Rethinking Entrepreneurship Education Policy Mandates to Foster Resilient Student Startup Ecosystems in Indonesia

In the landscape of modern education, universities are increasingly expected to do more than just teach facts; they are tasked with launching the next generation of business leaders. This push has led to the creation of "entrepreneurial ecosystems," a term used to describe the network of support systems—such as business incubators, specialized classes, and mentorship programs—designed to help students turn ideas into real companies. The logic is straightforward: if a student has the right mindset, the right encouragement, and the right resources, they should be able to build a business that survives and thrives. Governments often back this idea with strict rules, setting specific financial targets that student ventures must meet to be considered successful. In Indonesia, for instance, a student startup is officially recognized only if it earns a monthly income of at least 1.2 times the regional minimum wage. This creates a high-stakes environment where schools are judged on how many students meet this income goal, and students are pressured to generate revenue quickly. But a critical question remains: does this system actually work, or are we simply counting students who are motivated but unprepared?

A team of researchers from the Indonesia University of Education set out to answer this by looking at the real-world outcomes of over one thousand student entrepreneurs. They wanted to know what actually keeps a student-run business alive when it faces the harsh reality of the market. Instead of relying on surveys about how confident students felt or how many workshops they attended, the researchers looked at the hard data of business survival. They analyzed whether factors like university support, personal motivation, or the wealth of the region where the business was located made a difference. They also examined whether the specific skills a student possessed mattered more than the environment they were in. The goal was to separate the noise of policy and encouragement from the signal of actual business capability.

The study began by gathering data from 1,032 university students across Indonesia, covering a wide range of regions with different economic conditions. The researchers categorized these students based on the status of their businesses, ranging from those who had only an idea, to those with unstable income, to those with stable businesses that met the government's income target. They then used advanced statistical tools to trace the connections between various factors and the final outcome of the business. They looked at nine different dimensions, including the students' technical skills, their emotional resilience, the support they received from their universities, their personal drive, and the economic conditions of their home regions. The researchers were particularly interested in seeing if the rules of business survival changed depending on whether a student was in a wealthy city with a high minimum wage or a poorer region with a lower one.

The results painted a clear and somewhat surprising picture. The researchers found that the only factors that truly predicted whether a student's business would survive were two specific types of practical ability: the skill to actually execute a business plan and the sharpness of business judgment. In plain terms, students who knew how to price their products, manage their money, and solve daily operational problems were the ones whose businesses lasted. Conversely, the study found that the things many people assume are most important had no measurable impact on survival. The support provided by the university, such as incubators and courses, did not help a business survive if the student lacked these core skills. Similarly, having a strong desire to succeed, a high level of awareness about business concepts, or a supportive family background did not guarantee that a business would make money. The data showed that a student could be highly motivated and well-supported, yet still fail if they lacked the technical know-how to run the company.

Perhaps the most significant finding was that the economic environment did not change these rules. The researchers compared students in regions with high minimum wages to those in regions with medium wages. They found that the path to success was exactly the same in both places. A student in a wealthy city did not have an easier time surviving simply because the local economy was stronger, nor did a student in a poorer region have a harder time because of the local economy. The ability to run a business successfully depended entirely on the individual's skills, regardless of where they were located. This suggests that the idea that a region's wealth acts as a safety net for new businesses is a myth. The harsh reality of the market filters out businesses based on their operational competence, not their location.

These findings challenge the current way education policy is often designed. Many government programs focus on getting students to start businesses by offering awards, counting the number of new ventures, or running mass awareness campaigns. The study suggests that these approaches are missing the mark. Because motivation and institutional support did not predict survival, policies that prioritize quantity over quality are unlikely to create a resilient ecosystem of successful startups. The data indicates that the gap between a student's intention to start a business and their ability to keep it running is not caused by a lack of encouragement or a lack of money in the region. Instead, it is caused by a lack of rigorous, hands-on training in the specific skills required to manage a business.

The researchers conclude that for student entrepreneurship to truly succeed, the focus must shift from administrative targets to skill development. Universities and policymakers need to move away from checking boxes on how many students have started a business and start measuring how well those students can manage the complexities of a real company. This means replacing broad motivational campaigns with deep, practical training that teaches students how to handle cash flow, navigate market changes, and make sound financial decisions. The study does not suggest that support systems are useless, but it does show that without the foundation of practical execution skills, even the best support systems cannot save a business from failure. The path to a sustainable student startup is not paved with good intentions or favorable economic conditions, but with the hard, unglamorous work of learning how to actually run a business.