The Effect of Entrepreneurial Motivation on the Business Growth of Indigenous Enterprises in Gunungkidul District

Evie Oktafia, Retno Kusumastuti

Abstract


Entrepreneurial motivation is divided into three factors, namely mixed motivation, opportunity motivation, and necessity motivation. Business actors in developing countries tend to have mixed motivation. Entrepreneurial motivation affects the growth of a number of businesses in the Special Region of Yogyakarta, particularly in Gunungkidul District. This study has three objectives: to define the entrepreneurial motivation using Exploratory Factorial Analysis, to determine the level of entrepreneurial motivation, and to test the effect of entrepreneurial motivation on business growth of indigenous enterprises in Gunungkidul District using simple linear regression. This study applies a quantitative approach with a mixed data collection method. Quantitative data are collected using a questionnaire, while qualitative data are collected through in-depth interviews with indigenous enterprises and the Office of Industry and Trade. This study employs purposive sampling with the following criterion: entrepreneurs of small and medium-sized industries (known as Industri Kecil Menengah) in the field of craft and fashion business. The results of this study illustrate that entrepreneurial motivation in Gunungkidul District is mixed motivation. Even though entrepreneurial motivation is low, it has an effect on business growth.

Keywords


entrepreneurial motivation, business growth, indigenous enterprise

Full Text:

PDF

References


Al Mamun, A., Fazal, S. A., & Muniady, R. (2019). Entrepreneurial knowledge, skills, competencies and performance: A study of micro-enterprises in Kelantan, Malaysia. Asia Pacific Journal of Innovation and Entrepreneurship, 13(1), 2398–7812. https://doi.org/10.1108/ APJIE-11-2018-0067

Amorós, J. E., Cristi, O., & Naudé, W. (2021). Entrepreneurship and subjective wellbeing: Does the motivation to start-up a firm matter? Journal of Business Research, 127(November), 389–398. https://doi. org/10.1016/j.jbusres.2020.11.044

Carreón-Gutiérrez, J. P., & Saiz-Álvarez, J. M. (2019). Opportunity motivation and growth aspirations of Mexican entrepreneurs: The moderating role of the household income. Sustainability 2019, 11(22), 6288. https://doi. org/10.3390/su11226288

Collins, J., Morrison, M., & Krivokapic-skoko, B. (2016). Indigenous small businesses in the Australian indigenous economy. In W. Sanders (Ed.), Engaging indigenous economy: Debating diverse approaches (pp. 265–274). ANU Press

Eijdenberg, E. L., Paas, L. J., & Masurel, E. (2015). Entrepreneurial motivation and small business growth in Rwanda. Journal of Entrepreneurship in Emerging Economies, 7(3), 212–240. https://doi. org/10.1108/JEEE-01-2015-0004

Fairlie, R. W., & Fossen, F. M. (2018). Defining opportunity versus necessity entrepreneurship: Two components of business creation. Research in Labor Economics, January, 253–289. https://doi.org/10.1108/S0147- 912120200000048008

García-Cabrera, A. M., García-Soto, M. G., & Durán-Herrera, J. J. (2016). Opportunity motivation and SME internationalisation in emerging countries: Evidence from entrepreneurs’ perception of institutions. International Entrepreneurship and Management Journal, 12(3), 879–910. https://doi.org/10.1007/s11365-016- 0386-7

Gopalan, V., Bakar, J. A. A., Zulkifli, A. N., Alwi, A., & Mat, R. C. (2017). A review of the motivation theories in learning. AIP Conference Proceedings, 1891(October 2017). https://doi. org/10.1063/1.5005376

Grisot, C. (2017). A quantitative approach to conceptual, procedural and pragmatic meaning: Evidence from inter-annotator agreement. Journal of Pragmatics, 117(127510), 245–263. https://doi. org/10.1016/j.pragma.2017.06.020

Haryani, S. (2017). Pengaruh lingkungan kewirausahaan terhadap pengembangan wirausaha di Kabupaten Sleman. EKUITAS (Jurnal Ekonomi Dan Keuangan), 1(1), 24. https://doi.org/10.24034/ j25485024.y2017.v1.i1.1841

Jamali, D., Lund-Thomsen, P., & Jeppesen, S. (2017). SMEs and CSR in developing countries. Business and Society, 56(1), 11–22. https://doi. org/10.1177/0007650315571258

Junaidi, I. (2017). Langkah strategis pengembangan indigenous tourism: Studi kasus di Kabupaten Kepulauan Selayar. Masyarakat, Kebudayaan Dan Politik, 30(3), 266. https://doi.org/10.20473/ mkp.v30i32017.266-277

Linangkung, E. (2016). Pertumbuhan usaha DIY meningkat, Gunungkidul tertinggi. Sindonews.Com. https://ekbis. sindonews.com/berita/1136276/34/ pertumbuhan-usaha-diy-meningkatgunungkidul-tertinggi

Machmud, S., & Sidharta, I. (2016). Entrepreneurial motivation and business performance of SMEs in the SUCI Clothing Center, Bandung, Indonesia. DLSU Business and Economics Review, 25(2), 63–78

Mahto, R. V., & McDowell, W. C. (2018). Entrepreneurial motivation: A nonentrepreneur’s journey to become an entrepreneur. International Entrepreneurship and Management Journal, 14(3), 513–526. https://doi. org/10.1007/s11365-018-0513-8

Maritz, A., & Foley, D. (2018). Expanding Australian indigenous entrepreneurship education ecosystems. https://doi. org/10.3390/admsci8020020

Mika, J. P., Fahey, N., & Bensemann, J. (2019). What counts as an indigenous enterprise? Evidence from Aotearoa New Zealand. Journal of Enterprising Communities, 13(3), 372–390. https:// doi.org/10.1108/JEC-12-2018-0102

Mohan, P. S. (2019). Necessity versus opportunity motivation: Nascent firm performance in Caribbean Small Island Developing States. Journal of Developmental Entrepreneurship, 24(4), 1–22. https://doi.org/10.1142/ S1084946719500237

Mota, A., Braga, V., & Ratten, V. (2019). Entrepreneurship motivation: Opportunity and necessity. Contributions to Management Science, 139–165. https://doi.org/10.1007/978-3-030- 12342-0_8

Mrabure, R. H. O. (2018). Indigenous entrepreneurial orientation: Exploring entrepreneurial orientation with Māori entrepreneurs (Thesis). University of Otago

Mrabure, R. O. (2019). Indigenous business success: A hybrid perspective. Journal of Enterprising Communities, 13(1–2), 24–41. https://doi.org/10.1108/JEC-10- 2018-0076

Murnieks, C. Y., Klotz, A. C., & Shepherd, D. A. (2020). Entrepreneurial motivation: A review of the literature and an agenda for future research. Journal of Organizational Behavior, 41(2), 115–143. https://doi. org/10.1002/job.2374

Murphy, M., Danis, W. M., Mack, J., & Sayers, (Kekinusuqs) J. (2020). From principles to action: Community-based entrepreneurship in the Toquaht Nation. Journal of Business Venturing, 35(6), 106051. https://doi.org/10.1016/j. jbusvent.2020.106051

Ouakouak, M. L., Zaitouni, M. G., & Arya, B. (2020). Ethical leadership, emotional leadership, and quitting intentions in public organizations: Does employee motivation play a role? Leadership and Organization Development Journal, 41(2), 257–279. https://doi. org/10.1108/LODJ-05-2019-0206

Pocock, C., & Lilley, I. (2017). Who benefits? World heritage and indigenous people. Heritage and Society, 10(2), 171– 190. https://doi.org/10.1080/215903 2X.2018.1503836

Porter, L. (2017). Indigenous people and the miserable failure of Australian planning. Planning Practice and Research, 32(5), 556–570. https://doi.org/10.1080/0269 7459.2017.1286885

Prasastyoga, B., Harinck, F., & van Leeuwen, E. (2021). The role of perceived value of entrepreneurial identity in growth motivation. International Journal of Entrepreneurial Behaviour and Research. https://doi.org/10.1108/ IJEBR-03-2020-0170

Purwanto, B. (2017). In search of new opportunities: The Indonesianisasi of economic life in Yogyakarta in the 1950s. Masyarakat Indonesia, 39(2), 361–378. http://jmi.ipsk.lipi.go.id/index.php/ jmiipsk/article/viewFile/615/408

Rafiki, A. (2020). Determinants of SME growth: An empirical study in Saudi Arabia. International Journal of Organizational Analysis, 28(1), 205–225. https://doi.org/10.1108/IJOA-02-2019- 1665

Sabila, S. O., & Wijayangka, C. (2019). Pengaruh literasi keuangan terhadap pertumbuhan usaha pada UMKM. Jurnal Manajemen Dan Bisnis, 3(1), 145–152

Sarfiah, S. N., Atmaja, H. E., & Verawati, D. M. (2019). UMKM sebagai pilar membangun ekonomi bangsa. MSEMEs the pillar for economy. Riset Ekonomi Pembangunan, 4(1). https://doi.org/10.31002/rep. v4i2.1952

Tambunan, T. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9(1). https://doi.org/10.1186/s40497-018- 0140-4

van der Zwan, P., Thurik, R., Verheul, I., & Hessels, J. (2016). Factors influencing the entrepreneurial engagement of opportunity and necessity entrepreneurs. Eurasian Business Review, 6(3), 273– 295. https://doi.org/10.1007/s40821- 016-0065-1

The Creative Economy Agency. (2017). Data statistik dan hasil survei. Hasil survei khusus ekonomi kreatif, 23. http://www.bekraf.go.id/pustaka/page/ data-statistik-dan-hasil-survei-khususekonomi-kreatif

Wadhwani, R. D., & Lubinski, C. (2017). Reinventing entrepreneurial history. Business History Review, 91(4), 767–799. https://doi.org/10.1017/ S0007680517001374

Yimamu, N. (2018). Entrepreneurship and Entrepreneurial Skills (Issue February). Centria University of Applied Sciences




DOI: https://doi.org/10.29313/mimbar.v37i2.8374

Refbacks

  • There are currently no refbacks.


Bookmark and Share


MIMBAR : Jurnal Sosial dan Pembangunan is licensed under  Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.