Women Entrepreneurs in MSEs in Indonesia: Their Motivations and Main Constraints
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Oct 2, 2017
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Abstract
This paper is based on a research aiming to examine the development of women entrepreneurs in Indonesia by exploring their main personal motivations or initial reasons to do own businesses and identifying their main constraints in running businesses. The research was based on a desk study, secondary data analysis, and a small field survey of 108 women owning micro and small enterprises (MSEs) in the Great Jakarta area. Findings from the survey show that many of them run their own businesses as a means to survive, and limited access to finance is the most serious constraint faced by the respondents, caused by their lack of valuable assets as collateral. The paper concludes that the growth of number of women-led businesses, especially MSEs, in Indonesia should not be regarded only as the rise of entrepreneurship among women in the country. Unemployment or poverty may have also played a role in pushing many women to conduct own small businesses.
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References
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[2] ADB. 2014b. ADB-OECD Study on Enhancing Financial Accessibility for SMEs. Lessons from Recent Crises. Manila; Asian Development Bank.
[3] Amorós, José Ernesto and Niels Bosma. 2013. "GEM 2013 Global Report", Global Entrepreneurship Research Association (GERA), Babson Center for Women‘s Leadership: Wellesley, MA.
[4] Breen, John, and Karanasios, Stan. 2010. "Growth and expansion of women-owned home-based business." International Business & Economics Research Journal, 9(13):33-46.
[5] Burger, Nicholas, Charina Chazali, Arya Gaduh, Alexander D. Rothenberg, Indrasari Tjandraningsih and Sarah Weilant. 2005. "Reforming Policies for Small and Medium Sized Enterprises in Indonesia." May, Jakarta: the National Team for the Acceleration of Poverty Reduction (TNP2K).
[6] Colin C. Williams, Anjula Gurtoo, eds. 2016. Handbook of Entrepreneurship in Developing Economies. Routledge International Handbooks, Routledge, London.
[7] Dana, Leo Paul, ed. 2015. Asian Entrepreneurship. Five-Volume Set. SAGE Publications Ltd.
[8] EIU. 2012. "Women’s economic opportunity 2012 A global index and ranking from the Economist Intelligence Unit. Findings and methodology." Hong Kong: the Economist Intelligence Unit.
[9] Fletschner, Dianna and Kenney, Lissa. 2011. "Rural women‘s access to financial services: credit, savings and insurance", ESA Working Paper No. 11-07, Agriculture Development Economics Division, Rome: Food and Agriculture Organisation of the United Nation.
[10] GEM. 2007. 2007 Report on Women and Entrepreneurship. Global Entrepreneurship Monitor, The Center for Women’s Leadership at Babson College.
[11] GEM. 2011. The Women‘s Report 2010. Global Entrepreneurship Monitor, The Center for Women‘s Leadership at Babson College.
[12] GEM. 2012. GEM 2011 Global Report. Global Entrepreneurship Monitor, The Center for Women‘s Leadership at Babson College.
[13] GEM. 2013. 2013 Global Report. Global Entrepreneurship Monitor, The Center for Women’s Leadership at Babson College.
[14] GEM. 2015. Women’s Entrepreneurship. Special Report, Global Entrepreneurship Monitor, The Center for Women’s Leadership at Babson College.
[15] Gunawan, Janti. 2012. "Woman Entrepreneurs in Indonesia: Challenging roles of an economic and social actor", Jakarta: Riwani Globe.
[16] Hani, Fathema. 2015. "Entrepreneurial Motivation and Challenges: A Study on Women Entrepreneurs in Sylhet City." Global Disclosure of Economics and Business, 4(2): 111-122.
[17] Hania, Ummu; Ilma Nurul Rachmaniaa; Santi Setyaningsiha; and Rucita Cahyawati Putria. 2012. "Patterns of Indonesian Women Entrepreneurship." Economics and Finance, 4: 274–285
[18] Henriksen, Lasse; Riisgaard, K.; Ponte, S.; Hartwich, F.; and Kormawa, P. 2010. "Agro-food value chain interventions in Asia. A review and analysis of case studies", working paper, December, UNIDO and IFAD.
[19] Hilbrecht, Margo. 2016. "Self-employment and experiences of support in a work–family context." Journal of Small Business & Entrepreneurship, 28(1): 75-96.
[20] Hughes, Kare. 2006. "Exploring motivation and success among Canadian women entrepreneurs." Journal of Small Business and Entrepreneurship, 19(2):83-94.
[21] Kelley, Donna; Brush, Candida; Greene, Patricia; and Litovsky, Yana. 2013. "GEM 2012 Women‘s Report", Global Entrepreneurship Research Association. Babson Center for Women‘s Leadership: Wellesley, MA.
[22] Kirkwood, Jodyanne. 2009ª. "Spousal roles on motivations for entrepreneurship: A qualitative study in New Zealand." Journal of Family and Economic Issues, 30(4):372-385.
[23] Kirkwood, Jodyanne. 2009b. "Motivational factors in a push-pull theory of entrepreneurship." Gender in Management: An International Journal, 24(5): 346-364.
[24] Loscocco, Karyn, and Bird, Sharon. 2012. "Gendered paths: Why women lag behind men in small business success." Work and Occupations, 39(2): 183-219.
[25] Mahmood, Babak; Salman Khalid; Malik Muhammad Sohail; and Iram Babak. 2012. "Exploring the Motivation and Barriers in Way of Pakistani Female Entrepreneurs", British Journal of Education, Society & Behavioural Science, 2(4): 353-368.
[26] Merchant-Vega, Nina and Kate Bollinger. 2012. "Economically empowering women across the Asia-Pacific could be a game changer. More must be done to break down barriers", September 08, The Asia Foundation, Asia blog.
[27] Naudé, Wim. 2010. “Entrepreneurship, developing countries and development economics: New approaches and insights‖.” Small Business Economics Journal, 34(1): 1–12.
[28] Saeed, Sidra; Naazia Malik; Malik Muhammad Sohail, Aqeela Tabassum, and Haq Nawaz Anwar. 2014. "Factors Motivating Female Entrepreneurs: A Study Conducted in Major Urban Area of Punjab." Mediterranean Journal of Social Sciences, 5(4):669-675.
[29] Shah, Hina (2013), "Creating an Enabling Environment for Women’s Entrepreneurship in India", South and South-West Asia Office Development Papers 1304,. South and South-West Asia Office, United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP).
[30] Shah, Hina and Punit Saurabh. 2015. "Women Entrepreneurs in Developing Nations: Growth and Replication Strategies and Their Impact on Poverty Alleviation." Technology Innovation Management Review, August.
[31] Suharyo, Widjajanti. 2005. “Gender and Poverty”. Gender and Poverty, No.14, April-June, Jakarta: SMERU Research Institute.
[32] Tambunan, Tulus T.H. 2009a. SME in Asian Developing Countries, London: Palgrave Macmillan Publisher.
[33] Tambunan, Tulus T.H. 2009b. Development of SMEs in ASEAN Countries, Readworthy Publications, Ltd, New Delhi
[34] Tambunan, Tulus T.H. 2009c. "Women Entrepreneurs in Indonesia: their main constraints and reasons." Journal of Asia Entrepreneurship and Sustainability, V(3): 37-51.
[35] Tambunan, Tulus T.H. 2010. Global Economic Crisis and ASEAN Economy. Theory and Empirical Findings, Lambert Academic Publishing (LAP), Saarbrȕcken.
[36] Tambunan, Tulus T.H. 2011. Economic Crisis and Vulnerability: The Story from Southeast Asia, New York: Nova Science Publishers, Inc.
[37] Tambunan, Tulus T.H. 2015. "Development of Women Entrepreneurs in Indonesia: Are They Being 'Pushed' or 'Pulled'?" Journal of Social Economics, 2(3): 131-149.
[38] UN. 2010. Millennium Development goals: Gender Equality and Women‘s Empowerment. Progress Chart 2010, United Nations Department of Economic and Social Affairs UN-DESO.
[39] UNDP. 2014. Human Development Report 2014. Vienna and New York: United Nations Development Programs.
[40] UNSRID. 2005. Gender Equality. Striving for Justice in an Unequal World, New York: United Nations Research Institute for Social Development
[41] WEF. 2015. The Global Gender Gap Report 2015. Geneva: World Economic Forum.
[42] World Bank. 2008. "Financing Technology Entrepreneurs & SMEs in Developing Countries: Challenges and Opportunities, Philippines Country Study", June, Washington, D.C.