Sustainability of Rural MSMES through Collaboration in the Menyamya District, Morobe Province

Abstract: Rural Micro, Small and Medium-sized Enterprises (MSMEs) are the basic economic back bone of Papua New Guinea’s local economy. The research inquiries into the dormant threats intertwined in the connect PNG and inclusive economic development package to connect missing link dots. This study aims to pose an insight into competition from the entrance of foreign retail businesses on rural MSMEs in Menyamya, Morobe Province - Papua New Guinea. The study was intended to point-out, educate MSME entrepreneurs to be vigilant and well-informed, and to be competent micro, small and medium-sized entrepreneurs thereafter. Twenty (20) MSMEs (a cluster) within the business hub were selected, interviewed through questionnaires using quantitative research approach. The research utilized survey-based study design. An F-test analysis was employed to evaluate the hypothesis. The test results suggested that the entry of foreign retail businesses would significantly impact rural micro, small and medium sized enterprises. The findings of this study provide valuable insights for entrepreneurs, government entities, stakeholders and policy makers. Keywords: Competition, Economy, FDI, Literacy, MSMEs JEL Classification Number: F31, F41