Abstract
The role and function of entrepreneurial culture get more important and is the main driver of sustainable regional and national economic growth in Indonesia. The specific purpose of this article is to explain the role of entrepreneurial culture as the driver of regional economic growth in Central Java, Indonesia. For the purpose of this research, a survey for primary data and recursive model of path analysis are employed. The research results show positive and significance influence of entrepreneurial culture and network as well as competition on regional economic growth. With the principle of “tuna satak bati sanak” culture as the basic behavioral pattern of their business, the social entrepreneurial network and entrepreneurial culture in the research area are strengthened. Therefore, with support of entrepreneurial culture, the growth of entrepreneurship in Indonesia will serve more to be the main driver of sustainable economic growth.
Highlights
The relationship and influence of entrepreneurship on economic growth gets more interesting and important for researchers and decision makers to test continuously, (Kreft and Sobel, 2003; Armijos and Johnson, 2016; World Bank, 2016; Christian et al, 2017; Ferreira et al, 2017; OECD, 2018; Bjørnskov and Foss, 2018; Doran et al, 2018; Windapo, 2018)
The research conducted by Fritsch and Wyrwich (2014) concludes that regional entrepreneurial culture is an important resource for regional growth
The data of endogenous variable of regional economic growth (REG) in this article are measured by dimension of ratio, index of total production output generated by each MSME business actors in the study
Summary
The relationship and influence of entrepreneurship on economic growth gets more interesting and important for researchers and decision makers to test continuously, (Kreft and Sobel, 2003; Armijos and Johnson, 2016; World Bank, 2016; Christian et al, 2017; Ferreira et al, 2017; OECD, 2018; Bjørnskov and Foss, 2018; Doran et al, 2018; Windapo, 2018). There are many acknowledgements that entrepreneurship serves to be the main driving factor of economic growth and development, (Coscia et al, 2017; GEM, 2018; Aparicio and Urbano, 2018; Beugelsdijk et al, 2018; Doran et al, 2018; Dumitru and Dumitru, 2018; Ogunlana, 2018; Tomak, 2018). Beugelsdijk (2007) confirms the importance of entrepreneurial culture in explaining regional economic success
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