Indonesia ranks 51st worldwide when it comes to the number of super entrepreneurs in relation to a country’s overall population.
This is the finding of the super entrepreneurs’ index, which looks at the location of the businesses of close to 2,500 individuals globally who have built up billion-dollar fortunes by creating new companies or growing small businesses into large successful ventures.
Klas Tikkanen, Chief Operating Officer at Nordic Capital explains “We find that there is a strong link between high-end entrepreneurship and job growth. Countries that have high levels of super entrepreneurs per capita also have lower unemployment. Higher levels of entrepreneurship are linked to lower unemployment amongst all social groups, with the broad middle class benefiting the most”.
If the rate of super entrepreneurs in Indonesia increased by 20 percent, this would result in the creation of 43,000 jobs. These jobs are typically high-paying and linked to the development of cutting-edge technology or advanced services, and they play a vital role in integrating the country into the global economy. The jobs are created directly or indirectly by the super entrepreneurs.
“High-end entrepreneurship is important for creating the jobs of the future, something that is needed throughout the world in a time when many traditional jobs become obsolete”, says Nima Sanandaji, president of the European Centre for Entrepreneurship and Policy Reform (ECEPR), that has produced the study.
Globally, there is a significant correlation between unemployment and the proportion of super entrepreneurs in a given population. A decrease of 0.9 percentage points in overall unemployment and 1.1 percentage points in middle-class unemployment is associated with each additional super entrepreneur per million adult residents.
“By focusing on the super entrepreneurs, we measure the tip of the iceberg”, explains Kristoffer Melinder, Managing Partner at Nordic Capital. “For jobs and the technologies of the future to grow, countries need to broadly foster entrepreneurship. This enables more entrepreneurs to reach the global top and become super entrepreneurs”.
Countries that have many super entrepreneurs per capita tend to have strong property rights, lower taxes on profits and capital gains, where it is easy to do business, and where pupils have good grades in the international school study PISA. It is a combination of knowledge and a favourable business climate, which is required to stimulate high-end entrepreneurship. The United States has the highest concentration of super entrepreneurs amongst the large countries, followed by Canada, Russia, and Oceania. China has the same concentration of super entrepreneurs as Europe. In Asia, except for China, South America, and Africa, the concentration of super entrepreneurs is currently much lower, while the potential for future growth is high.
The following countries have the highest concentration of high-performing entrepreneurs. The concentration is stated as entrepreneurs who have created at least one billion dollars per one million inhabitants aged 15-64 years.
- Singapore (4.7)
- Switzerland (4.1)
- Cyprus (3.6)
- USA (3.1)
- Israel (2.6)
- Sweden (2.0)
- Ireland (1.9)
- Australia (1.8)
- United Kingdom (1.8)
- Canada (1.7)
For more information, you can find the Superentrepreneurs Index here.