The Role of Green Entrepreneurship Orientation to Sustain the Indonesian SMES’ Business Performance

Abstract:

The environmental issues and business sustainability now have a stronger relationship. Responding to the environmental issues into opportunities and challenges for SMEs in Indonesia to change the paradigm of business into green entrepreneurship orientation through eco-innovation in products and services. The purpose of this study was to build the model and investigate the impact of green entrepreneurship orientation to SMEs’ businesses performance. The concept of green entrepreneurship orientation was developed from the basic concept of entrepreneurship orientation those are green Innovativeness, green Risk-taking and green Proactiveness. The research design used in this study was descriptive research design. Data was collected by survey method through structured questionnaire with ten point rating scale. The survey questionnaires were collected to 100 respondents of SMEs’ owner in the organic food farm. The questionnaires were processed and analysed with the Structural Equation Model (SEM).