Barriers to technology innovation among nascent entrepreneurs in deprived areas


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Entrepreneurs in economically challenged areas frequently rely on financial and technical incentives and aid from public and local governments to embrace and apply new technology. This study aims to investigate the challenges to technology innovation that these businesses face. Based on a survey of 422 nascent entrepreneurs in Banjarmasin, Indonesia, an empirical model of the determinants influencing the adoption of technology innovation is developed. The current study used factor analysis as a methodological tool to identify the critical impediments to technology innovation. The study’s findings highlighted five major barriers. More financial resources are needed: as nascent entrepreneurs in these locations frequently need help to get the necessary funds to support their creative endeavors. There is a need for more skilled individuals: new businesses need help to locate and keep employees with the appropriate technological skills. Unfavorable economic conditions exacerbate the problem by making it difficult for new entrepreneurs to access markets and resources that could support their innovative efforts. Furthermore, there needs to be more collaborative efforts, with nascent entrepreneurs in these places frequently needing more collaboration and networking possibilities, expanding their potential to develop. Finally, the study identifies insufficient government support as a barrier to assisting entrepreneurs in adopting novel technologies. These hurdles can be efficiently overcome by government assistance, private-sector investment, and collaborative efforts among nascent entrepreneurs.

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    • Table 1. Technology innovation implemented
    • Table 2. Nascent entrepreneurs’ business
    • Table 3. Descriptive statistics and constructs reliability
    • Table 4. Loading factors and variance explained
    • Table 5. Path relationship among variables
    • Conceptualization
      Ismi Rajiani, Sebastian Kot, Janusz Michałek, I Gede Riana
    • Data curation
      Ismi Rajiani, Janusz Michałek, I Gede Riana
    • Formal Analysis
      Ismi Rajiani, Sebastian Kot, I Gede Riana
    • Investigation
      Ismi Rajiani, Sebastian Kot, I Gede Riana
    • Methodology
      Ismi Rajiani, Janusz Michałek
    • Software
      Ismi Rajiani
    • Writing – original draft
      Ismi Rajiani
    • Resources
      Sebastian Kot, I Gede Riana
    • Validation
      Sebastian Kot, Janusz Michałek
    • Project administration
      Janusz Michałek, I Gede Riana
    • Writing – review & editing
      Janusz Michałek, I Gede Riana