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Archives of Business Research – Vol. 9, No. 6
Publication Date: June 25, 2021
DOI:10.14738/abr.96.10344. Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis of Factors That Influences Cottage Industry Development. Archives
of Business Research, 9(6). 77-92.
Services for Science and Education – United Kingdom
An Analysis of Factors That Influences Cottage Industry
Development
P. Ravindran Pathmananathan
Unies Group
Khairi Aseh
Unies Group
Kamal Kenny
Unies Group
ABSTRACT
Cottage Industry in Malaysia contributes key economic revenues for the village
population. It is mainly small-scaled operations, using local resources and
traditional skills with very low investments but fast returns. However, the industry
may not be flourishing currently due to the lack of modern technology, facilities and
knowledge transfer in place. Aim of this study is to determine the CI's current
positions, challenges, and gaps in the state of Perak. This study was carried out via
a self-administered structured questionnaire that equally distributed throughout
the Perak State (North Perak, Central Perak and South Perak) involving 300
respondents. The study shows that a community's socioeconomic development and
CI sector are influenced by a variety of factors. It is due to both internal and external
causes, such as interest and self-motivation, as well as the positions of different
organisations, as well as family and community support.
Keywords: Cottage Industry, position, challenges, gaps, socioeconomic
INTRODUCTION
The Rural and Industrial Growth Authority (RIDA) was established in 1951 with the general
goal of providing comfort and improving the socio-economic status of the rural community
through infrastructural and Cottage Industry (CI) development. RIDA introduced their mobile
stores, which were an effort to market these goods to the rural community, in order to promote
interest in CI (Official portal, Ministry of Rural and Regional Development). Fast forward to
today, and the CI in Malaysia is a major source of income for the villagers. The income generated
by this industry is the primary source of income for rural households (Mohd Redzuan and
Fariborz, 2011).
The aim of this research is to determine the CI's current positions, challenges, and gaps in the
state of Perak. It is a critical component in achieving the Malaysian government's goals of
community development as part of the socioeconomic plan. While Malaysia intensifies its
efforts to develop economically and become a fully developed country by 2020, as stated in the
GTP Roadmap (2010), we must ensure that no Malaysian is left behind. The Malaysian
government proposed a variety of measures to achieve this goal, including microfinance
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programmes, training, funding, and space allocation, among others (GTP: The Roadmap, 2010).
The aim of this study is to obtain accurate feedback from the target groups regarding their
experiences receiving government assistance and to identify any existing gaps.
The final report will focus on debates about the scope of identifying demand gaps in the
socioeconomic context of the CI in Perak's local communities. It will explore the challenges that
the communities in this study face, as well as the resources and business opportunities that are
available to them. In short, the study will outline the multi-lateral cooperation required to
advance the CI and improve the rural community's socio-economic situation in Perak.
The key objectives of the study are primarily:
1) To gain sufficient level of understanding of the CI and social demography of the
community in Perak.
2) To identify the availability of suitable and viable business and employment
opportunities that may be linked to the CI in Perak.
3) To assess the nature of intervention and assistance required by the CI in Perak.
4) To propose intensive training and coaching needs as part of the empowering
programme for different target groups of the communities.
Significance of study
The aim of this study is for the researcher to be able to provide an overview of the role of CI in
Perak. Due to a lack of modern technology, equipment, and knowledge transfer, the industry
may not be thriving right now. As a result, these variables are seen as important in the growth
of this industry in this research. With this goal in mind, it is reasonable to conclude that this
research is important because it will try to determine how technology transfer and knowledge
sharing can be integrated into the community intervention framework. This comes in line with
the belief that knowledge sharing is strategically important because it not only allows them to
perform well, but it also allows them to gain a competitive advantage (Information Resources
Management Association, 2012).
Cottage Industry in Malaysia
In Malaysia, cottage industries provide important economic revenue to the village population.
The incomes generated by the industries account for the majority of the total income of rural
households (Mohd Redzuan and Fariboz Aref, 2011).Village people on Peninsular Malaysia's
north-eastern shores are largely responsible for passing down centuries-old traditions and
heritage to the next generation. Batiks, plant-woven handicrafts like baskets and mats, wood
carvings, and pottery are mostly made by women in the local communities. Many also sell edible
items such as fish crackers, belachan, and regional pastries. CI has piqued the interest of village
women, particularly housewives, due to its home-based setting and flexibility in terms of
business operating hours.
Men, on the other hand, are not barred from working in this industry. Men in CI help with more
physically demanding tasks like building sampans (wooden boats), making furniture, forest
plant or herb hunting, and fishing. It's incredible to see men working without any technical
plans and relying entirely on skills passed down from previous generations.
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis of Factors That Influences Cottage Industry Development. Archives of Business
Research, 9(6). 77-92.
URL: http://dx.doi.org/10.14738/abr.96.10344
Cottage Industries in Perak
Perak, as Peninsular Malaysia's second-largest state, has a lot to give in terms of CI. Perak is
well-known for its food, but it also has a plethora of natural products, both from the sea and on
land, that allow its residents to engage in CI businesses. Some of the CI found in the state of
Perak are as follows:
Handicraft
Traditional handicraft is a popular CI in Perak, with a stronghold in Kuala Kangsar. Labu sayong
(earthenware), tekat benang emas (gold embroidery), bamboo carvings, and seashell designs
are some of the handicrafts produced. Other handicrafts made in the area are made of wood or
coconut shells. Despite the fact that these products are beautiful and distinctive, CI operators
must develop knowledge and skills in order to promote and market them both locally and
throughout Malaysia. They should also be encouraged to make their handicrafts unique to
Perak in order to pique the interest of consumers looking for souvenirs or mementos of the
state.
Kacang Putih of Ipoh
Before potato chips and fries, the locals' favourite snack was "kacang putih." Migrant families
from India brought this food product to Malaysia, and it quickly became everyone's favourite
snack. In the late 1940s, the “kacang putih” industry began in the foothills of Gunung Cheroh in
Ipoh.According to the founders of this industry, the word putih (white) was added to the name
kacang because the steamed "kacang kuda" turned white. Due to the trading, the Gunong
Cheroh settlement became known as Kampung Kacang Putih.
Visitors to this village can now purchase a variety of crunchy deep-fried, roasted, and steamed
Indian snacks, such as murukku, pakoda, and omom, in addition to chickpeas. This small village
now has a thriving family-run CI that produces these delectable snacks and is one of the
country's major suppliers.. The location was later changed to Teluk Kurin B in Buntong and
renamed Kampung Kacang Putih, becoming a well-known kacang putih hub and one of the city's
most popular tourist destinations.
According to Chairman of the Kacang Putih Traders Association, the company now employs
about 50 families full-time. Each family is said to have its own set of secret ingredients. In short,
the CI, which began as a door-to-door company, has seen rapid growth and is on its way to
greater success (NST, 2013).
Seafood Items
In the state of Perak, the fishing village of Kuala Sepetang serves as a CI hub. The day's catch is
either packaged for individual sale or processed into crackers, salted fish, dried seafood, and
other food products.These are sold and made available near this village for visitors who want
to go on boat rides to see eagles, catch a glimpse of the fireflies, or simply tour the area. This is
part of the expanded service that the fishermen in Kuala Sepetang are now providing. These
fishermen pooled all of their resources to buy boats and provide such tourism services. As a
result of the presence of such a tourist attraction, the relevant CI operators see an increase in
revenue. A positive impact on the growth of one sector of the economy will have a positive effect
on the growth of another. Such ties can be seen in the fishing village of Kuala Sepetang.
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Another fishing village tucked away in Perak's northwestern corner is Kuala Gula. Few people
would think of it as a treasure trove of food, adventure, and sight.Tourists come to this village
to enjoy the toddy wine made from coconut trees and traditional roasted coffee, in addition to
watching the birds, as they do in Kuala Sepetang (The Star Online, 2014). This village also sells
dried and salted seafood, which is another example of how the other industries in the region
benefit CI.There is a lot that can be done to help fishing villages like this develop their
businesses. To promote a cleaner and more welcoming environment for future visitors, proper
facilities and infrastructure should be put in place. The provision of appropriate stalls for CI
operators may help to improve the image of these businesses and the surrounding area.
Belachan
Apart from Belachan produced in factories (such as in Kuala Gula), many local communities in
Perak make this popular Malaysian condiment at home with simple tools and equipment.The
majority of belachan makers are fishermen's family members who buy fresh fish and prawns
from fishing villages to produce this product. It's made and packaged at home, with the help of
family members and neighbours. However, much of the equipment has begun to rust and must
be replaced.The monsoon season also has an impact on their business, as it deteriorates their
tools and equipment while also polluting their work areas. As a result, it is critical to provide
better equipment, as well as advanced knowledge and tools, to these local communities in order
to improve their belachan-making enterprise.
Wooden Furniture and Decorative Items
The local community in Perak, especially the men, is engaged in the production of wooden
furniture and decorative items due to the availability of good and quality wood. When and if
good wooden materials are available, these objects are made at home. They are either made to
order or manufactured in order to be advertised and sold at trade shows.Some even travel to
Kuala Lumpur to sell and advertise their work. In order for CI operators to achieve greater
success, knowledge about the latest technology in making wooden products and promoting
these products should be shared and transferred.
Food Produce
Perak's CI operators make prawn/onion crackers, local chips, Kuih Bahulu, Kuih Bangkit, and
Kuih Peniram, among other foods and beverages. Soy sauce is also produced in the area for both
local consumption and tourist purchase. Many people enjoy baking cakes and pastries. Aside
from food, some have begun to make juices from local fruits such as kedondong.
The Roles of Various Agencies in the Development of CI in Perak
Different agencies play key roles in the growth of CI in Perak. Multilateral cooperation and
contributions from various agencies are critical in meeting the needs of the local community
and advancing their CI companies to new heights. The following are some of the various roles
that various agencies play:
Microcredit Schemes
Rural Business Challenge
The Rural Business Challenge Programme (RBC) gives Malaysian youths the chance to
demonstrate their willingness, passion, and determination to pursue entrepreneurship as a
profession or source of income. MRRD will provide grants to successful entrepreneurs to help
them carry out their business plans.
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis of Factors That Influences Cottage Industry Development. Archives of Business
Research, 9(6). 77-92.
URL: http://dx.doi.org/10.14738/abr.96.10344
Majlis Amanah Rakyat (MARA)
MARA, through MRRD, offers financial schemes to its rural population, such as Scheme
Pembiayaan Perniagaan, to assist them in becoming self-sufficient through businesses. For
Bumiputera women who want to apply for loans to start their businesses, schemes like
"DanaNITA" are available. Women between the ages of 18 and 60 are exempt.
Amanah Ikhtiar Malaysia (AIM)
The Ikhtiar Project, started by Universiti Sains Malaysia in 1985, was the forerunner of
microfinance in Malaysia. The pilot project in north-west Selangor was the world's first
Grameen replication project, with a budget of just RM 2,000. Grameen Foundation is a global
non-profit organisation dedicated to providing creative and long-term solutions to poverty and
hunger. Following the success of the pilot project, Amanah Ikhtiar Malaysia (AIM) was founded
as an autonomous trust entity in 1987. It was established to help eradicate hardcore poverty
by promoting microcredit across the world. By 2007, Target had opened 69 branches and
served 173,000 "Sahabat" (UNDP, 2008).
The Malaysian government provides AIM with interest-free loans. Many success stories have
emerged, especially from women entrepreneurs who have risen out of poverty as a result of
their involvement in AIM. There have been concerns, however, that this source of microcredit
does not hit the expected groups. As a result, studies like this are critical in highlighting the
current (financial and non-financial) assistance provided by various agencies for the
betterment of the rakyat, especially in rural areas.
Since then, various other microcredit schemes have been launched in the country to meet the
diverse needs of the population. The table below lists some of the Microcredit Institutions that
are available in Malaysia.
Table 2.1: List of Microcredit Institutions in Malaysia
No. Microcredit Institution(s) Target Group
1. Amanah Ikhtiar Malaysia
(AIM)
The poorest in the low-income
community
2. Yayasan Tekun Nasional (TEKUN) Bumiputera Microentrepreneurs
3. Majlis Amanah Rakyat (MARA) Bumiputera Entrepreneurs
4. Bank Pertanian Malaysia Agriculture-based entrepreneurs
(Source: Bank Negara)
Rubber Industry Smallholders Development Authority (RISDA)
The Rural and Regional Development Agency (RISDA) is a federal government agency under
the Ministry of Rural and Regional Development. It was established on January 1, 1973, with
powers granted by Parliament. Its goal is to use plantation activities and entrepreneurship to
turn smallholder communities into progressive and productive communities.Some of the CI
projects carried out in different parts of Perak have been documented by RISDA Perak. The
organisation not only assists rubber smallholders in replanting high-yielding plants, but also
assists rural women in participating in CI such as handicraft-making to augment their
household income (Borneo Post Online, 2017). The projects completed up to April 2006 are
listed in Table 2.2-2.5.
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Table 2.2: Food Projects According to Responsible Centres
No. Responsible Centre Types of Product No. of Operators
Category: Food
1. Kuala Kangssar/Kinta Bahulu/Dodol/Cili
Sauce/Crackers
3
2. Larut/Matang/Selama/Kerian Traditional Kuih and
Crackers
(Kuih Peniram, Muruku,
Bahulu, Onion Crackers)
4
3. Batang Padang/Hilir Perak Putu/Dodol/Mini
Currypuff
2
4. Hulu Perak Frozen
Food/Currypuff/Samosa
1
TOTAL 10
(Source: RISDA Perak)
Table 2.3: Handicraft Projects According to Responsible Centres
No. Responsible Centre Types of Product No. of Operators
Category: Handicraft
1. Kuala Kangssar/Kinta Processed rubber
leaves/Batik
2
2. Larut/Matang/Selama/Kerian Processed rubber
leaves/handicraft and
traditional carving
8
3. Batang Padang/Hilir Perak Sewing and handicraft
workshop
1
4. Hulu Perak Processed rubber
leaves/rubber leaves
flower
1
TOTAL 12
(Source: RISDA Perak)
Table 2.4: Plants Projects According to Responsible Centres
No. Responsible Centre Types of Product No. of Operators
Category: Plants
1. Kuala Kangssar/Kinta Grey Oyster Mushroom 1
(Source: RISDA Perak)
Table 2.5:Spices Projects According to Responsible Centres
No. Responsible Centre Types of Product No. of Operators
Category: Spices
1. Larut Mtg/Selana/Kerian Black Spice 1
(Source : RISDA Perak)
Yayasan Bina Upaya (YBU) Darul Ridzuan
This foundation was established with the goal of eradicating poverty and increasing the
capacity and capability of the community's lower-income communities, regardless of ethnic,
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis of Factors That Influences Cottage Industry Development. Archives of Business
Research, 9(6). 77-92.
URL: http://dx.doi.org/10.14738/abr.96.10344
racial, or social backgrounds. The following are some of the programmes and facilities provided
by this foundation:
(i) Microcredit financing
(ii) YBU Kiosk Amanjaya
(iii) 1Amanjaya Mobile Shop
(iv) Food-box for poor families
CI operators can now buy basic items such as milk, sugar, and rice at a lower cost thanks to the
launch of the 1Amanjaya Mobile Shop. This is especially important for those who produce food
as part of their CI business and need large quantities of all such products. The fact that such
facilities are available at their doorstep would make the food preparation process go more
smoothly.
Entrepreneurial Training Programmes
Entrepreneurship growth programmes are offered by a variety of organisations. The National
Entrepreneurship Institute (INSKEN, Institut Keusahawanan Negara) of Malaysia's Ministry of
Entrepreneur and Co-operative Development (MECD), MARA, the Malaysian Franchise
Association, and the Malaysian Cooperative College are among them. Some of the training
programmes that were carried out are listed below:
(i) Introduction to Entrepreneurship
(ii) Entrepreneur Enhancement Programme
(iii) Expansion and Networking Programme
(iv) Entrepreneurship Reference and Advisory Programme
However, in order to promote CI growth, training programmes for the state of Perak must be
tailored to meet local market demand and meet established needs.
STUDY METHODOLOGY
Quantitative research, as opposed to theory or logic, is a type of empirical inquiry that focuses
on verifiable observation. This will entail watching the community (field work), gathering data,
explaining the findings, and analysing the data. As a result, detailed questionnaires will be used
as a key Quantitative Research methodology in this study (survey).Reviewing pertinent past
research reports on the identified communities, Perak state government master plans, past
community performance reports, national economic blueprint, and other key documents either
available online or made accessible by government or non-government agencies will be part of
the Secondary Data analysis.
Population & Sampling Procedure
The state of Perak was chosen as the subject of this investigation. For this study, the researcher
considered several methods for determining the appropriate sample size. Purposive sampling
was used to interview 300 respondents from different categories for the quantitative survey.
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Table 3.1: Target Group and Number of Respondents
No. Target Group Number of respondents
1. North Perak 100
2. Perak Central 100
3. South Perak 100
SURVEY FINDINGS
Socio demographic background
A total of 300 people were asked to participate in this study, and their demographic profiles are
shown in Table 4.1. The sample's average age is 41.23 11.470 years, with ages ranging from 20
to 67. The majority of the participants (25.0 %) were between the ages of 41 and 50 years old.
It's worth noting that 14.0 % of the population is between the ages of 31 and 35, with another
21.0 % between the ages of 36 and 40. Youth under the age of 24 account for 9.0 % of the overall
study, while those 51 and older account for 22.0 %.There were marginally more females than
males in the sample for this analysis. According to Table 4.1, 189 (63.0 %) of the 300
respondents in this sample are female, while the remaining 111 (37.0 %) are male.
Furthermore, when looking at the distribution of ethnic groups, the majority (75.0 %) were
Malay, with Indians (13.0%) coming in second. Other ethnic groups made up 2.0 % of the
sample population, while Chinese made up 10.0 %. Muslim people made up the majority
(78.0%), followed by Hindus (12.0%) and Buddhists (10.0%). (9.0 %). The majority (86.0 %)
were married, while another 8.0 % were still single, according to the marital status distribution.
About 6.0 % were widowed or divorced from their spouses.
The group studied was mostly made up of people with at least a high school education (48.0%),
with 34.0 % having only a primary school education. Approximately 5.0 % lacked a high school
diploma. Just 7.0 % and 2.0%, respectively, had a diploma and a bachelor's degree. In terms of
job status, the majority were self-employed (67.0 %). On the other hand, 22.0 % were employed
full-time, while just 8.0 % appeared to be casual or part-time workers. A small percentage of
them (3.0 %) were working part-time. When asked about their monthly salary, the majority of
respondents (60.0 %) said that they received less than RM1000.00.Monthly earnings ranged
from RM1001.00 to RM 2000.00 for a total of 17.0 %. Thirteen percent of the respondents have
a monthly income of more than RM3,000. With a range of RM150.00 to RM35000.00, the mean
income was RM2337.00 (SD = RM4734.00).
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis of Factors That Influences Cottage Industry Development. Archives of Business
Research, 9(6). 77-92.
URL: http://dx.doi.org/10.14738/abr.96.10344
Table 4.1: Demographic background of respondents (n = 300)
Characteristics Frequency Percentage
Age (years) < 24 27 9.0
Mean: 41.23 25 to 30 27 9.0
S.D: 11.470 31 to 35 42 14.0
36 to 40 63 21.0
41 to 50 75 25.0
> 51 66 22.0
Sex Male 111 37.0
Female 189 63.0
Ethnicity Malay 225 75.0
Chinese 30 10.0
Indian 39 13.0
Others 6 2.0
Religion Islam 234 78.0
Buddhism 27 9.0
Hinduism 36 12.0
Christianity 3 1.0
Marital status Single 24 8.0
Married 258 86.0
Separated/Divorced 6 2.0
Widow/Widower 12 4.0
Level of Education No formal education 15 5.0
Primary 102 34.0
Secondary 144 48.0
Pre-University/Matriculation 12 4.0
Diploma 21 7.0
Bachelor Degree 6 2.0
Current employment
status
In full-time employment (as an
employee)
66 22.0
Working full-time (self- employed)
201 67.0
In part-time employment (as
an employee)
9 3.0
Casual/part-time (self- employed)
24 8.0
Income (RM) <1000.00 180 60.0
Mean: 2,337.00 1001.00 to 2000.00 51 17.0
S.D: 4,734.00 2001.00 to 3000.00 30 10.0
3001.00 to 4000.00 12 4.0
4001.00 to 5000.00 6 2.0
>5001.00 21 7.0
Health status Excellent 264 88.0
Have some health problems 33 11.0
Physical disability 3 1.0
Own transport? Yes 219 73.0
No 81 27.0
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Perception towards Socio Economic Status
The respondents' perceptions of their socioeconomic status were used to assess their level of
agreement with various aspects of infrastructure and other facilities availability. Overall, the
vast majority of responses emphasized the need for greater government support, as well as
better infrastructure and training facilities, to allow career development and business growth.
According to table 4.2, the majority of respondents (93.0 %) agrees or strongly agrees that cost
is a barrier to CI. Besides that, they believed it was difficult to find funders to sponsor the CI
(88.0 %).
More than half of the respondents (63.0 %) said they don't know where to get business-related
information. When asked whether government assistance would benefit their company, nearly
all of them (92.0 %) agreed or strongly agreed that it would almost certainly boost their
development. They also believed that obtaining training and information transfer from relevant
authorities and experts would support their business (92.0 %). However, according to the
study, 72.0 % of respondents did not obtain any financial support from the government to help
them expand their businesses.
Table 4.2: Perception towards socio economic status (n=300)
No. Statements Strongly
disagree
Disagree Agree Strongly
agree
1 Cost is a hindrance to CI. 3
(1.0)
18
(6.0)
162
(54.0)
117
(39.0)
2 Difficult to find a funding to expand
CI.
0
(0.0)
36
(12.0)
129
(43.0)
135
(45.0)
3 I know where to obtain tips
regarding business.
96
(32.0)
93
(31.0)
90
(30.0)
21
(7.0)
4 I have obtained tips regarding
business.
105
(35.0)
90
(30.0)
78
(26.0)
27
(9.0)
5 Assistance from authorities will
enable me to increase my business.
18
(6.0)
6
(2.0)
132
(44.0)
144
(48.0)
6 I am currently receiving financial
assistance from authorities to enable
me to increase my business.
144
(48.0)
72
(24.0)
63
(21.0)
21
(7.0)
7 I have received training assistance
for my business.
126
(42.0)
87
(29.0)
72
(24.0)
15
(5.0)
8 I believe that the training and
knowledge transfer from the
authorities will help me in my
business.
9
(3.0)
15
(5.0)
141
(47.0)
135
(45.0)
9 I believe that interest plays an
important role in my career/
business development.
0
(0.0)
6
(2.0)
135
(45.0)
159
(53.0)
10 Many programmes proposed by the
government have not been
implemented at grassroots level.
33
(11.0)
39
(13.0)
129
(43.0)
99
(33.0)
11 An integrated business programme
will benefit the community.
0
(0.0)
3
(1.0)
153
(51.0)
144
(48.0)
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis of Factors That Influences Cottage Industry Development. Archives of Business
Research, 9(6). 77-92.
URL: http://dx.doi.org/10.14738/abr.96.10344
When asked about the government's plan's implementation stages, the majority (76.0 percent)
believed that most of the policies were not implemented at the grassroots level with the desired
results. An integrated career and business programme received overwhelming support
(99.0%), with the belief that such a programme would significantly benefit the citizens of the
CI community in Perak. In short, given the availability of new business growth, the Perak CI
community's collective voices called for a stronger capability enhancement and training
potential. It is assumed that by putting in place a better programme, the opportunity for
business development and expertise can be maximised.
Table 4.3: Locality of produce (n=300)
Race Location these product produced Total
At home At shop
Malay 123 (54.7) 102 (45.3) 225 (100)
Chinese 15 (50.0) 15 (50.0) 30 (100)
Indian 30 (76.9) 9 (23.1) 39 (100)
Bumiputera Sabah 0 (0.0) 3 (100.0) 3 (100)
Bumiputera Sarawak 3 (100.0) 0 (0.0) 3 (100)
Table 4.3 above depicts the race distribution of locality of produce.
Recommendations for CI Development
When respondents were asked to make practicable recommendations for CI creation at the
community level, the scopes of the recommendations seemed to revolve around promotional
and financial scheme availability.Financial support in the form of soft loans for business
expansion was the key recommendation for CI growth at the community level. The proposal
was made with the belief that, particularly in light of depreciating exchange rates, it would be
beneficial.70.3 % of all respondents said they would like financial assistance to buy equipment
such as tables and chairs to help their company grow.
Recommendations for Types of Training
For the appropriate authorities to consider, the respondents provided feedback in the form of
different types of desired trainings. Cooking classes were at the top of the list, with (61.0 %).
Cooking is a life skill that helps young people to learn to prepare nutritious foods.Cooking skills,
food safety behaviours, and cooking self-efficacy have all increased in several studies
(McFarland 2017).Sales and marketing are at the core of every company's growth. Most facets
of a company are reliant on effective marketing and sales strategies. As a result, 47.7% and 28.0
% of respondents, respectively, would like to attend marketing and sales courses.The CI will
not be able to achieve its full potential productivity without marketing. The importance of
business preparation was also emphasised by the respondents. Thirty-nine percent of those
polled believe that preparation would help them improve their CI skills.According to previous
studies, staying current with current practises and expertise through ongoing business training
provides a major competitive advantage. (2017, Mason).
Training in financial planning was mentioned by 57.7% of those polled. The value of making a
financial plan for the CI company was recognised by the respondents. Creating a financial plan,
according to Hill (2017), allows a company to see the larger picture and set long and short-term
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life targets. It is easier to make strategic decisions and remain on track to achieve business
targets when a company has a financial plan. Furthermore, the financial plan, also known as a
budget, aids in the business's day-to-day decision-making. When you compare predicted figures
to actual results, you will learn a lot about the company's overall financial health and
performance.
Figure 4.1: Top ten types of training to enhance skills in CI business (n=300)
DISCUSSION
The study shows that a community's socioeconomic development and CI sector are influenced
by a variety of factors. It is due to both internal and external causes, such as interest and self- motivation, as well as the positions of different organisations, as well as family and community
support. The researcher believes that in order to fully comprehend a community's
socioeconomic development, it is necessary to examine the specific factors that affect their
work and life choices.
Influencing Factors for development of CI in Perak
The following table depicts some of the influencing factors of CI growth as perceived by the
stakeholders and the identified local community in Perak:
Table 5.1: Influencing Factors for Development of CI in Perak
Influencing Factors for CI Growth in Perak
Demand Factors External Enablers Internal Factors
• Perak is a famous
tourist spot
• Traditional kuih and
snacks like kacang
putih are always in
demand
• Handicrafts are
always in demand
• There is always
demand for fresh
seafood products
• Political willpower
• Supported by other
industries such as
Fishing and Tourism
• Natural resources
• Increasing number
of Tourists visiting
Perak (Visit Perak
Year 2017)
• Self-motivation
• Change in attitude
• Interest in business
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Pathmananathan, P. R., Aseh, K., & Kenny, K. (2021). An Analysis of Factors That Influences Cottage Industry Development. Archives of Business
Research, 9(6). 77-92.
URL: http://dx.doi.org/10.14738/abr.96.10344
Resources
In the context of resources, the assistance given can be divided into 4 components; people,
assets, material and capital. The following needs have been identified specifically for this
project:
Figure 5: Resources Available for CI Development in Perak
IMPLICATION OF STUDY
Development of Action Plan
This study's results will provide a summary of CI's development in Perak. It will also enable the
researcher to make suitable recommendations for different agencies' interventions. Following
the conclusion of this report, this will serve as the foundation for the implementation of the
Plan of Action.
Enrichment Body of Knowledge
Aside from that, the study's results have social and educational implications, and they can add
to the body of information about the local community's socio-economic situation in Perak. The
results support the notion that information sharing and transition are critical components in
the upgrading of labour force skills.
LIMITATIONS & RECOMMENDATIONS FOR FUTURE STUDY
This study has several limitations. To begin with, the research is limited to a few subsets of the
local population. As a result, other community members' responses are ignored. The research
RESOURCES
AVAILABLE
People
Sufficient
manpower is
available to increase
production,
promotion and sales
of CI products
Assets
Natural Resources
& Beauty
Inherited
knowledge
Material
Food items at a lower
cost
Tools and equipment
Capital
Start-up funds
Soft-loans
Microcredits
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also relies on a small amount of secondary data and literature reviews. It is also difficult to
decide which Ministry or Department is responsible for overseeing the production of CI in the
country and in the state of Perak in terms of monitoring and evaluation. Despite the fact that
several agencies and departments are concerned with various aspects of poverty, rural growth,
and small enterprises, there seems to be a lack of collaboration by a single responsible body.
There is a general lack of understanding in this region, which is why an integrated framework
for the production of CI in Perak should be in place. It is also suggested that a special unit,
department, or agency be assigned to monitor the country's progress in this growing industry.
It is also hoped that in the coming years, further research will be conducted at the state level in
order to provide a more accurate overview of current local scenarios. This research revealed
that there are currently very few studies being conducted, indicating that this is a niche field of
research. In conclusion, despite its limitations, this study was able to obtain relevant
information about CI in Perak. However, there is still much to be done in this area, especially in
terms of identifying and recommending CI's next steps in Perak.
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