Relationship between entrepreneurial spirit versus global competitiveness : the case of Indonesia

Abstract

A World Bank report in 2009 has identified Indonesia as one of the middle-income economy, with the characteristics of a strong economy and a stable political life. Indonesia also is facing a fundamental shift in demography and geography. The birth rates is declining, with improvement in the health facilities, as well as increasing the proportion of individuals of productive ages. The advantages occurred in the conditions of growing individuals in the age group 15-64 years, and declining birth rates (fertility). Could this advantages be used to increase Indonesian global competitiveness? The answer is yes. The demographic shifting create a power of productive age, and is known as the demographic bonus. In this periode, Indonesia has an abundance of potential human resources in the productive age. Indonesia should have a capability in creating an entrepreneurship from the potential human resources. The study at national level, shows that entrepreneurship could be a vehicle to enhance the global competitiveness of the nation. But an increasing in entrepreneurial activity at a certain level does not necessarily improve the competitiveness, it should increase significantly and continually.