Family Enterprises and Business Parternerships Rural Entrepreneurs in India, Malaysia, and Indonesia / Rut

By: Rutten, Mario
Material type: ArticleArticlePublisher: The Journals of Entrepreneurship 2001Description: 165-189Subject(s): Partnership | Family Firms | Family Business | Indonesia | Malaysia | India | Rural Entrepreneurs | Rural Entrepreneurship | EntrepreneurshipOnline resources: Click here to access online In: The Journal of EntrepreneurshipSummary: An overview of the major debates on entrepreneurship in South and Southeast Asia indicates an emphasis on collective forms of business organisation. While earlier views argued that collectivism in business activities was one of the main causes of Asia’s backwardness, more recent notions emphasise that family enterprises and business networks account for Asia’s economic rise. This article compares the forms of business organisation of rural entrepreneurs in India, Malaysia and Indonesia. It is based on empirical research among Hindu small-scale industrialists in central Gujarat, Chinese and Malay owners of combine harvesters in the Muda region, and Muslim owners of iron foundries in Central Java. These findings indicate that both collective and individual strategies are present within each group. It is the flexibility of the business organisation to adjust to changing social and economic circumstances that explains the success or failure of any enterprise. These findings are in line with studies on European entrepreneurs. There is therefore reason to reconsider the notion of significant differences in business organisation between Asian and European entrepreneurs.
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Articles Articles Ahmedabad (HO)
(Browse shelf) Vol. 10, Issue. 2 Available 004075

An overview of the major debates on entrepreneurship in South and Southeast Asia indicates an emphasis on collective forms of business organisation. While earlier views argued that collectivism in business activities was one of the main causes of Asia’s backwardness, more recent notions emphasise that family enterprises and business networks account for Asia’s economic rise. This article compares the forms of business organisation of rural entrepreneurs in India, Malaysia and Indonesia. It is based on empirical research among Hindu small-scale industrialists in central Gujarat, Chinese and Malay owners of combine harvesters in the Muda region, and Muslim owners of iron foundries in Central Java. These findings indicate that both collective and individual strategies are present within each group. It is the flexibility of the business organisation to adjust to changing social and economic circumstances that explains the success or failure of any enterprise. These findings are in line with studies on European entrepreneurs. There is therefore reason to reconsider the notion of significant differences in business organisation between Asian and European entrepreneurs.

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