The Relationship between Startup Incubator Development and Venture Capital Investment on Digital Economic Growth in Indonesia

Article Sidebar

PDF
Published: Apr 30, 2024
DOI: https://doi.org/10.58812/esee.v2i03.248
Keywords:
Digital Economy Growth Indonesia Quantitative Analysis Startup Incubator Development Venture Capital Investment

Main Article Content

Azis Rachman
Universitas Bina Mandiri Gorontalo
Jasmin Jasmin
IAIN Ternate
Ibadurrahman Ibadurrahman
Universitas Indonesia Timur
Eva Yuniarti Utami
Universitas Sebelas Maret

Abstract

This study examines the relationship between startup incubator development, venture capital investment, and digital economy growth in Indonesia through quantitative analysis. Utilizing a survey method, data was collected from stakeholders in the Indonesian startup ecosystem. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) analysis was conducted to analyze the data and test the hypotheses. The results reveal significant positive relationships between startup incubator development, venture capital investment, and digital economy growth. These findings underscore the pivotal roles of startup incubators and venture capital in fostering digital innovation and economic development in Indonesia, providing valuable insights for policymakers, investors, and entrepreneurs aiming to nurture the growth of the digital economy.

Article Details

How to Cite
Rachman, A., Jasmin, J., Ibadurrahman, I., & Utami, E. Y. (2024). The Relationship between Startup Incubator Development and Venture Capital Investment on Digital Economic Growth in Indonesia. The Es Economics and Entrepreneurship, 2(03), 157–169. https://doi.org/10.58812/esee.v2i03.248
Issue
Vol. 2 No. 03 (2024): The Es Economics And Entrepreneurship (ESEE)
Section
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

K. Verhal, “Digital economy as a driver of business development,” pp. 390–394, 2023, doi: 10.53486/icspm2022.61.

S. Tkachenko, “Prospects For The Development Of The Digital Economy In The Global Space,” Econ. Horizons, pp. 101–109, Jun. 2023, doi: 10.31499/2616-5236.2(24).2023.281234.

S. Achar, K. Vijayendra, S. Hussain, A. Kejriwal, and A. Kejriwal, “Business Trends in Digital Era: A Review,” J. Eng. Res. Reports, pp. 328–338, Dec. 2022, doi: 10.9734/jerr/2022/v23i12788.

A. Mottaeva, Z. Khussainova, and Y. Gordeyeva, “Impact of the digital economy on the development of economic systems,” E3S Web Conf., vol. 381, 2023, doi: 10.1051/e3sconf/202338102011.

H. Jiang, “Research on the Impact and Countermeasures of The Digital Economy Era on The Development of Real Enterprises,” Front. Business, Econ. Manag., vol. 9, pp. 43–46, May 2023, doi: 10.54097/fbem.v9i1.8286.

T. Anas and E. Cahyawati, “Strategic Investment Policies for Digital Transformation,” J. Southeast Asian Econ., vol. 40, no. 1, pp. 96–126, Apr. 2023, [Online]. Available: https://www.jstor.org/stable/27211226

H. Haqqi, “The Government’s Policy in Encouraging the Global Competitiveness of Indonesian MSMEs through the Digital Ecosystem,” J. Econ. Manag. Trade, vol. 29, no. 8, pp. 66–76, 2023, doi: 10.9734/JEMT/2023/v29i81115.

P. Putera, S. Ningrum, S. Suryanto, I. Widianingsih, and Y. Rianto, “Digital Economy in Indonesia: Trends and Future Research,” J. Sci. Technol. Innov. Policy, vol. 8, pp. 1–11, Jan. 2023, doi: 10.11113/jostip.v8n2.117.

I. N. H. Laksmana and I. P. H. Permana, “Legal Challenges for Digital Startup Development in Indonesia,” J. Digit. Law Policy, vol. 2, no. 2, pp. 71–80, 2023, doi: 10.58982/jdlp.v2i2.312.

P. A. Sapulette, M.S.,; Muchtar, “Redefining-Indonesia’s-Digital-Economy,” Res. Inst. ASEAN East Asia, vol. 06, no. ISSN: 2086-8154, pp. 1–5, 2023, [Online]. Available: https://www.eria.org/uploads/media/policy-brief/FY2022/Redefining-Indonesia’s-Digital-Economy.pdf

Z. Zhou, “The Impact of Key Factors on the Success of Venture Capital Investment,” Highlights Business, Econ. Manag., vol. 15, pp. 182–187, Jun. 2023, doi: 10.54097/hbem.v15i.9338.

D. R. Sangani, “A study on analysis of venture capital financing,” J. Manag. Res. Anal., vol. 10, no. 2, pp. 124–127, 2023, doi: 10.18231/j.jmra.2023.021.

A. Parhankangas, “The economic impact of venture capital,” in Handbook of Research on Venture Capital, 2012. doi: 10.4337/9781781009116.00014.

P. Kumar, A. Farooq, and R. Krishnan, “Critical Success Factors & Fundability of Indian Startups: Insights from Key-Decision Makers of Indian Startup-Ecosystem,” 2023, pp. 763–772. doi: 10.52458/978-81-95502-00-4-75.

M. Annas and V. Meilinda, “A Review of Indonesian Business Start-Up Incubator Models,” Startupreneur Bus. Digit. (SABDA Journal), vol. 2, no. 1 SE-Articles, pp. 86–97, Feb. 2023, doi: 10.33050/sabda.v2i1.260.

A. Bist, “The Importance of Building a Digital Business Startup in College,” Startupreneur Bus. Digit. (SABDA Journal), vol. 2, pp. 31–42, Feb. 2023, doi: 10.33050/sabda.v2i1.265.

C. Nicholls-Nixon, D. Valliere, R. Singh, and Z. Hassannezhad, “How incubation creates value for early-stage entrepreneurs: the People-Place nexus,” Entrep. Reg. Dev., vol. 34, pp. 1–22, Sep. 2022, doi: 10.1080/08985626.2022.2121858.

F. Rifai, H. Almimi, M. Rasmi, and A. Aldahoud, “The Role of Business Incubators in Promoting Entrepreneurship of Higher Education Institutions,” Financ. Eng., vol. 1, pp. 289–299, Jul. 2023, doi: 10.37394/232032.2023.1.27.

D. Siddiqui and N. Ahmad, “Study of Support and Services Provided by Business Incubators in Entrepreneurship,” AMC Indian J. Entrep., vol. 5, p. 19, Jun. 2022, doi: 10.17010/amcije/2022/v5i2/171467.

C. N. Miraza and E. R. Shauki, “The Effect of Venture Capital on the Growth of Startups in Indonesia: A Case Study on BRI Ventures,” J. Econ. Business, Account. Ventur., vol. 25, no. 3 SE-Articles, pp. 358–368, Feb. 2023, doi: 10.14414/jebav.v25i3.2927.

S. Aparisi Torrijo and G. Ribes Giner, “Entrepreneurial leadership factors: a bibliometric analysis for the 2000-2020 period,” 2022.

M. Sofia, F. Tan, N. Bachtiar, and F. P. Putra, “The Influence of Venture Capital on Growth through Innovation and the Use of Internet Technology in Micro and Small Industries (MSIs) in Indonesia,” Economies, vol. 10, no. 12. 2022. doi: 10.3390/economies10120292.

S. Samila and O. Sorenson, “Venture Capital, Entrepreneurship, And Economic Growth,” Rev. Econ. Stat., vol. 93, no. 1, pp. 338–349, Apr. 2011, [Online]. Available: http://www.jstor.org/stable/23015937

S. P, “The Effect Of Company Size, Profitability, Economic Growth Rate, Market Traction And Competitive Advantage On Startup Valuation In Logistics Aggregators,” Am. J. Econ. Manag. Bus., vol. 2, pp. 164–174, May 2023, doi: 10.58631/ajemb.v2i5.34.

H. Rosidanti Susilatun, A. Widjayanti, and A. Inarto, “Digitalization in Indonesian Creative Economy Community,” KnE Soc. Sci., vol. 2023, pp. 208–218, 2023, doi: 10.18502/kss.v8i11.13548.

R. Stevy, I. Puspa, D. Widjaja, and R. Ongsa, “Analysis of Internal Factors for Improving the Performance of Startup Companies in Medan, Indonesia,” J. Madani Soc., vol. 2, no. 1 SE-Articles, pp. 67–74, Apr. 2023, doi: 10.56225/jmsc.v2i1.179.

N. Sultana and N. Gupta, “Supportive Policy Intervention in Incubating Innovative Enterprises for the Creation of a Self-Reliant Economy,” FIIB Bus. Rev., p. 231971452311622, Apr. 2023, doi: 10.1177/23197145231162247.

J. Greenwood, P. Han, and J. M. Sánchez, “Venture Capital: A Catalyst for Innovation and Growth,” Fed. Reserv. Bank St. Louis Rev., vol. 104, no. 2, pp. 1–12, 2022, doi: 10.20955/r.104.120-30.

N. S. Moirangthem and B. Nag, “Value-added Activities of Venture Capitals in Entrepreneurial Finance: Evidence from the Growth of Flipkart,” Asian J. Manag. Cases, vol. 21, no. 1, pp. 57–68, Apr. 2021, doi: 10.1177/0972820121998120.