A Study of Palm Oil Fruit Dealers’ Business Risks

Abstract

This study examines the palm oil fruit dealers (FDs) risks within their business venture. We employed interview method to gather fresh data from five (5) informants in Selangor.  The finding revealed that the fruit dealers possess some element of entrepreneurial risks comprises of willingness to accept calculated risks, ability to foresee opportunities, visionary and self-determination.  The FDs have encountered business risks arises from the normal fresh fruit bunches (FFB) purchase and selling activities.  FDs are also exposing to default risk due to the credit facilities or trust based-loans provided to the local palm oil smallholders.  Overall, the fruit dealers seem to perform a defensive and reactive response towards the exposed risks rather than relatively employing pro-active strategies to mitigate the occurrence of the risks.