This report highlights the sizeable market opportunity that exists in Indonesia’s SME sector. It is one of the fastest-growing sectors in the country and shows high potential. Yet it has long been underserved. As Indonesia seeks to transition from a labor intensive to a capital-based economy, this sector is now ripe for development. Our study pegs the potential demand for credit from the women-owned SME market at a substantial $6 billion.
The study illustrates the prudent business case for banking SMEs and especially women-owned SMEs. Women-owned SMEs make up almost half of Indonesia’s SME market. They want to borrow more to invest in their companies and they typically record lower default rates than their male counterparts. Our research also shows that more women entrepreneurs regarded their businesses as ‘highly profitable’ compared to men.
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