The Effect of Business Incubation, Social Capital, and Financial Support on Startup Performance in Indonesia
DOI:
https://doi.org/10.58812/wsjee.v3i01.1669Keywords:
Business Incubation, Social Capital, Financial Support, Startup PerformanceAbstract
This study examines the influence of Business Incubation, Social Capital, and Financial Support on Startup Performance in Indonesia. The research uses a quantitative approach with a sample of 182 startup entrepreneurs in Indonesia, employing a Likert scale (1-5) and SEM-PLS 3 for data analysis. The results reveal that all three variables have a significant positive impact on startup performance. Specifically, Business Incubation (β = 0.337), Financial Support (β = 0.817), and Social Capital (β = 0.574) were found to have substantial effects. These findings underscore the importance of incubator programs, financial access, and strong networks in fostering the success of startups. The study provides practical implications for policymakers and entrepreneurs, emphasizing the need for enhanced support structures, including improved access to funding, networking opportunities, and mentorship.
References
N. Lachlan and O. Smith, “Determining factors for startup success in indonesia: Perspective of young entrepreneurs,” Startupreneur Bus. Digit. (SABDA Journal), vol. 3, no. 2, pp. 115–122, 2024.
Y. D. Safitri, R. Pebriana, and E. Suasri, “Prioritizing Success Factors for Start-ups in Indonesia Using the Best Worst Method (BWM): A Decision-Making Approach,” Front. Manag. Sci., vol. 1, no. 2, pp. 29–36, 2024.
L. Judijanto, “Perkembangan Startup Digital di Indonesia: Sebuah Tinjauan,” Indo-Fintech Intellectuals J. Econ. Bus., vol. 4, no. 5, pp. 2011–2032, 2024.
Z. T. RONY, “Why Indonesian Start-up Fail: An Overview of Performance Management Systems”.
A. I. Hakim, M. F. Sukimi, and A. H. Ab Rahman, “Exploring the Role of Business Incubators to Sustainable Startups: A Systematic Literature Review,” PaperASIA, vol. 40, no. 5b, pp. 307–320, 2024.
P. N. Shillie and C. Wokwen, “Business Incubator and Incubatee: A Thematic Review of Challenges and Success in Africa,” Unisia, vol. 42, no. 1, 2024.
S. Inamdar and S. Afroze, “Exploring the Opportunities and Confronting the Challenges Within Business Incubation: Opportunities and Challenges,” Promot. Entrep. Innov. Through Bus. Incubation, pp. 29–54, 2025.
S. S. Iyer, “Economic and Social Impact of Business Incubation in UAE: Entrepreneurship,” in Promoting Entrepreneurship and Innovation Through Business Incubation, IGI Global, 2025, pp. 145–176.
M. Carni, T. Gur, and Y. Maaravi, “Entrepreneurs’ Social Capital in Overcoming Business Challenges: Case Studies of Seven Greentech, Climate Tech and Agritech Startups,” Sustainability, vol. 16, no. 19, p. 8371, 2024.
B. Kim and K. Lee, “The Network Position of AI Venture Companies in Investment Network: Social Capital Matters,” in 2024 Portland International Conference on Management of Engineering and Technology (PICMET), IEEE, 2024, pp. 1–10.
H. P. N. Putro, R. Rusmaniah, M. Mutiani, J. Jumriani, and B. Subiyakto, “The relevance of social capital in efforts to develop entrepreneurship education,” J. Educ. Learn., vol. 16, no. 3, pp. 412–417, 2022.
A. Mumi, “Social media as a strategic capability for startups and the mediating role of social capital,” Verslas Teor. ir Prakt., vol. 23, no. 2, pp. 302–312, 2022.
L. Judijanto and S. D. Lisnawaty, “Effect of Access to Capital, Entrepreneurship Education, and HR Competencies on Start-up Success in the Technology Sector,” West Sci. J. Econ. Entrep., vol. 2, no. 03 SE-Articles, pp. 308–320, Aug. 2024, doi: 10.58812/wsjee.v2i03.1194.
N. Nurhayati, “The Role of Entrepreneurial Finance in Fueling Growth and Innovation,” Adv. Econ. Financ. Stud., vol. 2, no. 3, pp. 141–152, 2024.
G. R. Yusupova and E. I. Nesmeyanova, “Financial uncertainty of a startup,” Вестник университета, p. 191, 2024.
P. S. M. Patil, A. Chavan, V. Chauhan, A. Jadhav, and N. Kothare, “Revolutionizing Startup Funding : A Centralized Platform for Startup Investment Using MERN Stack and Blockchain Technology,” pp. 286–291, 2024, doi: 10.48175/IJARSCT-22340.
H. Y. Khomenko, A. I. Bashota, D. I. Bashota, and I. Y. Turchynyak, “Financing Startups and Their Role in a Company’s Competitive Strategy,” Soc. Secur., pp. 25–31, Nov. 2024, doi: 10.26642/sas-2024-5(5)-25-31.
M. F. Bin Yusup, “The Role of Business Incubators in Encouraging Maritime Technology Start-up Innovation,” Marit. Park J. Marit. Technol. Soc., pp. 158–162, 2024.
N. Baporikar, “Promoting Entrepreneurship Through Business Incubation,” in Promoting Entrepreneurship and Innovation Through Business Incubation, IGI Global, 2025, pp. 55–76.
F. Mustafa and D. O. Suparwata, “The Role of Business Incubators in Enhancing Human Resource Competence and Encouraging Entrepreneurship among Young People,” J. Terobosan Peduli Masy., vol. 1, no. 2, pp. 147–160, 2024.
K. Rozaq, “Analisis Modal Sosial Sebagai Prediktor Berbagi Pengetahuan Tacit Pada Wirausaha Di Kabupaten Gresik,” J. Publ. Ilmu Manaj., vol. 1, no. 4, pp. 270–285, 2022.
M. C. Malhotra, M. K. Chaudhary, and M. S. Chopra, “Social Capital a Pillar for Building Holistic Human Capital,” Int. J. Adv. Res. Sci. Commun. Technol., 2024, [Online]. Available: https://api.semanticscholar.org/CorpusID:274205840
A. L. Babatoundé, “Entrepreneurs and SMEs financing in developing countries: do non-financial services improve access to finance?,” J. Financ. Econ. Policy, 2024.
S. Benlefki, M. Bouchetara, A. Saba, and N. Gahlam, “Financing practices of labeled startups,” Financ. Mark. Institutions Risks, vol. 8, no. 2, pp. 119–140, 2024.
N. L. K. A. S. Sucandrawati, N. W. Suartini, I. Wati, and D. Apriliani, “The Influence of Social Capital, Entrepreneurial Competence and Entrepreneurial Ecosystem in Shaping Business Incubators in Indonesia,” Int. J. Business, Law, Educ., vol. 5, no. 1, pp. 852–866, 2024.
A. R. Zaidi, I. Khoso, and M. S. Khan, “Fostering an entrepreneurial society: The role of university incubators,” Int. Res. J. Manag. Soc. Sci., vol. 4, no. 4, pp. 108–121, 2023.
Z. Zhou, “Contribution to the impact of incubator on nascent startup performance—From agency-problem perspective,” Adv. Econ. Manag. Polit. Sci, vol. 28, pp. 37–43, 2023.
W. Mohamed, M. R. A. Rezk, A. Soliman, L. Piccinetti, D. Santoro, and M. M. Sakr, “The role of technological incubators in fostering entrepreneurial growth: the case of Egyptian universities and research centres,” Insights into Reg. Dev., vol. 6, no. 3, pp. 85–97, 2024.
W. Abdallah, A. Harraf, H. Ghura, and M. Abrar, “Financial literacy and small and medium enterprises performance: the moderating role of financial access,” J. Financ. Report. Account., 2024.
M. S. H. Islam et al., “Impact of financial and internet support on SME performance: Moderating effect of technology adoption during COVID-19 pandemic,” 2024.
D. J. Isenberg, “How to start an entrepreneurial revolution,” Harv. Bus. Rev., vol. 88, no. 6, pp. 40–50, 2010.
K. Zhao, J. Yang, and W. Wu, “Impacts of Digital Economy on Urban Entrepreneurial Competencies: A Spatial and Nonlinear Perspective,” Sustainability, vol. 15, no. 10. 2023. doi: 10.3390/su15107900.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Loso Judijanto
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
westscience.journals@gmail.com