THE SCALE OF COMPETENCY IN ENTREPRENEURSHIP DEVELOPMENT AMONG MSMES IN INDONESIA

Abstract

The growth of Micro, Small, and Medium Enterprises (MSMEs) is recognized as a vital catalyst for economic growth in developing nations, such as Indonesia. Universitas Kristen Maranatha, one of the universities in Indonesia, plays a role in enhancing the entrepreneurial competence of MSME entrepreneurs. The purpose of this research is to identify the fundamental competencies needed by MSME owners to grow their companies and successfully navigate the present business challenges. The current issue is the lack of entrepreneurial competence among many MSME entrepreneurs, which is a crucial factor for the success of MSMEs and a competitive advantage in the face of business competition. The research employs the Exploratory Factor Analysis (EFA) method to identify dimensional factors that arise from a set of indicators. Confirmatory Factor Analysis (CFA) is used to evaluate the validity of MSME entrepreneurial skills in Indonesia, while Cronbach Alpha is used to analyze the reliability of indicators. The research findings indicate that MSME owners possess competence in five distinct dimensions: managerial, tactical, quality of service, improvement, and performance. The existing scale resulting from this research consists of only 26 indicators of competency. The competency scale for owners of small and medium-sized businesses offers indications that can precisely assess the particular competency requirements within the micro and cultural environment of SMEs, taking future competency demands into account. Training programs designed specifically for micro-level MSMEs can be developed using the indicators on the competency scale as a guide.