Key determinants of women’s entrepreneurial intentions in encouraging social empowerment

Abstract

This paper analyzes the influence of the socio-cultural environment, social perceptions, and entrepreneurial orientation on women’s entrepreneurial intentions. Structural equation modeling technique is used as an analytical technique involving 400 women entrepreneurs in microsmall and medium-sized enterprises (MSMEs) in Indonesia. The results showed that the socio-cultural environment and social perceptions have a positive and significant effect on entrepreneurial orientation. In addition, the socio-cultural environment and entrepreneurial orientation also have a positive and significant effect on women’s entrepreneurial intentions. Entrepreneurial orientation is proven to play a role as a mediator in the relationship between the socio-cultural environment and women’s entrepreneurial intentions. However, social perceptions are proven to have no significant effect on women’s entrepreneurial intentions, either directly or mediated by entrepreneurial orientation. This study offers a new framework for understanding women’s entrepreneurial intention in developing countries by contributing to theoretical and policy implications.