Development of Women Entrepreneurs in Indonesia: Are They Being Pushed or Pulled?

Tulus T.H. Tambunan

Journal of Social Economics, 2015, vol. 2, issue 3, 131-149

Abstract: The purpose of this paper is to discuss the development of women entrepreneurs in Indonesia with the focus on identifying the key determinants of women involvement as entrepreneurs. This paper has two key questions. First, what are their main constraints to become entrepreneurs? Second, does the development of women entrepreneurs in Indonesia reflect entrepreneurship spirit among women or a direct of economic hardship? This is not quantitative but qualitative study based on secondary data analysis and a review of key literature/case studies on development of women as entrepreneurs or business owners in developing countries and Indonesia. Findings of this study show that the representation of women as entrepreneurs in Indonesia is still relatively low, and most of them are concentrated in micro and small enterprises (MSEs) generating low incomes and operating informally. The relatively low representation of women as entrepreneurs in Indonesia can be attributed to at least four main factors: (i) low formal education and their lack of training opportunities, (ii) heavy household chores, (iii) legal, traditions, customs, cultural or religious constraints, and (iv) lack of access to banks or other financial institutions for financing their business activities. The concentration of women entrepreneurs in MSEs may suggest that they are pushed to do own businesses because of poverty or lack of better job opportunities.

Keywords: MSMEs; women entrepreneurs; Indonesia; developing countries (search for similar items in EconPapers)
Date: 2015
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