Startups In Indonesia Research Articles

Critical Factors to Improve Teamwork Quality in Indonesian Startups Using aTWQ Framework

Due to the ever-changing needs of IT in today's businesses, agile software development has become popular due to its adaptive capabilities. Startups are among those who continuously strive to meet changing needs. Despite the potential benefits of the Agile methodology, teamwork quality remains a challenge. Furthermore, the global recession has made it increasingly important for startups to have effective teamwork, given the high level of uncertainty that leads to challenges in surviving, especially with cost-cutting and downsizing efforts. Therefore, this study aims to evaluate teamwork quality in Indonesian startups using the Agile Teamwork Quality (aTWQ) approach. TWQ is a comprehensive set of criteria designed to assess teamwork quality in agile environments. The primary objective of this study is to identify the factors that most strongly increase the quality of teamwork of Indonesian startups. To achieve this objective, data will be collected from Indonesian companies using an online survey based on the aTWQ framework. The challenges were identified most on the dimensions of cohesion, balance of contribution, and effort. The findings of this study are consistent with previous research, which may hopefully help start-ups in Indonesia improve their teamwork quality and achieve greater success in their respective industries.

Impact Analysis On Perceived Credibility Of Online Job Advertisement And Employer Branding To Intention To Apply Generation Of Job Seekers With Organizational Attractiveness As Mediating Variable

The current era of technological and industrial development 4.0 has had various impacts on daily life and activities, where the digitalization process has become the basis of competitiveness in the business and industrial environment. One of the areas that are affected is in the field of human resource management and the recruitment process which leads to electronic recruitment. Moreover, one of the challenges for companies today is facing a 'talent war' in the current labor market, which directs them to attract potential talent by creating employer branding and providing relevant vacancy information. This study examines the effect of perceived credibility of online job advertising and employer branding on the intention to apply for a job among Generation Z job seekers in technology start-ups in Indonesia, with organizational attractiveness as a mediating variable. The research respondents were 270 Generation Z job seekers in the Jabodetabek area, and a quantitative research method was used with Structural Equation Model (SEM) analysis

Revolutionizing Indonesia's financial landscape: The impact of information technology on the growth of financial technology start-ups

The revolutionary development of information technology has affected all aspects of human life, including finance, and has played a pivotal role in transforming financial transactions and creating new opportunities. This study aims to identify the revolutionary impact of information technology on the financial sector, especially in encouraging the birth of financial technology start-ups. The study was conducted qualitatively by collecting data from various relevant sources. The results of the study show that information technology has changed the way financial transactions are conducted, enabled the adoption of new financial innovations, and created new opportunities for financial technology start-ups in Indonesia. The increased accessibility, efficiency, and security provided by information technology have accelerated the growth of financial technology start-ups in Indonesia. The implication of this study is the need for support from the government and other stakeholders in creating a conducive environment for the growth of the financial technology sector in Indonesia.

Analysis of Start-Up Share Valuation on the Indonesia Stock Exchange for the 2017-2022 Period Using the DFC GMV and Tobins'q Methods

The phenomenon of the proliferation of startup companies in Indonesia that cannot be separated from the use of digital technology brings a fragrant aroma to venture capital investment companies. The number of startup companies that received the investment funds are bringing them to the Indonesian Stock Exchange by conducting an IPO even though the company has not been established for a long time. There is a correlation between the rapid growth of startups in Indonesia with "bubble.com" the phenomenon that occurred in Silicon Valley between the years 1999 and 2000. The surge in assets of startup companies is currently caused by stock valuation, which is based on a single valuation, without assessing assets, cash flows, or other aspects that affect the valuation value of a company. Recently, the stock price of startup companies began to fall, and is considered the same as the phenomenon "bubble.com" another indication is that there are mass layoffs of company employees; this condition also occurs in Silicon Valley. In this case, it is necessary to conduct an intrinsic assessment of startup shares empirically and in accordance with applicable valuation standards to see the condition of the company as a whole. The valuation methods used in this study are Gross Merchandise Value, Discounted Cash Flow and Tobins'q, it is expected that these three methods can represent the valuation analysis of the company so that investors know the intrinsic value of startup companies and are expected not to be Overvalued.

THE EFFECT OF ACCELERATOR START-UP PROGRAM ON THE PERFORMANCE OF FOOD AND BEVERAGES START-UP IN INDONESIA

This study aims to determine the effect of mentoring marketing, accounting, and production on the acceleration start-up program to the performance of the food and beverages start-up in Indonesia. For the Accelererator Start-Up using 3 variable which is mentoring marketing, finance, and production. The research method used is the quantitative analysis using a questionnaire. The number of samples in this study was 31 food and beverages start-up which join Food Start-Up Inovation Accelerator Program in Accelerice Indonesia. This study uses warpPLS software 7.0 to process data to find answers to hypotheses. The research results show that mentoring marketing and production affect the performance but mentoring finance does not affect the performance of the food and beverages start-up which join this program

SWOT Analysis is Used in the Startup Business Development Strategy

Fast-growing startups in Indonesia have an effect on the economy of the country. The fact that Indonesia is one of the five nations with the most startups in the world attests to the high level of public interest. Numerous firms that have strong financial valuations fall under the category of unicorns or even decacorns. One of the funding options in the capital process, which, of course, cannot be isolated from the company's strategies, is to execute an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX). Up till 2022, two startups, PT. Bukalapak.com (BUKA) and PT. Goto Gojek Tokopedia (GOTO), have held initial public offerings. Analyze the two companies' strengths, weaknesses, opportunities, and threats (SWOT) in order to determine their respective business strategies. This study used a descriptive qualitative method, and it collected its data by completing literature reviews from reliable sources of scholarly literature and online news.

Analysis of entrepreneurial ecosystem factors on productive entrepreneurship of digital start-ups in Indonesia

Technological developments and innovation create challenges for businesses to develop sustainable innovations in the light of global shifts in social, environmental and economic conditions in order to advance or maintain their position. Digital startups are an alternative for businesses to create value, and in the long term improve a country's economy. Entrepreneurial ecosystem theory is widely used to research digital startup ecosystems, but the factors in the model have not been tested quantitatively in terms of their effect on productive entrepreneurship. This study is a quantitative study by embarrassingly distributing the survey to 120 respondents who are founders and C-level at digital start-ups in Indonesia. Regression analysis using SPSS was carried out to see the correlation between variables. The results of this study explain that networking, leadership, finance, human resources and knowledge have an influence on productive entrepreneurship in the startup and digital ecosystem in Indonesia.

A Cross-Case Analysis Study on Scrum Culture Adoption in Three Digital Startups

Indonesian startups actively embrace Agile development, but implementation can be difficult due to complexity, rapid change, and ambiguity. Scrum, the most popular Agile methodology, assists organizations in dealing with issues that arise during product development. Cultivating a Scrum culture can also take time, but truly implementing it can increase productivity, product quality, and customer satisfaction. Many businesses embrace Agile without first assessing their values and principles, resulting in poor performance. This study investigates how the value of Scrum is quantified and applied to digital startups, with the goal of understanding metric results for evaluation and recommending a better implementation of Scrum culture. A cross-case analysis study was conducted on three digital startups in Indonesia, with data collected through interviews. To evaluate and enhance Scrum implementation, a Values, Goals, Questions, and Metrics (VGQM) model developed from Scrum values was presented. Businesses demonstrated the same strengths in commitment and focus for Scrum values but needed continuous improvement in different values of respect, openness, and courage for better prioritizing requests and delivering feedback. Based on the findings, recommendations were made, including extensive training, cross-functional collaboration, assessing tools and processes, and establishing clear boundaries for customer satisfaction and productive work. Improving product backlog management and employing effective Scrum tools were also mentioned. There are no metrics used by the companies in order to evaluate scrum culture implementation in their organizations. The study suggests constantly retaining those values, while continuously improving the values of openness and courage.

Proposed Employee Retention Strategy as the Form of Employer Branding in an Educational Startup (Case: Vokraf)

The fast-changing of technology and the impact of COVID-19 pandemic has changed a lot of aspects in the world, one of them is in the field of HRM. Thus, some adjustments are needed to be done by the companies so they can keep up with the industrial trend and demand. Vokraf is one of the educational startups in Indonesia established in 2019 and their products are selling online digital classes. Based on the interview result with the Vokraf’s HR department, there was a great resignation phenomenon happening from 2022 until mid-2023. In 2022 the employee resignation was 24 from 61 employees while per mid-2023, the employee resignation was 18 from 50 employees. This employee resignation somehow has impacted the company’s performance and should be overcome immediately. The author uses some factors that affecting the turnover intention from the previous research to identify what factors that triggering the employee turnover intention at Vokraf. The secondary data and primary data are being used to help the author in mapping and finding out those factors. Secondary data is sourced from 12 exit interview data while primary data is sourced from semi-structured interview with 9 Vokraf’s key informants. The key informants are chosen by using purposive sampling with snowball sampling technique. All the collected data are being analysed using the Interactive Model Analysis by Miles and Huberman (2014). The employee retention strategy will be proposed as the final step and the recommendation to the company to overcome this issue. There are five factors found that affecting the employee turnover intention at Vokraf, they are about career path, job stress, employee compensation, leader-member exchange, and supportive work environment issues. The author makes the employee retention strategy in the form of implementation plan & implication timeline starts from June 2023 – June 2024.

Family Role, Experiences Exposure, and Entrepreneurial Judgment Skills Toward Start-Up Entrepreneurs’ Productivity

This study aims to analyze and explain the empirical influences of role of family, experiences exposure, and entrepreneurial judgment skills, eachly toward entrepreneurs’ productivity. This study applies descriptive research design, quanitatively obtained, and analyzed statistically. The data are collected from 40 individuals, entrepreneurs who establish or manage start-up in Indonesia, as sample. Technique used to select the sample is by non-probability sampling, where the instrument used to evaluate four variable is questionnaire through Google-form, to collect data. Respondent’s feedbacks are then assessed through SmartPLS 3.0 software. Three independent variables simultaneously able to influence dependent variable moderately. In hypotheses testing, role of family positively and insignificantly influences entrepreneurs’ productivity, while experiences exposure, entrepreneurial judgment skills positively and significantly influence entrepreneurs’ productivity.

Family Role, Experiences Exposure, and Entrepreneurial Judgment Skills Toward Start-Up Entrepreneurs’ Productivity

This study aims to analyze and explain the empirical influences of role of family, experiences exposure, and entrepreneurial judgment skills, eachly toward entrepreneurs’ productivity. This study applies descriptive research design, quanitatively obtained, and analyzed statistically. The data are collected from 40 individuals, entrepreneurs who establish or manage start-up in Indonesia, as sample. Technique used to select the sample is by non-probability sampling, where the instrument used to evaluate four variable is questionnaire through Google-form, to collect data. Respondent’s feedbacks are then assessed through SmartPLS 3.0 software. Three independent variables simultaneously able to influence dependent variable moderately. In hypotheses testing, role of family positively and insignificantly influences entrepreneurs’ productivity, while experiences exposure, entrepreneurial judgment skills positively and significantly influence entrepreneurs’ productivity.

Startup Valuation In A Logistics Aggregator (Case Study At Pt Linknau)

The large number of startups in Indonesia is supported by an increase in internet user penetration which reaches 64.8% of the Indonesian population or 171.17 million users (APJII 2019). The potential of Indonesia's creative economy and startups is very large which is supported by abundant natural resources, local cultural diversity spread throughout the archipelago, and diversity of human resources. The objectives of this study are as follow Describe the financial performance of start-ups in logistics aggregators at PT Linknau. Analyzing company size, profitability, economic growth rate, market traction and competitive advantage against start-up valuation in logistics aggregators (Case Study at PT Linknau). The data used in this study are primary data and secondary data. Primary data is in the form of interviews conducted in depth interviews with the CEO of PT Linknau and secondary data in the form of financial statements of start-up Companies PT Linknau from 2019-2022. The results show that the valuation of The First Chicago Method to be the most suitable company valuation method for assessing PT Linknau's company valuation. The main reason why this method is the most suitable method is because currently the company is already in a condition of generating operating income, according to Damiano et. al. (2020).

Can Product Quality Improve Purchase Decisions in E-Commerce and Social Media through Customer Loyalty and Trust?

The increase in online sales transactions has continued to increase due to several factors, such as the improvement of Internet quality, the growth of start-ups in Indonesia, and the COVID-19 pandemic’s effects, which have restricted customers from making purchases offline. The research aimed to identify different types of direct and indirect influences that caused customers to make purchase decisions for fashion products and determine more dominant group (women or men) on e-commerce platforms and social media. The research applied a quantitative method. The research respondents were 244 customers who bought fashion products in e-commerce and social media. The analytical tools were Structural Equation Modelling (SEM) with SmartPLS 4.0, convergence and discrimination invalidity for the validity test, composite reliability for the reliability test, and structural model evaluation (inner model). The findings indicate that all aspects of product quality, trust, and customer loyalty have a huge impact on buying fashion products in e-commerce and social media. Moreover, in the indirect effect, product quality affects customer loyalty through trust. Similarly, product quality impacts purchase choices through customer loyalty. Trust also affects purchase choices through customer loyalty. Then, product quality affects purchase decisions through trust. Last, product quality has an impact on purchase decisions through customer loyalty and trust. Additionally, the results of PLS-MGA show that women are more dominant in buying fashion products on e-commerce and social media than men.

The Effect Of Company Size, Profitability, Economic Growth Rate, Market Traction And Competitive Advantage On Startup Valuation In Logistics Aggregators

The large number of startups in Indonesia is supported by an increase in internet user penetration which reaches 64.8% of the Indonesian population or 171.17 million users (APJII 2019). The potential of Indonesia's creative economy and startups is very large which is supported by abundant natural resources, local cultural diversity spread throughout the archipelago, and diversity of human resources. The objectives of this study are as follow Describe the financial performance of start-ups in logistics aggregators at PT Linknau. Analyzing company size, profitability, economic growth rate, market traction and competitive advantage against start-up valuation in logistics aggregators (Case Study at PT Linknau). The data used in this study are primary data and secondary data. Primary data is in the form of interviews conducted in depth interviews with the CEO of PT Linknau and secondary data in the form of financial statements of start-up companies PT Linknau from 2019-2022. The results show that the valuation of the Real Option Method (ROM) from 2019 to 2023 is seen increasing. It can be seen that the highest value of ROM valuation in 2023 is right in executing investments and finding the optimal value of PT Linknau itself.

Analysis of Internal Factors for Improving the Performance of Startup Companies in Medan, Indonesia

Everyone can increase their income with various businesses, one of which is by opening a business, there are various types of businesses involved. Especially now that he is opening a business by utilizing technology and creativity, which is now known as a startup. Since 2015, the startup business has been introduced and has been growing since the pandemic hit the world in 2019. Startup businesses are increasingly mushrooming in Indonesia, supported by the government program “The National 1000 Startup Digital Movement”. So that the development of startups in Indonesia by Mr. Bonifasius Wahyu currently occupies the fifth position in the world with the largest number of startups in the world at 2,229 startups in April 2021. In running a startup business, it is very important to pay attention to external and internal factors, but in this study to analyze internal factors consisting of marketing, finance, human personal and operational communication. With a sample of 75 startup companies using a purposive sampling technique and processed with SPSS, by performing multiple regression analysis. The results show that internal factors, namely marketing communications, finance, human resources and operational activities, have a positive and significant impact on startup business performance, with a contribution of 0.871 or 87.1%. The variables that most influence the performance of startup companies are marketing communications, followed by human relationship, financial and operational.

Entrepreneurial fear of failure and well-being of incubated and non-incubated startups during crises

PurposeThe phenomenon of fear and anxiety can cause a decline in entrepreneurship. However, the validity of this assertion remains debatable, as opportunity-driven entrepreneurs may benefit from elevated uncertainty during a crisis. This study aims to examine entrepreneurial fear of failure and the well-being of opportunity-driven entrepreneurs in their startup stage during the COVID-19 outbreak. Opportunity-driven startups are oriented toward business growth but may need assistance from incubators.Design/methodology/approachThe study used a qualitative method, where ten participants from incubated and non-incubated startups in Indonesia were interviewed. Thematic analysis was conducted using NVivo 12 software to analyze the data.FindingsThis study shows that the interviewees subjected to incubation tended to derive motivation from fear of failure. In contrast, nonincubated interviewees showed a propensity to experience fear of failure as repression and inhibition. Furthermore, the study highlights the correlation between entrepreneurial fear of failure and eudaimonic well-being.Originality/valueThis study contributes to the literature with empirical results on fear of failure capturing the essence of entrepreneurial behavior during crises/pandemic in the context of business startups. It provides valuable insights into the policy implications for promoting innovation among startups in specific contexts.

Feasibility Study of Student Financing Startup Company for BRI Ventures Investments Study Case of: “Company A”

The problem faced by BRI Venture is to determine the feasibility of investing in Company A, a start-up in the student financing market in Indonesia. The valuation of start-ups in Indonesia is difficult, making it challenging for BRI Venture to assess the viability of the investment. This study aims to provide a comprehensive analysis of the factors affecting Company A’s business, both internally and externally, in order to make an informed investment decision. The study focuses on three key research objectives: (1) to examine the macroeconomic and industry impact on Company A’s business by using Porter’s Five Forces model, PESTLE model, and market sizing; (2) to examine the internal aspects impacting Company A’s business by using the VRIO model; and (3) to determine the valuation of Company A by using the DCF and relative valuation methods. The findings of the study reveal that the Indonesian student financing market presents both opportunities and challenges. The PESTEL analysis highlights the increasing demand for student loans in Indonesia, creating growth opportunities for the industry. However, the Five Porter framework analysis highlights the intense competition, strong buyer bargaining power, and weak supplier bargaining power, which may make it difficult for new entrants to succeed. The VRIO Framework analysis suggests that Company A has a number of sources of sustained competitive advantage, including adaptable repayment terms, technological capabilities, and market position, indicating that Company A’s internal situation is strong. The Absolute Valuation and Relative Valuation results indicate that Company A valuation is between $59 million and $73 million. In conclusion, while the Indonesian student financing market presents a growth opportunity, BRI Venture must carefully consider the challenges and competition in the market before making an investment in Company A. The internal analysis of Company A suggests that it has a strong position in the market, with a range of assets and competencies that can offer a sustainable competitive advantage. The valuation results provide a range of potential equity stake that BRI Venture could ask for if an investment in Company A is made.

The Effect of Venture Capital on the Growth of Startups in Indonesia: A Case Study on BRI Ventures

The low success rate of startups has caused venture capital firms to bear a large risk of investment failure (BRI Ventures, 2021). Venture capital firms play an important role in identifying potential startups and being the driving force for startup success. This study aims to find out the role of BRI Ventures (BVI) in increasing the success rate of startups in Indonesia, how BRI Ventures (BVI) makes funding decisions, and the criteria set before funding startups. The data analysis uses descriptive qualitative analysis, which includes content, thematic, and constant comparative analysis and is processed using the NVivo 12 Pro software application. This study uses the diffusion of innovation theory to examine the role of BRI Ventures (BVI) in increasing the success rate of startups in Indonesia. The results show that BRI Ventures (BVI) uses the 5Ps approach, a self-designed investment analysis tool to assess whether a startup is feasible to fund. The indicators of 5Ps include people, product, potential market, performance, and potential upsides. The people indicator, which consists of the founder and the team, plays an important role in the success of a startup. The findings of this study suggest that BRI Ventures proactively provide innovations through mentoring programs to increase the success rate of startups. This research is expected to be useful in the financial sector, especially in terms of funding and innovation, for the business sustainability.

Legal Challenges for Digital Startup Development in Indonesia

The high level of internet usage in Indonesia will certainly be in line with the growth of businesses that use the internet as their main part. Companies working on the Internet are known as digital startups. Digital Startup is a group of people who form an organization as a start-up company that produces products in the technology sector. Startups in Indonesia have been on the rise for at least the last decade. This phenomenon is also seen in Gojek and Tokopedia which are popular among Indonesians. With the rapid growth of startups, of course there are challenges to start and grow, one of which is legal challenges. From a legal point of view, in general startups experience problems such as employment relations, company forms, company names, licensing, intellectual property issues and, contracts. Before starting a business, startup business people must thoroughly study the Indonesian laws and regulations governing startup businesses, as well as study the obstacles that will be faced when starting and running their business activities. So that the risk of failure in running a startup business can be minimized. So in this study the researchers analyzed the legal challenges that need to be prepared to be able to build a digital startup. In this study, researchers used a qualitative approach to collect data and utilize all the information on the subject matter. so that 7 important legal challenges can be found and need to be prepared to be able to build a digital startup. The 7 challenges include: Regulations, Legal Entities or Business Entities, Licensing, Protection of Business Competition, Financial Transactions, Crowdfunding, and Venture Capital.

Strategi Pengembangan Bisnis Startup Menggunakan SWOT Analysis (Studi Kasus pada Startup yang Terdaftar di Bursa Efek Indonesia)

Startups in Indonesia that are growed fast and have an impact on the national economy. The high enthusiasm of the people is proven by Indonesia being included in the five countries with the highest number of startups in the world. There are several startups with good financial valuations that can be classified as unicorns or even decacorns. In the capital raising process, of course, it cannot be separated from the strategies taken by the company; one of the funding alternatives is to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX). Until 2022, the only startups that have conducted an IPO are PT. Bukalapak.com (BUKA) and PT. Goto Gojek Tokopedia (GOTO). analyzing the two companies' business strategy models using a strength, weakness, opportunity, and threat (SWOT) analysis.The method used in this study is a descriptive qualitative method, and the process of collecting data is by conducting literature studies from sources of scientific publications and accredited digital news.