Connecting the Dots: Linking Entrepreneurial Leadership and Strategic Agility towards SME Competitiveness.

This study investigates how entrepreneurial leadership and government support influence the competitiveness of small and medium enterprises (SMEs) in Indonesia through the mediating role of strategic agility. Using data from 190 SMEs on Java Island, the research finds that both entrepreneurial leadership—characterized by traits such as innovativeness, passion, and risk-taking—and government support, including tax preferences and training, significantly enhance SMEs' strategic agility, which in turn improves their competitiveness. The study highlights that government support has a stronger direct effect on strategic agility than entrepreneurial leadership, though both are important for SMEs to adapt and compete in volatile market conditions, especially during the COVID-19 pandemic and Industry 4.0 era. These findings suggest practical implications for policymakers and SME leaders to foster entrepreneurial skills and effectively deliver government assistance to sustain SME growth and competitiveness.