Development challenges of the business sector as a catalyst for the development of small towns: An empirical study of Besut, Terengganu

Small town functions as a service centre for local and plays an important role in development. The development of the business sector may lead not only to physical and structural changes of the towns but also the challenges faced by small business. This study analyses the issues and challenges encountered in the Besut district in developing the business sector of three small towns of Jertih, Kampung Raja dan Kuala Besut. Primary data were gathered from a field survey of 200 licensed businessmans. The findings revealed that small business in the three towns did face the challenge of having to compete with big business although admittedly their development had helped positively in the distribution of goods and social services to the community. There was also the issue of imbalanced development in Kampung Raja pointing to the imperative of an urban restructuring in favour of empowering the small town’s active functioning in delivering goods and services to its surrounding community.