| Sažetak: | Background: Strategies to attract higher-yielding tourists will be complemented by measures to ensure that local communities benefit from increasing tourist spending.Therefore, it is important to understand factors that drive local entrepreneurs to become successful in their business.Self-efficacy is a concept used in the literature to measure one's belief in his ability to successfully venture into a business. Objective: This paper examines the relationship between entrepreneur demographic factors, environmental forces and entrepreneurial self-efficacy of small business operators at the border towns of Malaysia and Thailand.The research is a cross-sectional study and a survey method is used. Results: Our result reveals that nationality has a significant relationship with entrepreneurial self-efficacy. With regard to the environmental forces, there is also a positive relationship between intensity of competition and entrepreneurial self-efficacy.Conclusion: Our result on environmental forces is not consistent with those studies conducted in western countries. It seems that the small business operators at border town of Malaysia and Thailand have the same belief which is different from those in western countries.
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