Identification of factors influencing entrepreneurial behavior: unveiling start-up business initiatives in Indonesia

Abstract

AbstractThis study aims to identify the factors influencing the intention of people to launch business in Indonesia, using theory of planned behavior (TPB). The implemented methods included binomial logistic regression, classification and regression tree, and structural equation modeling. To examine this issue, data were obtained through Global Entrepreneurship Monitor (GEM) from 2015–2018. The results demonstrated that TPB construct was relevant to the launch initiative of business. This emphasized the significant functions of self-efficacy, business opportunity, and role models in the plans of people, regarding the establishment of an enterprise. Therefore, this study advanced the understanding of the factors influencing entrepreneurial behavior concerning the establishment of business, as well as provided strategies and plans for its development in Indonesia.