Citation:

Tulus T.H. Tambunan. "Poverty Alleviation and Women Entrepreneurship in Indonesia" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 44-58, 2023.

Abstract:

This paper examines poverty in Indonesia from an economic approach and discusses the significance of women’s participation in the economic activities of business owners or entrepreneurs in efforts to achieve inclusive economic growth, whose impact is poverty reduction. The results of secondary data analysis suggest that Indonesia is quite good at reducing poverty. Every year, the poverty rate continues to decline, But it varies by province and by rural and urban areas. It is greater in the East (less developed region) than in the West (more developed region), and poverty conditions in villages are still worse than those in cities. Limited human resources, lack of various industries, especially manufacturing, and lack of infrastructure are some of the main causes of these differences. Meanwhile, the two indices’ overall declines in urban and rural regions suggest that poor people’s average spending tends to be closer to the poverty line and that the difference between rich and poor people’s spending is also reducing. Growth in employment and business opportunities (as reflected in the reduction in open unemployment), which is in line with GDP growth, is the main contribution to poverty reduction. Getting opportunities to open their own businesses for women is also important to accelerate poverty reduction, especially in rural areas, which are usually centers of poverty. However, it demonstrates that Indonesian women’s entrepreneurial development is still at an extremely low point. Heavy domestic duties, a lack of education, and business experience are all significant barriers to women starting their own enterprises.

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Keywords:

Women entrepreneurship, Poverty, Open unemployment, Economic growth, Poverty alleviation policy, MIEs.