Journal of Economics, Business, & Accountancy Ventura
Vol. 21 No. 3 (2018): December 2018 - March 2019

Entrepreneurial finance: financing antecedents and SMEs performance

Rita, Maria Rio (Unknown)
Wahyudi, Sugeng (Unknown)



Article Info

Publish Date
27 Mar 2019

Abstract

Various previous research has been conducted on the relationship between a cognitive bias and financing decisions by entrepreneurs. Besides that, it still needs to be examined whether a cognitive bias is related with SMEs performance through company finances. The purpose of this research is to test financing antecedents and SMEs performance. One kind of a creative industry, batik SMEs that are located in Pekalongan, Central Java, Indonesia, are the object of this research. There were 190 respondents chosen from batik entrepreneurs. The holistic testing of this empirical model used structural equation modelling (SEM) with an AMOS program. The research results found that an entrepreneur’s cognitive bias has a significant positive bias towards financing. Meanwhile, entrepreneurial orientation and financing also are proven to have a significant positive influence towards SMEs performance. No entrepreneurial orientation influence was discovered towards SMEs performance. Furthermore, the output analysis revealed there is an indication of a strong relationship between a cognitive bias and entrepreneurial orientation. Therefore, this model can be revised, developed, and retested by considering the agenda of this research to enrich insights in the entrepreneurial finance sphere.

Copyrights © 2018






Journal Info

Abbrev

jebav

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Economics, Business and Accountancy (JEBAV) addresses economics, business, banking, management and accounting issues that are new developments in business excellence and best practices, and methodologies to determine these in manufacturing and financial service organisations. It considers ...