ABSTRACT

This paper aims to discuss and to give an overview of entrepreneurship in Padang in Indonesia by analyzing demographic characteristics and the propensity of the labor force to start a new venture and, further, to understand the motivation of entrepreneurs when entering into entrepreneurship. Analysis is based on an empirical research, using members of the labor force and entrepreneurs in Padang as samples. The study is a quantitative study, which uses logistic regression and descriptive analysis to analyze data and information. Logistic regression is used to analyze and to predict the influence of demographic characteristics on the propensity of the samples to enter into entrepreneurship, while descriptive analysis is used to understand the tendency of the entrepreneurial motives of nascent entrepreneurs to be either necessity-based or opportunity-based. To support the analysis, indicators of entrepreneurship as introduced by the Global Entrepreneurship Monitor (GEM) are used in the study. The study found that, to a greater or lesser degree, demographic characteristics have influenced the propensity of the labor force to enter into entrepreneurship. The study also found that most of the nascent entrepreneurs in Padang (around 66.67% of the Total Early-stage Entrepreneurial Activities (TEA)) are categorized as necessity- based entrepreneurs.