Socioeconomic Inequalities and The Execution Gap: A Critical Analysis of Student Entrepreneurship

Abstract

Higher education entrepreneurship programs actively foster students’ motivation and theoretical knowledge. However, many students still struggle to execute their business ideas. This study examines how inherited socioeconomic disparities shape business survival, moving beyond the usual focus on individual psychological traits. This study aims to evaluate the actual determinants of student startup sustainability and examine the impact of top-down policies that ignore students' financial backgrounds. A quantitative survey of 1,032 students was conducted. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) and Importance-Performance Map Analysis (IPMA) to evaluate nine dimensions of entrepreneurial readiness, which are synthesized into cognitive-psychological, operational-strategic, and environmental-motivational pillars. The IPMA results indicate that while institutional support and student motivation score high in performance, they have low importance for actual income generation. Instead, practical execution skills and inherited sociocultural capital are the most crucial factors for business survival. Consequently, mandatory policies requiring startups to meet the Regional Minimum Wage (UMR), a local baseline for acceptable monthly income, fail to account for systemic inequalities. The study recommends affirmative action, such as institutional microgrants, to support underprivileged student entrepreneurs rather than applying rigid financial metrics.