Young and Restless: Social Entrepreneurship Among the Youth
Indonesia has set an ambitious target to increase the proportion of young entrepreneurs from 3.18 % to 3.95 % by 2045. This goal aims to prepare the country to transition into a developed nation, believing that the next generation of entrepreneurs is reshaping the traditional profit-driven business paradigm. However, to understand the steps necessary to achieve this goal, examining how young entrepreneurs view entrepreneurship today is crucial.
A Shift Toward Social Impact and Sustainability in Entrepreneurship
Young entrepreneurs increasingly prioritize sustainability, social impact, and financial success in their business models. This shift marks a departure from the traditional focus solely on profit, signifying a fundamental redefinition of what entrepreneurial success looks like in the modern world. According to a 2020 Global Entrepreneurship Monitor (GEM) report, 7 out of 10 early-stage entrepreneurs globally believe that businesses are responsible for creating a positive social impact. This sentiment aligns with the rising trend of sustainable entrepreneurship across the Asia Pacific region, where startups use renewable energy and build ethical supply chains. Many young founders, motivated by a desire for change, are launching businesses prioritizingprioritizing social good and environmental responsibility. But why are young entrepreneurs so focused on social impact?
The Benefits of a Sustainable Approach for Young Entrepreneurs
There are several factors contributing to the growing focus on social impact and sustainability among young entrepreneurs:
- Shifting Values: Today’s young people, especially in business, tend to be more environmentally conscious and socially aware. Growing up in an era marked by climate change and social inequality, they are passionate about finding innovative solutions to these problems. Educational institutions also increasingly emphasize social responsibility and sustainability, equipping young entrepreneurs with the knowledge and desire to integrate these values into their businesses.
- Innovation in Technology: Advances in technology offer young entrepreneurs the tools to address pressing social and environmental challenges. As digital natives, young entrepreneurs are well-versed in leveraging technology for positive change. Moreover, the increasing affordability of sustainable technologies makes it easier for young entrepreneurs to build profitable, eco-friendly businesses.
- Demand from Consumers: Young consumers increasingly seek brands aligning with their values, mainly social good and sustainability. This demand incentivizes young entrepreneurs to develop innovations that meet these expectations, giving them a competitive edge in the market.
- In Search of Purpose: Many young entrepreneurs are driven by a deep desire to make a meaningful difference in the world. Social impact and sustainability offer an opportunity to merge financial success with the potential for significant societal and environmental change.
These factors create a strong foundation for young entrepreneurs to prioritize social good and sustainability in their ventures.
Investing in Young Entrepreneurs: A Game-Changer for Social Impact
The rise of impact investing in the Asia-Pacific region is proving to be a game-changer for young entrepreneurs. Unlike traditional investors, impact investors bring a unique set of advantages that go beyond just financial support. This symbiotic relationship benefits both entrepreneurs and investors in several key ways.
For young entrepreneurs with innovative ideas but limited funding options, impact investing provides access to dedicated capital for ventures that produce positive social and environmental outcomes. This funding allows them to scale their businesses while staying true to their mission without the pressure of securing traditional sources of capital.
Additionally, impact investors often offer more than just financial backing—they bring valuable expertise, strategic advice, and access to networks that can help entrepreneurs navigate the challenges of running a social impact-driven business. This mentorship and guidance empower young leaders to manage their ventures and overcome obstacles.
Moreover, impact investing enhances the credibility and visibility of young entrepreneurs, attracting attention from other investors and stakeholders. This recognition opens doors to new partnerships, collaborations, and scaling opportunities, helping young entrepreneurs expand their reach and influence.
For impact investors, the appeal lies in achieving a double bottom line: competitive financial returns alongside measurable social or environmental benefits. By supporting young ventures, these investors actively contribute to creating a more sustainable and equitable future while simultaneously fostering a more resilient financial ecosystem.
Why We Must Support Youth Entrepreneurship?
Investing in youth entrepreneurship is crucial for building a robust and future-ready economy. It provides young people with the opportunity to pursue their dreams and stimulates economic activity by creating jobs and generating positive social impact. A thriving youth entrepreneurship ecosystem ensures long-term economic growth and social development, which is essential as the next generation takes the lead.
We call on CEOs, CFOs, investors, private equity executives, and all relevant parties to invest in the future of youth entrepreneurship. By doing so, we can ensure that the next generation has the tools, resources, and support to drive meaningful change and economic success. Let’s get behind young entrepreneurs today and create a better future for tomorrow.
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Written by Adhitya Putra & Afrisa Maya
Editor: Diyah Trisasmita