Young Indonesian Businesses to Established Businesses: What Matters
Keywords:
Young Business, Established Business, GEM, IndonesiaAbstract
This study analyses drivers of the establishment of young businesses in Indonesia. This study uses data from the Global Entrepreneurship Monitoring (GEM) dataset, analysed using cross-tabulation. Results suggest that in Indonesia, young entrepreneurs have less uniqueness in the products they sell, and have low growth expectations. Little support from the external environment, such as social networks, is also an issue in Indonesia, which results in challenges regarding resources and financing. Despite this, persistence in running a business is a characteristic of young businesses. This study focuses only on young businesses and how they sustain to reach the next business phase. Future research should assess how entrepreneurs can reach the nascent or intention phase of entrepreneurship, analysing factors that support young Indonesian business people to become established entrepreneurs, which will bring greater stability to Indonesia’s economic growth.
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