The Effect of Entrepreneurial Motivation on the Business Growth of Indigenous Enterprises in Gunungkidul District

Abstract

Entrepreneurial motivation is divided into three factors, namely mixed motivation, opportunity motivation, and necessity motivation. Business actors in developing countries tend to have mixed motivation. Entrepreneurial motivation affects the growth of a number of businesses in the Special Region of Yogyakarta, particularly in Gunungkidul District. This study has three objectives: to define the entrepreneurial motivation using Exploratory Factorial Analysis, to determine the level of entrepreneurial motivation, and to test the effect of entrepreneurial motivation on business growth of indigenous enterprises in Gunungkidul District using simple linear regression. This study applies a quantitative approach with a mixed data collection method. Quantitative data are collected using a questionnaire, while qualitative data are collected through in-depth interviews with indigenous enterprises and the Office of Industry and Trade. This study employs purposive sampling with the following criterion: entrepreneurs of small and medium-sized industries (known as Industri Kecil Menengah) in the field of craft and fashion business. The results of this study illustrate that entrepreneurial motivation in Gunungkidul District is mixed motivation. Even though entrepreneurial motivation is low, it has an effect on business growth.