Entrepreneurship Dynamics in Riau Province: Socioeconomic, Technological, and Policy Determinants Among the Productive-Age Workforce

Abstract

Entrepreneurship plays a vital role in Indonesia’s long-term development strategy, particularly in achieving the targets of the Golden Indonesia 2045 vision. Despite a declining poverty rate, the entrepreneurship ratio in Indonesia remains lower than that of other ASEAN countries, and Riau Province continues to experience increasing unemployment alongside limited formal employment absorption. This study aims to examine the determinants influencing entrepreneurial decision-making among the productive-age population in Riau Province, focusing on socioeconomic characteristics, digital technology usage, geographic context, and government policy particularly the Pre-Employment Card Program. Using a convergent mixed-methods design and a binary logistic regression model based on 11,843 respondents from the 2023 National Labor Force Survey (SAKERNAS), the study reveals that entrepreneurial activity is predominantly driven by older, less-educated, rural residents, while younger generations, urban workers, college graduates, and individuals who use the internet for work tend to seek wage employment. Women exhibit a higher likelihood of becoming entrepreneurs, and digital technology is shown to enhance entrepreneurial prospects for specific subgroups. The Pre-Employment Program, however, does not significantly stimulate entrepreneurship, indicating a need for stronger integration between skills training and entrepreneurial ecosystems at the regional level. This study contributes to the literature by offering a localized, data-driven analysis of entrepreneurship determinants, comparing generational cohorts, and integrating policy insights that enrich both theory and practice.