Development of Women's Entrepreneurship and the Role of Women in SMEs

ABSTRACT


INTRODUCTION
Women's entrepreneurship in Indonesian Small and Medium Enterprises (SMEs) plays a significant role in the country's economic development.In Indonesia, 52.9% of micro-enterprises are operated by women, and the percentage of women entrepreneurs stands at 21%, which is higher than the global average of 8% [1].This demonstrates the importance of women's involvement in the Indonesian economy, as well as their contributions to innovation, job creation, and societal progress.
A study on the relationship between women's entrepreneurship practices, ICT adoption, and business performance in Malaysia and Indonesia suggests a positive relationship between these factors [2].The study identifies six dimensions of women's entrepreneurship practice: entrepreneurial traits, entrepreneurial experience, management skill, customer relation, training and education, and environment.It also highlights the role of ICT adoption, such as ecommerce and m-commerce, in improving business performance [2].
Another study conducted in West Sumatra, Indonesia, found that women's entrepreneurship practices have a significant effect on ICT adoption among SMEs [1].Factors such as customer relations, education and training, skills, internal support (including culture, social structure, religion, and family), and external environments (including governmental and associated institutions) contribute to women's entrepreneurship [1].This research supports the empowerment of women by providing them with equal opportunities to learn, improve their abilities, and work in technology-based innovation entrepreneurship, similar to men [1].
In conclusion, women's entrepreneurship in Indonesian SMEs is crucial for the nation's economic development and societal progress.The positive relationship between women's entrepreneurship practices, ICT adoption, and business performance highlights the importance of supporting and empowering women entrepreneurs in Indonesia.
Indonesia, with its diverse archipelago and emerging economy, is at the crossroads of tradition and modernity.As the country strives to achieve economic growth and development, women's active participation in entrepreneurial ventures, especially in the SME sector, has become a focal point for policymakers, academics and practitioners.This research aims to explore the diverse aspects of women's entrepreneurship in Indonesia, highlighting the challenges faced, opportunities opened up, and broader social implications.The research sets out with several distinct objectives that aim to comprehensively examine the landscape of women's entrepreneurship and their role in SMEs in Indonesia.

Women's Entrepreneurship in Indonesia
The landscape of women's entrepreneurship in Indonesia is a complex interplay of historical, cultural, and economic factors.Historically, Indonesian women have played pivotal roles in family businesses and informal economies.However, as the country undergoes rapid modernization, the challenges and opportunities for women in formal entrepreneurial ventures have evolved.Studies [3]- [9] suggest that while the number of women entrepreneurs is increasing, barriers related to access to finance, education, and societal expectations persist.

Role of Women in SMEs
The role of women in SMEs is not only about numerical participation but extends to the impact they make on business performance and innovation.Global research [10]- [12] underscores the positive correlation between gender diversity in leadership and business success.In the context of Indonesia, there is a need to explore the specific contributions of women to SMEs, considering the unique economic and cultural dynamics [13], [14].

Cultural and Societal Factors
Cultural norms and societal expectations significantly influence women's entrepreneurship in Indonesia.Traditional gender roles, while shifting, still exert influence on the types of businesses women undertake and the sectors they participate in.Research [15], [16] indicates that cultural perceptions of women in business impact their access to resources and market acceptance.Understanding these dynamics is crucial for developing interventions that align with cultural contexts.

Support Mechanisms for Women Entrepreneurs
Government and non-governmental organizations have recognized the importance of supporting women entrepreneurs in Indonesia.Various programs aim to address challenges related to financing, training, and networking.However, the effectiveness of these mechanisms requires scrutiny.Research [17]- [21] will be examined to assess the impact of existing support structures on the growth and sustainability of women-led SMEs.

Women's Entrepreneurship and Economic Development
Research indicates that women's entrepreneurship is not only a matter of gender equality but also a driver of economic development.The economic empowerment of women has far-reaching implications for poverty reduction, education, and healthcare [22].Understanding the macroeconomic impacts of women's entrepreneurship in Indonesia is crucial for advocating policies that prioritize gender inclusivity in economic development agendas.

Critical Gaps and Emerging Trends
While there is a wealth of literature on women's entrepreneurship globally, critical gaps remain in understanding the nuanced challenges and opportunities faced by Indonesian women entrepreneurs.Emerging trends, such as the role of technology and social enterprises, are areas that demand exploration.By addressing these gaps, this research aims to contribute to the evolving discourse on women's entrepreneurship in Indonesia.

METHODS
To comprehensively explore the landscape of women's entrepreneurship in SMEs in Indonesia, a mixed-methods research design will be used.This approach combines quantitative and qualitative methods to provide a holistic understanding of the various aspects under study.
The target population for this study consists of women entrepreneurs engaged in SMEs across different sectors and regions in Indonesia.A stratified sampling strategy will be used to ensure representation from different sectors and geographical locations, a total of 220 samples are involved in this study.

Data Collection
Survey: A structured survey questionnaire will be designed to collect quantitative data from a large sample of women entrepreneurs.The survey will include questions covering demographic information, business details, challenges faced, access to resources, and perceptions of support mechanisms.Likert scales and closed-ended questions will be used to facilitate quantitative analysis.
Interviews: In-depth interviews will be conducted with a subset of participants to gain qualitative insights into their experiences, motivations, and challenges.A semi-structured interview format will be used to allow flexibility in exploring emerging themes.Qualitative data collected through interviews will complement and enrich the quantitative findings.
Case Studies: Selecting a few representative cases of successful women entrepreneurs across different sectors will provide an in-depth and contextualized understanding of their journey.The case studies will involve a detailed examination of the business, the strategies employed, the challenges faced, and the impact on the wider community [23].This qualitative approach aims to provide depth and nuance to the research findings.

Quantitative Data Analysis
Quantitative data from the survey underwent statistical analysis using SPSS software.Descriptive statistics, including means, frequencies, and percentages, will be used to present an overview of the demographic and business characteristics of women entrepreneurs.Inferential statistics, such as regression analysis, will be used to identify relationships between variables.

Qualitative Data Analysis
Qualitative data from interviews and case studies will be thematically analyzed.Thematic analysis involves coding and categorizing the data to identify recurring patterns, challenges, and opportunities.This qualitative approach will provide a deeper understanding of the contextual factors that influence women's entrepreneurship in Indonesia.

Quantitative Results
The demographic analysis of women entrepreneurs in Indonesia reveals a diverse distribution across age groups, with 25% falling within the 18-30 years range, 45% in the 31-45 years bracket, 27% between 46-60 years, and a 3% representation from those aged 61 and above; educational backgrounds showcase 15% with a high school education, 52% holding a Bachelor's degree, and 33% with a Master's degree or higher; in terms of geographic representation, Java leads with 55%, followed by Sumatra at 20%, Sulawesi at 12%, Kalimantan at 8%, and other regions contributing 5%.Demographic analysis shows a diverse landscape of women entrepreneurs in Indonesia.Mostly concentrated in the 31-45 age group, with significant representation in Java, women entrepreneurs exhibit a mix of educational backgrounds, indicating a broad spectrum of skills and expertise.

Business Characteristics
The dominance of women entrepreneurs in the retail and service sectors, particularly in microenterprises, demonstrates their contribution to the local economy.Reliance on self-financing, coupled with a high percentage accessing bank loans, highlights the entrepreneurial spirit and resources possessed by this group.

Challenges Faced
Access to finance emerged as a substantial challenge, with an average severity score of 4.2 out of 5. Cultural bias and regulatory constraints are also considerable hurdles, emphasizing the need for targeted interventions to foster a more conducive environment.
In our survey, women entrepreneurs in Indonesia identified significant challenges, with access to finance ranking as the most severe (average score: 4.2), followed by cultural biases (average score: 3.8), and regulatory constraints (average score: 3.5), underscoring the critical need for targeted interventions in these areas to facilitate sustainable entrepreneurial growth.

Opportunities Open
The survey identified positive trends in technology adoption, with most women entrepreneurs utilizing online platforms and social media for business growth.The findings also highlighted a strong emphasis on community impact, demonstrating the potential for women-led SMEs to contribute to local development.
The study reveals that a substantial number of women entrepreneurs in Indonesia have embraced technological adoption, with 75% incorporating technology into their businesses, 60% utilizing online sales platforms, and 85% engaging in social media marketing; furthermore, these entrepreneurs actively contribute to community impact, with 65% participating in community engagement initiatives, 55% creating employment opportunities, and 40% providing support to local suppliers.

Access to Finance
In-depth interviews and case studies highlighted various challenges in accessing finance, including gender bias in the loan approval process.However, the qualitative data also revealed entrepreneurial resilience, with women forming cooperative loan groups and exploring alternative financing channels.

Cultural Influences
Cultural expectations influence business choices and strategies.Qualitative insights provide depth to quantitative findings on cultural bias, emphasizing the need for interventions that recognize and address traditional norms.

Impact on Society
The case studies highlight the broader impact of women-led SMEs on local communities.Beyond profit, successful entrepreneurs are actively involved in community empowerment, providing employment opportunities and supporting local suppliers.

Resilience and Resilience
The thematic analysis revealed a common thread of resilience and determination among the women entrepreneurs.This qualitative aspect complements the quantitative findings, emphasizing the spirit that drives women to overcome challenges.

Impact on Family Dynamics
The impact of entrepreneurship on family dynamics emerged as a significant theme.Balancing business responsibilities with traditional family roles presents challenges, but also reflects changing societal norms and women's evolving roles.

Vision for the Future
Entrepreneurs expressed a collective vision for a more inclusive entrepreneurial landscape.Qualitative narratives combined with quantitative data contribute to a comprehensive understanding of women's aspirations for the future.

Discussion
The synthesis of quantitative and qualitative results provides a nuanced picture of women's entrepreneurship in SMEs in Indonesia.Challenges such as access to finance and cultural bias are supported by qualitative narratives, which provide depth to statistical trends.Thematic analysis enhances understanding of the personal and social dimensions of women's entrepreneurship.This research is in line with previous studies such as [24]- [29].