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The selfdevelopment strategy (SDS) for local economic development (LED): The Case of Tais production in Dili District, Timor-Leste.
Thesis Abstract:
The study was conducted to analyze the self-development strategy (SDS) as implemented in the Tais Industry in Dili District, Timor-Leste. The study determined the SDS as a means to enable local communities to build a more variable local economy; described the socioeconomic characteristics of local entrepreneurs, benefits and costs, and obstacles in Tais industry cluster; determined the business performance of the Tais industry; and determined the critical variables (i.e., individual and organizational characteristics, and collective behaviors).
Data were gathered from 30 respondents from the Ministry of Tourism, Trade and Industry of Dili District, the local government of Dili District, and Alola Foundation, a nongovernment organization that cooperated in implementing the program. Structured questionnaire was used in conducting in-depth and face-to-face interviews. Basic statistical methods such as percentages and frequency distribution were used to analyze numerical data.
Results showed that SDS is implemented in the development programs of the Tais entrepreneurs. The SDS created a variety of jobs through increasing employment by agricultural productivity; improving infrastructure, including labor-intensive initiatives; and promoting private sector development, including enhancing the Dili residents’ access to microfinance. However, inadequate demand coupled with financing problems in terms of credit schemes were identified as major obstacles for SDS. Knowledge, skills, market orientation, and business experience were found to influence business performance of the Tais industry. On the organizational variable, it
was found out that leadership performance and linkages were key influences for good business performance. While participation and cohesiveness also influenced business performance, skills was found to be the most important factor in improving business performance, followed by knowledge and market orientation. The study showed that, in general, SDS enables local communities to build a viable local economy.
Based on the aforementioned findings, conclusions, and implications of this study, several recommendations are hereby proposed to government agencies and the Tais industry. The government should develop entrepreneur-related skills in organization and planning and employ strategic entrepreneurial communication.
The Ministry of Tourism, Trade and Industry of Timor-Leste should continue its support to the Timorese women who produce Tais. To promote entrepreneurship, the government should promulgate policies that are neutral and provide no special advantages to the large firms. There is also a need to focus on improving skills in the utilization of an advanced technology in Tais making and its business. To be more developed and well-managed, the office of industrial agency in the district should continue establishing high morale and strengthen efforts in developing, monitoring, and supervising the capabilities of the Tais entrepreneurs to produce high-quality products with best prices and services.
For the Tais industry, there is a need for recognition of the importance of knowledge and skills to increase extent to business performance. There is also a need for a well-articulated skill promotion programs, including the use of up-todate technologies among the Tais entrepreneurs, as well as competent leaders in the business group and government agencies to lead development projects to promote business expansion or growth. Lastly, there is need to undertake more research of market trends to improve the business performance of the Tais industry players.
