Influence of Psychopreneurship and Digital Capability on the Operational Independence of Micro Enterprises in the City of Bandung

Abstract

Micro businesses play a strategic role in the Indonesian economy, but still face challenges in achieving sustainable operational independence, particularly amid the demands of psychological adaptation to entrepreneurship and digital transformation. This study aims to analyse the influence of psychopreneurship and digital capability on the operational independence of micro businesses in Bandung City. The study uses a quantitative approach with a survey method of 280 micro business actors, which is analysed using Partial Least Squares–Structural Equation Modelling (PLS-SEM). The results of the analysis show that psychopreneurship has a positive and significant effect on the operational independence of micro businesses (β = 0.604), while digital capability also has a positive and significant effect (β = 0.121). Simultaneously, psychopreneurship and digital capability were able to explain 37.1% of the variation in the operational independence of micro businesses (R² = 0.371), indicating that operational independence is the result of the integration of the psychological readiness for entrepreneurship and the digital capabilities of business actors. This study contributes to the development of entrepreneurship literature by integrating the concepts of psychopreneurship and digital capability into a single empirical model, as well as providing practical implications for the development of more holistic and sustainable micro-business empowerment policies and programmes.