Chinese entrepreneurship in Indonesia: A business demography approach

Pierre van der Eng

Business History, 2022, vol. 64, issue 4, 682-703

Abstract: This article analyses the demography of 1,600 registered firms owned and/or operated by ethnic Chinese businessmen in Indonesia during 1890–1940 in search of generalisable indications of Schumpeterian entrepreneurship. The population of firms increased significantly from 1890, before many went out of business in the 1920s and a new generation of firms and entrepreneurs emerged. By 1910 most firms were active in trade, but this categorisation takes insufficient account of their diverse business activities. During 1910–1940 the share of firms in other industries increased. Several were active in finance, taking deposits and financing business ventures. In the 1930s, the average equity value of the enterprises more than doubled, reflecting diversification into more capital-intensive operations, particularly manufacturing. These changes in the population of firms refute the perception that ethnic Chinese businessmen were not Schumpeterian entrepreneurs.Supplemental data for this article is available online at https://doi.org/10.6084/m9.figshare.12254018.

Date: 2022
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Working Paper: Chinese Entrepreneurship in Indonesia: A Business Demography Approach (2020)
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DOI: 10.1080/00076791.2020.1788542

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