Socio-cultural environments and emerging economy entrepreneurship

Abstract

Purpose Women entrepreneurship has been growing and contributing significantly to economic activities, and it may also reduce unemployment, especially in developing countries. Many women entrepreneurs have begun to experience problems, including within their socio-cultural environment, in the beginning of or when they run their businesses. Among those developing countries, Indonesia has been recognized as having diverse ethnic groups, traditions, religions and languages. The purpose of this paper is to analyse how the socio-cultural environment affects women entrepreneurs in Indonesia. Design/methodology/approach This study aims at exploring the impact of the socio-cultural environment on entrepreneurial behavior, including the involvement of women in entrepreneurial activities in Indonesia as a multicultural country. A theoretical framework is empirically tested to identify the impact of the socio-culture environment on behavior and on women entrepreneurial activity through an integrated analysis. Findings A quantitative method with a causal descriptive approach is used in this study. The data are analyzed by using a descriptive statistics with the structural equation modeling technique. This study is intended to focus on women entrepreneurs in micro, small and medium enterprises in Bandung, Indonesia. A total of 210 women entrepreneurs have participated in this study. Practical implications include useful information for women entrepreneurs to overcome the impact of the socio-cultural environment in their entrepreneurial activities, and suggest insights for future research. Originality/value The development of women entrepreneurship in emerging economies may continuously face challenges, particularly in countries with multicultural attributes.