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The Rise of Entrepreneurship as the Catalyst for Indonesian Economy

Diperbarui: 22 Agu 2020

A newly founded business or startup is an entrepreneurial venture in search of enough financial backing to get off the ground. In this article, we will discuss the role of entrepreneurs who innovate and accelerate the growth of our economy, which subsequently enables the nation to flourish.

Whilst the implication behind the title can be interpreted by the readers in each of their own understanding, it might be justified to a certain extent that capital and mentorship are needed to catalyze the growth of prospective entrepreneurs in Indonesia who have aspirations to solve problems in their community. The process of nurturing this entrepreneurial ecosystem is the foundation for the local economy to grow and thrive at an unprecedented rate.

“An entrepreneur without funding is a musician without an instrument - Robert Rice Jr.

There are a lot of resources which are available to assist the business founder, for example capital, network, and knowledge which can be found with proper business planning. But the responsibility still lies on the business founder to optimize such resources to empower the Indonesian workforce development. The following points will demonstrate how the fund invested in the privately held business has helped them to make Indonesian economy to flourish.

Role of Highly Emerging Business

Inherent in the distinction between startup and the multinational company is the exponential growth that startups almost always undergo. Nevertheless, startup rarely gets funding from the financial institution as they do not have collateral as a lien to loan against for a bank. Nevertheless, the high growth potential will go to waste if not supported by an entity willing to invest in their business. But once the capital comes in, they could leverage their growth even until more than hundreds percent and this conception has been proven by many business and entrepreneurs who have successfully managed their venture and amplified the GDP per capita of Indonesia after getting funding. As a matter of fact, startup as part of the digital economy has a total value of 1.831 Trillion IDR and contributed 11% of Indonesian GDP (Kominfo, 2019)

Enhance and Multiply the Growth of the Local Economy

In connection with the above point, startups or business that drive the local economy and are operating within the gig economy in form of platform model mostly act as intermediaries between consumers and service providers. In the hindsight, the unicorn and decacorn startups in Indonesia have grown at an unparalleled rate and they have successfully create social impact by solving the overarching problems in Indonesia by utilizing technology. There are ebb and flow amidst their operations when founded until this point of time. That said, one similarity that exists in all of their journeys is the fact that capital and mentorship are the backbones that support their business when they had not even had a brand image. The capital fuels the startups that previously merely had no value to exist and has high value to spread positive impact on local society.

The Power of Impact Investing

Change is the only constant, but positive social change is oftentimes impeded due to the sad reality that most of them are facing problems in terms of funding. Most social enterprises mostly are dependent on financial support like grants and donations. However, impact investing has opened the door to new forms of capital for new forms of social enterprises promising to deliver social and environmental results through use of market mechanisms. By empowering potential socio-entrepreneurs, impact investing allows such business to generate social impact while creating attractive financial returns to the investors. Nevertheless, impact investing should not be seen as the replacement for philanthropy, rather they should be perceived as a potential source of net-new capital and market-based approaches to support social change.

Capital is by no means the sole factor that helps the Indonesian entrepreneurs and economy to thrive. Nevertheless, it does play a role as one of the resources supporting the business which potentially drives the development of our nation's growth. If you are an aspiring entrepreneur who is keen to make your business idea a reality, take a chance to be part of us and we will help your business grow by providing capitals, high-quality advice, and access to our network. For more information, click on the link:

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