Individual level determinants of solo and employer entrepreneurship in Indonesia and India

This study investigates the individual-level determinants that influence the likelihood of becoming a solo entrepreneur or an employer entrepreneur in Indonesia and India. Using harmonized microdata from the 2017, 2018, and 2020 waves of the Global Entrepreneurship Monitor (GEM) Adult Population Survey, this study employs multivariate logistic regression models to analyze a sample of 19,572 economically active individuals. The analysis examines the impact of gender, age, education, household size, entrepreneurial confidence, fear of failure and entrepreneurial network on solo and employer entrepreneurship in Indonesia and India. The findings show that entrepreneurial confidence is the most consistent and significant determinant across both forms. Entrepreneurial networks represent the second most robust determinant and fear of failure is particularly influential in solo entrepreneurship, especially during the COVID-19 period, Gender disparities are pronounced in employer entrepreneurship, particularly in India. Interestingly, formal education and household size show limited and inconsistent effects. This study provides a series of recommendations on the role of family and household related characteristics and entrepreneurship specific education. The research presented contributes to the growing entrepreneurship literature by providing comparative evidence on the heterogeneity of self-employment particularly in high-population emerging countries.