Number of family members and family business status explained the leadership position in communal activity of food processing entrepreneur for poverty eradication in rural Malaysia

• Main Authors: Z., Zumilah, M., Jariah, I., Norisma Aiza
• Format: Article
• Language: English
• Published: 2015
• Online Access: http://psasir.upm.edu.my/id/eprint/47135/1/Number%20of%20family%20members%20and%20family%20business%20status%20explained%20the%20leadership%20position%20in%20communal%20activity%20of%20food%20processin%20entrepreneur%20for%20poverty%20eradication%20in%20rural%20Malaysia.pdf; http://psasir.upm.edu.my/id/eprint/47135/

A total of 735 rural entrepreneurs were selected and sub sampled from 2,093 rural enterprises of Women Extension Group (KPW) under the governance of Malaysia Department of Agriculture (DOA). They are producing processed food products, which is a popular industry to eradicate rural feminism poverty. The main objective of this paper is to explore the leadership positions of rural entrepreneurs in communal activity in relation with type of business ownership. Then, follows by identifying factors explain the active group of entrepreneurs in communal activities. To summarize, five types of community activities were traced – politics, religion, community, socio-economy and parent and teacher association (PIBG). The leadership score for entrepreneurs in company was high for political activity, while for entrepreneurs in all other types of business ownership their leadership scores were high in socio-economic activity. By sex of entrepreneurs, it may be concluded that entrepreneurs who usually have a leadership position in political activities have a tendency to develop their enterprise. By dividing leadership score into two groups – active and less active, as dependent variable; against gender, family business status, size of business, registration status and number of family members, as independent variables; Binary Logistic Regression obtained (p<0.05) that an active group can be explained by number of family members and family business status. Every one additional family member may decrease about 36.1% the likelihood of one respondent in this study to be in active group. Despite offering opportunity for networking, leadership positions require a lot of time and high commitment. For rural women with many children under their care, to active in communal activities is almost inconceivable. Non-family business status may reduce about 37.6% likelihood of one respondent in this paper to be in active group. Thus, especially for rural women enterprises, they had to operate in form of family business to success. Family business status may reflect potential of development in rural women business, which is good for family business development. No significant relationship between other dependent variables with the likelihood of the respondent to be in active group level in this study.