Family Enterprises and Business Partnerships: Rural Entrepreneurs in India, Malaysia, and Indonesia

Abstract

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.