The Influence of Entrepreneurial Competence on Business Growth: The Mediating Role of Competitive Advantage

Authors

  • Adi Adiansyah Universitas Garut
  • Nizar Alam Hamdani universitas Garut
  • Asri Solihat universitas Garut
  • Didit Supriyadi universitas Garut

Keywords:

Competitive Advantage, Entrepreneurial Competence, Business Growth

Abstract

Micro, Small, and Medium Enterprises (MSMEs) serve as the backbone of the economy in many countries, including Indonesia. Despite their crucial role, MSMEs in Indonesia continue to face numerous challenges, particularly in terms of growth. A significant proportion of these enterprises—approximately 99%—operate at the micro and small scale, while only about 1% fall into the medium or large-scale category. This imbalance limits the overall contribution of MSMEs to national economic development. The present study aims to examine the extent to which entrepreneurial competence affects MSME growth, with competitive advantage serving as a mediating variable. The research was conducted through a quantitative survey involving 30 MSME practitioners in Indonesia. Data collected from the field were analyzed using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method. The findings indicate that entrepreneurial competence has a positive influence on MSME growth, and this relationship is mediated by competitive advantage.

Published

2025-07-12

Issue

APSKI ICE Vol 03, Ed 01 (2025)

Section

Articles

License

Copyright (c) 2025 APSKI International Conference on Association of Indonesian Entrepreneurship Study Programs

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