PMMA-20026 Cognitive Skills, Entrepreneurship, and Economic Growth in Indonesia


The abundance of small enterprises in developing countries has led to related but distinct debates on the skills of small business owners and their relationship to economic growth. The first revolves around how policymakers should view this large mass of household enterprise owners: what skills and characteristics distinguish the owners of fast growing enterprises from those that own subsistence enterprises with limited prospects for success? The second debate revolves around whether and how the development of household enterprises contributes to economic growth. Each question has important implications for policymakers. First, analysis of the types of skills and characteristics important for success among entrepreneurs can inform entrepreneurship training programs or educational curriculum designed to increase the number of successful entrepreneurs. Second, better understanding the informal sector can inform broad strategies for growth and poverty reduction. Currently, little is known about the role of household enterprises in promoting growth. The proposed project will address these questions in the context of Indonesia, a low-middle income country where almost half of total workers are self-employed and virtually all of those self-employed can be considered as stagnant enterprises. We will use an unusually rich longitudinal dataset, Indonesia Family Life Survey, from 2000 to 2014. The project will employ regression analyses to address the research questions, ensuring that potential sources of bias are considered and addressed.


Project leader: Daniel Suryadarma

Project researchers: Niken Kusumawardhani | Veto Tyas | Nurmala Selly Saputri

Scientific mentors: Luca Tiberti

Journal publication

No journal publications.

Working Papers

Title Modified Size Comments Recommendations
What Skills Lead to Entrepreneurial Success? Evidence from Non-Farm-Household Enterprises in Indonesia 2019-06-14 1.05MB 0 0

Policy Briefs

Title Modified Size Comments Recommendations
Improving cognitive skills for non-farm entrepreneurial productivity and growth in Indonesia 2019-02-27 841.23kB 0 0

Final report

Title Modified Size Comments Recommendations
Cognitive Skills, Entrepreneurship, and Economic Growth in Indonesia 2018-09-18 348.03kB 0 0


Title Modified Size Comments Recommendations
2017-09-21 354.88kB 0 0

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