Title: Micro-business success: gender and innovation

Authors: Nathania M. Yuliani; R. Shanti D. Ottemoesoe; Yohanes S. Kunto; Sautma Ronni Basana

Addresses: School of Business and Management, Petra Christian University, Jl. Siwalankerto 121-131, Surabaya, 60236, Indonesia ' School of Business and Management, Petra Christian University, Jl. Siwalankerto 121-131, Surabaya, 60236, Indonesia ' School of Business and Management, Petra Christian University, Jl. Siwalankerto 121-131, Surabaya, 60236, Indonesia ' School of Business and Management, Petra Christian University, Jl. Siwalankerto 121-131, Surabaya, 60236, Indonesia

Abstract: Studies indicate that business performance varies by gender, with disparities more pronounced in regions with gender bias, especially in the micro-sector. Previous research has highlighted the importance of education and financial literacy for female-led micro-businesses. Our study examines whether entrepreneurial orientation (EO) can mitigate these gender disparities. Data from a survey of 430 micro-business owners in Java and Bali, Indonesia, were analysed using partial least squares structural equation modelling (PLS-SEM). Results show that female micro-business owners underperformed compared to males (β = -0.120, p < 0.05) in profit and asset growth. EO was a key mediator, with higher EO linked to better performance (β = 0.688, p < 0.01). However, females exhibited lower EO than males (β = -0.110, p < 0.05). These findings underscore the importance of EO in improving business performance and reducing gender disparities. We recommend gender-sensitive programs for female-led micro-enterprises in Java and Bali to promote agile entrepreneurship.

Keywords: entrepreneurial orientation; business performance; gender disparities; micro-business; necessity-driven entrepreneurship; growth-oriented entrepreneurship; financial literacy; business innovation; female entrepreneurship; empowerment strategies.

DOI: 10.1504/IJGSB.2025.150132

International Journal of Globalisation and Small Business, 2025 Vol.15 No.2, pp.158 - 175

Received: 25 Oct 2024
Accepted: 24 Mar 2025
Published online: 01 Dec 2025 *

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