An assessment of institutional factors in determining the sustainability of rice straw enterprises

Institutional factors play a vital role in influencing sustainability issues of rice straw agribusiness. This study attempts to identify institutional constraints faced by entrepreneurs in developing their rice straw enterprises. The present in-depth site study involved 24 rice straw entrepreneurs in the Muda Agricultural Development Authority (MADA) of Kedah and 20 rice straw entrepreneurs in the Integrated Agriculture Development Area (IADA) of Sekinchan, Selangor. Results showed that lack of promotions, lack of institutional support; unenforced policies pertaining to rice straw management and development; institutional low skill and knowledge levels; bureaucracy problems and institutional inefficient management all contributed to stagnation in straw agribusiness. Implications of the findings point to the imperative of a more institutional integrated and efficient approach, as fully supportive policies of straw development, enhanced public awareness education campaigns to nurture consumer appreciation of green products. All this would lead to greater demand for straw by-products, a crucial success factor for Malaysia’s rice straw enterprises.