Definition and Development of Startup Industry in Indonesia

The application of technology, especially internet, in the business world gives anyone ability to start a business easily and quickly. Especially in the past few years, Indonesia has been in the ‘startup’ euphoria phase where more and more young entrepreneurs create a ‘startup’ business with unlimited innovation and creativity.
The term ‘startup’ also becomes very popular among entrepreneurs, but not it seems many people do not know the meaning of it. Let’s discuss further the definition of startup.

What Is Startup?

What Is Startup
What Is Startup

Basically startup is a company that runs under 5 years, or a company that has just started. But around the 2000s since the ‘dot-com’ industry started to be popular, the definition of ‘startup’ in the business world has changed. In the past, startup is a new company, but at present startup company is more about a new business that is applying technological innovation to run its core business and solve a problem in the community.

How Is The Development Of Startup Businesses In Indonesia?

The development of startup businesses in Indonesia is growing excitedly along with the development of technology. There are at least 4 biggest startups from Indonesia, namely Traveloka, Tokopedia, , https://hokiku88.org/ and GO-JEK. Data from Tech In Asia shows that in the second quarter of 2017, the domination of startup in Indonesia come from the E-Commerce and Fintech industry.
Although according to statistics, the number of new startups has decreased in 2017, but it has an increase in the amount of funding for accelerator program in 2017. It brings a positive impact for Indonesia, many investors has begun to see the potential of Indonesian startup businesses, like in the United States or China.

How To Define A Startup Company?

In accordance with the above definition, startup has a disruptive nature in an existing industry. For example in the transportation field in Indonesia. Before the presence of online transportation services, conventional taxi was one of the big players in this industry. Now if there is a new conventional taxi company established, it cannot be called a startup company for its lack of technology, although it is still under 5 years old. But if an online taxi company appears, this is what we call startup company as it runs its core business using technological innovations.

The Differences Between Startup And Online Shop

The Differences Between Startup And Online Shop
The Differences Between Startup And Online Shop

Although both type of business mainly working on information technology, those two are completely different things. Even when online shops have website, but they cannot be called startup. According to Forbes, the definition of startup also contains ‘solving problems’ in the community. Like online transportation which come as a solution for practical and convenience way to go places.