SMEs Data Pre-Processing: The First Step in Validating Instruments on Entrepreneurial Capacity Website

Abstract

Micro, Small and Medium Enterprises (MSMEs) have made a very significant contribution to the economic progress of the Indonesian nation. However, in the midst of progress and rapid development of technology, MSMEs have begun to position themselves so that they can compete with young and modern entrepreneurs. Therefore, MSME practitioners need to optimize their capacity to capture and take advantage of opportunities called Entrepreneurial Capacity. This study aims to examine more deeply the Entrepreneurial Capacity of MSME practitioners in Indonesia. The research was conducted using the N euroresearch method which consisted of three stages of research, namely exploratory, explanatory and confirmatory research. The survey was conducted using an entrepreneurial capacity website which was developed based on standard entrepreneurial capacity instruments. The analysis was carried out using the smartPLS software in addition to seeing the relationship between variables as well as to ensure model fit. The results show that indicators of readiness for change and entrepreneurial performance mindset have a big role in developing entrepreneurial capacity.