Does Spirituality and Social Factor Promote the Intention of Starting a New Business?
Abstract
This study estimates the empirical model on spirituality and social factor that can promote entrepreneurial motivation and the intention of starting a new business. In this paper, we incorporated PLS-SEM to reach a better finding on the nexus between variables and understanding the mediating variable. This study involved 320 youth Muslim entrepreneur communities in Batu of Indonesia that are concerned with various business and entrepreneurial activities. Our results reveal that spirituality is fundamental for Muslim youth entrepreneurs to start a new venture, and it highly drives entrepreneurial motivations. Similarly, social factors play also a significant role in escalating entrepreneurial motivation and intention to initiate a business. Lastly, the study confirms a significant role of entrepreneurial motivation as a mediating variable. This study recommends further improving the development of community-based entrepreneurship in rural areas to affect the motivation to start up a business of youth entrepreneurs. This study offers the government’s strategy in the Indonesian context to increase the creation of new businesses.
Keywords: spirituality, social factor, entrepreneurial motivation, the intention of starting a new business, rural community development.
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