The objective of this study is to investigate the potentialcontribution of vertical marketing systems to thedevelopment of small business entrepreneurs and inparticular to entrepreneurially disadvantaged groups. Thefollowing are the two major questions for this study:1. Do vertical linkage systems serve as a pathway for theentrepreneurially disadvantaged groups, namely thosewith no entrepreneurial experience, from families withoutbusiness background, and from indigenous ethnic groups?The modernization process in Third World countries, andin particular Indonesia, may create a widening gapbetween the modern and the traditional sectors. Verticalrelationship systems with their unique characteristics(e. g. a symbiotic relationship between large and smallbusiness operation) may contribute towards reducing thisgap through developing the entrepreneuriallydisadvantaged groups into business careers.2. Do vertical relationships accomodatb, independententrepreneurs?It is assumed that independent entrepreneurs can performbetter entrepreneurial functions than those"entrepreneurs" who are constrained by external power.There are doubts whether the vertical relationship,characterized by a large firm's dominant role, canaccomodate independent entrepreneurs.This study reveals that despite many problems andlimitations a tight-control type of vertical marketingsystem can serve as a pathway for individuals fromentrepreneurially disadvantaged groups to become successfulmodern-type entrepreneurs. The performance of thesedisadvantaged groups is equal to that of other differentgroups. Also, independent entrepreneurs exist in all thevertical marketing systems studied.
展开▼
