Women Entrepreneurship Psychology in Managing Micro, Small, and Medium Enterprises (MSMEs): A Case Study in Indonesia

Abstract

Women play a major role in the family, community, and even the state, and hence, require major attention in their development. During the COVID-19 pandemic where the economy throughout the world—specifically in Indonesia—is declining, Micro, Small, and Medium Enterprises (MSMEs) play an important role. This indicates that women are empowered and play a very significant role in the economy of themselves, their families, and even the state. According to the MSME actors’ perspective on development, their personal capacity, which is psychological capacity, has become the main factor as it is the driving factor of other resources that encourage superior entrepreneurial behaviors, through entrepreneurial orientation as mediator. Psychological capital is psychological fuel in the form of optimism, self-efficacy, resilience, and hope. It will affect entrepreneur orientation, as well as women’s entrepreneurial performance, which are measures of success in entrepreneurship. Development of this model of women entrepreneurship will improve gender equality that supports women to be more empowered and better able to participate in revitalizing the Indonesian economy.

1. Introduction

A total of 65 million micro, small, and medium entrerprises (MSMEs) in Indonesia contribute more than 61% of the Gross Domestic Product (GDP), which absorbs 97% of the workforce and contributes to exports by 14%. The MSMEs still dominate the economic structure by 99.9%, while large businesses are only 0.01%. Based on data from the Ministry of Cooperatives and Small and Medium Enterprises [1], it is reported that 65 millions of micro, small, and medium enterprises (MSMEs) in Indonesia are dominated by women up to 64.5% of all existing MSME actors. This indicates that women are empowered and play a very significant role in the economy of themselves, their families, and even the state. In the end, perspective on gender has become an important part. Thus, the interventions to be given should not exclude women as only recipients or subjects, but also women as agents or crucial actors to advance the economy, social, and culture.

During the last few years to date, the percentage of women’s income contribution has shown increasing progress. Based on data obtained from Central Statistics Agency regarding the contribution of women’s income in Indonesia, it can be concluded that the percentage has continued to increase every year, that is, in 2010, it reached 33.50%, and in 2020, it reached 37.26%. In 2022, the prospect of the Indonesian economy was predicted to increase, and it was expected that it will improve the economy that had slumped during the pandemic by empowering the community, especially in the MSME sector. This is because MSMEs are the main sector that the Government of Indonesia pays attention to in the context of the National Economic Recovery, both before and after the COVID-19 pandemic. Empowerment in the MSME sector is expected to maintain and improve performance to continue to contribute greatly to the Indonesian economy.

The increase is a positive signal of an improvement in the active participation and autonomy of women in the economy, specifically in the industry of entrepreneurship. This is expected to continue until 2022 to improve the regional economy. The Ministry of Cooperatives and SMEs noted that the number of micro, small, and medium enterprises (MSMEs) spread across Indonesia reached 65.47 million units in 2019, which was an increase of 1.98% compared with 2018, which was 64.19 million units. In 2016, there were 61.7 million units, and in 2017, it reached 62.9 million units. It was predicted that in 2020, 2021–2022, the number will continue to increase. Based on data from the Central Statistics Agency in 2021, a total of 64.5% of the total MSMEs spread throughout Indonesia are managed by women [1]. At the micro-enterprise level, 52% of the 63.9 million micro-enterprises in Indonesia are women. For the small business level, there are 56% of the 193 thousand small businesses that are owned by women. At the medium-sized businesses, 34% of the 44.7 thousand business actors are women [1]. The Minister of Cooperatives and SMEs (MenKop UKM), Teten Masduki [1] also target the number of women entrepreneurships in Indonesia’s economic ecosystem to continue to increase. These data show that the involvement of empowered women is very important and makes the economy of themselves, their families, and even Indonesia’s economic growth increase through the MSMEs they manage. Given these relatively large numbers, it can be concluded that the development and progress of MSMEs are very dependent on the role of women who become business actors. If we take a look at the position of MSMEs, which are one of the pillars of national economic resilience, given the majority of MSME actors driven by women, capacity and competency development for each female actor are definitely needed in order to achieve MSME progress so as to produce optimal development.

There are strategies required to be studied to strengthen the role of women as entrepreneurs, including the transformation of informal businesses to formal businesses, transformation in supply chain, modernization in digital technology, and the growth of productive entrepreneurs. This requires an increase in the capacity of human resources, training, mentoring, access to financing facilities, legal aid facilities, information, etc., to be able to develop together.

According to the MSME actors’ perspective on development, their personal capacity, which is psychological capacity, has become the main factor as it is the driving factor of other resources that encourage superior entrepreneurial behaviors. Concern to these psychological factors will provide a more comprehensive approach, because an individual’s success is not only influenced by the facilities received, the opportunities obtained, or the policies provided by the government, but also influenced by the internal factors that give them the internal power to take a stand, make decisions, decide to improve, and learn new things. This is what will be formulated through a women entrepreneurial empowerment approach, which are things that can be done by women from various backgrounds in empowering themselves as MSME actors.

1.1 Psychological capital

Implicitly, the entrepreneurial process for women entrepreneurs of SMEs is closely related to the concept of psychological capital consisting of hope, self-efficacy, resilience, and optimism proposed by Luthans et al. [2]. A person can rise to face challenges and move forward to achieve goals is influenced by psychological capital. Luthans et al. [2] define psychological capital as an individual’s psychological condition characterized by self-confidence in taking on and overcoming difficult jobs (self-efficacy), positive attribution of current and future success (optimism), hope to achieve goals and the ability to finding alternative ways to achieve goals (hope), and the ability to recover quickly when faced with difficult challenges or problems (resilience). Psychological capital is possessed at the individual and organizational levels to achieve excellence through increased knowledge and human capital [2, 3]. Individuals with high psychological capital will be more adaptable and flexible in dealing with heavy work demands. At the same time, the psychological capital possessed will help in improving abilities and well-being [2].

Working women have many responsibilities at work and at home, which can lead to health problems such as stress, anxiety disorders, and other unpleasant consequences. Based on the research of Chawla & Sharma [4], psychological capital has the potential to play an important role to assist female workers in overcoming challenges in the workplace and in managing stress. Psychological capital can help a person to be better able to develop, survive, and maintain something they want [5]. Based on a research by Ambepitiya & Gao [6], when women’s empowerment is combined with psychological capital, women can find out their own abilities for success and improvement in businesses that are run sustainably.

Psychological capital is part of positive organizational behavior and is directly related to a person’s positive emotions [2]. Positive emotions have a significant impact on individual performance at work. Fred Luthans and colleagues proposed the notion of psychological capital (PsyCap) to explain the factors that drive the impact of positive emotions [2]. Based on this, psychological capital is an individual’s positive psychological state, which is characterized by: (1) having confidence (self-efficacy) to take on and put in the necessary effort to succeed at challenging tasks; (2) making a positive attribution (optimism) about succeeding now and in the future; (3) persevering toward goals and when necessary, redirecting path to goals (hope) in order to succeed; and (4) when beset by problems and adversity, sustaining and bounce back and even beyond (resilience) to attain success [3].

Psychological capital is possessed at the individual and organizational levels to create excellence by enriching knowledge and human capital [2]. According to Peterson et al. [7], psychological capital is a positive approach, meaning, and outcome that is considered important for human motivation, cognitive processing, struggle for success, and resulting performance in the workplace. At the individual level, psychological capital is described as a positive psychological state [8], which includes hope, efficacy, resilience, and optimism that will contribute to a person’s performance of work better.

Psychological capital emphasizes the positive side of human life in the form of hope, creativity, courage, wisdom, responsibility, etc. [9]. The positive side of psychological capital can trigger a positive affective state that can facilitate the expansion of one’s actions and thoughts that lead to higher creativity [10, 11]. Positive emotions can basically build and restore energy, physically, socially, and psychologically, which was previously depleted [10]. Psychological capital cannot stand alone and is not an implication of only one dimension, but the joint variance of the four accompanying dimensions, namely self-efficacy, hope, resilience, and optimism [12], as follows.

1. Self-efficacy is defined as a person’s confidence in their ability to mobilize the motivation, cognitive resources, or actions needed to successfully carry out a particular task in a particular context [13]. Efficacy is not related to a person’s actual skills, but rather the beliefs that a person has about what can be done with those skills [14]. In addition, efficacy was found to have a strong positive relationship with work-related performance [13, 15].

2. Hope is a belief to set significant goals, the individual’s process of overcoming obstacles and allowing to overcome the obstacles during goal achievement with the power of motivation [16, 17]. Hope involves alternative means of achieving those goals. In other words, hope is the desire to succeed as well as the ability to identify, clarify, and pursue the path to success [18].

3. Resilience is the ability to resolve and deal with situations when faced with negative situations [19]. In positive psychology, resilience is characterized by positive coping and adaptation in the face of significant risks or difficulties [20, 21]. Resilience allows individuals to not only survive, but also has the potential to thrive on positive adjustment to change [21].

4. Optimism is defined as a positive view of the future [7]. Snyder et al. [17] define optimism as an individual’s hope and positive perspective to give the best performance and persistence to achieve the target. Compared with pessimists, optimists benefit from career opportunities at high levels and pursue goals in difficult situations [22]. Hence, optimism as an aspect of psychological capital is associated with a view of positive outcomes, which includes positive emotions and motivations, and has realistic warnings [19] (Figure 1).

Figure 1.

Dimensions of psychological capital [3].

1.2 Entrepreneurial orientation

Being an entrepreneur requires an entrepreneurial orientation to face the current various challenges [1]. Entrepreneurial orientation can also be a significant contributor to the success of a job [23]. Based on various previous studies, entrepreneurial orientation has a positive relationship to job performance [2, 3, 4, 5, 6]. Based on its definition, Entrepreneurial Orientation is a process, practice, and activity of deciding something that gives rise to a new action [2]. Another definition of Entrepreneurial Orientation according to Miller [24] is something that requires the emergence of innovativeness, risk-taking, and proactiveness simultaneously. Entrepreneurial Orientation can also be defined as a tendency that can lead to a behavior associated with entrepreneurial activity [11]. Entrepreneurial Orientation, at the organizational level, is defined as a strategy-making process that provides the basis for making decisions and acting for entrepreneurship [3].

According to Lumpkin & Dess [25], there are several dimensions that characterize an Entrepreneurial Orientation. These dimensions are autonomy, innovativeness, risk-taking, proactiveness, and competitive aggressiveness. These dimensions can arise when an organization plans to do something new. These dimensions are processes in an organization that involve strategic decisions of the organization.

1.2.1 Autonomy

Autonomy is an independent action of a person or group in bringing an idea or view and will be carried out until it is resolved. In general, autonomy means the ability and desire to be able to independently pursue an opportunity. In the context of the organization, autonomy can be explained as an action that is independently carried out to deal with obstacles occurred. Although there are factors such as the availability of resources, actions from competitors, or internal organizational decisions that can change the initiative to create new things, these things are considered insufficient to eliminate a person’s autonomy to create new things.

1.2.2 Innovativeness

Innovativeness reflects a tendency of organizations to use and support new ideas, things, experiments, and creative processes that can produce new products, services, or technologies. Although innovativeness can vary in degree of radicalism, it represents a basic willingness to move beyond existing technologies and practices and pursue something new that has never existed. Innovativeness has various kinds that can be formed on a continuum, ranging from simple things such as trying a new product or experimenting with something, to being committed to mastering a product or technology. Innovativeness is an important component of Entrepreneurial Orientation because innovativeness reflects the importance of an organization to seek new opportunities.

1.2.3 Risk-taking

The concept of risk-taking is very often used to describe entrepreneurship. This concept arises from the main factor that distinguishes between entrepreneurs and recruited employees, namely the uncertainty and risk in entrepreneurship. Risk itself has various meanings, depending on the context in which it is applied. For instance, in the context of strategy or in the context of financial analysis. It can also be said that risk-taking has its own levels, ranging from “no risk at all” to the “safe” level and to the “very risky” level.

1.2.4 Proactiveness

Taking initiative by anticipating and pursuing new opportunities as well as participating in emerging markets is often defined as proactiveness. Proactiveness according to Webster’s Ninth New Collegiate dictionary (1991) in Lumpkin & Dess [25] is defined as anticipatory action against problems, needs, or changes that will occur in the future. Hence, proactiveness can be crucial to entrepreneurship orientation as it provides a forward-looking perspective accompanied by innovation or activity to create new things.

1.2.5 Competitive aggressiveness

Competitive aggressiveness is a tendency to face challenges directly and intensely from competitors to create new things or improve their position, in order to outperform their competitors in the market. Competitive aggressiveness is characterized by responsiveness, which can take the form of direct confrontation. For example, a new product plans to enter a market, and other competitors have identified a lower price in the face of the challenge. Competitive aggressiveness also reflects a willingness to be unconventional rather than having to rely on traditional methods to compete. Examples of forms of competitive aggressiveness that can occur are using unconventional tactics to challenge incumbents in the industry, analyzing and targeting competitors’ weaknesses, and focusing on high-value products while monitoring spending.

Based on various previous studies, it was found that entrepreneurial orientation has a positive relationship with performance [2, 3, 4, 5]. Based on the meta-analysis conducted by Rauch et al. [26], from more than 50 research studies that have been conducted, the results show that entrepreneurial orientation has positive implications for performance (Figure 2).

Figure 2.

Dimensions of entrepreneurial orientation [27].

1.3 Entrepreneurial performance

Performance has become something that is greatly important in running a business. In the context of entrepreneurship, performance is the output of entrepreneurs that can be measured. In addition, it is one of the most significant dependent variables and is widely used in research in the field of management or business. This is due to the fact that performance can explain how well an entrepreneur is at work [28]. Daft [29] in his research writes on business performance, namely ability in the process of utilizing resources owned by the organization, which includes knowledge, human resources, and raw materials to achieve the goals of effectiveness and efficiency. Entrepreneurial performance is defined as profit growth made by an entrepreneur [30] and taking the opportunity to develop business ideas in [31]. In this case, these advantages indicate the progress and good development of a business they manage. In addition, entrepreneurial performance is also defined as the capability of an entrepreneur/organization in achieving business goals [32, 33]. The goals can be seen from the high profits earned, adequate product quality, good financial wheels, etc. This performance can generally be analyzed through an objective or subjective perspective. In their research, many recommend that this performance measurement should include two important dimensions, namely from a financial and non-financial side that can measure what goals have been achieved and can predict the future [34]. The financial dimension, for example, is profit, turnover, and the financial wheel related with finance. On the other hand, non-financial dimension includes the ability to take risks, innovation, need for achievement, commitment, and sustainability of the business.

Kimatu and Bichanga [35] state that the performance of enterprises can be determined by their competitive strategy, which means the enterprise with a higher competitive advantage compared with its competitor will have better performance and vice versa. Entrepreneurial performance consists of two dimensions, namely financial performance and non-financial performance.

Financial aspect includes:

1. Profit, which is an assessment of MSMEs’ performance through profits obtained from the business sales.

2. Sales, which is an assessment of MSME performance based on how the process of selling basic and other goods from the business.

3. Cash Flow, which is an assessment of MSME performance based on the flow of cash expenditures and cash receipts within a certain period.

Non-financial aspect includes:

1. Employee condition, which is an assessment of MSME performance based on the conditions of the employees who work for the business.

2. Valued customer, which is an assessment of MSME performance on the value of the products/services offered, such as attention, relevance, confidence, and satisfaction, recognized by customers.

3. Product Development, which is an assessment of MSME performance based on all stages that aim to develop products from a concept or idea that has been run by the business.

The framework used in this research can be seen in the Figure 3.

Figure 3.

Research framework.

Developing on the base of logical relationships derived from the aforementioned theoretical background, which provided support for psychological capital being an antecedent of entrepreneurial performance with the intermediary effect of entrepreneurial orientation, this study proposes following hypotheses:

1. H1. Psychological capital has positive direct effect on entrepreneurial orientation.

2. H2. Psychological capital has positive direct effect on entrepreneurial performance.

3. H3. Entrepreneurial orientation has positive direct effect on entrepreneurial performance.

4. H4. Psychological capital has positive indirect effect through entrepreneurial orientation impacts on entrepreneurial performance.

In the empirical study, the relationship model of psychological capital, entrepreneurial orientation, and entrepreneurial performance as shown in Figures 1–3 can be constructed based on the above hypotheses with each hypothesis being divided into sub-hypotheses to test the relationship between psychological capital and entrepreneurial orientation. The independent variables of this study are Psychological Capital, including Self-Efficacy, Hope, Optimism, and Self-Resilience. The intermediary variables are entrepreneurial orientation, including Innovativeness, Proactiveness, Autonomy, Competitive Aggressiveness, and Risk-Taking. The dependent variable is enterpreneurial performance, including Financial Performance and Non-Financial Performance. Based on the current entrepreneurial environment, psychological capital can positively affect the performance of enterprise through entrepreneurial orientation.

2. Methods

The method used in this research was descriptive quantitative. Descriptive quantitative research is research that aims to explain and describe a phenomenon based on numerical data to answer the research question. This method is also usually used by researchers to determine the status of human groups, an object, a set of conditions, a system of thought, or a class of events in the present, which aims to make a systematic, factual, and accurate description of the facts, characteristics, as well as the relationship between the phenomena examined. The research population was SMEs in Indonesia. Sampling was carried out on three provinces, including Province of the Special Region of Yogyakarta, West Java Province, and West Sumatra Province. The number of samples was 995 MSME actors.

The instrument used to measure Psychological Capital was Psychological Capital Questionnaire (PCQ), which was adapted from Luthans and Youssef et al. [3] with Cronbach’s Alpha value of 0.905, indicating that PCQ is reliable. Meanwhile, the instrument used to measure Entrepreneurial Orientation was an instrument modified from the Individual Entrepreneurial Questionnaire [36]. Based on the analysis results, the adapted Individual Entrepreneurial Orientation Scale (IEO) had a Cronbach’s Alpha value of 0.929, meaning that IEO is reliable. The instrument used to measure women entrepreneurial performance was an instrument adapted and modified from several previous studies on entrepreneurial performance, including Entrepreneurial Performance Questionnaire on the Non-Financial Performance aspect [35] and Entrepreneurial Performance Questionnaire on the Financial Performance aspect. This Entrepreneurial Performance instrument was then re-adapted by researchers from the original language into Indonesian and adapted to the research population. Based on the results, the value of Cronbach’s alpha was .910, indicating that the instrument is reliable.

3. Discussion

Gender Equality and Women’s Empowerment have become part of Indonesia’s National Long-Term Development Plan for the period 2000–2025. Women as economic drivers of families and communities can be implemented through entrepreneurship activities and Micro, Small, and Medium Enterprises (MSMEs). In 2022, Indonesia has more than 64 million MSMEs that contribute to the National Gross Domestic Product (GDP) by 61%, of which 64% of MSME actors are women, and there has been an increase in the number of businesses led by women by 114%. Given that women constitute 48.4% of the total population of Indonesia, the potential of women must continue to be explored and empowered. Women play a big role in the economy for themselves, their families, and even for the country. Therefore, the empowerment of women must be carried out properly.

The economic condition in Indonesia currently continues to develop with the increasing number of MSMEs; hence, the competition faced will be even tighter. During the process, women who can take advantage of the situation and have consistency and confidence in their abilities will be able to move forward more easily than those who do not. If this is not addressed, there will be a continuing gap that makes it difficult for women-owned businesses to progress and develop, given the important role of women in Indonesia’s economic progress. Women’s empowerment is needed as it can be a solution for women in considering their strengths, weaknesses, opportunities, threats, and developing themselves to be able to move forward so as to open up the potential to change the lives of themselves, their families, and communities through their MSMEs. Further treatment is necessary because empowerment of women requires a positive psychological role from within in the form of psychological capital [2]. Psychological capital will be studied further as it plays significant role that can strengthen the role of women’s empowerment. Psychological capital is an individual’s positive psychological state of development and is characterized by: (1) having confidence (self-efficacy) to take on and put in the necessary effort to succeed at challenging tasks; (2) making a positive attribution (optimism) about succeeding now and in the future; (3) persevering toward goals and when necessary, redirecting path to goals (hope) in order to succeed; and (4) when beset by problems and adversity, sustaining, and bounce back and even beyond (resilience) to attain success [3].

Based on the results, it was found that entrepreneurial orientation as a mediator has data as shown in Table 1.

95% confidence interval
Effect	Label	Estimate	SE	Lower	Upper	Z	p	% Mediation
Indirect	a × b	0.475	0.0306	0.4153	0.535	15.55	< .001	79.9
Direct	c	0.120	0.0160	0.0882	0.151	7.48	< .001	20.1
Total	c + a × b	0.595	0.0329	0.5302	0.659	18.05	< .001	100.0

Table 1.

Mediation estimates.

The path analysis performed provides data as shown in Table 2.

Path estimates
			Label	Estimate	SE	95% Confidence Interval		Z	p
						Lower	Upper
PC	→	EO	a	0.655	0.0409	0.5748	0.735	16.00	< .001
EO	→	EP	b	0.726	0.0110	0.7039	0.747	65.67	< .001
PC	→	EP	c	0.120	0.0160	0.0882	0.151	7.48	< .001

Table 2.

Path analysis.

The data above show that entrepreneurial orientation plays as a mediator that correlates psychological capital with entrepreneurial performance with an indirect effect of 0.475. If there is no mediator, it provides a direct effect of 0.120. This can be seen in Figure 4.

Figure 4.

Relationship between variables.

Based on the analysis, Entrepreneurial Orientation plays a significant role in mediating the relationship between psychological capital and entrepreneurial performance. Before deciding to be an entrepreneur, a person must have an orientation in order that they can carry out their work with good performance and be able to overcome various difficulties. Therefore, entrepreneurial orientation is one aspect that needs to be considered. In accordance with the definition of entrepreneurial orientation that is a process, practice, and activity of deciding something that gives rise to a new course of action, then this is what will arise when they decide to be an online shop actor to take action for entrepreneurship and face all situations that will arise. The dimensions of entrepreneurial orientation consisting of innovativeness, proactiveness, risk-taking, passion, and perseverance can have an important role in performance.

If innovativeness possessed in a person, it will bring up a good image and reputation of the business. Therefore, it can increase the income earned and increase the efficiency of the operational costs that must be incurred [7]. If a person also has innovativeness, they will be able to answer the various needs requested by their consumers, resulting in satisfaction and retention.

Proactive individuals are able to adapt to change, to see the risks that will occur in the future, and to turn these risks into opportunities rather than challenges. They will also be able to identify gaps that occur and to close those gaps with the products and services offered [8]. In addition, those who are proactive will actively seek new opportunities and are able to outperform their competitors who are less willing to seek new opportunities [9].

Taking risks means having the courage to face the possibility of failure or success. Those who take risks enable them to stand out from their competitors to create new opportunities [8]. Those who take risks also enable them to act aggressively and explore new possibilities [10].

Those who have passion in doing their job will make them get wider recognition, take advantage of various opportunities ahead, be able to develop new ideas, and improve their performance [12]. Individuals who have perseverance or persistence will continue to strive to achieve the desired goals even though they are faced with various difficulties [12]. In addition, persistence is also positively related to income [13].

In general, if all the dimensions possessed in a person, it will have a positive impact on the performance of MSME actors both financially and non-financially. Given this positive impact, the performance of MSME actors will be much better. It will enable them to encounter the various difficulties and develop them to be entrepreneurs with improved abilities.

In entrepreneurship, there are various factors that can affect the orientation and performance of an entrepreneur, both internal and external [14]. Internal factors include personality and motivation [14], gender [15, 16, 17, 18], age [19, 20], and education [21]. Meanwhile, external factors include cultural factors, assistance from government programs, business size, and length of business [14, 22].

In external factors, culture is one of the important elements in entrepreneurship as it can influence the attitude of an individual in entrepreneurship. Some cultures can make a person encouraged or even given up continuing to run the business. Assistance from government such as facilities, programs, or subsidies can also affect entrepreneurial orientation as it will further encourage business actors to strengthen their entrepreneurial activities [22]. In addition, a person’s tenure has a negative relationship to entrepreneurial orientation because the longer working hours make a person hampered to innovate and avoid taking risks.

Psychological capital consisting of self-efficacy, hope, optimism, and self-resilience will encourage MSME actors to develop innovation, autonomy, proactive attitude, risk-taking, and competitive aggressiveness, which will drive the achievement of financial and non-financial performance of MSME actors, consisting of profit, sales, cash flow, employee conditions, valued customers, and product development.

The female MSME actors who come from different provinces and ethnic groups do not show any fundamental differences in terms of psychological capital, entrepreneurial orientation, or entrepreneurial performance. However, this indicates that female MSME actors can increase their psychological capacity to create entrepreneurial orientation that can support the better achievement of MSME performance results, in terms of both financial and non-financial.

4. Conclusions

Studies on the importance of improving psychological capacity have proven to be able to improve the performance of MSME actors mediated by Entrepreneurial Orientation. Based on entrepreneurial perspective, women can deal with problems despite doing housework and MSMEs at the same time by developing their psychological capacity. Psychological capital plays as psychological fuel in the form of optimism, self-efficacy, resilience, and hope, which will encourage women to create positive attitudes toward entrepreneurship, which in turn will help them solve problems, encounter problems, and compete in the industry in MSME sector. Development of this model of women entrepreneurship will improve gender equality that supports women to be more empowered and better able to participate in entrepreneurial fields in order that they can encourage changes in woman’s entrepreneurial behavior to become an accelerator of revitalizing the Indonesian economy in particular.

Acknowledgments

This research was supported by the Kemendikbudristek Indonesian Governance (Grant No. 1318/UN6.3.1/PT.00/2022).

Conflict of interest

The authors declare no conflict of interest.