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

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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.

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    • Figure 1. Hypothesized structural model
    • Figure 2. Finding model
    • Table 1. Characteristics of the respondents
    • Table 2. Convergent validity testing
    • Table 3. Research hypotheses testing results
    • Conceptualization
      Nilawati Fiernaningsih, Pudji Herijanto, Anna Widayani
    • Data curation
      Nilawati Fiernaningsih, Pudji Herijanto, Diana Eka Poernamawati
    • Formal Analysis
      Nilawati Fiernaningsih, Pudji Herijanto, Maskur, Diana Eka Poernamawati
    • Funding acquisition
      Nilawati Fiernaningsih, Pudji Herijanto, Maskur
    • Investigation
      Nilawati Fiernaningsih, Pudji Herijanto
    • Methodology
      Nilawati Fiernaningsih, Anna Widayani
    • Project administration
      Nilawati Fiernaningsih, Pudji Herijanto, Maskur
    • Resources
      Nilawati Fiernaningsih, Maskur
    • Supervision
      Nilawati Fiernaningsih, Anna Widayani, Diana Eka Poernamawati
    • Validation
      Nilawati Fiernaningsih, Anna Widayani
    • Visualization
      Nilawati Fiernaningsih
    • Writing – original draft
      Nilawati Fiernaningsih, Pudji Herijanto, Anna Widayani
    • Writing – review & editing
      Nilawati Fiernaningsih, Pudji Herijanto, Anna Widayani, Diana Eka Poernamawati
    • Software
      Pudji Herijanto, Anna Widayani