The Factors Shaping The Spirit of Entrepreneurship (A Study in Small and Medium Entreprises)

Abstract

Small and medium enterprises, which are often referred to as SMEs, play a significant role in the economic growth and employment rate. This role is categorized as a strategic role in national economic development. Considering the scale of the role, the government has tried to support it by training, mentoring, developing, and financing the subject, but the performance of SMEs in reality did not meet the expectation. It is believed that the spirit of entrepreneurship is a big factor in the success of SMEs. The purpose of this research is to determine the factors that shape the spirit of entrepreneurship. The sample of this research consists of 48 respondents who own small and medium enterprises. Factor analysis is used as a means of data analysis in this study. The result of the study suggests that the dimensions of entrepreneurship spirit, which consist of market sensitivity, risk taker, and creativity and innovation, provide a massive contribution to the creation of entrepreneurship spirit.