The Development of Small Grocery Retail Businesses in Lhokseumawe City, Aceh Province, Indonesia

https://doi.org/10.56225/ijfeb.v4i2.472

Authors

  • Rudyan Saputra Department of Management, Faculty of Economics and Business, Universitas Malikussaleh, Muara Satu, 24355 Kota Lhokseumawe, Aceh Province, Indonesia
  • Nurainun Nurainun Department of Management, Faculty of Economics and Business, Universitas Malikussaleh, Muara Satu, 24355 Kota Lhokseumawe, Aceh Province, Indonesia
  • Heriyana Heriyana Department of Management, Faculty of Economics and Business, Universitas Malikussaleh, Muara Satu, 24355 Kota Lhokseumawe, Aceh Province, Indonesia

Keywords:

Entrepreneurial Motivation, Self-Efficacy, Risk-Taking Tendency, Grocery Retail, Business Development

Abstract

This study identifies the development of small grocery retail businesses, focusing on entrepreneurial motivation, self-efficacy, and risk-taking tendencies among micro and small enterprises. Using a survey-based quantitative approach, data were collected from 59 small grocery retailers to capture their perceptions of key factors influencing business development, including income motivation, capital availability, innovation capability, competition, and customer growth. The findings reveal that income improvement remains a primary motivational driver for entering and sustaining grocery retail businesses, reflecting perceptions of accessibility and potential profitability. However, a high proportion of neutral responses across several indicators suggests uncertainty regarding the direct impact of capital, competition, innovation skills, and customer growth on business development. Limited capital emerges as a significant structural constraint, restricting inventory expansion, financial management practices, and long-term growth. The results also indicate uneven levels of entrepreneurial self-efficacy, particularly in relation to innovation adoption, while risk-taking attitudes reflect a cautious approach to expansion amid competitive pressures. Furthermore, customer growth is perceived as a gradual and indirect contributor to business development, mediated by infrastructure, digital engagement, legal awareness, and institutional support. In general, the study highlights that the development of small grocery businesses is a multifaceted process shaped by the interaction of internal entrepreneurial capabilities and external environmental constraints.

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Published

2025-06-30

How to Cite

Saputra, R., Nurainun, N., & Heriyana, H. (2025). The Development of Small Grocery Retail Businesses in Lhokseumawe City, Aceh Province, Indonesia. International Journal of Finance, Economics and Business, 4(2), 106–118. https://doi.org/10.56225/ijfeb.v4i2.472

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