Pathways to prosperity: Sustainable livelihoods in organic-product micro, small, and medium enterprises
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Abstract
Research on the sustainability of organic-product micro, small, and medium enterprises (MSMEs) in secondary cities remains limited, especially after pandemic-driven shifts in demand and distribution. In 2022, we conducted a census of all active organic-product MSMEs in Malang Raya (four firms) and collected data through remote semi-structured interviews and a RAPFISH sustainability assessment with a 1-5 scoring scheme. Data were gathered via WhatsApp text messages and scheduled voice calls, involving one key informant from each firm and three additional members (total n = 7). Multi-Dimensional Scaling was used to profile performance across the five Sustainable Livelihoods Approach asset dimensions, while Leverage analysis identified the attributes with the strongest influence. Public assets ranked lowest, with transport and mobility for certification and market access emerging as binding constraints, while the remaining dimensions met sufficient sustainability criteria. Interviews documented clear demand shifts: sales of organic goats at a boarding-school enterprise rose by approximately 40%; selected herbal and staple products increased by 25% to 47%; and one certified firm experienced a 60% increase in turnover in the first year, followed by a 40% decline in the second. Overall, operations continued, sustainability was constrained by deficits in public assets. The findings highlight the need to prioritize improvement in transport and logistics, streamlining certification processes, and complement these interventions with working-capital support and targeted digital-capability enhancements.
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