Exploring Entrepreneurship in Indonesia: A Changing Mentality Among Millennials

Indonesia has long been known for its vibrant and diverse economy, but the role of entrepreneurs and businesspeople in society is evolving. Particularly interesting is the changing mindset of millennials, who are increasingly adopting entrepreneurial attitudes while still working in formal jobs. This shift is driven by a range of factors, from technological advancements to the socio-economic environment.

Indonesian Workforce: More Entrepreneurial or Worker Mentality?

The common perception is that Indonesians tend to work more as business owners or entrepreneurs rather than traditional employees. This perception stems from the fact that many Indonesians run their own businesses, albeit often scaled down to small and micro entities (SMEs). In fact, Indonesian banks classify businesses into four categories: mikro, kecil, menengah, and korporat. A majority of these businesses fall into the mikro category, such as warung bakso, mie ayam, pecel lele, and other small-scale operations.

Millennials: Diverse Business Owners and Freelancers

The young generation, particularly millennials, are redefining the startup scene in Indonesia. Despite holding formal jobs, many millennials are also pursuing entrepreneurial ventures. These individuals can be broadly categorized into two groups: freelancers and micro business owners. Freelancers may work as photographers, influencers, writers, bloggers, or in any form of one-person shows. On the other hand, micro business owners leverage platforms like Tokopedia, Bukalapak, and Shopee, often operating during their free time or weekends.

No wonder millennials appear to have a dual role. In their day jobs, they may be regular workers; at night or on weekends, they transform into business owners or freelance consultants. This shift reflects the growing entrepreneurial spirit among millennials, driven by the desire for flexibility and the ability to make extra income.

Challenging the Traditional View of Indonesian Entrepreneurs

There is a misconception that there are not many entrepreneurs in Indonesia. However, the reality is quite different. Many young Indonesians start their entrepreneurial journey at a very early age, often even while they are still in high school. They sell items online, ranging from cellphone cases, beauty products, and food. These young entrepreneurs are often surprisingly successful for their age, earning more than their peers in traditional jobs.

Those in college also contribute to the rising tide of entrepreneurship. They offer private tutoring services, teach subjects like math and English, and start selling online products during their free time. Some even draft for companies during their semesters. During school breaks, they might take on additional jobs as online drivers to boost their income.

Once they graduate, many young entrepreneurs delve into multiple ventures. For example, the daughter of a friend works full-time as a marketer in an interior company, but runs an online florist with her friend. Another young woman collaborates with others to operate a takoyaki shop. These are just a few examples of the growing number of young entrepreneurs in Indonesia.

The proliferation of Micro Businesses in Urban Areas

A significant indicator of this phenomenon is the proliferation of street-side businesses in urban areas. Small coffee shops with free Wi-Fi, for instance, are numerous and bustling with customers from middle and lower income groups. These coffee shops may not serve expensive drinks, but they contribute significantly to the local economy and profitability of their owners. Similar examples can be found in warung (small shops), food stalls, and other micro businesses.

The economy thrives as these small businesses continue to operate, generating income for their owners and contributing to the overall fiscal health of the community. This growth is not just limited to urban areas but can also be seen in rural and suburban districts as well.

Conclusion: The Future of Entrepreneurship in Indonesia

Indonesia's entrepreneurial landscape is rapidly evolving, with millennials playing a pivotal role. The traditional perception of Indonesians as predominantly workers and not business owners is rapidly becoming outdated. While there are certainly challenges to starting and growing businesses in Indonesia, the supportive environment and the entrepreneurial spirit of young people are fostering a vibrant and dynamic startup ecosystem.

As we look to the future, it is clear that Indonesia is poised to become a global hub for innovation and entrepreneurship. The continued support for these young entrepreneurs will be crucial in driving the economy forward and facilitating the growth of small and medium enterprises (SMEs).