The Influence of Human Capital, Social Capital, and Financial Capital on Micro Business Growth in Indonesia
DOI:
https://doi.org/10.58812/wsjee.v3i04.2438Keywords:
Human Capital, Social Capital, Financial Capital, Micro Business GrowthAbstract
This study examines the influence of human capital, social capital, and financial capital on micro business growth in Indonesia using a quantitative approach. Data were collected from 135 micro entrepreneurs through a structured questionnaire measured on a five-point Likert scale. Structural Equation Modeling–Partial Least Squares (SEM-PLS 3) was employed to test the measurement and structural models. The results show that all three forms of capital significantly affect micro business growth. Human capital demonstrates a strong positive effect, indicating that managerial skills, knowledge, and entrepreneurial experience play a vital role in business expansion. Social capital emerges as the most influential predictor, highlighting the importance of networks, trust-based relationships, community support, and information sharing in enhancing micro business performance. Financial capital also contributes positively, though its impact is smaller compared with human and social capital, suggesting that access to funds becomes effective only when supported by strong competencies and social networks. The model explains 56.3% of the variance in micro business growth and exhibits strong predictive relevance. These findings underscore the multidimensional nature of microenterprise development in Indonesia and provide insights for policymakers, practitioners, and development agencies seeking to strengthen entrepreneurship ecosystems through capacity-building, network enhancement, and financial inclusion mechanisms.
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