Improving cognitive skills for non-farm entrepreneurial productivity and growth in Indonesia

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Small and medium enterprises (SMEs) contribute 60% of GDP and occupy 97% of the workforce in Indonesia. Improving their productivity is a key element in the national development plan. However, many who become entrepreneurs do so out of necessity as they lack the skills for employment in the wage sector. A team of local PEP researchers investigated the types of intelligence that lead to entrepreneurial success. Their findings indicate that a higher level of fluid intelligence (thinking logically and soling problems in novel situations) is associated with increased business profits and value. 
Find out more about the research methods, findings and policy recommendations in the following PEP publications:

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