Exploration of Self-Efficacy and Entrepreneurial Motivation on MSME Performance in Malang City: A Qualitative Study
DOI:
https://doi.org/10.70062/managementdynamics.v3i2.528Keywords:
Entrepreneurial Motivation, Local Entrepreneurship, MSME Performance, Qualitative Approach, Self-EfficacyAbstract
Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in Indonesia's economy but face significant challenges in maintaining consistent and sustainable performance amidst changing market dynamics. This study aims to explore how self-efficacy and entrepreneurial motivation influence MSME performance in Malang City using an exploratory phenomenological qualitative approach. Twelve informants with at least two years of business experience and active operations were selected through purposive sampling. Data were collected through semi-structured interviews, analyzed using an inductive approach, and processed until data saturation was reached. The study found that MSME actors' self-efficacy is shaped by accumulated real experiences, including both successes and failures, which contribute to meaningful learning. Entrepreneurial motivation rooted in personal values was found to be stronger and more enduring than extrinsic motivation. The study identified a cyclical interaction between self-efficacy and motivation, reinforcing each other in fostering adaptive entrepreneurial behavior. Additionally, external factors such as family support, entrepreneurial communities, and government programs play a significant role in sustaining these psychological factors. This research contributes to entrepreneurship literature and offers practical recommendations for stakeholders to design more holistic MSME empowerment programs with tangible impact.
References
Arimbi, D. D., & Diptyana, P. (2022). The role of financial inclusion, financial literacy, self-efficacy, and locus of control on the performance of micro, small and medium enterprises. Department of Accounting, State Polytechnic of Samarinda, 18(2), 35-46. https://garuda.kemdiktisaintek.go.id/documents/detail/3792549
Caliendo, M., Kritikos, A. S., Rodríguez, D., & Stier, C. (2023). Self-efficacy and entrepreneurial performance of start-ups. Small Business Economics, 61(3), 1027-1051. https://doi.org/10.1007/s11187-022-00728-0
Efendy, H., & Pusparini, E. S. (2025). The influence of entrepreneurial competencies, entrepreneurial orientation, entrepreneurial self-efficacy, entrepreneurial network, and government business support on MSME performance: The moderating role of external environment. Eduvest - Journal of Universal Studies, 5(12), 586-618. https://doi.org/10.59188/eduvest.v5i12.51853
Fadilah, N. N., Mukhtar, S., & Dianta, K. (2025). The effect of entrepreneurial knowledge and self-efficacy on business success through business motivation as mediation (study on food sector millennial MSMEs in DKI Jakarta). Journal of Economic Equity, Finance, and Taxation, 1(1), 37-42. https://doi.org/10.70865/jeeft.v1i1.58
Harfan, S., Anandari, F., Ratnawita, & Lusiana. (2025). Selection process and business layout at self-efficacy, managerial competence, entrepreneurial competence, MSME performance. International Journal of Islamic Business and Management Review, 5(1), 194-207. https://doi.org/10.54099/ijibmr.v5i2.1546
Irwanto, A., & Ie, M. (2023). The influence of self-efficacy, entrepreneurial knowledge, and entrepreneurial motivation on the success of f&b MSME businesses in West Jakarta. Journal of Management and Entrepreneurship, 5(4), 867-874. https://journal.untar.ac.id/index.php/JMDK/article/view/22674
Kukanja, M. (2024). Examining the impact of entrepreneurial orientation, self-efficacy, and perceived business performance on managers' attitudes towards AI and its adoption in hospitality SMEs. Systems, 12(12). https://doi.org/10.3390/systems12120526
Mentang, R. P., Tumbel, A. L., & Djemly, W. (2022). Analysis of entrepreneurial self-efficacy in food & beverage entrepreneurs in Malalayang. EMBA Journal: Journal of Economics, Management, Business and Accounting Research, 10(2), 661. https://doi.org/10.35794/emba.v10i2.39745
Nikmah, N. L. J., & Nurhidayati, A. (2025). The influence of entrepreneurial motivation, work culture, and job training on the performance of MSME actors in Gedongmulyo Village. Scientific Journal of Edunomics, 09(01), 1-10. https://doi.org/10.29040/jie.v8i4.16230
Rahman, T., Salistia, F., Arsyad, M. R., & Romli, M. (2023). The decision of MSME actors in choosing sharia-based financing. Al-Kharaj: Journal of Sharia Economics, Finance & Business, 6(2), 852-866. https://doi.org/10.47467/alkharaj.v6i2.3575
Safrizal, H. B. A., Mustika, H., & Ximenes, M. (2024). Implementation of creative self-efficacy as moderation: Extrinsic and intrinsic motivation to creative behaviour in the women entrepreneur context. BISMA (Business and Management), 17(1), 129-145. https://doi.org/10.26740/bisma.v17n1.p129-145
Sari, P. M., & Suhartini, D. (2023). Quality of MSME financial statements based on Sak EMKM: Self-efficacy as a moderation variable. Oikos: Journal of the Study of Economics and Economics, 7(1), 118-135. https://doi.org/10.23969/oikos.v7i1.5917
Sarman, R., Affandi, A., Priadana, S., Djulius, H., Alghifari, E. S., & Setia, B. I. (2025). Business success in emerging markets: Entrepreneurial motivation and entrepreneurial self-efficacy. Journal of Small Business Strategy, 35(1), 45-57. https://doi.org/10.53703/001c.124013
Sharma, S., & Rautela, S. (2021). Entrepreneurial resilience and self-efficacy during global crisis: Study of small businesses in a developing economy. Journal of Entrepreneurship in Emerging Economies, 14(6), 1369-1386. https://doi.org/10.1108/JEEE-03-2021-0123
Sibarani, A. R., Utama, A. M., & Rafiki, A. (2025). The influence of business experience, self-efficacy and self-confidence on the performance of MSME actors (case study in Medan Area District). Economics, Business and Management Science Journal, 5(2), 213-221. https://doi.org/10.34007/ebmsj.v5i2.782
Srimulyani, V. A., Hermanto, Y. B., Rustiyaningsih, S., & Setiyo Waloyo, L. A. (2023). Internal factors of entrepreneurial and business performance of small and medium enterprises (SMEs) in East Java, Indonesia. Heliyon, 9(11), e21637. https://doi.org/10.1016/j.heliyon.2023.e21637
Sugiyono, P. (2022). Qualitative quantitative research and R&D methodology. Alpabeta, Bandung.
Tuwonaung, Y. J. E., & Anisah, H. U. (2025). The role of self-efficacy, entrepreneurial knowledge, and business motivation on business success of culinary barefoot entrepreneur in Banjarbaru City. Indonesian Journal of Science Management Research, 16(1), 114-128. https://doi.org/10.21009/JRMSI.016.1.10
Veronika, & Justin. (2022). Impact of entrepreneurial self-efficacy and entrepreneurial motivation on micro and small business success. Journal Economics MDPI, 10(10), 1-21. https://doi.org/10.3390/economies10010010
Waruwu, M. (2023). Educational research approach: Qualitative research method, quantitative research method and combination research method (Mixed Method). Journal of Tambusai Education, 7(1), 2896-2910. https://doi.org/10.31004/jptam.v7i1.6187
Wulandari, K., Dwi Ayu Parmitasari, R., Farild, M., & Islam Negeri Alauddin Makassar Cocorrespondence Author, U. (2023). The performance analysis of micro, small and medium enterprises: The role of self-efficacy, entrepreneurial mindset, and innovation. History: Educational Journal of History and Humanities, 6(4), 2363-2374. http://jurnal.unsyiah.ac.id/riwayat/
