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4 Reasons the Number of Entrepreneurs in Indonesia is Low


Nov 25, 2017

Talking about the number of entrepreneurs in Indonesia can be said to be bad news. How could it not be, almost most people are competing to find work at various job vacancy exchanges held by the Ministry of Manpower. This is proven by the number of job applicants which is increasing every year.

It cannot be denied that the government has tried to open job training aimed at making people become entrepreneurs.
Of course, the target is the potential possessed by these areas. Even so, it turns out that the number of entrepreneurs in Indonesia is still small. Even when compared with neighboring countries such as Singapore and Malaysia, it is still far behind. So it is not surprising that the amount of economic growth is also relatively small, below 7%.

Becoming an entrepreneur is indeed a choice in work.
However, if you consider several aspects, there are several reasons why people in Indonesia are less enthusiastic about becoming entrepreneurs.

4 Reasons the Number of Entrepreneurs in Indonesia is Low

The cause of the low number of entrepreneurs in Indonesia

1. The education system does not support young people to become entrepreneurs

The educational curriculum implemented by the government apparently does not provide mental encouragement for students to enter the world of entrepreneurship.
Existing educational materials actually lead them to be wary of starting a business. How could it not be, the risks that an entrepreneur must face tend to be large.

Indeed, if you succeed in becoming an entrepreneur, someone can have a large income turnover.
However, the fear of failing in business more or less makes them unwilling to take these consequences.

Today’s education is indeed good for making young people great business planners.
On the other hand, the fact that most of them are reluctant to enter the business world is also a problem. As a result, they may be able to plan a business in detail, but are still afraid to take steps to realize the business plan.

2. Too ambitious and want instant success

One of the keys to success in becoming an entrepreneur is being patient and resilient when facing problems.
Not giving up easily and liking challenges is the spirit of an entrepreneur.

The situation of young people in Indonesia is quite worrying.
Some do want to become entrepreneurs, but require excessive targets and tend to be ambitious. They don’t want the business they have just started to grow slowly so if they try to directly use the frontal system. Of course, this is very risky, afraid of getting up again if you experience problems in business.

Unfortunately, they are quick to make decisions about the business they are starting.
If within a few months there is no major improvement, it is immediately considered that the business has failed. This condition makes it difficult for Indonesian youth to look to the future and compete with other countries.

3. Small entrepreneurs lack innovation

In today’s very fast business development, product innovation, packaging and marketing must continue to be updated.
In this way, business wings develop quickly and in accordance with market conditions.

The problem is that for small entrepreneurs, carrying out innovation is still considered burdensome.
As a result, they only imitate other business actors in developing their business. Indeed, in a short time it will really help your business, but if you rely on other people’s strategies in developing your business then there is a big possibility that the strategy will tend to be outdated and tend to be boring for potential consumers.

The difficulty of small business actors finding new innovations has an impact on the continuity of the business itself.
The smaller the innovation, the business tends to run slowly or even stop. This kind of situation is what makes young people’s interest in becoming new entrepreneurs sluggish.

4. More interested in becoming an employee

Working as an employee turns out to be more attractive for Indonesian citizens.
They tend to like work that is regular and permanent, such as civil servants or office employees.

Indeed, when compared with entrepreneurship, it is clear that an employee prefers to be safe in his life.
In the sense of preferring a fixed income rather than income that fluctuates (ups and downs) or there is even a risk of not getting income that day.

It’s not wrong if you choose to become an employee, but try to think more broadly.
In reality, the number of employee vacancies is not proportional to the number of applicants. It could be that there are 100 job vacancies while there are up to 2000 applicants. If you are lucky then you can become an employee, but if you are not accepted for work, do you want to be unemployed for a long time?

If the way of thinking about being an employee is what most Indonesians have, then this is definitely the cause of the decline in entrepreneurship.

In conclusion, becoming an entrepreneur does not mean your career will be lost.
In fact, what might happen is that your hidden interests, talents and abilities could be released and turned into a platform for you to achieve success. So, what’s wrong with becoming an entrepreneur in Indonesia? Even though starting an entrepreneur is quite easy to do.

Please Read:  5 Tricks for Starting a Small and Medium Enterprise Business for Beginners 

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