Familial Entrepreneurship as Indonesia's Motor of Economics

Developing countries economics growth can be boosted by inducing entrepreneurial practices within them. However, active participations from business players, labors and governments are needed in order to create effective initiatives to induce entrepreneurial practices.

For big cities like Jakarta or Surabaya, most of people within above upper-middle class in Indonesia are entrepreneurs or participate in their family business. They are the family who can afford first-class education for their children. Many of their children went back to Indonesia after accomplishing their education. And before continuing their role as a family business leader, many of them work at multinational companies to gain more business network as well as learn to work in these companies. Like other countries in Asia, Indonesia's modern families consist of highly-educated family members who are working at bona fide companies and entrepreneurs.

Jakarta can be considered inefficient in terms of in doing business. Traffic jams caused transportation costs are high, the price of property within the city are high since that commodity is over-demanded, the government is corrupted, and many more inefficiencies can be found here. These inefficiencies cause the costs of living are high, even higher than the purchasing power of customers. Because of this reason, people start to improvise to gain addition for their income. Entrepreneurship grows since for some scales of business and fields, the barrier to entry is considerably low.

Another factor that affects entrepreneurial characteristic in Indonesia is its family-oriented culture. Most entrepreneurs in Indonesia start their venture by building a family business. Beside the consideration of family members are more trustworthy, the strong family relationships lead people to share his/her well-being with family and relatives.

The problems of underpaid workers and inefficiencies can be overcome by managing entrepreneurial practices. Entrepreneurs have their own way to fix problems and find solutions in business, therefore inducing entrepreneurship in one area means letting these businesses grow and improvise to find solutions for their problems and reach new equilibrium of economics.

Considering the characteristics of this society, having the right amount of entrepreneurs in a family can help to distribute additional income for other family members who are working at a company. The strong relationship between family members is the pipeline for the income to flows and reduces the disparity. Therefore, by ensuring that there are entrepreneurs within a family, the quality of life can be improved. The knowledge to improve the entrepreneurial practice also can be gained from family members who are working at bona fide companies. Whilst the additional income gained from the entrepreneurs of the family, the managerial skills can be gained from family members