International Journal of Advanced and Applied Sciences

Int. j. adv. appl. sci.

EISSN: 2313-3724

Print ISSN: 2313-626X

Volume 4, Issue 9  (September 2017), Pages:  108-113

Title: Influencing factors in doing business: The case of oil palm smallholders

Author(s):  Azhar Ahmad 1, *, Ahmad Rafis Che Omar 1, Md Shafiin Shukor 1, Lokhman Hakim Osman 1, Norazlan Alias 1, Mara Ridhuan 1, Suraiya Ishak 2, Mohd Abdullah Jusoh 3


1Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Malaysia
2Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia, Bangi, Malaysia
3Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjung Malim, Malaysia

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Agricultural industry such as oil palm is facing the market volatility and economic oppression. This resulted in volatility of oil palm planter’s revenue. One way to make up the shortfall in revenue is to get them involved in business. However, the involvement of oil palm smallholders is not only influenced by economic factors alone, but also influenced by the push and pull factors. Therefore, the study included 178 smallholders who were currently doing business in Johor, Selangor, Perak and Sarawak. Analysis was done by Structural Equation Model (SEM) using SmartPLS software. The study found that the respondents engaged in business with the push and pull factors. Overall, the respondents expressed that “risk / challenges management” is the most important push factor followed by “leadership skill”, “business opportunity”, “family encouragement” and “income level”. Meanwhile, “attend training” is the most important pull factor followed by factors of “infrastructure facilities” and “finance”. 

© 2017 The Authors. Published by IASE.

This is an open access article under the CC BY-NC-ND license (

Keywords: Factors in business, Entrepreneurships, Smallholders

Article History: Received 15 February 2017, Received in revised form 20 July 2017, Accepted 20 July 2017

Digital Object Identifier:


Ahmad A, Omar ARC, Shukor MS, Osman LH, Alias N, Ridhuan M, Ishak S, and Jusoh MA (2017). Influencing factors in doing business: The case of oil palm smallholders. International Journal of Advanced and Applied Sciences, 4(9): 108-113


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