"A psychological investigation and intervention of “the survival mode” among micro entreprises in Indonesia"
Leiden University - Social and Organizational Psychology
Prof.dr. Eric van Dijk (Leiden University)
Dr. Esther van Leeuwen (Leiden University)
Dr. Fieke Harinck (Leiden University)
1 February 2016 - 31 January 2020
LPDP: Indonesia Endowment Fund for Education
Micro, small, and medium enterprises (MSMEs) are among the most crucial players in the Indonesian economy. Indonesian MSMEs’ ability to reduce unemployment rates and their resilience to global economy crises are their main strengths, which have attracted particular attention from the Indonesian government. Quantitatively, the amount of MSMEs is in a constant hike from year to year. However, despite the existence of support and assistance from the Indonesian government and other institutions, such as NGOs, the quantitative increase of MSMEs in Indonesia has not been accompanied by an increase in their productivity and quality, particularly for micro enterprises that compose the majority of MSMEs in Indonesia. This phenomenon is known as survival mode (a phenomenon in which entreprises do not exhibit the eagerness to grow bigger due to their survival-orientedness). One of the forefront MSME empowerment and research foundations in Indonesia, the Small and Medium Enterprises (SME) Center of the University of Indonesia stated that 98,82% of MSMEs are micro entreprises which are generally survival-oriented and do not possess growing characteristics. Thus, this research project is aimed at investigating the underlying psychological factors of the survival mode phenomenon among micro entreprises in Indonesia. We will investigate why existing efforts are ineffective in psychologically empowering micro entreprises in Indonesia, and aim to propose alternative strategies to stimulate SME growth.