Abstract:

Entrepreneurial motivation is one of the sources of growth for Small and Medium Enterprises (SMEs). SMEs in Indonesia continued to increase after the 1998 reform with a variety of business sectors being run. One of them is the SMEs in the creative industries which plays a role in the 2016 Regional Gross Domestic Product (GDP) with one of the creative fields of SMEs. One of which is Koto Gadang, that has indigenous products named Salendang Koto Gadang and Silver Crafts. The creative sector SMEs produces and sells Koto Gadang typical products which can be called indigenous SMEs. Every year the number of SMEs in Koto Gadang tends to increase which is influenced by the motivation of the SMEs businesses there. Using a quantitative approach, this study collects data by means of mixed method. Data collection with quantitative techniques was carried out by distributing questionnaires to 70 indigenous SMEs in Koto Gadang. Data collection with qualitative techniques is done by in-depth interviews with related stakeholders. Based on the theoretical perspective and findings in the field, this study shows that business motivation based on necessity has a positive influence on the increase of indigenous SMEs in Koto Gadang.