The research, carried out between May and July 2025, examines the entrepreneurial mindset of traditional market vendors—an often-overlooked group despite their critical role in Indonesia’s food distribution system. The findings matter because traditional markets remain central to the country’s microeconomy, supplying fresh food while providing livelihoods for millions of small traders.
While these vendors show strong commitment and confidence in running their stalls, the study highlights a structural problem: many are caught in a survival mode that prioritizes stability over growth.
Why Traditional Market Vendors Matter
Micro, Small, and Medium Enterprises (MSMEs) form the backbone of Indonesia’s economy, contributing more than 60 percent of national GDP and employing nearly the entire workforce. Within this ecosystem, traditional market vendors act as a vital bridge between rural farmers and urban consumers.
Vegetable traders, in particular, face constant pressure. Their products are perishable, highly seasonal, and sensitive to time delays. Unsold vegetables can lose value within hours, forcing traders to make fast decisions every day. This environment rewards discipline and endurance—but not necessarily innovation.
Pasar Kliwon Karanglewas in Banyumas reflects this reality. Despite its strategic position as a local food hub, many vendors have operated for decades without significant improvement in income, assets, or business scale.
How the Study Was Conducted
Instead of focusing on infrastructure or capital access alone, the research explored the entrepreneurial spirit of vegetable vendors—their attitudes, behaviors, and decision-making patterns.
The research team surveyed 75 active vegetable vendors, representing up to half of the total vendor population in the market. Participants were selected from different market zones to capture diverse trading conditions.
Using structured questionnaires, the study assessed eight key entrepreneurial dimensions, including responsibility, self-confidence, long-term orientation, financial discipline, and willingness to take risks. Responses were analyzed descriptively to identify patterns rather than theoretical abstractions.
This approach allowed the researchers to map real-world behavior in a way that reflects everyday trading practices.
A “Competence Paradox” in Traditional Markets
The most striking outcome of the study is what the authors describe as a competence paradox.
On one hand, vendors score extremely high in operational traits:
- Responsibility and self-confidence rank at the top.
- Vendors consistently open stalls early, manage inventory carefully, and maintain customer relationships.
- Many have survived economic shocks, price volatility, and seasonal downturns.
On the other hand, strategic capabilities are noticeably weaker:
- Risk-taking receives the lowest score among all entrepreneurial dimensions.
- Vendors are reluctant to try new product variations, pricing strategies, or business models.
- Expansion is often perceived as dangerous rather than opportunistic.
This imbalance explains why vendors remain active for years yet rarely progress beyond subsistence-level operations.
Who Are the Vendors?
The demographic profile adds important context. The study shows that:
- 68 percent of vendors are women
- Over 37 percent are above 50 years old
- Most have a high school education or lower
- The majority have never participated in formal business training
For many women vendors, trading is closely tied to household stability. Daily income is prioritized to meet family needs, leaving little room for experimentation or reinvestment. Business decisions are shaped by responsibility rather than ambition.
Older vendors, meanwhile, rely heavily on long-established routines. Their experience provides market intuition, but also reinforces resistance to change—especially digital tools or formal bookkeeping.
Internal Barriers Matter More Than Capital
Contrary to common assumptions, the study finds that internal constraints outweigh external ones.
The most frequently cited obstacle to business growth is lack of innovation, followed by weak motivation and fear of loss. Limited access to capital appears less dominant than expected.
One key issue is poor financial recording. Without clear separation between personal and business finances, vendors struggle to evaluate profits accurately. As a result, even small investments feel risky because outcomes are uncertain.
This creates a cycle where traders avoid innovation, reinforcing stagnation while maintaining day-to-day survival.
Real-World Implications
According to the authors, strengthening traditional markets requires more than physical revitalization or microcredit schemes.
Gentur Ageng Sejati from Universitas Muhammadiyah Purwokerto notes that entrepreneurial growth begins with mindset transformation. When vendors understand their cash flow—even through simple records—their perception of risk becomes more rational.
The study suggests three practical directions:
- Basic financial literacy programs tailored to traditional market conditions
- Collective purchasing groups to reduce dependency on middlemen
- Active market facilitation, ensuring fair zoning and predictable trading environments
Together, these steps could help vendors move from survival-based trading to sustainable business development.
Author Profile
Co-authors: Dr. Dumasari, Sulistyani Budiningsih, Watemin (Universitas Muhammadiyah Purwokerto)
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