The Impact of Entrepreneurial Competence and Internal Environment on Small and Medium Business Performance in North Maluku Province, Indonesia

Abstract

This study aims to analyze the influence of entrepreneurial competence, internal environment and business performance through competitiveness on MSMEs businesses in North Maluku province. This research is a type of survey with a quantitative descriptive approach. The research data obtained through a questionnaire with the Likers scale. The number of research samples was 240 SMIs or MSME owners with 4 (four) locations, namely Ternate City, Tidore Islands City, Morotai Island Regency and West Halmahera Regency in Maluku Province, Indonesia. By using quantitative analysis with SEM (Structural Equation Modeling) through AMOS application, this research found and  revealed that entrepreneurial competence directly has a negative and insignificant influence on competitiveness, the internal environment has a positive and significant influence on competitiveness, entrepreneurial competence has a positive and significant influence on business performance, the internal environment has a positive and insignificant effect on business performance through competitiveness.