Education Levels of Indonesian Micro and Small Business Owners: High Percentage of Elementary School Graduates or Below

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Nabilah Muhamad 17/09/2024 18:01 WIB

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According to BPS data, in 2023, the majority, or 48.59%, of micro, small, and medium enterprise (MSME) entrepreneurs in Indonesia were elementary school graduates or below.

Percentage of Indonesian Micro and Small Industry Entrepreneurs by Highest Education Level (2023)

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Percentage of Indonesian Micro and Small Industry Entrepreneurs by Highest Education Level (2023)

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According to a report by the Central Bureau of Statistics (BPS), there were 4.5 million micro, small, and medium enterprises (MSMEs) in Indonesia in 2023.

MSMEs are defined as processing/manufacturing industries with fewer than 20 employees per business unit.

Based on their education level, the majority, or 48.59%, of MSME entrepreneurs in Indonesia are elementary school graduates or below.

High school graduates account for 26.56%, and junior high school graduates for 20.16%. Meanwhile, only 4.7% of MSME entrepreneurs have completed diploma/bachelor's/higher education.

Furthermore, BPS categorizes MSMEs as informal businesses with low productivity and technology use. This is consistent with the relatively low education level of MSME entrepreneurs.

"Although they are beginning to show an ability to innovate and develop production technology, MSMEs still face various challenges," wrote BPS in its report.

Some of the challenges faced by MSME entrepreneurs include limited access to capital, marketing, raw materials, training, and partnerships.

Meanwhile, in terms of distribution, 62.06% of MSMEs were concentrated on Java Island in 2023.

"Java Island has better access to resources, raw materials, and markets," wrote BPS.

Sumatra Island had 14.44% of MSME businesses, Bali-Nusa Tenggara 8.93%, Sulawesi 8.26%, Kalimantan 4.13%, and Maluku and Papua 2.18%.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Education Levels of Indonesian Micro and Small Business Owners: High Percentage of Elementary School Graduates or Below

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Education Levels of Indonesian Micro and Small Business Owners: High Percentage of Elementary School Graduates or Below

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