How Entrepreneurial Mindset, Human Resource Competencies, and Financial Aspect Influence Micro, Small, and Medium Enterprises (MSMEs) in Food and Beverage

Abstract

Introduction: Micro, Small and Medium Enterprises (MSMEs) have an important role in the community's economy. The survival and readiness of MSME players to compete with high performance is very necessary for the growth of MSMEs in Indonesia. Performance instability is a problem faced by MSMEs in the food and beverage industry. That there is a lack of entrepreneurial mindset in individuals and in business teams. One thing that influences the success of MSMEs is Human Resource (HR) expertise, where business development will not be successful without the help of reliable HR competencies. The financial aspect is a component that ensures financing and cash flow projections in achieving business performance. This research purposes were to explained the influence of entrepreneurial mindset, human resource competencies, and financial aspect to MSMEs performance. Design/Methods: The sampling technique used purposive sampling. The sample size was 135 respondents. Research data collection used a questionnaire. This research method was the Structural Equation Modeling Partial Least Square (SEM-PLS). Finding/Results: This research resulted that an entrepreneurial mindset had a significant positive effect on the MSMEs performance because an entrepreneurial mindset can improve the mindset for growth in running the business. HR competencies had a significant positive effect on MSME performance. The financial aspect had a significant positive effect on the MSMEs performance. Research Limitation/Implication: This research was conducted in the Gunungkidul Regency and specifically the MSME for the food and beverage industry. Originality/Value: Suggestion for food and beverage MSME owners in Gunungkidul Regency, if they want to improve their performance, they are advised to pay attention to entrepreneurial mindset, HR competencies, and financial aspect.