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Secrets Of The New Guinean

Entrepreneur

By Harry Jackman

There are now few Papua New Guineans who have not come into contact with the cash economy which Europeans and Asians have brought to their country. More and more of the people have given up subsistence farming and now depend upon a cash income, mostly from wage labour in towns and on plantations, not in frequently from growing export crops, but rarely from owning and managing a business.

Since World War 11, thousands have aspired to own and conduct businesses, and very many have been or are so involved, usually village stores, produce buying and marketing, and road transport. Relatively few have succeeded even though just about every form of business organisation, eg, sole trader, partnership, com pany, co-operative, has been tried.

The government has provided some advice and assistance, especially to co-operatives. There are now busi ness development officers in every district, and small industries exten sion officers in some.

The Development Bank, which be gan lending in 1967, last year made 413 loans totalling $1.5 million to Papua New Guineans, but not enough, expatriate enterprises, fore mo s t among them Bougainville Mining Ltd, are fostering business ventures among the people.

Last year’s $9 million turnover of the co-operatives and whatever the thousands of small and the handful of medium-size other businesses among the people have turned over has, however, been of little signifi ca<n c e, except for the ‘learning aspect’, in the total economy. The current situation, apart from 20 per cent equity in Bougainville Mining and equity varying from 20 to 35 per cent in several other locally-based expatriate companies, held on behalf of the people by the government and the Investment Corporation respec tively, appears to be very much as J. V. Langmore, an economist, des cribed it in 1971; expatriate-owned enterprises produce 60 per cent of all export crops, .all but one or two per

cent of manufactured goods, and most mining output, and are respon sible for most building, construction and services.

Apart from competition by ex patriate firms and individuals, the main obstacles to business develop ment among Papua New Guineans have been (1) shortage of manager ial and technical skills, and (2) socio-cultural institutions—the ‘wan tok system’ of mutual responsibility

and wealth distribution in an exten ded family or, sometimes, larger group. Many outsiders, especially Europeans, believe there is also in sufficient motivation to enter modern business, partly because the people live in affluent subsistance or can re turn to it should a business fail, and partly because of their inelastic de mand for consumer goods.

Taking these last two points first, relatively few of those who have be come urbanised, or have more or less regularly been engaged in wage la bour or cash cropping have shown any desire to return to subsistence farming. Even where land is still available to them—and there is a growing shortage of it in several areas—they would in most cases find it difficult to change their current way of life.

As for the inelasticity of con sumer goods demand, it must b e doubted whether any Papua New Guinean who has used modern tools, household goods and transport would fail to want more of them.

Because their skilled relatives and friends usually prefer secure jobs in the public service or with expat riate firms, Papua New Guinean en trepreneurs often find it difficult to obtain permanent staff. The increas ing turnout of secondary and tech nical schools, overcomes this problem.

It has frequently been stated that modern business, especially the capi tal formation it requires, cannot flourish among Papua New Guinea’s traditional societies.

The economic history of at least one relatively large group, the Tolai on New Britain, whose per capita in come is the highest in the country, does, however, show that an appro priate infrastructure provided by the government, ready access to a mar ket, and the demonstration effect of foreign entrepreneurship provide the necessary impetus. The people have demonstrated enough pragmatism to make a successful entry into modem business, without the need for major social change.

In his latest book, Big-Men and

Business (ANU Press, Canberra), about entrepreneurship and economic growth among the Gorokans of the Eastern Highlands, Dr Ben Finney, too, suggests that social reform need not necessarily have to precede business development. Using the case histories of some Gorokans who have started and built up success ful enterprises, he posits that the most important factor has been favourable economic climate.

Working on or just observing flourishing expatriate-owned coffee plantations, receiving much advice and help from government agricul tural officers and some from planters, and living close to a growing town ship, with trafficable roads leading to it—all contributed to ‘pushing’ the Gorokans into rural commerce. But, unlike many of their countrymen, who are conspicuous consumers, they saved and invested. Finney describes them as conspicuous investors, hav ing adapted traditional barter and exchange to accommodate the Aus tralian dollar. Prestige, once counted in pigs, stone axes, gold-lip shells and the like, is now also measured in money and in the modern consumer goods bought with it.

A number of men who would pro bably have been bikpela man, a per son of considerable repute, and some

times a leader, in pre-European days, have achieved a similar status by mar shalling those savings and, by com bining them with their own mana gerial skill and the people’s labour, have developed successful busi nesses.

In traditional society, one could be come bikpela man by being a skilled warrior, an expert in ritual, or a financier of wealth exchanges. The modern bikpela man must have the qualities of his Western counterpart and he must conduct his enterprise so that it is acceptable to and sup ported by his people.

The businessman in, say, Tokyo or London operates among people who have, to a varying degree, accepted the Protestant Ethic: the Gorokan entrepreneur is among people whose relevant values are very different.

Perhaps the most fascinating part of Finney’s book is the description of the demonstrated ability of men like Sinake Giregire, Hari Gotaha, Sabumei Kofikai and Akunai Rovelie to establish and maintain a bridge between the two worlds.

For several of the Gorokan ‘big’ entrepreneurs, their business activi ties have been a stepping stone to national politics. For their people, they have widened the road to na tionhood in the modern world.

Much more entrepreneurship of the kind displayed by some Gorokans and Tolais is needed if the National Coalition Government’s economic aims for equal development and a more equitable distribution of wealth and income throughout Papua New Guinea are to be achieved. If there is one thing to be learned from stu dies like Dr Finney’s, it is that a favourable economic climate is of great importance.

(Big-Men And Business: Entre

preneurship and Economic Growth in the New Guinea Highlands, by Ben R. Finney, Australian National University Press. $7.95.) • Circular migration, a population movement, which is viewed by its participants as being for a limited term. This definition comes from Dr R. D. Bedford, formerly of the Department of Human Geography at the Australian National University and now lecturer in the Department of Geography at the University of Canterbury (NZ), in his book New Hebridean Mobility, a study of circular migration. Dr Bedford’s investigations cover population move ment in the condominium from 1800 to 1970 as it affects communities in villages and urban areas. The book will be published before Christmas.

(New Hebridean Mobility, By R. D.

Bedford, ANU Press, $3.)