Entrepreneur Transformational Leadership for SME’s Business Sustainability

Abstract

— The soybean-based industry in West Java had proven as business that can survive in the long term with highly increasing demand. But, at present the number of business unit is declining and entrepreneurs are constrained by internal and external factors that will ultimately threaten their business sustainability. To solve these problems, the role of entrepreneurs as the main control holder with transformational leadership is highly needed. This study aims to determine the effect of transformational leadership on business sustainability. Using a theory of, this research was conducted with survey of CFA to confirm a questionnaire in-strument to 100 entrepreneurs of SMEs based on West Java soybean. The data obtained were processed by Structural Equation Modeling analysis. The result of research reveals that there is a significant influence of transformational leadership toward business sustainability. Government regulation and stakeholder were mod-erating variables of transformational leadership influence on business sustainability of SMEs. It is expected, that this research will contribute to the development of SME leadership, regulatory support and stakeholders.