The startup ecosystem has positioned Indonesia as the second top emerging startup ecosystem among the top 100 globally.
This serves as evidence that Indonesia has significant potential in the digital economy and has become a sought-after country for investors, particularly in the startup field.
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This is because the ecosystem and what is deemed better will be projected by the IMF and the World Bank for Indonesia’s economy, which is expected to rank fifth by 2024.
What is the Startup Ecosystem
A startup ecosystem is a group of individuals, startups, and organizations who work together as a system to create and scale new startups, usually formed in a relatively limited area, such as a tech company or university.
This ecosystem can unite the main actors and stakeholders who are interested in start-up initiatives, including new entrepreneurs, incubators, mentors, investors, and support services such as legal and accounting entities that are familiar with the startup world.
The startup ecosystem can also support entrepreneurs beyond their initial location by providing better support and ultimately improving the performance of the business they operate.
With the capital provided by investors and other entities that provide funding, this ecosystem can support entrepreneurs in the event of failure, even if their first attempt results in failure, it does not necessarily mean they will make the same mistake.
The factor for Developing Startup Ecosystem
In building and developing a startup ecosystem, you will need brilliant entrepreneurs, experienced investors, and well-organized events.
However, building an already-developed startup ecosystem is not simple as combining all these elements. There are other factors that influence the development of a startup ecosystem, including:
1. Economic Climate
Global and local economies, available markets, international business relationships, government incentives, ecosystem maturity, and management level, as well as branding, all determine the activities that can be realized with the startup ecosystem.
Startups can still develop during a global financial recession or national economic crisis. Strong international business relationships play a crucial role in creating a company’s scale in smaller or developing countries.
2. Maturity and Risk
Startup systems are easier to face different challenges than in a mature ecosystem. In a more mature ecosystem, taking risks to gain profits is much easier.
This is needed to build new startups and provide innovation. This is a reason to continue to take on more risk when building a startup.
3. Supervision and Special Treatment
An ecosystem without government support will certainly find it more difficult to achieve its development.
The best way to develop ecosystems and boost up is by branding activities and building better relationships with the international market, which will require government support.
Steps for Building a Startup Ecosystem
Startups are often considered as a side product of economic prosperity. However, their role in economic development is enormous.
The potential for developing a mature startup ecosystem is not limited to several developed countries alone. Sometimes, the most innovative startups arise in countries that most need solutions to their problems.
Therefore, special steps are needed to build a startup ecosystem, such as:
1. Research and Mapping
Start by mapping the ecosystem locally and researching the potential and the problems that exist.
This will help you find or create a list of resources and develop the framework for entrepreneurship activities in your area.
2. Building a Community
The next step is to start building a community. Join or initiate initiatives that can promote interaction between members of the local ecosystem through group meetings or creating special events.
To continue to be an entrepreneur, you will need a more supportive community where you can give and take feedback, contacts, and adequate resources.
You can involve the community by providing incentives to those who have dedicated some of their time to building your local startup community. This is also a necessary step to empower the creation of meaningful change.
Leadership and cooperation are key to success. Be a leader and collaborate to accelerate the growth of your local startup ecosystem.
It is essential to build partnerships to gain the necessary support for developing the startup ecosystem.