Do Self-Efficacy, Self-Regulation, and Business Capital Influence Generation Z Students' Entrepreneurial Interest in Fashion Sector? An exploratory study in Batam City

INKUBIS: Jurnal Ekonomi dan Bisnis Volume 8, Issue 1, 518-537 e_ISSN: 2775-3913 https://inkubis.polteksci.ac.id/index.php/ink/index DOI: doi.org/10.59261/inkubis.v8i1.222 Do Self-Efficacy, Self-Regulation, and Business Capital Influence Generation Z Students' Entrepreneurial Interest in Fashion Sector? An exploratory study in Batam City Shinta Wahyu Hati1* Esty Rahayu2 Politeknik Negeri Batam, Indonesia Politeknik Negeri Batam, Indonesia *Corresponding author: Shinta Wahyu Hati, Politeknik Negeri Batam, Indonesia. 🖂 Article Info : Article history: Received: April 06, 2026 Revised: April 28, 2026 Accepted: April 30, 2026 Abstract Background: Entrepreneurial interest among Generation Z is shaped by multiple individual and contextual factors. In Indonesia, MSMEs contribute 60.5% of GDP, making youth entrepreneurship—particularly in high-growth sectors such as fashion—a national policy priority. However, the relative importance of psychological and resource-based determinants remains empirically underexplored among Generation Z students in Batam City. Objective: This exploratory study examines the direct influence of selfKeywords: efficacy, self-regulation, and business capital on entrepreneurial interest entrepreneurial interest; in the fashion sector among Generation Z students in Batam, Indonesia. generation z; self-efficacy; selfMethods: A purposive sampling approach was applied to 396 students regulation; business capital drawn from a population of 36,279 at nine universities in Batam, using the Yamane formula and proportional allocation across institutions. Respondents met three criteria: active student status, Generation Z birth cohort (born 1997–2012), and current enrollment in an entrepreneurship course. A structured Likert-scale questionnaire measured all constructs; data were analyzed using multiple linear regression (SPSS 29). Results: All three predictors exerted significant positive effects on entrepreneurial interest. Standardized coefficients: self-efficacy (β = 0.487; p < 0.001), self-regulation (β = 0.137; p = 0.004), and business capital (β = 0.118; p = 0.005). Jointly, they explained 37.3% of variance (F = 79.380; p < 0.001), with self-efficacy as the dominant predictor. Conclusion: Self-efficacy is the principal driver of Generation Z entrepreneurial interest in fashion, followed by business capital and selfregulation. These findings underscore the need for integrated university programs combining confidence-building activities, self-regulatory skill development, and capital access support to stimulate youth entrepreneurship in Batam City. To cite this article: Hati, S. W., & Rahayu, E. (2026). Do Self-Efficacy, Self-Regulation, and Business Capital Influence Generation Z Students' Entrepreneurial Interest in Fashion Sector? An exploratory study in Batam City. INKUBIS: Jurnal Ekonomi dan Bisnis, 8(1), 518-537. https://doi.org/10.59261/inkubis.v8i1.222 INTRODUCTION The growth of micro, small, and medium enterprises (MSMEs) significantly impacts countries' economies. In Indonesia, MSMEs account for 99% of all business units, contribute 60.5% of gross domestic product (GDP), and absorb 96.9% of employment (Coordinating Ministry for Economic Affairs of the Republic of Indonesia, 2022). These conditions show that entrepreneurs have strong potential for both quantity and quality growth, making them indispensable, especially in Indonesia. Entrepreneurship is considered a solution to economic problems, particularly in encouraging technical progress and economic expansion. The younger generation, known as Generation Z, increasingly prefers becoming entrepreneurs over employees due to their desire for flexibility and meaningful work. A survey by Zen Business (2023) revealed that 93% of Generation Z individuals intend to establish their own businesses. Data from the INKUBIS: Jurnal Ekonomi dan Bisnis | 518 Shinta Wahyu Hati, Esty Rahayu Do Self-Efficacy... Central Bureau of Statistics shows that 19.48% of young people were involved in entrepreneurial activities in 2022, increasing by 1.02% from 18.46% in 2021 (Rizqiyah Aslamatur, 2023). This trend indicates that interest among Indonesian youth, particularly Generation Z, is relatively high, as reflected in their participation in entrepreneurship training. This condition presents a strong opportunity for MSME growth. Based on Databoks Katadata data, Generation Z's highest shopping interest is fashion products at 56%, indicating strong potential for entrepreneurship in the fashion sector. This is supported by Mellinia & Hati (2022), who state that MSMEs prioritize increasing sales volume in business development. Fashion is considered a promising sector due to its relevance to human needs and continuous evolution. According to Alma (2016), young entrepreneurs may face several business risks, including financial risk, operational risk, and legal risk. Therefore, interest in entrepreneurship has been considered a result of factors such as capital, innovation, and individual characteristics. In addition to these factors, Generation Z's interest in entrepreneurship in Batam City can also be influenced by self-efficacy, or belief in oneself. Powers Wirausaha (2020) stated that entrepreneurship is currently a trend of success, which impacts Gen Z, who prefer to start their own business. Noormega (2019) mentioned that a survey conducted in Indonesia revealed that 69.1% of teenagers are interested in owning their businesses, implying that 7 out of 10 teenagers have entrepreneurial intentions. Therefore, if Generation Z believes they have strong confidence in their abilities and potential, they are more likely to be interested in becoming entrepreneurs. Self-regulation can also be important in developing entrepreneurial interest in Generation Z in Batam City. Self-regulation is an innate drive that causes a person to set life goals and devise plans to achieve them. It refers to the process of self-reinforcement and self-punishment through motivational effects. Young entrepreneurs with strong self-regulation characteristics are more aware of morals for personal protection when managing their businesses (Anggraeni et al., 2017). Therefore, good self-regulation skills can help Generation Z overcome challenges in starting and developing their business. In recent years, research on entrepreneurship has increased in terms of quantity and quality. Hasan et al. (2021) research shows a significant effect of self-efficacy on Generation Z's entrepreneurial interest. In addition, a study by Molino et al. (2018) shows that self-efficacy and self-regulation strongly and positively influence entrepreneurial desire. However, a study by Khalid et al. (2022) found no evidence to suggest that self-efficacy impacts entrepreneurial desire. Another study by Tambunan (2022) stated that business capital influences entrepreneurial attitudes positively and significantly, and the role of parents is to control the influence of business ca (...truncated)