Abstract

This study argues that entrepreneurship motivation, particularly necessity entrepreneurship, is a determining factor in the process of establishing a new microbusiness. This argument is based on the negative stigma associated with necessity entrepreneurs, that is, entrepreneurs start their businesses due to external pressure, resulting in owners who lack clear business goals. Taking the concept of effectuation logic, we employ a qualitative approach in the context of Indonesia to explain how entrepreneurs' motivation plays a role in establishing a microbusiness. Our findings, presenting that microbusiness owners' motivation is bifurcated based on pressure and opportunity, suggest an effectuation-based process of microbusiness creation.