Constraints to Rural Community Involvement and “Success” in Non‐agricultural Activities: Some Evidence from Sarawak, Malaysia

Abstract

The Iban are the largest ethnic group in Sarawak. This paper analyses their participation in one of the most common forms of rural non‐agricultural activities in Sarawak, namely commercial handicraft production (CHP). Traditionally, the Iban produce handicrafts for personal use. With the introduction of the Iban to the cash economy, the presence of demand for their handicrafts, and the growing insecurities in the rural economy one would expect Iban craftspersons to participate actively in RNAE and produce handicrafts for commercial purposes. Some Iban craftspersons have taken up CHP, while others have not. Some have achieved economic “success” while others have failed. This suggests that there are different responses to, and impact of non‐agricultural activities (particularly CHP) on the Iban in rural Sarawak. This paper addresses the following key questions: What are the factors preventing rural communities from taking up and/or succeeding in RNAE, particularly commercial handicraft production? Is it due to the lack of willingness among Iban craftspersons to participate in commercial activities? Is it due to limited access to market and institutional support? This paper is based on a survey conducted on 200 Iban craftspersons from eleven longhouses in Kapit Division, Sarawak between 1993 until 1996

Using Tools From Strategic Management To Help Micro-Entrepreneurs In Developing Countries Adapt To A Dynamic And Changing Business Environment

“…For MEs, the effects of environmental changes are often quite concrete. In the handicrafts industry for example, Berma (2001) argues modernization and turbulence can mean increased competition from those who have the resources to introduce higher quality, more innovative and/or less expensive products or services to the market, which means reduced market shares for the ME.…”

“…But it is especially important because these changes are more pronounced for developing world MEs who possess fewer assets. Researchers have argued that industries are expanding and becoming more complex (Cohen 1998); for example in the crafts industry, there is an increase in demand for items as souvenirs or decorations rather than for their utilitarian purposes (Berma 2001). Thanks in part to globalization, markets are also becoming more competitive and fragile (Lawrence 2007), thus it is increasingly important for MEs to be aware of customer wants.…”

“…Fillis (2002) found respondents to lack market awareness and that it was a barrier to growth. Prasad and Tata (2006) reported that many of their interviewees seemed disconnected and unreceptive to market needs, while Berma (2001), Cohen (1998) and Lawrence (2007) found that MEs in their samples felt that the market was inaccessible, Cohen reporting that sophisticated competitors were partially responsible. According to Berma (2001), and Cohen (1998), the problem is more serious because MEs do not know how to access these elusive markets What seems to be true is that market understanding is complicated, that MEs are not fully skilled at it, and that MEs are especially unskilled at knowing how to access their potential markets.…”

“…Which skills to leverage depends on the individual company, and there is no consensus among researchers as to how to proceed. Arunachalam and Asha's sari weavers (Arunachalam and Asha 2006) organized marketing cooperatives, and both sari weavers from Arunachalam and Asha's sample and the Malaysian handicraft producers (Berma 2001) transferred from utilitarian sales only to commercial and tourist sales. Ger (1999) believes that local competitors should draw upon local culture and offer something that MNCs cannot.…”

Sustainabality Of Rural Enterprise: A Study Of Small-Scale Handicraft Making In Sabah

“…In many countries, the people in rural areas, who have traditionally relied on agricultural sectors for income generation, have been encouraged by the government to supplement their income with other new off-farm based business activities, by engaging in tourism-oriented businesses like handicraft production, cottage businesses, or local foods production. For example, small-scale business based on handicraft production has been identified by many scholars in related studies as one of the solutions to economic problems in rural areas (Rutten, 1999;Taimni, 1981;Berma, 2001). …”