Climate-Informed Entrepreneurial Resilience: How Local Climate Risks Reshape SMEs’ Survival Strategies

Abstract

Climate change poses substantial challenges to the sustainability of traditional food-based SMEs, including gudeg businesses in Yogyakarta Special Region (DIY), which rely heavily on stable supplies of young jackfruit and daily weather conditions. This study examines the influence of Perceived Climate Risk, Adaptation Strategies, and Climate-Adaptive Supply Chain Agility on Entrepreneurial Resilience among gudeg SMEs. Using a quantitative approach and Partial Least Squares–Structural Equation Modeling (PLS-SEM), the study collected data from owners and managers of gudeg SMEs in DIY. The results indicate that all three independent variables positively and significantly affect entrepreneurial resilience. Adaptation Strategies represent the strongest predictor, followed by Climate-Adaptive Supply Chain Agility and Perceived Climate Risk. The structural model demonstrates strong predictive accuracy and reliability, indicated by an R² value of 0.622, Q² of 0.387, and GoF of 0.669. These findings highlight that climate risk perception, adaptive strategies, and supply chain agility are key determinants of resilience among gudeg SMEs in coping with climate uncertainty and supply fluctuations. This study contributes to the growing body of literature on climate-informed entrepreneurial resilience and offers practical recommendations for SMEs and policymakers to strengthen local food system resilience in the context of climate change.