrepreneurs share identical characteristics (Hall, 2012). In addition to the entrepreneurial mindset and successful factors, entrepreneurs run into risks in their daily operational activities. Previous research reveals that measuring job performance of employees is one of the substantial processin HRM that has a significant impact towards business performance (Ali & Opatha, 2008; Indra & Anantadjaya, 2011).
This study attempts to evaluate the relationships among variables; entrepreneurial mindset and entrepreneurial characteristics toward performance management practices and business performance. It is expected that all relationships are positive among variables as a way to denote the determinants on entreprenurial success, at least in Indonesian food service MSMEs.
Keywords: entrepreneurial mindset, entrepreneurial characteristics, business performance
JEL Classification: L10, L20, M00, M10, M13
Suggested Citation: Suggested Citation