The Relationship Between Human Capital, Halalpreneurs’ Desire, and Halal Awareness: Empirical Evidence from Indonesia’s Micro-Entrepreneurs

Abstract

Awareness of halal products among consumers in Indonesia is increasing rapidly. Producers, especially micro-entrepreneurs, must address this to be ready to become halalpreneurs. This study examines the relationship between human capital and the desire to become halalpreneurs, with halal awareness as a moderating variable, using the partial least squares (PLS) method. A sample of 141 micro-entrepreneurs in the food sector from five provinces in Indonesia (Jakarta, Banten, West Java, Central Java, and East Java) was used. The results indicate a direct relationship between human capital and the decision of micro-enterprises to become halalpreneurs. In addition, halal awareness is proven to moderate the relationship between human capital and the decision to become halalpreneurs. This result implies the importance of government support and policies in improving the competence, expertise, and knowledge of micro-enterprises about halal products.