entrepreneurship, SME's and aec 2015

1. Entrepreneurship, SME’s and
ASEAN Economic Community
Dias Satria

2. www.diassatria.com

3. Anyone is having a plan to set up
a business in the future?

4. Think about someone that you
adore as an entrepreneur!

5. Definition
• Entrepreneurship is the process of starting a
business, typically a startup company, based
around an innovative product, process or
service. The term "entrepreneur" is often
conflated with the term "small business.”
(Wikipedia)

6. Definition
What is AEC (ASEAN Economic Community)?
The AEC is the realisation of the region’s end goal of
economic integration. It envisions ASEAN as a single market
and production base, a highly competitive region, with equitable
economic development, and fully integrated into the global
economy. (ASEAN.org)

7. Definition
• Small and medium-sized enterprises (SMEs;
sometimes also small and medium enterprises) or
small and medium-sized businesses (SMBs) are
businesses whose personnel numbers fall below
certain limits. The abbreviation "SME" is used in the
European Union and by international organizations
such as the World Bank, the United Nations and the
World Trade Organization (WTO). Small enterprises
outnumber large companies by a wide margin and also
employ many more people. SMEs are also said to be
responsible for driving innovation and competition in
many economic sectors. (Wikipedia)

8. 3 keys - Macroeconomics perspectives
Entrepreneurship
SMEAEC

9. Globalization: Free trade

10. Globalization: Australia
Qantas Airways is on track to complete 4000 of its
planned 5000 job cuts by June 2015 (Sidney Morning
Herald, May 2014)
As many as 65,000 workers could lose their jobs and up to $4 billion
could be lost from the economy as a result of General Motors pulling
the plug on Holden manufacturing in Australia, under one scenario put
forward by economic modellers.
Budget Deficit Trade Deficit
High
Unemployment
Hiking up house
pricing
(Inflation)

11. Globalization: Indonesia
Economic
and financial
crisis 1997
World
Recession
2008

12. Freezing in multilateral trading
system: problems
• Globalization and WTO (World Trade
Organization)
• Problems in Multilateral trading system
• Multilateral trading system under the WTO
• Free Trade Area (NAFTA, AFTA/AEC and EU)

13. Who are involved in AEC 2015?

14. AEC: Flying geese economy 90s
High tech > Mid > Low

15. Reasons
• Facilitate the movement of goods, services,
investments, capital, and skills.
• Increase trade (goods and services) and investment
among member states.
• Promote and expand regional production sharing
and network.
• Promote higher level of transparency and
predictability.

16. Indonesia and other ASEAN nations
Global Competitiveness Index
2012 2013 2014
Indonesia 50 38 34
Malaysia 25 24 20
Thailand 38 37 31
Singapore 2 2 2

17. The most problematic factors for doing
business 2014
1. Corruption
2. Access to financing
3. Inflation
4. Inefficient government bureaucracy
5. Inadequate supply of infrastructure
6. Policy instability
7. Foreign currency regulation
8. Poor work ethic
9. Tax rates
10. Government instability
11. Restrictive labor regulations
12. Crime and theft
13. Inadequate educated workforce
14. Tax regulations
15. Poor public health
16. Insufficient capacity to innovate

18. Prospects and challenges: Indonesia
• High economic growth
– Populations 248 Million
– GDP 870.3 Billions (US$)
• High amount of labor force
• Good governance
• Infrastructure

19. AEC and Small Medium Enterprise
• Majority – SME’s
• SME’s and Labour intensive
• SME’s and local economic development
(Poverty reduction)

20. Problems in SME’s
1. One man show
2. Manajemen yang sederhana (bahan baku
yang terbatas, proses produksi yang
sederhana dan hasil produk yang bervariasi).
3. Pola permintaan konsumen yang monoton.
4. Penggunaan alat produksi yang sederhana.

21. Problems in SME’s: a Survey
Marketing,
45%
Management,
35%
Fund, 20%

22. #support_locals: lesson learned from SA
Ebenezer Pl.

23. Sch. : Clothing company

24. Babahbikes and nomaden coffee: Malang
Innovation – Dynamic Market networking – Social media

25. Government supports
1. Increased supports for SME’s
competitiveness
1. Financial supports
2. Transfer of knowledge (capacity building)
3. Information Technology
4. Marketing
2. Basic infrastructure
3. Law Enforcement
4. Good governance (Business registration)

26. Readings
1. Let’s change. (Rhenald Kasali)
2. Grow with character. (Hermawan Kartajaya)
3. Nationalism and economic competitiveness.