04-Editorial Inggris

EDITORIAL

ON SUSTAINABILITY AND VULNERABILITY
OF SMALL ENTERPRISES: BETWEEN
NATURAL DISASTERS, ECONOMIC
POLICY, AND SOCIAL ENVIRONMENT

The concept of vulnerability of enter-

into two categories, the social-eco-

prises refers to two conditions, the a-

nomy source and the environmental

vailability of adequate resources and

source. The social-economy source

mechanism in minimizing risks or

comes in the form of economic crisis,

shocks that may be faced by an enter-

po-licy changes, and resources scar-

prise and the level of resource quality

city. An example of environmental

owned by enterprises to effectively

source

is

natural

disasters.

Any

cope with the risks and shocks. An en-

shocks experienced by small enter-

terprise is vulnerable if it does not

prises could destroy or reduce their

have any adequate resources and me-

ability to sustain. This can be seen, for

chanisms, both internal and external,

example, in the article written by Da-

to encounter risks and shocks. Every

ni Hamdan, “The Condition of Small

economic activity contains risks and

Micro Enterprises in a Region Struck

potential shocks, and the level of risks

by Natural Disaster”, which looks at

and shocks are determined by various

the small pottery industry in the sub-

factors. The difference between a risk

district of Pundong, Bantul, DI Yogya-

and a shock is that a risk assumes that

karta. From his field exploration, Dani

the actor has any understanding a-

Hamdan found out that the earth-

bout the arena they are entering and

quake did not only destroy businesses

awareness about the options avail-

physically, it also disturbed the distri-

able, while shock is a more unpredict-

bution of input and output materials.

ed event. In understanding the vulne-

The dependency of small industries on

rability of small enterprises, sources

local raw materials and human re-

of risks and shocks could be divided

sources complicates their effort to re-

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ON SUSTAINABILITY AND VULNERABILITY OF SMALL ENTERPRISES

build their businesses without help

as small entrepreneurs or as a mem-

from outside. The earthquake has

ber of a household, are the strongest

made it difficult for small businesses

figures in managing and rebuilding

to collect their raw materials and their

their

business.

Therefore,

there

workers, because all of them are af-

should be some special programs tar-

fected by the disaster. Besides, the

geted to the recovery of small enter-

fact that some business used their

prises run by women.

own home as a place for business
made thing worse because the earth-

Dede Mulyanto's article entitled “A

quake did not only destroy their

Sociological Frame in Understanding

homes but also their base of business.

the Impact of Natural Disaster on

It can be said that those small busi-

Small Enterprises” focuses on several

nesses, victims of the natural disaster,

important variables in social analysis

are in the condition like the saying 'se-

of the impacts of disasters. First, di-

telah jatuh, tertimpa tangga pula' or

saster is related to the level of vulne-

'after falling, struck down by a ladder

rability or sustainability of enter-

too'.

prises. In the vulnerability framework, natural disaster is categorized

Still related to natural disaster, an ar-

as a shock that directly affect the abi-

ticle by Yuni Pristiwati entitled “The

lity of enterprises and the entrepre-

Recovery of Small Micro Enterprises

neurs to cope with the shock. The abi-

and the Strengthening of Women in

lity to cope is determined by the avail-

Disaster Struck Region” focuses on

ability of any extra capital, both in

the impact natural disasters on the

terms of financial capital or social net-

condition of women in small and micro

work capital. The actors in small en-

enterprises. Double burden experien-

terprises are also a member of a col-

ced by women because of her gender

lection. Natural disasters, different

roles in society become more obvious

from other sources of instability for

when disaster hit their business. Na-

enterprises, affect these actors not

tural disasters did not only cause dif-

only as their role as entrepreneurs but

ficulties for women as victims but also

also as a members of a household, as

added more burden on them. Disaster

a member of a kin, and also as a

is an important factor in affecting the

member of a neighborhood. On this

degree of vulnerability of small enter-

ground, research on disaster impacts

prises run by women. However, Yuni

should also focus on the social-culture

Pristiwati assures that women, either

arena where these actors are located.

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JURNAL ANALISIS SOSIAL VOL. 12 NO. 1 MARET 2007

EDITORIAL

As Dani Hamdan and Yuni Pristiwati

small enterprises are vulnerable to be

discuss the impact of natural disasters

destroyed by the power of large capi-

on small enterprises in the area of

talists who enter their market. The

disaster, Deni Mukbar's article, “The

sustainability of small enterprises is

Pulse of Small Enterprises in the Tradi-

only possible when their products

tional Market in the Pressure of Hy-

serve the basic need of working class.

permarkets” focuses on an 'economic

In other words, small enterprises sur-

disaster' experienced by small enter-

vive not because of their good level of

prises, which comes in the form of the

sustainability, but because they are

growing number of the modern retail

needed by capitalist system to take

market such as supermarkets and hy-

care and to reuse the surplus of labors

permarkets among the traditional

which in turns will be absorbed by the

markets. The traditional market is a

large capitalist.

place where retail traders run their
business. It is said that the growth of

The vulnerability level of small enter-

modern retail markets that reached

prises, according Thee Kian Wie in

residential areas has made them a a

his article entitled “Economic Policy

competitor to small retailer owned by

and the Sustainability of Small Me-

individuals and that this modern retail

dium

can end the business of small retail-

should also be viewed from the as-

Enterprises

in

Indonesia”,

ers. Therefore, the arrangement me-

pects of governments' policy. Thee ar-

chanism is seen as an important tool

gues that policies oriented towards

to maintain a balance and healthy

'prosperity' will only weaken small en-

competition among retail enterprises,

terprises so that they would not have

especially between hypermarkets and

the capability to compete when, for

small traders in traditional markets.

example, the door to competition are
opened or when their business have to

It will be easier to understand Deni

enter the export market with higher

Mukbar's argument if we also read the

level of risks and shocks. Thee argues

book review section, where Muham-

that there is a need to change the

mad Kholikul Alim reviews a book

orientation of our policy in small en-

by El Fisgon entitled “Menghadapi

terprises, from being only a part of a

Globalisasi: Kiat Gombal buat Pengu-

'poverty alleviation' effort to policies

saha Kecil” published by Marjin Kiri in

that encourages the strengthening of

2006. The review describes that in the

small enterprises' sustainability in co-

social formation of global capitalism,

ping with the risks in various arenas or

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ON SUSTAINABILITY AND VULNERABILITY OF SMALL ENTERPRISES

in new conditions. It is time that poli-

government about the existence of in-

cies for small enterprises are aimed to

formal private enterprises. The infor-

not protect small enterprises from

mal sector in Vietnam has become the

competition but to institutionalize

source of small and medium enter-

competition itself. Aside from minimi-

prises' development in Vietnam and

zing monopoly in the hands of a few

has an important role in fostering the

actors and preventing discrimination

economy of Vietnam. However, a

towards actors who do not have any

deeper observation on the conditions

special connection with policy makers,

of the small enterprises shows that

institutionalizing competition would

small enterprises in Vietnam still face

also increase the capacity of business

obstacles and constraints. Aside from

in participating in competition.

“classic” constraints such as access to
capital, constraints also come from

A history of the development of small

the approach of the Vietnam govern-

business in Vietnam is described by

ment towards small enterprises. In a

Nurul Widyaningrum. In her article

centralized economic system, the na-

entitled “A Glance to Our Neighbor:

tion's enterprises monopolize all eco-

Small Enterprises in Vietnam”, Widya-

nomic activities, thus hampering the

ningrum describes the rise and fall of

growth of the small enterprise sector.

small business in Vietnam's economic

In

a

market

economy

system

history before and after the commu-

implemented today, the government

nist revolution took over. Her article

of Vietnam is considered as providing

also discusses the recent conditions of

more facilities to foreign entrepre-

Vietnam's small businesses. In a nut-

neurs than to local entrepreneurs.

shell, her article wants to encourage
us to learn from case of Vietnam, by

Far from the discussion at the macro

pointing out that small micro enter-

level, in a “report from the field” en-

prise has an important role in the time

titled “The Network of Women' Small

of transition from a centralized econo-

Enterprises and the Sustainability of

my system to the market economy

the Household Economy”, Dian Wi-

system. Although there is debate on

dyaningsih shows that the social

the role of Doi Moi in the growth of this

network owned by the owner of small

private sector (whether Doi Moi foster

business serves as an important ele-

the growth of small business in Viet-

ment in sustaining their business. By

nam or vice versa), Doi Moi serves as

joining in an organized network, seve-

an acknowledgment from the Vietnam

ral “classic” and general problems,

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JURNAL ANALISIS SOSIAL VOL. 12 NO. 1 MARET 2007

EDITORIAL

such as problem in accessing capital,

policies for small business develop-

which results in the dependence on

ment. In essence, an organization as a

creditors or loan sharks, can be sol-

knot for social network of entrepre-

ved. This organization of entrepre-

neurs is an important factor in deve-

neurs can also serve as the place to

loping the sustainability of small bu-

develop their skills and to obtain bu-

siness to cope with potential shocks.

siness information. At its best, this
group can help small business in influencing policy-making process at the

[Editor]

local level in creating supportive

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