Sustainable entrepreneurship on thailand’s smes

Abstract

© 2021, The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG. This study aims to investigate whether small and medium-sized enterprises (SMEs) in Thailand have the propensity to catching up with the global development agenda, sustainable entrepreneurship. This study collects the data from 231 entrepreneurs in the service sector in Thailand and designs the questionnaire according to the concept of sustainable entrepreneurship. Then, in the data analysis process, we introduce the logistic regression with the shrinkage method alternatively to the classical logistic regression model. A brief idea of this method is to involve penalizing size of the coefficients in the likelihood function, in which three penalty functions namely ridge regression, the lasso, and the elastic net, are considered in this study. Then, the performance of the models is evaluated through prediction accuracy and AUC. The results show that the Elastic Net slightly outperforms the other models. Also, the results reveal that the characteristics of enterprises and entrepreneurs, and the opinions on sustainable entrepreneurship aspects have the essential roles and positive effects on the propensity of entrepreneurs’ interest in sustainable entrepreneurship.