The Viability of Small/Micro Businesses in Indonesia: Implications of the Entrepreneurial Mindset Development Model?

Abstract

Though the total accumulated revenues remains considerably less than corporation, a large portion of organizations in the world is in the form of small/micro businesses. Created by individual entrepreneurs, who once have dreams, small businesses have now dominated the world economy. The entrepreneurial world is full with creativity and intriguing ideas. These creativity and idea seem to be moving faster than their organizations can actually endure or follow. Risk-taking behavior of entrepreneurs, in comparison with the risk-adverse of organizational practices in trying to achieve those objectives, may serve as the basic reason for potential differences between the entrepreneurs and the organizations. Idea and creativity are deemed necessary as a way to continuously nurture innovation in organizations. Innovation is perceived necessary to preserve or otherwise improve the organizational competitive advantage. By doing so, organizations can ensure wealth creation into the viable future for the organizations’ bottom-line, stockholders, and potential investors.

Referring to the entrepreneurial theory of the firm, the entrepreneurial mindset development model is used as a framework of thinking to build a case surrounding the small business organizations, and their objectives. As this model is growth-oriented, it is expected that entrepreneurs act rationally toward expanding their businesses into unforeseeable future by combining internal capabilities, which make up their competitive advantage.

Research is conducted by gathering data from primary and secondary sources in small/micro organizations in Bandung and Jakarta. It is expected that such studies would eventually reveal the application of the entrepreneurial mindset development model in organizations, in relation to the viability of small/micro businesses, and their growth strategies.

Keywords: entrepreneurs, family business, entrepreneurial mindset, retail, growth

JEL Classification: M13, M00