Entrepreneurial Knowledge and Vicarious Experience as Determinant of Self-Efficacy among MSMEs in Jember, Indonesia

This study aims to examine the influence of entrepreneurial knowledge and vicarious experience on the self-efficacy of MSMEs in the food and beverage sector in Jember Regency. The research adopts a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM) and involves 300 MSME respondents selected through purposive sampling from the three sub-districts with the highest business concentration.The results reveal that both entrepreneurial knowledge and vicarious experience have a positive and significant effect on self-efficacy. Entrepreneurial knowledge provides MSME actors with the skills and insights necessary for business development, while vicarious learning, through observing others’ successes and failures. These findings highlight the importance of strengthening both technical knowledge and psychological readiness in enhancing entrepreneurial performance.The study suggests that training programs for MSMEs should integrate knowledge enhancement with experiential learning and self-confidence development to support sustainable business growth.