Market Economy Integration and Indigenous Entrepreneurship among the Iban Community in Sarawak

Abstract

The integration of indigenous entrepreneurship into both formal and informal market economies is a critical driver of inclusive economic growth in rural regions. This study investigates the entrepreneurial activities of the Iban community in the Sri Aman Division of Sarawak, Malaysia, particularly following the elevation of the Pantu and Lingga sub-districts to full district status in 2021. Employing a mixed-methods research design, data were collected through 300 quantitative survey responses and 10 qualitative in-depth interviews with indigenous entrepreneurs. Partial Least Squares Structural Equation Modelling (PLS-SEM) was utilised to examine the structural relationships between the Market Economy, Social Economy, Cultural Preservation, and Indigenous Entrepreneurship constructs.The empirical findings reveal that Iban entrepreneurial engagement is predominantly informal, micro-scale, and female-dominated, and is largely driven by economic necessity. The structural model confirms that Market Economy factors exert the strongest significant influence on entrepreneurial activity (path coefficient = 0.412, p = 0.000), followed by Cultural Preservation (path coefficient = 0.197, p = 0.005) and Social Economy (path coefficient = 0.139, p = 0.037). These results indicate a multidimensionalphenomenon in which economic drivers are closely intertwined with the preservation of cultural heritage and community cohesion. The study concludes with targeted policy recommendations emphasising flexible financial mechanisms, digital capacity-building, and youth mentorship to foster sustainable indigenous enterprise development.