Resilience of Service-Based MSME Entrepreneurship in Yogyakarta: The Role of Entrepreneurial Mindset, Adaptability, and External Support

R. Andro Zylio Nugraha, Umar Yeni Suyanto, Indra Febrianto

Abstract


Micro, small and medium enterprises (MSMEs) in the service sector make an important contribution to the regional economy, but are vulnerable to the dynamics of an uncertain business environment. The inability to survive crises highlights the need for resilience as a key factor in business sustainability. This study aims to analyse the influence of entrepreneurial mindset, adaptability and external support on the business resilience of service MSMEs in Yogyakarta. The study uses a quantitative approach with a survey method. The research population consists of service MSME actors registered with the Cooperative and SME Office, with a sample of 250 respondents selected through purposive sampling. The research instrument is a questionnaire with a five-point Likert scale. Data analysis was performed using Partial Least Squares Structural Equation Modelling (PLS-SEM) using SmartPLS. The results showed that the three independent variables, namely entrepreneurial mindset, adaptability, and external support, had a positive and significant effect on the business resilience of service MSMEs. These findings confirm that a proactive entrepreneurial mindset, the ability to adapt to change, and support from external parties are the main determinants in building business resilience. Theoretically, this study reinforces the Resource-Based View (RBV) and Entrepreneurial Resilience Theory by emphasising the importance of combining internal and external resources. Practically, the results of this study recommend the need to increase entrepreneurial capacity through training, service innovation, and government policy support and business networks. Thus, this study contributes to the development of the entrepreneurial resilience literature and offers practical implications for strategies to enhance the resilience of service-based MSMEs in developing countries.

DOI: http://dx.doi.org/10.23960/E3J/v8.i2.259-268


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Economic Education and Entrepreneurship Journal
Gedung D Fakultas Keguruan dan Ilmu Pendidikan Universitas Lampung Jl. Soemantri Brojonegoro No. 1 Bandar Lampung 35145