Overcoming Barriers to Grow Enterprises

Mercy Corps and the Mastercard Center partner to support entrepreneurs in Indonesia in strengthening and expanding their businesses.

By Andi Ikhwan

In Malang City and Malang District Indonesia, more than 450,000 micro, small and medium business owners are working hard each day, as part of the backbone of Indonesia’s economy. Micro and small businesses account for more than 95% of all enterprises in Indonesia and employ more than 90% of the country’s workforce —making them a powerful group with the potential to be a major engine of economic growth for the country and beyond. But entrepreneurs also face significant challenges when it comes to strengthening and growing their enterprises.

Mercy Corps and the Mastercard Center, building upon our five-year partnership in Asia, set out to learn what the major barriers to success are for these enterprises and to work together with business owners to drive solutions.

Our recent assessment of micro and small enterprises in Malang City and Malang District gave us a wealth of information, including insight into specific constraints in access to financial services, material procurement, marketing knowledge, technology and labor, business management, and other business supports. But despite these challenges, we also heard from business owners, a resounding desire to overcome barriers and grow.

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