The Influence of Entrepreneurial Orientation and Business Motivation on the Business Performance of Snack Food MSMEs in North Bogor District, Bogor City

Abstract

Background: The development of MSMEs in North Bogor District also requires entrepreneurs to be able to compete actively amidst increasingly competitive business conditions. Therefore, innovation and appropriate strategies are needed to maintain and develop their businesses. In reality, many MSMEs still have limitations in terms of entrepreneurial orientation, business motivation, and business performance. This condition encourages research to determine the extent to which MSMEs possess the entrepreneurial orientation and business motivation that support business performance.

Purpose: The purpose of this study is to analyze: 1) the response of business owners to entrepreneurial orientation and business motivation on business performance in snack food MSMEs in North Bogor District, Bogor City, 2) the simultaneous influence of entrepreneurial orientation and business motivation on business performance in snack food MSMEs in North Bogor District, Bogor City, 3) the partial influence of entrepreneurial orientation and business motivation on business performance in snack food MSMEs in North Bogor District, Bogor City.

Methodology: The method used in this study was descriptive and verification with a quantitative approach. A sample of 100 business owners was drawn using a probability sampling method with a simple random sampling procedure.

Finding: The test results concluded that simultaneously and partially, the entrepreneurial orientation and business motivation variables had a positive and significant effect on business performance. This implies that MSME owners who demonstrate stronger entrepreneurial orientation characterized by innovation, risk-taking, and proactiveness and higher levels of motivation tend to achieve better business performance. These findings emphasize that internal entrepreneurial factors play a crucial role in improving MSME success, particularly in regions with limited market access and economic challenges such as North Bogor District. Hence, this study can serve as a reference for local authorities and MSME support organizations in developing programs aimed at strengthening entrepreneurial orientation and enhancing business motivation among local entrepreneurs.

Limitation: The research was conducted within a limited time frame, which restricted the possibility of conducting longitudinal analysis to observe changes in business performance over time and The data were collected through self-administered questionnaires, which may lead to response bias as some respondents might provide socially desirable answers rather than objective information.

Originality: This study possesses a high degree of originality as it focuses on Micro, Small, and Medium Enterprises (MSMEs) located in the North Bogor District, an area that has rarely been the specific subject of academic research. Most previous studies on MSMEs in Bogor City have generally examined the city as a whole or other districts such as Central Bogor or Tanah Sareal, which have different economic and social characteristics. Furthermore, North Bogor District has unique local economic potential and demographic characteristics, such as a high concentration of home-based micro enterprises, limited access to formal financing, and relatively low levels of business digitalization. These conditions make this research both relevant and novel, as it provides a more contextual and in-depth understanding of MSME conditions in a specific local area. Therefore, this study not only enriches the existing literature on local MSME development but also serves as a new empirical reference for local governments and MSME support institutions in designing more targeted policies based on the actual conditions in North Bogor District.