Barriers to applying value chain in rural entrepreneurship context

Abstract

This study explores the barriers to the application of value chain strategies in rural entrepreneurship, focusing on Malaysian SMEs. By employing a qualitative case study approach, the research identifies critical challenges such as fragmented supply chains, environmental constraints, inadequate infrastructure, and policy- related gaps. Data were collected through semi-structured interviews with rural entrepreneurs engaged in agriculture-based enterprises, providing nuanced insights into the operational and systemic difficulties they face. Key findings highlight how small-scale production, seasonal dependencies, weak supplier networks, and poor logistics significantly hinder the adoption of effective value chain practices. These challenges limit the competitiveness and growth of rural businesses. Moreover, the study emphasizes the role of e-commerce and digital technology as potential enablers to bridge these gaps, despite existing barriers like low digital literacy and outdated infrastructure. The research underscores the needfor integrated policy interventions, capacity building, and infrastructural development to enhance rural entrepreneurship. By addressing these barriers, policymakers can create a more inclusive entrepreneurial ecosystem, fostering economic growth and reducing rural- urban disparities. The findings provide actionable insights for stakeholders to support marginalized entrepreneurs and promote sustainable development in rural areas.