Introduction
Entrepreneurship is becoming increasingly significant in the global economy (Otomo et al., 2023). This is evidenced by individuals’ rising enthusiasm in going on the journey of becoming entrepreneurs in order to provide job opportunities, stimulate innovation, and achieve economic growth (Rizvi et al., 2023; Vasileiou et al., 2023). However, the growing interest in entrepreneurship begs the question of how much entrepreneurial motivation adds to business success. Entrepreneurship is a difficult task fraught with dangers and uncertainties (Conz et al., 2023), making it critical to comprehend how entrepreneurial motivation affects business success.
Despite growing interest in the subject, there is still a significant empirical gap in understanding the relationship between entrepreneurial motivation and business success. Because the majority of previous research has concentrated on wealthy countries (Arora & Rohmetra, 2015; Gok et al., 2021; Hung, 2022a; Schnell, 2022) or certain business sectors (Bourlès & Cozarenco, 2018; Bravo Gil et al., 2016), it is difficult to generalise research findings to more diverse contexts. Furthermore, research tends to focus on large-scale firms, leaving little understanding of the impact of entrepreneurial motivation on micro and small-medium enterprises (MSMEs), which typically form the backbone of economies in many nations.
Aside from the empirical gap, there is a research gap that has to be addressed in this work. Previous research has tended to focus on the direct impact of entrepreneurial motivation on business success without taking into account potential mediating or moderating elements (Alvinova et al., 2022; Gemina et al., 2016; Sari, 2021). This ignores the complexities of the interaction between personal drive and many environmental influences that may influence the entrepreneurial journey. In terms of theoretical gaps, there is still a need to establish a more integrated theoretical framework that can explain how entrepreneurial motivation affects all aspects of business performance, despite the existence of various relevant motivation and entrepreneurship theories.
Therefore, considering these phenomena and the existing empirical, research, and theoretical gaps, further research becomes crucial to better understanding how entrepreneurial motivation influences business success. This study will provide deeper and more contextual insights into this relationship by incorporating the mediating variable of entrepreneurial self-efficacy and focusing on micro and small-medium enterprises (MSMEs) in developing countries, specifically Indonesia.
Developing a company’s growth strategy is central to entrepreneurship and small business (Temouri et al., 2022). Companies with high growth rates, primarily small and medium-sized businesses (SMEs). MSMEs’ growth is extremely important for the national economy (Agustina et al., 2020; Rindrayani, 2016). Small businesses contribute to the economic well-being and employment of the country (Chaniago, 2022; Temouri et al., 2022). Several studies have shown that small businesses outnumber medium and large businesses in developing countries. Small businesses grow organically, and their expansion corresponds to population growth (Chaniago, 2022).
Indonesia has the most MSMEs in the ASEAN area (ASEAN, 2022). However, when compared to Myanmar, whose MSMEs can make up as much as 69.3% of the local GDP, Indonesia still falls short. Indonesian MSMEs are also left behind compared to Singapore MSMEs, whose export contribution exceeds 38.3%, Thailand 28.7%, Myanmar 23.7%, and Vietnam 18.7% (Hidayat, 2022). The MSME sector has received great attention from the government because of its large contribution to economic development. This is evidenced by the existence of Government Regulation No. 7 of 2021 concerning SMEs. This government regulation is a reference for empowering and developing MSMEs in Indonesia so that they can develop and be highly competitive so that they are able to compete in the global economy.
The footwear and leather shoe industry is a small and medium-sized industry in Indonesia, with the majority of it concentrated on the island of Java. The shoe and leather industry is the mainstay in the development of SMEs in Indonesia; the domestic market is still large and growing; the workforce’s skills are excellent; and the dynamics of local businesses are expected to adapt well to various market changes. In fact, several well-known shoe and leather companies in Indonesia have well-established marketing organizations (Biro Umum dan Hubungan Masyarakat, 2003). The existence of the leather shoe industry has significantly contributed to the socio-economic changes of craftsmen.
Through the growth of entrepreneurs and providers of wider and wider employment opportunities, the footwear and leather shoe industry has evolved into a business that plays an important role in increasing the wheels of the national economy (Pranowo et al., 2020). However,
in its implementation, several problems often arise, such as those that arise from the internal environment and the external environment, which hinder business actors from achieving business success. Based on this framework, the purpose of this research is to analyze the impact of entrepreneurial motivation on business success as mediated by entrepreneurial self-efficacy.
Theoretical Background and Relationship Variables
Entrepreneurial Motivation and Entrepreneurial Self-Efficacy
Motivation is a desire stimulant and the driving force behind one’s willingness to work; each motive has a distinct goal to achieve (Bourlès & Cozarenco, 2018; Sunyoto, 2012). EM is a mover who originates from inside and has the self-assurance to accomplish a goal through a method. because he has the ability to succeed by capitalizing on existing opportunities (Adam et al., 2020). EM is a strong internal urge that can affect a person’s confidence and courage to do business by capitalizing on opportunities and self-potential in implementing creativity and innovation (Nengseh & Kurniawan, 2021). Starting a business also requires confidence in the abilities that exist within yourself to make the business successful. As a result, EM and ESE were used to create something with potential. EM can be nurtured when someone believes they can succeed as an entrepreneur and takes the necessary risks. This will motivate the individual to continue working towards his goals. Much research has been conducted on the relationship between EM and ESE, (Nengseh & Kurniawan, 2021), finding that entrepreneurial motivation has a significant effect on self-efficacy.
Entrepreneurial motivation has a significant influence on entrepreneurial self-efficacy in various ways. Individuals who are motivated, either by intrinsic factors such as the desire to achieve or extrinsic factors such as financial rewards, tend to have a higher level of self-belief in running a business (Maran et al., 2019). Strong motivation drives them to be proactive in seeking new knowledge and skills, and to see failure as an opportunity to learn, all of which enhance their self-efficacy (Gok et al., 2021). Furthermore, motivation provides the mental strength to persevere in the face of challenges, increases their diligence, and strengthens their confidence in decision-making and problem-solving, so they feel more capable of overcoming obstacles and achieving success in entrepreneurship (Ephrem et al., 2021).
H1: Entrepreneurial motivation has a significant positive effect on entrepreneurial self-efficacy.
Entrepreneurial Motivation and Business success
EM is a strong internal encouragement to realize one’s own potential by using creative and innovative thinking to create new products that add value for many parties (Srimulyani & Hermanto, 2021). Motivation causes people to act in ways that help them achieve a specific goal, and the greater the motivation given to an entrepreneur, the greater the likelihood that the business will succeed (Ng & Jenkins, 2018; Sari, 2021). BS can be defined as a state of increasing progress for a company as measured by its capacity, net worth, and net profit (Srimulyani & Hermanto, 2021). Meanwhile, (Noor, 2017) defines BS as the achievement of a company’s objectives. An empirical study conducted by (Alvinova et al., 2022; Gemina et al., 2016; Sari, 2021), found that business motivation influences business success.
Entrepreneurial motivation influences business success because high levels of motivation drive entrepreneurs to set clear and ambitious goals, as well as develop effective strategies to achieve them (Bourlès & Cozarenco, 2018). Strong motivation also inspires them to work harder and longer, dedicating energy and resources to developing and expanding their businesses (Gyimah & Lussier, 2021). Furthermore, motivated entrepreneurs tend to be more responsive to market changes and faster to adapt to new technologies, industry trends, and customer needs (Jorgensen et al., 2022). This enables them to remain competitive and relevant in the dynamic business environment. Motivation also helps build strong professional networks, as motivated individuals are more likely to seek out collaborations, partnerships, and opportunities that can benefit their businesses (Hung, 2022b). All these factors directly contribute to long-term business success and growth.
H2: Entrepreneurial motivation has a significant positive effect on business success.
Entrepreneurial Self-Efficacy and Business success
The belief that one is capable of carrying out the necessary actions is referred to as self-efficacy (Eniola, 2020; Nsereko et al., 2021). According to (Luthans, 2011), SE refers to a person’s confidence in his or her capacity to muster the motivation, cognitive abilities, and behaviors required to complete particular activities. When businesspeople use SE, they feel more confident about achieving goals despite future uncertainties. It is evident that company success is the major objective for entrepreneurs running their companies, and all of their efforts are made to do this (Srimulyani & Hermanto, 2021).
Self-efficacy is regarded by academics as being advantageous for businesses. The more ESE an entrepreneur has, the more successful their venture will be. This is supported by earlier research by (Gunawan & Monika, 2022; Islam et al., 2020; Khalil et al., 2021; Oyeku et al., 2020) which shows that entrepreneurial self-efficacy has a favorable and significant impact on business success.
Entrepreneurial Self-Efficacy has a significant influence on business success because individuals with high self-efficacy tend to have a strong belief in their ability to achieve entrepreneurial goals. This belief drives them to take calculated risks, make more decisive decisions, and remain committed even when facing challenges (Klongthong et al., 2020). They are more confident in overcoming obstacles and more innovative in finding solutions to emerging problems. Furthermore, high self-efficacy makes entrepreneurs more resilient and persevering, enhancing their ability to endure difficult situations and maintain business momentum (Le et al., 2023). All these factors contribute to better business performance and long-term success.
H3: Entrepreneurial self-efficacy has significant positive effect on business success.
Entrepreneurial motivation influences business success are mediated by entrepreneurial self-efficacy
Entrepreneurial motivation influences business success through the mediation of entrepreneurial self-efficacy, as self-efficacy acts as the connecting mechanism that transforms motivation into concrete actions in the entrepreneurial context. High motivation drives individuals to pursue ambitious goals and to persistently seek innovative solutions in overcoming business challenges (Eniola, 2020). High self-efficacy, as a result of strong motivation, enhances the individual’s belief in their ability to manage risks, make sound decisions, and effectively capitalize on business opportunities (Nsereko et al., 2021). In other words, self-efficacy provides the mental framework necessary to translate motivation into tangible actions that lead to long-term business growth and success.
Furthermore, high self-efficacy makes entrepreneurs more resilient to the pressures and stress that often accompany entrepreneurial activities (Smith et al., 2019). They are better equipped to face failure and bounce back with improved strategies, as they believe in their ability to learn and adapt from experiences. High entrepreneurial motivation drives individuals to persist and not easily give up, while strong self-efficacy ensures that these efforts are undertaken with confidence and perseverance (Ephrem et al., 2021). This combination creates a positive cycle where motivation enhances self-efficacy, which in turn increases effectiveness in conducting business, thereby resulting in greater success. In this context, self-efficacy plays a key mediating role in ensuring that the energy and drive from entrepreneurial motivation are translated into productive and sustainable actions that yield the desired business outcomes.
H4: Entrepreneurial motivation influences business success through entrepreneurial self-efficacy.
The explanation above illustrates that this research has the following conceptual framework:
Materials and Methods
Research Approach
This kind of research uses a quantitative method for descriptive and verification study. The small and medium-sized businesses that are registered with the Ministry of Industry of the Republic of Indonesia are the main subject of this study, particularly those that are active in the leather shoe or commodity sector. Companies registered with the Ministry of Industry of the Republic of Indonesia are chosen as the primary subjects of this research for several important reasons. First, registration with the Ministry of Industry ensures that the companies operate officially and meet the established industry standards, ensuring that the data obtained is accurate and reliable. Second, registered companies typically have access to various government support programs, such as training and financing, which can influence the entrepreneurial motivation and self-efficacy of the business owners. Third, this selection allows the researchers to obtain a representative sample of SMEs in the leather shoes or commodity sectors, as it covers various types and sizes of companies across Indonesia. Finally, using data from registered companies facilitates the tracking and verification of information, ensuring the validity of the research findings. Furthermore, the survey respondents are the business owners, which ensures that the information obtained is more accurate and relevant, as the owners have in-depth knowledge about the operations and challenges of their businesses.
This study applied (Hair et al., 2019) recommendations, which called for multiplying the number of indicators by five or ten to calculate the number of representative samples. The variables under study have 19 indicators total, which is multiplied by 5 to get the final number. 95 samples are available, therefore. (5 x 19 indicators). The sample method utilized was accidental sampling with Partial Least Squares Structural Equation Modeling (PLS-SEM) and SmartPLS 4.0.
Measuring Variables
Details of each variable’s measurement, which was created based on prior research, are shown in Table 1.
Results
Descriptive Analysis
The results of this study showed that men (61.05%) and people in the 21–30 age range (43.16%) made up the majority of the respondents. High school or vocational high school education was the only educational level they had in common (51.58%), and the respondents had been operating their businesses for 5–10 years (44.21%) on average. Table 2 provides more specifics.
Verificative Analysis
SmartPLS version 4.0.8.7 was the method of data analysis applied in this investigation. Partial least squares (PLS) analysis uses two evaluation models simultaneously: the measurement model (outer model) and the structural model (inner model) to analyze the structural equation model (SEM) using its variants.
Assessment of the outer model (Measurement Model)
This study’s measuring model is a reflecting measurement model in which the EM, ESE, and BS variables are measured reflectively. In (Hair et al., 2021, 2019), testing from the redlective measurement model includes a loading factor ≥ 0.7, Composite Reliability ≥ 0.7, Cronbach’s alpha ≥ 0.7, and average variance extracted (AVE) ≥ 0.50, as the evaluation of discriminant validity, namely Fornell and Lacker, while HTMT (heterotrait monotrait ratio) is below 0.90. In Figures 2 and 3, the results from the assessment of the outer model’s validity, reliability, and path coefficients are shown.
Convergent Validity
Indicators BS 5 and BS 6 with low loads (0.571 and 0.638), which were eliminated from the study because they did not match the criteria, are shown in Figure 2. After the derivation of each variable indicator, Figure 3 shows that the loading factor value is ≥ 0.70 (valid). Convergent validity is therefore met.
Reliability and Average Variance Extracted (AVE)
The values of Cronbach’s Alpha, composite reliability, and AVE show the reliability test. If the AVE > 0.50, composite reliability > 0.70, and Cronbach’s alpha > 0.70, the construct is said to be reliable. The output of the SmartPLS for composite reliability is shown in Table 3 below.
Table 3’s SmartPLS result reveals that all constructs have AVE values > 0.50, composite reliability values > 0.70, and Cronbach’s alpha values > 0.70. Therefore, it may be said that all constructs have excellent reliability.
Discriminant Validity
The Average Variance Extracted (AVE) value for each construct must be bigger than any other construct in the model or be less than 0.50 for the research model to have good discriminant validity (Hair et al., 2021). Additionally, the Heterotrait Monotrait Ratio (HTMT) value must be lower than 0.90 (Hair et al., 2021, 2019). Table 4 below displays the results.
Table 4 shows that the values of the Fornell and Lacker matrices’ AVE square roots are 0.790, 0.811, and 0.815, respectively, which is greater than the values of each construct or the square root value of AVE > 0.5. The measuring model has strong discriminant validity, so to speak. Then the test results show that the HTMT value is below 0.90 for the pair of variables, so discriminant validity is achieved.
Assessment of the Inner Model (Structural Model)
Testing the concept of the influence of the research variables is related to the structural model’s evaluation. The analysis of the structural model evaluation, according to (Hair et al., 2021, 2019), an entails assessing the lack of multicollinearity between variables with an inner VIF (variance inflated factor) measure below 5, hypothesis testing, and an estimated path coefficient parameter with a 95% confidence interval. It also includes evaluating direct variable influence at the structural level, specifically direct influence with f-square size (0.02 low, 0.15 moderate, and 0.35 high). As for the mediating effect using the upsilon v statistical measure obtained by squaring the mediation coefficient, (Lachowicz et al., 2018), which is interpreted in (Ogbeibu & Gaskin, 2022) as a low mediating effect (0.02), a medium mediating effect (0.075), and a high mediating effect (0.175). Evaluation of the model output consists of R-square with criteria (Sarstedt & Cheah, 2019), namely 0.19 (low effect), 0.33 (moderate effect), and 0.66 (high effect), Q-square above 0 (Hair et al., 2019). Table 5 below displays the analysis’ findings.
In this case, there is no multicollinearity between the variables, as evidenced by the inner VIF below 5, and the results of the estimated parameters are resilient, according to the findings of the structural model evaluation. The four hypotheses can be accepted by showing a P-value < 0,05. Furthermore, based on the results above, it can be said that the magnitude of the influence of EM on ESE is 32% (the effect is close to moderate). The magnitude of the influence of EM and ESE on BS is 64.1% (moderate effect close to high). To state predictive relevance in PLS, the Q square value is a validity metric. The model has predictive relevance if its q-square value is greater than 0 (Hair et al., 2019).
Discussion
Results of this time’s research found that, for Indonesian leather shoe craftsmen, entrepreneurial motivation has a favorable and significant impact on entrepreneurial self-efficacy for achieving business success. We start to analyze the first hypothesis, shows that EM has positive and significant effects on ESE. High levels of entrepreneurial motivation allow businesses to overcome difficulties, and motivation may increase self-efficacy (confidence) in entrepreneurs. This finding is consistent with (Nengseh & Kurniawan, 2021) and Yang, M. M., Li, T., & Wang, Y. (2020), which proves entrepreneurial motivation has a significant and favorable effect on self-efficacy. However, these results contradict the research conducted by (Aima et al., 2020), they show that revealed no relationship between entrepreneurial motivation and entrepreneurial self-efficacy.
High motivation drives entrepreneurs to achieve their goals and take concrete actions in business development, whether through intrinsic drives such as the desire for achievement and recognition, or extrinsic drives such as financial gains. Motivated entrepreneurs tend to have higher self-efficacy, which is the belief in their own capabilities to plan, organize, and implement successful business strategies. High self-efficacy makes entrepreneurs more ready to take on risks, persist through challenges, and innovate in finding solutions to problems. In the context of the highly competitive and dynamic leather footwear sector or commodity markets, high self-efficacy enables entrepreneurs to adapt to market changes, identify new opportunities, and overcome emerging obstacles. Therefore, it is crucial to cultivate entrepreneurial motivation and strengthen the self-efficacy of entrepreneurs to enhance business success in these sectors.
A second hypothesis, which proved entrepreneurial motivation has a positive and significant impact on business success. This is because motivation is related to the encouragement or power that humans have. Motivation lies within humans, but it is not obvious from the outside. Motivation causes people to act in ways that help them achieve a specific objective, and the more entrepreneurs have motivation,the more likely it is that it will have an impact on the business’s success. The findings of (Alvinova et al., 2022; Gemina et al., 2016; Sari, 2021), who found that business motivation has a direct impact on business success. This study’s results are in line with the theory put forth by (Rusdiana, 2018), where one of the keys to success in becoming an entrepreneur is a strong motivation to be an entrepreneur.
Entrepreneurs in the leather footwear or commodity sectors who have high motivation tend to be more enthusiastic about setting ambitious goals and working hard to achieve them. This motivation, whether stemming from intrinsic drives such as the desire for achievement or extrinsic drives such as financial gains, makes them more proactive in seeking business opportunities, learning new skills, and innovating in products and business processes. Motivated entrepreneurs exhibit greater perseverance in facing the challenges that often arise in these highly competitive and dynamic sectors. Furthermore, high entrepreneurial motivation helps entrepreneurs remain focused and persistent even when encountering obstacles, which ultimately contributes to the improvement of their business performance and growth. Thus, high entrepreneurial motivation is a key factor driving business success for entrepreneurs in the leather footwear or commodity sectors, ensuring they are capable of competing and thriving in the constantly evolving market.
Then the third hypothesis was successfully tested, which shows that ESE a positive and significant impact on BS. Business people can be confident in their ability to succeed in the business world if they have a high level of self-efficacy. A high ESE indicates that business people are confident in their abilities to perform their responsibilities and succeed as entrepreneurs, which is a crucial factor in creating BS. These findings correlate to research by (Tantawy et al., 2021), that shows the favorable and significant impact of ESE on BS. However, these results contradict research by (Alvinova et al., 2022) and (Christensen et al., 2023), that claims self-efficacy has no positive or significant effect on business success.
Entrepreneurs in this sector who have high self-efficacy, that is, the belief in their own capabilities to manage and develop their businesses, tend to be more successful. High self-efficacy makes them more confident in taking risks, making strategic decisions, and overcoming challenges that arise in this competitive industry. This belief also motivates them to continue innovating and improving product quality, as well as to be more effective in building and maintaining relationships with customers and business partners. With strong self-efficacy, entrepreneurs in the leather footwear or commodity sectors are able to better direct their efforts, optimize resources, and create sustainable value for their businesses. Therefore, entrepreneurial self-efficacy is a crucial factor that contributes to the success of businesses in these highly competitive and dynamic sectors.
The fourth hypothesis, which was successfully tested based on the PLS analysis, found that there was a positive and significant effect of EM on BS through ESE. As a result, it has been demonstrated that ESE can function as a mediating variable between the influences of EM and BS on the leather shoe craftsmen in Indonesia. These findings correlate to research by (Indrawati et al., 2015), ESE can be a mediating variable in this relationship. This indicates that the higher someone’s motivation for entrepreneurship, the greater the probability of success in the business carried out through the belief that he has the ability to take the desired actions so that success can be achieved.
These findings are relevant for entrepreneurs in the leather footwear or commodity sectors, where high entrepreneurial motivation drives entrepreneurs to believe in their own capabilities to manage and develop their businesses. This high self-efficacy then becomes the primary driver for entrepreneurs to face challenges more effectively, take calculated risks, and continue to innovate. In other words, strong entrepreneurial motivation enhances self-efficacy, which in turn improves the entrepreneurs’ ability to achieve business success. In the context of the leather footwear or commodity sectors, entrepreneurs with high motivation and self-efficacy are better equipped to adapt to market changes, identify new opportunities, and overcome obstacles, thereby achieving sustainable growth and success.
Conclusion
In conclusion, the findings of this research indicate that entrepreneurial motivation has a positive and significant impact on the business success of entrepreneurs in the leather footwear or commodity sectors. This reinforces the notion that when entrepreneurs have a strong motivation for entrepreneurship, they tend to have higher self-belief (entrepreneurial self-efficacy) in running their businesses. This self-efficacy, in turn, plays a crucial role in enhancing business success. Entrepreneurial motivation influences business success both directly and through the mediation of entrepreneurial self-efficacy. This research provides the insight that enhancing entrepreneurial motivation and self-efficacy among entrepreneurs can be an effective strategy to improve business success, especially in the leather footwear or commodity sectors in Indonesia. Accordingly, interventions that focus on increasing entrepreneurial motivation and self-belief are expected to support the growth and sustainability of businesses in these sectors.
Theoretical Implications
The Theory of Planned Behavior (TPB) states (Ajzen, 1991) that an individual’s behavior is influenced by their intention, which in turn is influenced by their attitude toward the behavior, subjective norms, and perceived behavioral control (similar to the concept of self-efficacy). Entrepreneurial motivation can be seen as a factor that influences entrepreneurial intention, while self-efficacy affects the perceived behavioral control, which ultimately influences business success. The finding that entrepreneurial self-efficacy mediates the relationship between motivation and business success supports TPB by showing how higher perceived control (self-efficacy) strengthens the intention and actions leading to success.
The Self-Efficacy Theory (Bandura & Adams, 1977) emphasizes that an individual’s beliefs about their ability to perform the necessary actions to achieve certain results (self-efficacy) greatly influence their actions and achievements. Entrepreneurial motivation can enhance self-efficacy, which then affects the entrepreneur’s ability to face challenges and achieve business success. The finding that self-efficacy mediates the relationship between motivation and business success supports this theory by demonstrating how higher self-efficacy, triggered by motivation, enhances business performance and outcomes.
Maslow’s Hierarchy of Needs theory (Maslow, 1943) classifies human needs into five levels, ranging from basic physiological needs to self-actualization. Entrepreneurial motivation is often associated with the needs for achievement, esteem, and self-actualization. Self-efficacy can be seen as part of the need for esteem and self-actualization, where entrepreneurs who believe in their capabilities are more likely to reach the highest level of the needs pyramid. Thus, entrepreneurial motivation that influences self-efficacy and ultimately business success can be viewed as a process of fulfilling needs according to Maslow.
The Resource-Based View (RBV) theory (Birger Wernerfelt, 1984) emphasizes the importance of unique and hard-to-imitate internal resources as determinants of competitive success. Self-efficacy can be considered an important internal resource for entrepreneurs. Entrepreneurial motivation can enhance the development and utilization of this self-efficacy, which then contributes to business success. The finding that self-efficacy mediates the relationship between motivation and business success supports RBV by showing how internal resources such as self-efficacy play a key role in achieving competitive advantage and business success.
Practical Implications
The findings of this research provide several important practical implications for entrepreneurs in the leather footwear and other commodity sectors. First, entrepreneurs must focus on enhancing their entrepreneurial motivation, as it has been proven to have a significant impact on entrepreneurial self-efficacy and, ultimately, on the success of their businesses. High motivation encourages entrepreneurs to believe in their own abilities, which is essential for taking measured risks, making strategic decisions, and overcoming challenges in this competitive industry. Second, training and support programs designed to enhance entrepreneurial self-efficacy should be prioritized. Training that focuses on developing innovation, management, networking, sales, and financial capabilities will help entrepreneurs build their confidence in running their businesses.
Third, the government and relevant institutions can play a crucial role by providing supportive resources and infrastructure, as well as access to appropriate training and mentorship. By supporting entrepreneurs through policies that encourage the development of motivation and self-efficacy, it is expected that the success rate in this sector can be significantly improved. Finally, it is important for entrepreneurs to continue to develop themselves and adapt to market changes. Success in business often depends on the ability to recognize new opportunities and overcome existing barriers. By enhancing motivation and self-efficacy, entrepreneurs will be better prepared to navigate the dynamics of the market and achieve sustainable growth.
Limitations and Future Research
Limitations
This research may be limited to certain regions or areas within Indonesia, where regional variations in business practices, entrepreneurial culture, and market conditions could influence the results, so the findings may not apply to the entire country or international contexts. While Partial Least Squares Structural Equation Modeling (PLS-SEM) is a powerful data analysis method, this technique has limitations in terms of data distribution assumptions and interpretation of path coefficients, so the results need to be interpreted cautiously and should be validated with other analysis methods to ensure consistency. This study also only used 19 indicators to measure the related variables, so there is a possibility that other important aspects of entrepreneurial motivation, self-efficacy, and business success were not covered, which reduces the depth of the analysis. Furthermore, this research did not fully account for external factors such as macroeconomic conditions, government policies, market competition, and technological changes, which need to be considered in further research to obtain a more comprehensive understanding.
Future Research
Future research can be directed towards addressing the existing limitations and deepening the understanding of the influence of entrepreneurial motivation and self-efficacy on business success. Further research can be conducted in various regions across Indonesia to understand regional variations in business practices and market conditions, thereby providing a more comprehensive picture. The research can also be expanded to an international context to see whether the same findings apply in other countries with different entrepreneurial cultures and market conditions.
To enhance the depth of analysis, future research can increase the number of indicators used to measure the related variables, as well as include additional variables that may have an influence, such as innovation, business networks, and marketing strategies. Researchers are also advised to consider the impact of external factors, such as macroeconomic conditions, government policies, market competition, and technological changes, in their analyses.
Furthermore, validating the results using different analysis methods, such as covariance-based SEM, can help ensure the consistency of the findings. Qualitative research can also be conducted to explore more deeply the experiences and perspectives of entrepreneurs regarding their motivation and self-efficacy, as well as the challenges they face in achieving business success. By addressing these limitations and exploring new areas of research, it is expected that future research can provide deeper and more comprehensive insights into the dynamics of entrepreneurship and the factors influencing business success in the leather shoes and other commodity sectors.
Abbreviations
Business Success (BS), Entrepreneurial Motivation (EM), Entrepreneurial Self-Efficacy (ESE)