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Entrepreneurship Development: Smes In Indonesia

Author

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  • TULUS TAMBUNAN

    (Center for Industry and SME Studies, Faculty of, Economics, University of Trisakti, Indonesia, Jl. Kiyai Tapa No.1, Jakarta Barat, Indonesia)

Abstract

The Indonesian government has been trying to encourage entrepreneurship development by supporting the development of small and medium enterprises in the country, since these enterprises provide an avenue for the testing and development of entrepreneurial ability. This paper examines the current developments of SMEs in the country. The paper comes with a number of interesting facts. First, SMEs are of overwhelming importance in Indonesia, as they account for more than 90 percent of all firms outside the agricultural sector, and thus are the biggest source of employment. Second, the representation of women entrepreneurs is low. Third, women entrepreneurs are less educated than their men counterparts. Fourth, the main constraints faced by small entrepreneurs are lack of working capital and marketing difficulties. Finally, the majority of existing studies suggest that the effectiveness of government programs to support SME development programs is low. The paper concludes that in national efforts to develop high competitive entrepreneurships, owners of small enterprises should be given the first priority as they have some previous experience of running a business or of how to survive in competitive markets, and the emphasis should be to promote modernization, capacity building and size upgrading.

Suggested Citation

  • Tulus Tambunan, 2007. "Entrepreneurship Development: Smes In Indonesia," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 95-118.
    • Handle: RePEc:wsi:jdexxx:v:12:y:2007:i:01:n:s1084946707000575
    DOI: 10.1142/S1084946707000575
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    References listed on IDEAS

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    1. Manning,Chris, 1998. "Indonesian Labour in Transition," Cambridge Books, Cambridge University Press, number 9780521594127.
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    Cited by:

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    2. Zhang, Wenwen & Chiu, Yi-Bin & Hsiao, Cody Yu-Ling, 2022. "Effects of country risks and government subsidies on renewable energy firms’ performance: Evidence from China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    3. Afred Suci & Sri Maryanti & Hardi Hardi & Nining Sudiar, 2022. "Embedding Design Thinking Paradigm in a University’s Business Assistance to Small Business," Systemic Practice and Action Research, Springer, vol. 35(2), pages 177-201, April.
    4. Khan Muhammad Asif, 2021. "Trends and Future of Corporate Entrepreneurship in Indonesia in the Post-Pandemic Era by Using Descriptive Quantitative and Cross-sectional Study," Journal of Intercultural Management, Sciendo, vol. 13(3), pages 95-108, September.
    5. Vial, Virginie & Hanoteau, Julien, 2015. "Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare," World Development, Elsevier, vol. 74(C), pages 142-157.
    6. Tianjiao Qiu, 2018. "Influence Of Cultural Practices On Social Support Of Female Entrepreneurs' Startups," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-21, March.
    7. Suparji, 2020. "Implementation of Intellectual Property Right to Strengthen Small and Medium-Sized Enterprise Business Capacity in Global Competition," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 9, November.
    8. Wang, Xiaoran & Ibrahim, Haslindar, 2024. "Unveiling the effects of mineral markets, fintech and governance on business performance: Evidence from China," Resources Policy, Elsevier, vol. 91(C).

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