Enhancing SME performance in East Java through competency development, leadership, entrepreneurial intent, and resilience

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Small and medium enterprises (SMEs) are crucial in economic growth and industrial diversification. Despite their importance, SMEs encounter challenges of intense competition, global market penetration, and rapid technological advancements. This study explores the factors affecting SME performance, focusing on entrepreneurial competence, leadership, and intention. A survey was conducted involving 400 SME respondents in East Java, Indonesia. The data were analyzed using a quantitative approach and the PLS-SEM method. The findings indicate that entrepreneurial competence and intention significantly influence entrepreneurial resilience and SME performance. Specifically, entrepreneurial competence has a path coefficient of 0.348 on entrepreneurial resilience and 0.567 on SME performance, both significant with p-value < 0.05. Entrepreneurial intention has a path coefficient of 0.649 on entrepreneurial resilience and –0.722 on SME performance, both significant with p-value < 0.05. These results highlight the necessity of enhancing entrepreneurial competencies and intentions to boost SMEs’ resilience and performance. Entrepreneurs and policymakers should focus on training and development programs to reinforce these competencies and intentions, thereby promoting an environment that supports innovation and prudent risk-taking.

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    • Figure 1. Research model
    • Figure 2. Outer model
    • Table 1. Demographic characteristics
    • Table 2. Outer loading
    • Table 3. Composite reliability and Cronbach’s Alpha
    • Table 4. Hypothesis testing results
    • Table A1. Study questionnaire
    • Conceptualization
      Nilawati Fiernaningsih, Anna Widayani, Pudji Herijanto
    • Data curation
      Nilawati Fiernaningsih, Pudji Herijanto
    • Formal Analysis
      Nilawati Fiernaningsih, Anna Widayani, Pudji Herijanto
    • Funding acquisition
      Nilawati Fiernaningsih, Pudji Herijanto, Mahmudatul Himmah
    • Methodology
      Nilawati Fiernaningsih, Anna Widayani, Pudji Herijanto, Arni Utamaningsih
    • Project administration
      Nilawati Fiernaningsih, Pudji Herijanto, Mahmudatul Himmah, Arni Utamaningsih
    • Resources
      Nilawati Fiernaningsih, Pudji Herijanto
    • Supervision
      Nilawati Fiernaningsih, Anna Widayani, Mahmudatul Himmah
    • Validation
      Nilawati Fiernaningsih, Anna Widayani, Arni Utamaningsih
    • Visualization
      Nilawati Fiernaningsih, Pudji Herijanto
    • Writing – original draft
      Nilawati Fiernaningsih, Anna Widayani, Pudji Herijanto, Arni Utamaningsih
    • Writing – review & editing
      Nilawati Fiernaningsih, Anna Widayani, Pudji Herijanto, Mahmudatul Himmah
    • Software
      Anna Widayani
    • Investigation
      Pudji Herijanto, Mahmudatul Himmah