The Pulling Factors of Doing Business Amongst Oil Palm Smallholders in Malaysia

Abstract

Oil palm is a major source of income in Malaysia. However, oil palm market situation is uncertain due to the cost of production, exports and trade barriers. As a result, oil palm smallholders suffer from low income. Therefore, doing business is one of the ways to increase their income. However, factors that motivate them to engage in business should be studied. Based on previous studies, pulling factors are seen as important influence in determining one's involvement in business. These attraction factors are made up of three (3) main elements namely training, infrastructure facilities and finance. The results of the study found that training elements and infrastructure facilities influence one's involvement in the business. As such, stakeholders should provide training and infrastructure facilities to encourage more rural residents to conduct business activities. The involvement of oil palm smallholders in business can reduce their sole dependence on the yield of the oil palm.