Exploring the Role of Individual Focused Entrepreneurial Leadership in Small Business

Small Business agree that business digitalization can increase the number of customers, simplify the marketing process, and reduce marketing costs. Digital platforms can increase transaction speed, increase workforce, and strengthen customer loyalty. Entrepreneurial leadership differentiates itself from other leadership styles by focusing on leader behaviors that identify, define, and take advantage of opportunities to develop new products, services, and business processes. Background Problems: Digitalization also presents a number of new challenges for Small Business. Small Business face the challenges of a lack of workers’ digital skills, difficulties in recruiting digitally skilled workers, high platform service costs, intense competition, and consumer opinions in the digital space which can affect business reputation. The Department of Cooperatives and Small & Medium Enterprises of Central Java Province (2019) is committed to increasing the strategic role of Cooperatives and Small and Medium Enterprises (UKM) in encouraging economic growth in Central Java. Novelty: Our Entrepreneurial Leadership (EL) scale represents a pioneering endeavor, offering a robust framework to gauge employees’ behavioral perceptions. It stands as a valuable tool to assess the efficacy of leadership strategies within the entrepreneurial context. Research Methods: Questions were developed for a questionnaire based on concepts and theories and validated using exploratory factor analysis (EFA). Research samples were employees in the small business in Indonesia. This research will be conducted on MSMEs in Central Java. Finding/Results: Our investigation discerned several discernible factors within the realm of Entrepreneurial Leadership (EL), shedding light on its multifaceted nature and providing insights into its operational dynamics within small businesses. Conclusion: The delineation of diverse dimensions within the EL construct underscores the adaptability and applicability of our scale questionnaire across varied business environments and settings. This instrument, whether utilized in its current form or with minor adjustments, holds promise for enhancing organizational leadership practices and fostering entrepreneurial growth.