Endeavor’s research arm, Endeavor Insight, with support from Omidyar Network, recently released “The 16-52 Report”, highlighting the importance of scaleup companies to job creation and economic growth in Indonesia. This is the first in a series of reports from Endeavor Insight that will focus on scaleup ecosystems worldwide, and their significance in transforming emerging markets.
Scaleup companies, defined as companies more than three years old with a minimum of 20% average annual employment growth, are becoming increasingly critical to the Indonesian economy. The report found that these businesses represent just 16% of the nation’s firms but created 52% of net new jobs over the past three years. For Indonesia in particular, the need for new employment opportunities has never been greater, with research from the International Labor Organization estimating that over four million young Indonesians in the labor force are currently out of work.
As the country’s young population continues to increase, the demand for new jobs will only skyrocket. As a result, scaleup companies have become a critical component in helping to tackle the challenge of unemployment throughout the region. As the largest job creators for the country, scaleups will require access to the right mix of talent, funding and networks to help them accelerate growth, progress job creation, and foster the type of high-impact entrepreneurship Endeavor looks to support worldwide.
To read the full report and learn the methodology for these insights, click here.