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Go Back       IAR Journal of Business Management | IAR J Bus Mng. 2(2) | Volume:2 Issue:2 ( March 30, 2021 ) : 47-50
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DOI : 10.47310/iarjbm.2021.v02i02.007       Download PDF       HTML       XML

Creating Micro Enterprises for Leverage Welfare Coastal Areas

Article History

Received: 09.03.2021; Revision: 15.03.2021; Accepted: 25. 03.2021; Published: 30. 03.2021

Author Details

Yuris Danilwan

Authors Affiliations

Politeknik Adiguna Maritim Indonesia, Medan, Indonesia

Abstract: The poverty of fishing communities in coastal areas needs many programs. One of the ways to leverage community’s welfare is creating the micro-enterprises of fishermen. Data obtained indicated that Multi-sectoral micro enterprises need to be established for enhancing productivity and profitability. It helps the fishermen to have added values, fish chains and market systems. Micro enterprises are essential for income generation of the coastal areas; while playing a vital role in inclusive poverty eradication in Indonesia.

Keywords: Microenterprises; fishermen; coastal areas; welfare.


The structural poverty of fishing communities in social groups due to their dependence on the structure of the fishing season and potential fishery resources that are shared (common property); and the nature of open access to the sea causes the occurrence of overfishing throughout the research area (Santiago & Roxas, 2012). Another cause of poverty is limited affordability of fishermen on technology, imbalance in the market with the domination of intermediaries that have weakened fish marketing network. This fact is compounded by the malfunction of social institutions, like koperasi nelayan (fishing cooperation) and TPI (the fish auction place) and impartiality of government policy for the fishing community (Ferse et al., 2012).

It reports that habitat and land loss through coastal erosion, wetland and mangrove degradation, fisheries degradation and declining fish stocks and poor sanitation, and sea-level rise result from global warming (Lawson et al., 2012). The complexity of the ecosystem adds to the complexity of poverty in the coastal zone. Despite the visibility of poverty in the coastal zone, especially among women who form a substantial proportion of resource users and a majority of the poor, obtaining empirical data to support the poverty-environment linkages is a challenge (Shah, 2007).

Coastal poverty is closely related to the nature of coastal ecosystems, which are often characterized by their high degree of complexity associated with several distinctive features, including their diversity and dynamism, the fugitive nature of some of the resources available, their open-access nature, the concentration of externalities and people on the coast, and the often hostile nature associated with these features’(Campbell et al.,2006) People living in the coastal zone are particularly subject to poverty because of their vulnerability to shocks from climatic and non-climatic sources. Many of the resources that the poor depend on are common-pool resources (Lawson, 2010).

A poor fishermen community needs the development process in the seashore and marine areas to uplift fishermen's living standard so that traditional coastal resource management remains valued and cared for (Cahaya, 2015). The government should pay attention to local institutions by reinforcing those institutions to serve as a forum for the fishermen in the villages to empower them without having to bring in outside agencies because, in principle, institutions that grow and thrive in society have helped fishermen in rural life. It is social capital (Gai et al., 2018). The phenomenon of poverty in Indonesia, as previously described, implies the birth of various poverty alleviation programs, including poverty alleviation programs in urban, rural and coastal areas with people whose livelihoods are mostly fishermen (Akpalu, 2011). The characteristics of fishermen are identical with limited assets, weak capital structure, lack of bargaining position to access the values of justice and economic resources, weaknesses in the market access and the ability to master science and technology. In such a position, a poor fisherman's life in poverty becomes more complex and multidimensional (Cuesta et al., 2014).

The multi-sectoral micro-enterprises may be deployed to enhance productivity and profitability through value chains and market systems. They are essential for the rural poor's income generation while playing a vital role in inclusive poverty eradication in developing countries. One of the government's most important factors is to proliferate multidimensional poverty eradication programmes (Cremin & Nakabugo, 2012). It is essential to obtain insight into the impact of the above changes on poverty eradication and income distribution at the village level, not only in the rural economy but also to anticipate possible changes in the rural economy in the future in respect to the efficacy of the programs implemented by the government (Jamil, N. & Mat, 2014).


This research used a mapping technique to find various programmes being implemented to bring out some of the communities from the poverty trap (Ambarkhane, 2013). It explores the micro-enterprises roles in leverage the fishing communities in Indonesia coastal areas. It analyzes the policies implemented to eradicate poverty and reduce inequalities (Abramo, 2016).


Quantitatively, a fisherman earns only around IDR. 250,000 - IDR. 400,000 per month. Even many are smaller than that (Rahim, 2017). One important thing in fishermen's life is fishing technology, both in fishing gear and fishing aids (boats). However, the coastal area and biodiversity have been gravely affected by climatic events, land-based human activities, and unsustainable fishing practices. With the destruction of fish habitat, the village’s fishers saw a considerable decline in their marine harvest in its inshore reef and lagoon (Chen et al., 2020). More than 3 billion people in this world directly depend on marine and coastal biodiversity for their livelihoods and the oceans as their primary protein source (Lee et al., 2020).

Poverty and environmental issues are interconnected and entangled in a complex web of human-environment relationships. Poor people often have no alternative but to degrade the environment to meet present needs at the expense of their future benefits. Conversely, environmental degradation tends to exacerbate poverty by deteriorating their livelihoods, income, and health (Kassa et al., 2018). Marine fisheries directly or indirectly employ more than 200 million people globally, and the market value is estimated at US$3 trillion per year. Also, oceans absorb about30% of carbon dioxide produced by humans, greatly buffering the impacts of global warming (UNDP, 2018). If fishermen managed the catches properly and used sustainably, the coastal habitats would continue providing ecosystem services to human beings and other living things (U.N. Environment Programme. 2012).

The policies and program for eradicating poverty is an important issue. Conceptually, poverty's utmost relevance is deprivation in terms of basic amenities at the individual and household level and deprivation in terms of financial need (Chakrabarti & Dhar, 2013). Community development is essential based on two aspects: providing a systematic framework for community development to eradicate poverty and long-term success in the era of globalization (Yalegama et al., 2016). The government strategy for eradicating poverty in Malaysia is progressive. Aid and funding are provided to increase the poor's income as this will impact other elements in life. A considerable income level enables the community to plan they're financial, expand the business, invest and later purchase assets, including owning a house, especially in the urban area (Dawood & Leng, 2016).

Ending poverty and reducing inequality, simultaneous progress needs to be made in social inclusion and labour inclusion. As noted in Social Panorama of Latin America, 2018 (ECLAC, 2019), the concept of social inclusion is a multidimensional one that encompasses the realization of rights, participation in social affairs, access to education, health and care services, essential infrastructure services and housing, and disposable income. Giving more power through education, information, coaching and counselling, and amplify the possibilities to get or create a job or business trough micro-credits, access to ICT networks is the best way to achieve poverty eradication (Nawaz, 2010).

Poverty eradication through empowerment based on knowledge/education, In the field of education, lifelong learning is crucial to eradicating poverty: in some cases, families that live just over the poverty line (and are not poor) turn suddenly into poverty for the crisis effects (loss of jobs) (Kwon & Kim, 2014). The dependence of fishermen on fishing technology is very high because, in addition to the condition of the mobile fishery resources, it is easy to move from one place to another. In terms of types, fishing technology can be divided into two categories, namely traditional and modern (Nasrudin, 2016).

The fishermen could afford to take care of the children and other relatives, and poverty will increase, so they have many safe lives (Davis, 2017). Mental capacity includes education, which is the primary key to eradicate poverty. Therefore the key is ensuring an inclusive education system at all levels and extended learning, empowering persons with disability to develop their talents, creativity, mental and physical abilities, and their fullest potential (Singh & Chudasama, 2017).


In the economic dimension, poverty is easily seen from various basic human needs. Concerning fishing communities, it covers the condition of slum housing with subpar furniture and low ability to meet food and health needs and low education (Kholis et al., 2020). The use of different technologies gave rise to the concept of traditional fishermen and modern fishermen (Zuriat, 2016). As a maritime country, Indonesia has a population that mostly lives in coastal areas (Imron, 2003). Most of these coastal communities have jobs as fishermen. Fishers are a group of people who use the most marine resources (Kristiyanti, 2016).

Much of the pressure on poverty in fishermen's life comes from the socio-economic activities carried out by fishermen (Utomo, 2011). Fahmi (2002: 4) states that poverty among fishers is very complicated. Complex, in this case, means that natural and non-natural factors cause the roots of fishermen's poverty. The fishing community's poverty is divided into several dimensions and several factors that make the fishing community fall into poverty. Other things that also exacerbate their situation are the limitations of fishing technology and limitations in marketing the catch (Salim et al., 2011).


Data analysis shows two: (1). Fishermen's jobs which depend a lot on natural conditions, make income uncertain for fishermen's households. Micro enterprises would help fishers access and invest the modern fishing technology to roam offshore and have a much more significant effect on fishing yields. (2). Eradicate poverty through the empowerment of fishers becomes self-reliant from their skills that they have to learn; they would have jobs they will use to take their family.


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