Most Micro, Small, and Medium Enterprise (MSME) Owners Are Elementary School Graduates

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Adi Ahdiat 27/10/2023 13:40 WIB

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According to BPS data, in 2022 there were approximately 4.3 million micro and small industrial business units in Indonesia, the majority of whose owners are elementary school graduates.

Proportion of Indonesian Micro, Small, and Medium Enterprise (MSME) Owners by Highest Education Level (2022)

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Proportion of Indonesian Micro, Small, and Medium Enterprise (MSME) Owners by Highest Education Level (2022)

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According to data from the Central Statistics Agency (BPS), in 2022 there were approximately 4.3 million micro, small, and medium enterprises (MSMEs) in Indonesia.

The MSMEs included in this data are processing/manufacturing industries with fewer than 20 employees per business unit.

BPS states that, in general, micro, small, and medium enterprises (MSMEs) are categorized as informal businesses with low productivity and low technology usage.

This is consistent with the condition of MSME entrepreneurs, the majority of whom are elementary school graduates (37.0%), junior high school graduates (20.9%), and senior high school graduates (18.6%).

Meanwhile, the proportion of MSME owners who have completed diploma, bachelor's, or higher education is very small, with details as shown in the graph.

"Although they have begun to develop the ability to innovate and develop production technology, MSMEs are still hampered by a number of classic problems such as access to capital, marketing, raw materials, guidance, training, and partnerships," said BPS in its report.

"Government intervention through various policies is greatly needed to assist MSMEs in a structured, sustainable, and relevant manner according to the needs of MSMEs," it continued.

In terms of distribution, in 2022, micro, small, and medium enterprises were most numerous in Central Java, accounting for 20.6% of the total national MSME count.

Other provinces with a significant number of MSMEs are East Java (20.2%), West Java (15.4%), East Nusa Tenggara (3.9%), and Bali (3.5%).

Based on business classification, in 2022, the majority of micro, small, and medium enterprises operated in the food processing sector, accounting for 36.7% of the total national MSME count.

Many also operate in the processing of wood/cork/bamboo (non-furniture) (14%), ready-made clothing (13.7%), textiles (7%), and other processing (6%).

Editor : Adi Ahdiat

"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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Most Micro, Small, and Medium Enterprise (MSME) Owners Are Elementary School Graduates

Most Micro, Small, and Medium Enterprise (MSME) Owners Are Elementary School Graduates

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Most Micro, Small, and Medium Enterprise (MSME) Owners Are Elementary School Graduates

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