Forces behind the growth of rural industries in developing countries. A survey of literature and a case study from Indonesia

It is often cited in the literature that the growth or rural industries in less developed countries is more a sign of rural poverty than a sign of rural development, since these activities are undertaken by the poor mainly as a “last resort”. The main aim of this study, based on primary data collected from a field survey in rural areas in West Java, is to investigate whether rural industries can be considered as “supply-push” or “demand-pull” activities; and this depends on social and economic circumstances (factors) facing the producers engaged. From the survey it is found that almost all of the producers surveyed are from poor families with low levels of education, and many of them undertake such activities as a means for them to survive.