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2018 Survey of Entrepreneurs and MSMEs in Indonesia: Building the Capacity of MSMEs Through Human Capital

Published on October 25, 2018

A national survey of entrepreneurs and micro, small and medium enterprises (MSMEs) in Indonesia to provide an analysis of business development in the region, and to better understand the opportunities and challenges faced by Indonesian MSMEs and aspiring entrepreneurs around human capital.

In effort to scale their business, Indonesian MSMEs look to invest in new employees or upskill existing employees. However, access to high or appropriately skilled labour is low – particularly for micro-enterprises.
Personal networks of entrepreneurs play the largest role in acquiring new talent for their MSMEs, but male respondents are more likely than women respondents to use other methods of recruiting outside of these networks.
Environmental sustainability is a priority for Indonesian MSMEs, with 96% of survey respondents falling on a spectrum between finding environmental sustainability a concern and considering it a top priority.

Based on the survey results of 448 entrepreneurs involved in micro, small, and medium enterprises (MSMEs) in Indonesia, the Asia Pacific Foundation of Canada report on the 2018 Survey of Entrepreneurs and MSMEs in Indonesia provides an analysis of business development in the country with a specific focus on human capital. The survey report is broken down into three major sections focusing on company and entrepreneur profiles in Indonesia, growth plans and barriers to growth, and challenges and opportunities related to human capital. Each section also identifies age, gender, and industry-specific data and trends. 

Conducted by The Evidence Network, this is the second of four annual APEC economy-specific MSME survey projects commissioned by the Asia Pacific Foundation of Canada, in partnership with Global Affairs Canada, as part of the APEC-Canada Building Partnerships project.

“Strategic and targeted education and training of current and aspiring entrepreneurs is needed to feed into a strong MSME ecosystem. This will help to ensure MSMEs are able to continue contributing to the Indonesian economy and enhance their regional and global competitiveness.”