Government policy and entrepreneurship preparation: The mediating role of motivation and risk perception

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Abstract

Escalating the number of young entrepreneurs is challenging (Saptono et al., 2020; Maebane, 2023), and government support can be beneficial in raising the intention toward entrepreneurship. This research assessed how government policies influence the readiness of young people to become entrepreneurs and involved motivation and risk perception as mediators. As many as 360 young entrepreneurs in the Special Capital Region of Jakarta were involved in this self-administered survey research, and the hypotheses were estimated using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 3.0 software. The results of our study are consistent with a number of preliminary papers, which indicate that government policies not only affect the readiness of young entrepreneurs to be concerned about entrepreneurship but also increase their motivation and resilience when facing risks. The findings also show that resilience in facing risks can strengthen the influence of government policies and increase the readiness of young entrepreneurs to do business. This work furnishes insight into the vital role of government policy in increasing motivation, resilience to risk, and the readiness of young entrepreneurs to do business.

Keywords: Governance Policy, Motivation, Start-Up, Business, Risk Perception, Entrepreneurship, Young Entrepreneur

Authors’ individual contribution: Conceptualization — K.D.A.S. and A.W.; Methodology — K.D.A.S. and A.W.; Validation — K.D.A.S. and A.W.; Formal Analysis — A.W. and S.M.; Investigation — A.W., S.M., and B.S.N.; Resources — K.D.A.S., A.W., and B.S.N.; Writing — Original Draft — K.D.A.S., A.W., and B.S.N; Writing — Review & Editing — K.D.A.S., A.W., and B.S.N.; Visualization — K.D.A.S., A.W., and B.S.N.; Supervision — K.D.A.S. and S.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G38, L26, M13

Received: 31.05.2023
Accepted: 22.02.2024
Published online: 26.02.2024

How to cite this paper: Sebayang, K. D. A., Wibowo, A., Mukhtar, S., & Narmaditya, B. S. (2024). Government policy and entrepreneurship preparation: The mediating role of motivation and risk perception [Special issue]. Corporate & Business Strategy Review, 5(1), 319–328. https://doi.org/10.22495/cbsrv5i1siart6