Capital structure analysis of MSMEs with reference to start-up and later stages

This research investigates the complex dynamics that shape the sustainability of start-ups in Indonesia, focusing on the influence of government policies, networks, capital structure, entrepreneurial ecosystem, and business incubators. Using Structural Equation Modeling with Partial Least Squares, this study analyzes data collected from 315 sample start-ups across various sectors. The results show significant relationships among the factors studied. Government policy emerges as a critical determinant, impacting business incubators and the broader entrepreneurial ecosystem. Networks and capital structures also play an essential role, in influencing business incubators and the entrepreneurial landscape. This study highlights the interconnectedness of these elements and underscores the importance of a holistic approach to foster sustainable start-ups. Theoretical implications suggest integrating factors in entrepreneurship models, emphasizing the role of policy-driven ecosystem development, network-centric approaches, and consideration of financial dynamics. Practical implications guide policy makers, entrepreneurs, investors, and business incubator managers in shaping a supportive and dynamic start-up ecosystem. While acknowledging limitations, this study contributes valuable insights into entrepreneurship and offers a foundation for future investigations into the sustainability of start-ups in various contexts.

Section: Discussionmentioning

confidence: 99%

Section: B Network and Start-up Sustainabilitymentioning

confidence: 99%

Supporting Start-ups in Indonesia: Examining Government Policies, Incubator Business, and Sustainable Structure for Entrepreneurial Ecosystems and Capital

Bernardus,

Arisa,

Sufa

et al. 2024

“…Financial Literacy: Measured using a composite index based on respondents' knowledge, skills, and behaviors related to financial management, investment, and risk assessment (Ferli, 2023;Lestari et al, 2022;Majid & Nugraha, 2022). Capital Capacity: Assessed based on access to financial resources, credit availability, investment opportunities, and funding sources (Altaf & Shah, 2021;Desai et al, 2021). Networking: Evaluated using indicators of network size, diversity, strength of ties, participation in business associations, and frequency of networking activities (Pratama et al, 2023).…”

Section: Variables and Measurementmentioning

confidence: 99%

Effect of Financial Literacy, Capital Capacity, and Network on the Performance of MSMEs in South Tangerang, Banten, Indonesia

Yustisi

2024

The purpose of this research is to determine how networking, capital capacity, and financial literacy affect the performance of MSMEs in South Tangerang, Banten, Indonesia. The study looks at how these factors relate to MSME performance metrics using a quantitative analysis based on survey data gathered from 120 MSME owners/managers. The findings show a strong positive association between MSME success, networking, capital capacity, and financial literacy. Furthermore, regression analysis shows that improved MSME performance outcomes are linked to increased levels of networking, capital availability, and financial literacy. To support sustainable economic development in the area, our findings highlight the significance of enhancing financial literacy, expanding capital accessibility, and creating networking opportunities for MSMEs in South Tangerang, Banten, Indonesia.

“…a. Capital Structure: This construct will be measured using indicators such as the debt-to-equity ratio, leverage ratio, and capital intensity, with higher scores indicating greater reliance on debt financing (Desai et al, 2021;Priyanto & Aryati, 2023). b.…”

Section: Measurement Instrumentsmentioning

confidence: 99%

The Effect of Capital Structure, Financial Literacy on Financial Reporting Efficiency Mediated by Technology Adoption in the Telecommunications Industry in Indonesia

Iskandar

2024

This study investigates the interrelationships between capital structure, financial literacy, technology adoption, and financial reporting efficiency in the telecommunications industry in Indonesia. A quantitative research approach is adopted, utilizing structural equation modeling with data collected from telecommunications companies. Descriptive statistics, measurement model assessment, and structural model assessment are conducted to analyze the data. The results indicate significant direct effects of capital structure, financial literacy, and technology adoption on financial reporting efficiency. Furthermore, technology adoption mediates the relationships between capital structure, financial literacy, and financial reporting efficiency. These findings provide valuable insights for telecommunications companies, policymakers, regulators, investors, and industry practitioners, emphasizing the importance of optimizing capital structure, enhancing financial literacy, and leveraging advanced technologies to improve reporting practices and foster transparency and accountability within the sector.