Exploring the Role of Rural Women's Micro and Small Enterprises in Coastal Areas in Promoting Sustainable Rural Development: Evidence from Indonesia

Nursini, Nursini

doi:10.22059/ier.2024.371825.1007925

Exploring the Role of Rural Women's Micro and Small Enterprises in Coastal Areas in Promoting Sustainable Rural Development: Evidence from Indonesia

Document Type : Research Paper

Author

Nursini Nursini

Faculty of Economics and Business, University of Hasanuddin, Makassar, Indonesia.

10.22059/ier.2024.371825.1007925

Abstract

Coastal areas in Indonesia are rich in fisheries and marine natural resources and are an alternative source of income for rural women. Rural women's income and education are critical determinants of sustainable rural development. This study aims to explore the income from rural women’s micro-small businesses in coastal areas, analyze the influence of rural women's education on increasing micro-small business income, and design a model for women’s empowerment. This study uses primary data, which differs from previous empirical studies. The research method was a survey of 132 female owners of micro and small businesses in the coastal region of South Sulawesi, Indonesia, whose raw materials are from fisheries and marine processing products. Data were collected through in-depth interviews and questionnaire instruments. Primary data were analyzed using descriptive statistical analysis, multiple regression methods, and qualitative approaches. This study found that the average income of rural women running micro and small businesses in coastal areas was relatively high. This finding is strengthened by the statistically significant influence of education on rural women's income. The income earned through women's entrepreneurship in micro and small businesses must be balanced with education. This explains that education is crucial for women engaged in micro and small businesses. The model for women's empowerment through synergy-based education, training, and multi-stakeholder collaboration is the ideal approach to achieve sustainable development in rural areas and accelerate technological innovation and knowledge creation.

Keywords

human capital

micro small business

neoclassical growth theory model

rural women

sustainability

Subjects

Development Economics

Ahmadov, F., Zeynalova, U., Bayramova, U., & Mammadov, I. (2021). Analysis of Educational Impact on Women Entrepreneurs in Sustainable Social Business: The Case of Azerbaijan. Turkish Journal of Computer and Mathematics Education, 12(6), 1847–1856. Retrieved from https://www.academia.edu/download/83319874/3571.pdf.

Alagarsamy, S. (2014). Women Empowerment: Role of Education. International Journal in Management and Social Science, 2(12), 76-85.

Alkire, S., Meinzen-Dick, R., Peterman, A., Quisumbing, A., Seymour, G., & Vaz, A. (2013). The Women’s Empowerment in Agriculture Index. World Development, 52, 71–91. Retrieved from https://doi.org/10.1016/j.worlddev.2013.06.007.

Alsulami, H. (2018). The Effect of Education and Experience on Wages: The Case Study of Saudi Arabia. American Journal of Industrial and Business Management, 08(01), 129–142. Retrieved from https://doi.org/10.4236/ajibm.2018.81008.

Amini Sedeh, A., Pezeshkan, A., & Caiazza, R. (2022). Innovative Entrepreneurship in Emerging and Developing Economies: The Effects of Entrepreneurial Competencies and Institutional Voids. Journal of Technology Transfer, 47(4), 1198–1223. Retrieved from https://doi.org/10.1007/s10961-021-09874-1.

Amorós, J. E., Poblete, C., & Mandakovic, V. (2019). R&D Transfer, Policy and Innovative Ambitious Entrepreneurship: Evidence from Latin American Countries. Journal of Technology Transfer, 44(5), 1396–1415. Retrieved from https://doi.org/10.1007/s10961-019-09728-x.

Ayeni, M. D., Adewumi, M. O., Bello, M. A., AdiAdi, K. F., & Osungade, A. A. (2023). Effects of Rabbit Production on Income and Livelihood of Rural Households in Nigeria. Heliyon, 9(8). Retrieved from https://doi.org/10.1016/j.heliyon.2023.e18568.

Baffoe, G., Zhou, X., Moinuddin, M., Somanje, A. N., Kuriyama, A., Mohan, G., Saito, O., & Takeuchi, K. (2021). Urban–Rural Linkages: Effective Solutions for Achieving Sustainable Development in Ghana from an SDG Interlinkage Perspective. Sustainability Science, 16(4), 1341–1362. Retrieved from https://doi.org/10.1007/s11625-021-00929-8.

Barrios Latorre, A. (2021). Assessment of the Sustainability of the Small-Scale Food Production System in Guachetá, Colombia. BPS-Statistics Indonesia. Retrieved January 26, 2024, from https://www.bps.go.id/en.

Capelleras, J. -L., Contin-Pilart, I., Larraza-Kintana, M., & Martin-Sanchez, V. (2015). Population Density and Individual Human Capital Influences on Entrepreneurial Growth Aspirations. Academy of Management Proceedings, 2015(1), 14319. Retrieved from https://doi.org/10.5465/ambpp.2015.14319abstract.

Chae, S., & Heshmati, A. (2024). The effects of lifetime work experience on incidence and severity of elderly poverty in Korea. Journal of Social and Economic Development, 26(2), 521-554. Retrieved from https://doi.org/10.1007/s40847-023-00278-5.

Dawood, T. C., Siregar, M. I., & Abd. Majid, M. S. (2023). Quality of School Service Delivery, Human Capital, and Child Labor: Empirical Evidence from Indonesia. Iranian Economic Review, 27(4), 1199–1219.

Desmawan, D. (2023). Creative Product Innovation and Its Marketing Strategy to Advance MSMEs and Empowering Women in Talaga Village. Move: Journal of Community Service and Engagement, 2(4), 107–110. Retrieved from https://doi.org/10.54408/move.v2i4.171.

Dewi, V. I. (2022). How do Demographic and Socioeconomic Factors Affect Financial Literacy and Its Variables? Cogent Business & Management, 9(1). Retrieved from

Elborgh-Woytek, K., Newiak, M., Kochhar, K., Fabrizio, S., Kpodar, K., Wingender, P., Clements, B., & Schwartz, G. (2013). Women, Work, and the Economy: Macroeconomic Gains from Gender Equity. International Monetary Fund. Retrieved from https://www.imf.org/external/pubs/ft/sdn/2013/sdn1310.pdf .

Gandahi, R. (2016). Role of Rural Women in Agriculture. Daily Pakistan Observer Newspaper. Retrieved from https://www.researchgate.net/publication/305807689 .

Ghasemi, M., Bdsar, M., Falahati, L., & Karamidehkohri, E. (2021). The Mediation Effect of Rural Women Empowerment between Social Factors and Environment Conservation (Combination of Empowerment and Ecofeminist Theories). Environment, Development and Sustainability, 23, 13755–13777. Retrieved from https://doi.org/10.1007/s10668-021-01237-y.

Goldin, C., & Katz, L. F. (2016). A Most Egalitarian Profession: Pharmacy and the Evolution of a Family-Friendly Occupation. Journal of Labor Economics, 34(3), 705-746. Retrieved from https://dash.harvard.edu/bitstreams/7312037e-7809-6bd4-e053-0100007fdf3b/download.

Grilli, L., Mrkajic, B., & Giraudo, E. (2023). Industrial Policy, Innovative Entrepreneurship, and the Human Capital of Founders. Small Business Economics, 60(2), 707–728. Retrieved from https://doi.org/10.1007/s11187-022-00611-y.

Jaysawal, Dr. N., & Saha, Dr. S. (2023). Role of Education in Women Empowerment. International Journal of Applied Research, 9(4), 08–13. Retrieved from https://doi.org/10.22271/allresearch.2023.v9.i4a.10710.

Kalaitzi, A. S. (2018). The Causal Effects of Trade and Technology Transfer on Human Capital and Economic Growth in the United Arab Emirates. Sustainability, 10(5), 1535. Retrieved from https://doi.org/10.3390/su10051535.

Kamuzora, C. L., & Mkanta, W. (2000). Poverty and Household/Family Size in Tanzania: Multiple Responses to Population Pressure? Research on Poverty Alleviation (REPOA). Retrieved from https://core.ac.uk/download/pdf/19917552.pdf .

Kraima, M. T. (2023). Social Capital and Economic Performance for Small and Medium Firms: The Importance of Entrepreneurship Experience and Relationships. Iranian Economic Review, 27(4), 1439–1466. Retrieved from https://doi.org/10.22059/ier.2023.335677.1007339.

Ksenofontov, A. A., Ksenofontov, A. S., Kirpicheva, M. A., & Trifonov, P. V. (2019). The Use of Modern Management Technology to Improve Business Efficiency. IOP Conference Series: Materials Science and Engineering, 483(1), 12114. Retrieved from https://doi.org/10.1088/1757-899x/483/1/012114.

Laksmanawati, J., & Yuniawan, A. (2021). Women and the Digitalization Strategies of Micro, Small, and Medium Enterprises in the New Normal Era. Petra International Journal of Business Studies, 4(1), 55–64. Retrieved from https://doi.org/10.9744/ijbs.4.1.55-64.

Liao, H., Wang, D., Van Assche, A., & Du, J. (2023). Do Capital Goods Imports Improve the Quality of Regional Development? Evidence from Chinese Cities. Journal of Innovation & Knowledge, 8(4), 100435. Retrieved from https://doi.org/10.1016/j.jik.2023.100435.

Mankiw, N. G. (2021). Brief Principles of Macroeconomics (9^th Ed.). Boston: Cengage Learning, Inc.

Mashapure, R., Nyagadza, B., Chikazhe, L., Mazuruse, G., & Hove, P. (2023). Women Entrepreneurship Development and Sustainable Rural Livelihoods in Zimbabwe. Arab Gulf Journal of Scientific Research, 41(4), 557–584. Retrieved from https://doi.org/10.1108/agjsr-07-2022-0112.

Mashapure, R., Nyagadza, B., Chikazhe, L., Msipa, N., Ngorora, G. K. P., & Gwiza, A. (2022). Challenges Hindering Women Entrepreneurship Sustainability in Rural Livelihoods: Case of Manicaland Province. Cogent Social Sciences, 8(1). Retrieved from https://doi.org/10.1080/23311886.2022.2132675.

Ness, K. (2012). Constructing Masculinity in the Building Trades: “Most Jobs in the Construction Industry Can Be Done by Women.” Gender, Work and Organization, 19(6), 654–676. Retrieved from https://doi.org/10.1111/j.1468-0432.2010.00551.x.

Nikulina, Y. N. (2023). Rural Employment in Russia: Present Conditions and Prospects for Agricultural and Non-Agricultural Sectors. Russian Journal of Economics, 9(4), 351–370. Retrieved from https://doi.org/10.32609/j.ruje.9.112008.

Nursini, N. (2020). Micro, Small, and Medium Enterprises (MSMEs) and Poverty Reduction: Empirical Evidence from Indonesia. Development Studies Research, 7(1), 153–166. Retrieved from https://doi.org/10.1080/21665095.2020.1823238.

Nursini, N., Abduh, M., Hadjar, I., & Nurbayani, S. U. (2021). A Model of Competitiveness of Coastal Women’s Micro-Small Businesses in South Sulawesi. Psychology and Education, 58(1), 449–462. Retrieved from https://doi.org/10.17762/pae.v58i1.794.

Onyalo, P. O. (2019). Women and Agriculture in Rural Kenya: Role in Agricultural Production. International Journal of Humanities, Art and Social Studies, 4(4). Retrieved from https://www.academia.edu/download/61546695/120191217-115175-1u68tpf.pdf.

Pasaribu, F. A., Harahap, H., & Daulay, H. (2018). The Influence between Education Level, Motivation, Conflict and The Role of Female Workers to Family Income (Case Study on Dodol Business in Pasar Bengkel Perbaungan, Serdang Bedagai). Global Journal of Arts, Humanities and Social Sciences, 6(8).

Perkins, D. H., Radelet, S., Lindauer, D. L., & Block, S. A. (2013). Economics of Development (7^th Ed.). New York: W.W. Norton & Company.

Pitafi, A. H., Riaz, A., Mahmood, N., Eliw, M., Mustafa, G., Abbas, J., Abbas, A., Ge, T., Ullah, R., Sadiq, I., & Zhang, R. (2022). Women’s Entrepreneurial Contribution to Family Income: Innovative Technologies Promote Females’ Entrepreneurship Amid COVID-19 Crisis. Frontiers in Psychology, 1, 828040. Retrieved from https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2022.828040/pdf.

Putriantini, I. N., & Takahashi, Y. (2020). Demographic Characteristics and Noneconomic Outcomes of Women Entrepreneurs with Moderation of Barriers: The Case of Small Enterprises in Rural Coastal Area of Indonesia. Jurnal Perikanan Universitas Gadjah Mada, 22(1), 43–54. Retrieved from https://doi.org/10.22146/jfs.48774.

Randell, S., & McCloskey, M. (2014). Sustainable Rural Development in Rwanda: The Importance of a Focus on Women in Agriculture. International Journal of Agricultural Extension. 107–119. Retrieved from https://www.cabidigitallibrary.org/doi/full/10.5555/20143334288.

Razmi, M. J., & Firoozabadi, S. R. (2016). Investigating the Effect of Education on Women’s Entrepreneurship. International Journal of Learning and Intellectual Capital, 13(2), 273-288. Retrieved from https://doi.org/10.1504/ijlic.2016.075693.

Romer, D. (2012). Advanced Macroeconomics (4^th Ed.). Ohio: McGraw-Hill Irwin.

Saah, P. (2022). The Impact of Education and Training on The Success of Small and Medium-Sized Enterprises. Journal of Economics Education and Entrepreneurship, 3(2), 112. Retrieved from https://doi.org/10.20527/jee.v3i2.5766.

Sessu, A., Tri Samiha, Y., Laisila, M., Chamidah, N., Murdifin, I., & Halim Perdana Kusuma Putra, A. (2021). The Effect of Macroeconomic Factors on Income Inequality: Evidence from Indonesia. The Journal of Asian Finance, Economics and Business, 8(7), 55–66. Retrieved from https://www.academia.edu/download/96233492/JAKO202118057788270.pdf.

Seymour, G. (2017). Women’s Empowerment in Agriculture: Implications for Technical Efficiency in Rural Bangladesh. Agricultural Economics, 48(4), 513–522. Retrieved from https://doi.org/10.1111/agec.12352.

Siman, S., Tawakal, M. A., Risamasu, P. I. M., & Kadir, R. (2020). Effect of Household Size, Working Hours, Health and Income on Consumption Expenditure of Poor Household. Enfermería Clínica, 30, 512–515. Retrieved from https://doi.org/10.1016/j.enfcli.2019.10.131.

Sinclair, K., Ahmadigheidari, D., Dallmann, D., Miller, M., & Melgar-Quiñonez, H. (2019). Rural Women: Most likely to Experience Food Insecurity and Poor Health in Low- and Middle-Income Countries. Global Food Security, 23, 104–115. Retrieved from https://doi.org/10.1016/j.gfs.2019.04.006.

Taskin, S., Javed, A., & Kohda, Y. (2023). Promoting Entrepreneurial Mind set for Successful Entrepreneurship: An Innovative Approach in Entrepreneurship Education. Women’s Entrepreneurship and Education, 3(4), 122–142. Retrieved from https://doi.org/10.28934/jwee23.34.pp122-142.

Tran, D. B., Pham, T. D. N., & Nguyen, T. T. (2021). The Influence of Education on Women’s Wellbeing: Evidence from Australia. PLoS One, 16(3). Retrieved from https://doi.org/10.1371/journal.pone.0247765.

Van Vu, H. (2020). The Impact of Education on Household Income in Rural Vietnam. International Journal of Financial Studies, 8(1). Retrieved from https://doi.org/10.3390/ijfs8010011.

Wahyuni, S. D., Murti, B., & Adriani, R. B. (2023). Meta-Analysis: Effects of Household Size, Maternal Education, and Family Income on Stunting. Journal of Epidemiology and Public Health, 8(3), 323–334. Retrieved from https://doi.org/10.26911/jepublichealth.2023.08.03.04.

Woetzel, J. (2015). The Power of Parity: How Advancing Women’s Equality Can Add $12 trillion to Global Growth. Working Papers. Retrieved from https://ideas.repec.org/p/ess/wpaper/id7570.html .

Yang, D., Hu, S., & Li, M. (2022). The Influence of Family Socioeconomic Status on Adolescents’ Mental Health in China. International Journal of Environmental Research and Public Health, 19(13), 7824. Retrieved from https://www.mdpi.com/1660-4601/19/13/7824.

Zavaleta Cheek, J., & Corbett, P. E. (2024). Public Decision Making by Women’s Self-Help Groups and Its Contributions to Women’s Empowerment: Evidence from West Bengal, India. World Development Perspectives, 33. Retrieved from https://www.academia.edu/download/115855961/Zavaleta_Cheek_Corbett_2024_Public_decision_making_by_women_s_SHGs.pdf.

Zubair Mumtaz, M., & Smith, Z. A. (2021). The Behaviour of Household Finance on Demographic Characteristics in Pakistan. Economic Research-Ekonomska Istraživanja, 34(1), 1409–1427. Retrieved from https://hrcak.srce.hr/file/434634.

Zveglich, J. E., van der Meulen Rodgers, Y., & Laviña, E. A. (2019). Expected Work Experience and The Gender Wage Gap: A New Human Capital Measure. Economic Modelling, 83, 372–383. Retrieved from https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=4287127.