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Indonesia is a developing country that encourages the creation of entrepreneurial processes in various fields. It has a wealth of nature and culture diversity; the local potential is one of the capitals that can be developed to encourage entrepreneurial activity. Entrepreneurship is the ability of individuals to create economic opportunities from ideas, creativity and innovation in conditions of risk or uncertainty. Creative economy is a concept that places creativity and knowledge as the main assets in driving the economy. Entrepreneurship is depicted as an engine of a national economy and creative economy takes part in creating the process. The chapter gives the overviews of the entrepreneurship development as well as small and medium enterprises (SMEs) by focusing on creative industries in Indonesia. It goes more deeply into the current state of entrepreneurship, the business environment, opportunities and challenges. The chapter ends with suggestions for further development of entrepreneurship in Indonesia.
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