Entrepreneurial Motivation and Business Performance of SMEs in the SUCI Clothing Center, Bandung, Indonesia

Abstract

There is a gap in entrepreneurial motivation between psychological and external environment approach. In order to assess the relative importance of that gap, this study examined the entrepreneurial motivation, which defines both psychological variable and external environment, by measuring business performance level in Suci clothing center, Bandung. This study is valuable considering the limited number of empirical works previously done on the topic in question. Research method being used was multiple regression analysis. Purposive sampling was performed to 94 respondents which are owners of the small and medium-sized enterprises (SMEs) in Suci clothing center, Bandung. The findings of this research show that entrepreneurial motivation potential simultaneously and partially have a significant influence to SMEs’ business performance and the most dominant influential effect is self-efficacy while achievement has the least dominant influential effect.

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