A Portrait of Entrepreneurship Across Generations

The Ministry of Micro, Small, and Medium Enterprises (MSMEs) emphasized that increasing the entrepreneurship ratio is one of the most effective strategies to reduce unemployment and poverty rates in Indonesia1¹. The institution targets Indonesia’s entrepreneurship ratio to reach 3.6% by 2029, up from the current figure of 3.29%.

In line with these efforts, Jakpat conducted a survey to delve into entrepreneurial trends, particularly among aspiring business owners and those already running businesses. The report, compiled based on responses from 1,387 participants, maps the motivations, strategies, and challenges in adopting Artificial Intelligence (AI) technology faced by current and aspiring entrepreneurs.

Survey data shows that 32% of respondents are business owners, 59% plan to start a business, and the remaining 9% are not interested in the field. More specifically, 1 out of 3 Gen X have owned a business for more than three years, while 46% of Gen Z intend to open a business, although they do not yet know when.

The Biggest Reasons to Start a Business

Unlimited income is the most common reason why people become entrepreneurs, as confirmed by 46% of aspiring or current business owners. Other motivations include the desire to work from anywhere (37%) and the belief that building one’s own assets is more secure in the long term than being an employee (33%).

Breaking it down by generation, 35% of Gen Z intend to open a business to create job opportunities, while 36% of Gen X want to be their own boss. Meanwhile, having full control over their work schedule is the reason why 3 out of 10 Millennials start their own business.

“These findings show that the reasons people go into entrepreneurship are not just about income. Many are also seeking independence and control over their time and career choices. Therefore, the approach to encouraging entrepreneurship needs to be more flexible and tailored to the needs of each generation,” said Jakpat’s Lead Researcher, Farida Hasna.

Food and beverages (F&B) is the most popular business sector for 45% of respondents, including both prospective and existing business owners. However, prospective entrepreneurs show a much stronger preference for necessities such as groceries (34%) and agricultural, livestock, & fishery products (22%). Conversely, existing business owners are more active in the telecommunications and digital products sectors (13%). This indicates a shift toward modern, technology-based models as experience grows.

Efforts to Become an Entrepreneur

Respondents are actively studying various topics to support their entrepreneurial ventures. The Jakpat survey shows that 3 out of 5 people are already focused on market research and idea generation, a trend dominated by Gen Z. Other popular areas of learning include pricing strategies (45%) and financial management (42%). One in 3 respondents is learning how to build a brand name.

Reflecting on this, Hasna concluded, “While Gen X is more mature in terms of experience, Gen Z appears to be more serious in the preparation stage by actively studying market research and searching for business ideas. This is supported by their higher capacity for technology adoption.”

1. https://www.antaranews.com/berita/5401750/kementerian-umkm-rasio-kewirausahaan-2029-ditarget-capai-36-persen ↩︎