`Risk Management Strategies in Startup Companies in Indonesia

Abstract

Startup companies in Indonesia face a highly dynamic and uncertain business environment characterized by rapid technological changes, intense competition, limited financial resources, and regulatory challenges. As a result, effective risk management has become a critical factor for ensuring sustainability and long-term growth. This study explores the various risk management strategies implemented by startups in Indonesia, focusing on how these strategies help identify, assess, and mitigate key business risks. Using a qualitative-descriptive approach supported by case study analysis and literature review, the research identifies several types of risks commonly encountered by startups, including financial, operational, market, legal, and strategic risks. The study finds that Indonesian startups tend to adopt proactive and adaptive risk management strategies such as diversification, scenario planning, insurance, compliance monitoring, and the use of digital risk assessment tools. Furthermore, the presence of competent leadership, investor support, and access to mentorship programs plays a significant role in enhancing the effectiveness of risk management practices. This research contributes to the understanding of how startup companies in emerging economies like Indonesia navigate uncertainty and volatility through strategic risk management. It also offers practical insights for founders, investors, and policymakers aiming to support startup ecosystems in managing risk and achieving sustainable development