FACTORS THAT INFLUENCE THE FORMATION OF INDONESIAN SMEs' SOCIAL ENTREPRENEURSHIP: A CASE STUDY OF WEST JAVA']JAVA

This study aimed to identify the formation of SMEs' social entrepreneurship in rural communities. The majority of people living in rural areas have their businesses. However, their welfare level is relatively low. This study tried to examine how the efforts to form SMEs' social entrepreneurship facilitate improving community welfare. The authors employed a deductive approach. They collected data in a cross-sectional manner; quantitative data processing was done using the Structural Equation Model (SEM) for 340 respondents in Indonesia who have SMEs. The results of this study showed that the influence of such factors, as intention, digital innovation thinking, and leadership attitudes have a significant effect on social entrepreneurship. However, the risk perception did not significantly affect SMEs' social entrepreneurship because of rising operating expenses. This research contributes to existing knowledge by providing novel insights facilitating social change.