Stagnation of Rice Straw Agribusiness Development in Malaysia: The Entrepreneurs’ Perspectives

Abstract

Given the need to address the adverse environmental impacts of rice straw burning, enhancing straw-utilisation would seem to be a step in the right direction. One way to achieve this objective would be to develop viable straw entrepreneurs. This study evaluates the barriers and challenges facing the straw entrepreneurial development in Malaysia. A total of 44 entrepreneurs in the country’s rice bowl areas of MADA (n=24) and Sekinchan (n=20) were interviewed. The findings reveal five major problems that have been stagnating the Malaysian straw agribusiness, namely, lack of support from both authorities and the community, lack of research and access to technology facilities, low levels of skills and knowledge pertaining to straw industry, and lack of readily available venture capital. Other related challenges unveiled include uncertain entrepreneurial attitude, limited product markets, unreliable supply of raw straw, and the lack of skilled workers. To reverse the stagnation and rejuvenate its straw by-product agribusiness Malaysia would need to strengthen and integrate institutional support, to enlarge all round stakeholders’ involvement including that of the local community and the entrepreneurs themselves, and embark on fullscale product and market development. DOI: 10.5901/mjss.2015.v6n4p523