Entrepreneurial Orientation toward Access to Finance of Start-ups in Indonesia

This paper aims to evaluate how entrepreneurial orientation affects the access a startup has to finance, from both angel investors and venture capital firms. Entrepreneurial orientation in this context consists of risk-taking, proactiveness, and innovativeness. We also evaluate whether a company’s growth mediates those relationships. For this research, we use primary data from surveys distributed to the CEOs or managers of startups in Indonesia collected through e-mail, WhatsApp, and social media. The data collected is then processed using the multiple regression and binary logistic methods with the help of SPSS software. Linear regression reveals that risk-taking positively affects startup growth, as does innovativeness. However, there is no evidence that proactiveness affects the growth of startups. Furthermore, our logistic regression showed that startups with high growth had a much greater chance of generating funds from venture capital firms. However, growth alone cannot attract angel investors for providing financing for startups. This finding indicates that start-up founders should highlight different aspects of their operations when seeking suitable investors