Development of Women-Led Micro and Small Enterprises in Indonesia

This chapter aims to examine the development of women entrepreneurs in Indonesia with the focus on their personal motivations or initial reasons to own businesses and their main constraints in doing business. The chapter is based on literature review, secondary data analysis from Indonesian National Statistics Agency (BPS) and some international/regional organizations, and a small field survey of women owning micro and small enterprises (MSEs) in the Greater Jakarta area. It reveals from the secondary data analysis that despite the growing number of women-led businesses, the gender gap in entrepreneurship in Indonesia still persists. Findings from the field survey show that many of the respondents 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 results may potentially have profound impact on women entrepreneurship policy and equality policy.