Indonesia faces a sluggish economy with high unemployment, partly due to a mismatch between the workforce and available jobs. The formal sector remains the preferred choice, leading many to overlook opportunities in entrepreneurship, particularly in the non-formal and private sectors.
This article highlights the potential of women entrepreneurs to address this challenge. Studies show that women possess valuable skills for business success, including multitasking, communication, and decision-making. Additionally, a growing number of women worldwide are venturing into entrepreneurship.
Why Women Make Great Entrepreneurs
- Multitasking: Women excel at handling multiple tasks simultaneously, a crucial skill for managing a business.
- Communication: Women are adept at clear and persuasive communication, essential for marketing and customer interaction.
- Decision-Making: Women are accustomed to making household decisions, translating well to business decision-making.
Global Trend of Women in Business
- Globally, women’s participation in entrepreneurship is on the rise.
- In Asia, a significant portion of small and medium enterprises (SMEs) are led by women.
- Indonesia reflects this trend, with a large number of women entrepreneurs, primarily concentrated in SMEs.
Challenges and Opportunities for Women Entrepreneurs
Despite their potential, women entrepreneurs face challenges:
- Limited Opportunities: Societal norms and lack of access to resources can restrict women’s entrepreneurial pursuits.
- Balancing Work and Family: Women may struggle to find a balance between running a business and managing family responsibilities.
The Way Forward
Encouraging and empowering women to embrace entrepreneurship holds immense potential for Indonesia’s economic growth. Here’s how:
- Promote Skill Development: Provide training programs to equip women with the necessary business skills and knowledge.
- Financial Support: Offer easier access to funding and financial resources to help women launch and grow their businesses.
- Shifting Mindsets: Challenge societal norms that discourage women from pursuing entrepreneurship.
How it was done
Researchers surveyed 127 women entrepreneurs (women-led micro, small, and medium enterprises (MSMEs) across various sectors like fashion and culinary. The study defines successful entrepreneurs as those who prioritize serving customers, demonstrate creativity, and actively implement new ideas. The research, focusing on Jakarta, Yogyakarta, and West Java – provinces.
The findings highlight the importance of leadership qualities like clear communication and task delegation for women entrepreneurs. The study also emphasizes the need for strong “absorptive capacity,” the ability to learn and adapt to changing market conditions.
Researchers believe this study provides valuable insights for policymakers and organizations supporting women-owned businesses in Indonesia. By fostering leadership skills and promoting continuous learning, these initiatives can significantly contribute to the growth of MSMEs, a key driver of the Indonesian economy.
Findings
Leadership & Adaptability Key
The findings highlight the crucial role of leadership qualities in women entrepreneurs’ success. The study emphasizes the importance of clear communication and effective task delegation. Additionally, researchers identified a strong correlation between “absorptive capacity” and success. This refers to the ability of a business to learn and adapt to evolving market conditions.
Policymakers Take Note
The researchers believe this study offers valuable insights for policymakers and organizations supporting women-owned businesses in Indonesia. By fostering leadership skills and promoting continuous learning opportunities, these initiatives can significantly contribute to MSME growth – a key driver of the Indonesian economy.
Strong Leadership in Thriving Economies
The study’s focus on provinces with high economic activity underscores the potential of women entrepreneurs in these regions. By equipping them with the necessary leadership skills and fostering a culture of continuous learning, Indonesia can empower women to become key players in the nation’s economic growth.
Reference: here
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