Abstract

The purpose of this study was to analyze the influence of entrepreneurial competence and business environment on the business success of creative industry SMEs in West Java which were affected by Covid-19. Data collection was done using a questionnaire distributed to 254 respondents. Partial Least Square Structural Equation Modeling (PLS-SEM) was used to test the hypothesis. The results showed that entrepreneurial competence and business environment influenced the SMEs’ business success during the Covid-19 pandemic. This article also presents some managerial implications of the study.

Highlights

  • The number of Covid-19 cases are increasing worldwide, forcing most of the world's population to stay at home

  • This study examines the influence of entrepreneurial competence (EC) and the business environment (BE) on business success (BS) in creative industry SMEs in West Java

  • The proposed hypothesis is: H1: Entrepreneurial competence has a positive effect on business success

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Summary

Introduction

The number of Covid-19 cases are increasing worldwide, forcing most of the world's population to stay at home. Many countries close roads and shops to limit the activities of their citizens This situation causes many businesses to suffer from losses as they have to pay rent and their employees' salaries. Professionals in the creative industry are at risk of losing their income and jobs, especially workers who work in the informal sector (John, 2020). McKinsey (2020) reports that in 2020 the fashion industry's income fell 27 to 30 percent from the previous year. Covid-19 increases the uncertainty of the business environment. With such an uncertain business environment, it is difficult to ensure the survival of a business.

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