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FORMOSA NEWS - Jakarta - Support and Proactive Mindset Drive Sustainable Business Intentions Among Small Crafts Enterprises, Study Finds. Micro, small, and medium enterprises (MSMEs) do not adopt green and socially responsible business models by accident. A study published in 2026 reveals that a strong blend of external support from public and private institutions, coupled with an individual’s proactive mindset and personal self-efficacy, directly drives the intention of small business owners to run sustainable enterprises. The study was conducted by researchers Rahmatul Khalik Alwiyasa, Suparno, and Agus Wibowo from Universitas Negeri Jakarta in Indonesia. Published in the Formosa Journal of Sustainable Research, the empirical investigation highlights how institutional backing strengthens an entrepreneur's confidence and proactive nature, bridging the long-standing gap between green intentions and actual sustainable actions in the traditional craft sector.

The Challenge of Green Transformation for Small Enterprises
Small and medium enterprises form the backbone of local economies, yet their collective environmental footprint remains substantial. While larger corporations often have dedicated resources for corporate social responsibility and environmental compliance, micro and small businesses face steep operational constraints. Many small business owners express a positive attitude toward eco-friendly practices but struggle with limited capital, lack of technical knowledge, and inadequate access to green technology. This discrepancy creates an action gap in sustainable entrepreneurship. To overcome these situational barriers, researchers at Universitas Negeri Jakarta examined how external environmental factors and internal psychological assets interact to encourage sustainable business commitments.

Simple and Rigorous Research Approach
To evaluate these dynamics, Rahmatul Khalik Alwiyasa, Suparno, and Agus Wibowo focused on the artisanal craft sector in Cianjur Regency, West Java, a region actively developing small enterprises as key economic drivers.
  • Sample and Participants: The team surveyed 204 handicraft enterprise owners selected via purposive sampling from a total population of 417 registered small businesses.
  • Data Collection: Structured questionnaires were distributed between March and May 2025 using a five-point scale to gather responses on institutional support, proactive personality, self-efficacy, and sustainable business intentions.
  • Analytical Framework: The researchers analyzed the survey data using Partial Least Squares Structural Equation Modeling (PLS-SEM). This advanced statistical method allowed the team to evaluate direct impacts as well as complex indirect pathways through mediator variables.
  • Key Findings on Sustainable Business Intentions.

The research by the Universitas Negeri Jakarta team produced several key insights into how small enterprise leaders develop sustainable business intentions:

  • Direct Impact of Institutional Support: Formal policy backing, technical training, green financing access, and legal support directly boost an entrepreneur's proactive behavior and self-efficacy.
  • Power of a Proactive Personality: Business owners who naturally seek opportunities, initiate positive change, and face obstacles head-on exhibit significantly higher confidence in managing sustainable operations.
  • Crucial Mediating Role of Self-Efficacy: Individual self-efficacy—an entrepreneur's belief in their ability to manage a green business—serves as a vital bridge. Institutional support yields its maximum impact on sustainable intentions when it successfully elevates the business owner's personal confidence.
  • Synergistic Psychological Assets: A proactive personality combined with strong institutional backing creates a powerful psychological foundation, leading directly to higher commitments to balanced economic, social, and environmental business goals.
Real-World Impact and Policy Implications
The findings offer actionable strategies for municipal governments, policymakers, and economic development agencies seeking to promote eco-friendly industries. Simply offering financial incentives is insufficient to create lasting change. Public institutions must design comprehensive support programs that incorporate hands-on mentorship, clear regulatory frameworks, and accessible green information systems. By building a supportive ecosystem, institutions directly bolster entrepreneurial self-efficacy. When small enterprise owners feel confident in their ability to navigate complex green markets, they are far more likely to integrate Triple Bottom Line principles focusing equally on profit, people, and the planet into their daily business operations.

Author Profiles
Rahmatul Khalik Alwiyasa, S.Pd., M.Pd. is a researcher at Universitas Negeri Jakarta specializing in entrepreneurship development, small business management, and vocational education.
Dr. Suparno, M.Si. is a senior lecturer and researcher at Universitas Negeri Jakarta with expertise in business strategy, operations management, and sustainable entrepreneurship.
Prof. Dr. Agus Wibowo, S.Pd., M.Pd. is a Professor at Universitas Negeri Jakarta whose research focuses on entrepreneurship education, organizational behavior, and small enterprise growth strategies.

Source
Rahmatul Khalik Alwiyasa, Suparno, Agus Wibowo. The Effect of Institutional Support, Proactive Personality, and Self-Efficacy on Sustainable Entrepreneurial Intention. Formosa Journal of Sustainable Research (FJSR), Vol. 5, No. 7, 2026, Hal. 489-508
DOI: https://doi.org/10.55927/fjsr.v5i7.52
URL: https://journalfjsr.my.id/index.php/fjsr