Gender, empowerment, and rural sustainable development: A case study of crab business integration

3.2.1 Empowering women through education and skills development

LEOs play a vital role in empowering women through education and skills development. The crab catching group and crab processing group illustrate this by providing free literacy and numeracy lessons to address educational gaps among women, many of whom initially lacked basic reading, writing, or signing abilities. To bridge this gap, LEOs designed training sessions that aligned with the daily fishing schedules of their husbands, enabling women to participate effectively [38]. These programs later expanded to include entrepreneurial skills, fisheries management, and community leadership, with women attending workshops and training sessions, sometimes in high-end hotels. This capacity-building approach enabled women to acquire critical skills for business ventures, enhance household livelihoods, and contribute to rural socio-economic transformation, highlighting LEOs’ role as catalysts for capacity development and gender empowerment [38].

3.2.2 Facilitating market access and business expansion

LEOs play a crucial role in facilitating market access and promoting the growth of local enterprises to support rural sustainable development. The UP group illustrates how LEOs enable members to position their products successfully in both local and regional markets. By establishing partnerships with retail shops such as Citra Sudiang, Kota Daeng, and Bosowa, UP synchronizes marketing strategies, ensuring a stable and strong market presence. This coordinated approach to production, marketing, and sales keeps their products in high demand, often leading to supply shortages [38].

To address the growing demand for diversified products, LEOs promote business innovation and product diversification. The UP group exemplifies this by developing new products such as crab crackers, shredded crab, and seaweed-based items like crackers, lollies, and jellies. These innovations increase revenue potential and reduce reliance on a single product line, mitigating risks related to price fluctuations or raw material shortages. By supporting product diversification, LEOs enhance income generation and promote environmental sustainability through the efficient use of marine resources [38].

3.2.3 Enhancing financial access and capital development

Financial inclusion is a critical pillar of rural sustainable development, and LEOs play a central role in this area. Through initiatives such as revolving credit systems, LEOs provide members with access to financial resources that would otherwise be unavailable. The UP group exemplifies this approach, using its profits to reinvest in community-led projects such as crab trap production. This initiative enables members to pool financial resources and access credit to finance production activities, reducing their dependence on external financial institutions [38].

The revolving credit system facilitates financial stability and promotes collective ownership of community assets. By pooling profits and reinvesting them into essential economic tools, LEOs ensure the long-term sustainability of local enterprises. This system not only supports the members’ financial needs but also promotes sustainable development by fostering self-sufficiency and reducing community vulnerability to financial shocks. The ability of LEOs to provide access to financial resources and enhance local capital formation strengthens rural economies and enhances community resilience in the face of economic uncertainties.

3.2.4 Promoting knowledge sharing and community learning

Another essential function of LEOs is the facilitation of knowledge sharing and experiential learning within rural communities. LEOs create formal and informal platforms for members to exchange ideas, share experiences, and co-create solutions to local challenges. The UP group serves as a prime example of how LEOs facilitate learning through workshops, training programs, and the sharing of practical knowledge [38].

By encouraging collective learning, LEOs enable rural communities to adopt best practices in aquaculture, fisheries, and small-scale enterprise development. Women, in particular, benefit from these knowledge-sharing initiatives, as they gain access to technical skills, business strategies, and leadership training. This process equips women with the tools to become effective leaders and decision-makers in their local economies. The establishment of LEOs as learning platforms contributes to the broader objectives of rural sustainable development by fostering knowledge diffusion, enhancing capacity building, and promoting gender equity. When knowledge is continuously shared within the community, it creates a culture of growth and resilience, ultimately strengthening local economies and promoting sustainable development.

3.2.5 Economic contributions and income generation

LEOs have a transformative impact on women’s economic well-being by enabling diverse income-generating activities. In UP, women’s involvement in the crab processing business demonstrates the economic benefits of LEOs. Women’s roles in processing crab products, including the production of semi-processed and fully processed crab crackers, have become essential for the household economy. Women’s earnings from processing activities range from IDR 600,000 to IDR 3,500,000 per month, significantly contributing to household income. This additional income has enabled families to finance children’s education, purchase essential goods, and renovate homes. Table 5 highlights the sources of income for women involved in LEO activities, emphasizing their crucial role in rural household economic stability.

Capital Formation is well facilitated by LEOs for rural sustainable development through strategic capital formation initiatives, including revolving credit systems, cooperative acquisition of production tools, and the promotion of product innovation. By fostering financial stability, supporting market expansion, and enabling collective responsibility, LEOs strengthen the financial independence of rural communities. The case of UP highlights the critical role of LEOs as catalysts for economic empowerment and sustainable development, particularly in the context of crab business integration [50–52].

Table 2 depicts that a total of 27 individuals have accessed the revolving capital, with the following breakdown:

• In the first midterm of first year, there were 14 fishermen with 100 crab traps per person.

• In the second midterm of first year, there were 27 fishermen who had 100 crab traps.

• In the first midterm of second year, there were 14 fishermen who had between 200 and 300 crab traps.

• In the second midterm of second year, there were 27 fishermen with 200–300 crab traps or people, and 15 non-members of UP with 100–200 crab traps or people.

Table 2 illustrates how the revolving capital program enables 27 fishermen to access 100–300 crab traps each, demonstrating the effectiveness of this strategy in strengthening the group’s capital. By adopting a cooperative approach, members collectively establish terms for accessing revolving capital, fostering economic empowerment and financial stability within the community. LEOs play a vital role in capital formation, exemplified by the UP group, which accumulates capital and acquires essential production resources, including 1,400 crab traps from Oxfam and a mixer for crab cracker production from the Directorate General of Higher Education of Indonesia. This collective effort strengthens the group’s financial foundation, promotes sustainable business development, and empowers members to increase productivity and generate higher incomes, thereby enhancing long-term financial stability and community resilience.

Capital formation within LEOs is sustained through a revolving credit system that enables members to borrow resources and reinvest returns into a community fund. This system strengthens individual financial security and enhances the organization’s capacity to withstand economic challenges, supporting its long-term viability. While the program initially succeeded in providing access to essential production inputs, miscommunication posed challenges as some members believed Oxfam’s provision of crab traps was a grant rather than a loan, affecting repayment compliance. Addressing this issue requires clear communication of the scheme’s terms to ensure sustainability and efficiency [51]. By promoting shared responsibility and collective decision-making, LEOs maintain transparency and accessibility, fostering financial stability and economic empowerment for community members.

In addition to supporting capital formation, LEOs promote financial growth through product innovation and market diversification. The introduction of crab crackers and the development of crispy baby crabs serve as examples of value-added products that increase income and financial security for members [50,51]. Adopting good manufacturing practices and innovative processing techniques enhances the quality and safety of crab products, improving market competitiveness and increasing business volumes [51–53]. These initiatives contribute to the overall capital base of LEOs by promoting higher incomes and reinvestment in local production systems. By enabling product diversification, LEOs create opportunities for long-term financial sustainability while also strengthening the economic resilience of rural communities.

Addressing miscommunication challenges within capital reinforcement initiatives is crucial for sustainable rural development. Miscommunication can arise from free-form messaging and differing interpretations of key program terms, as seen in the case of Oxfam’s crab trap distribution [51]. Ensuring clarity in terms of resource allocation and repayment obligations is essential for maintaining trust and participation in LEO-led capital formation programmes. When such challenges are addressed, LEOs become more effective in promoting financial inclusion, supporting production activities, and enabling community-led financial growth.

Fishing-Processing Production Integration in well-defined fishing schedule allows LEOs to align production activities with resource availability, enabling fishermen to maximize harvests during high-yield months while adopting a sustainable approach during the off-season. This structured coordination stabilizes household incomes, with fishermen earning between IDR 60,000 and IDR 3,500,000 per month, depending on catch rates and seasonal fluctuations. By incorporating periods of reduced fishing activity, LEOs support sustainable resource management, helping to preserve crab stocks and reduce the risk of overfishing. This approach ensures the long-term viability of the local crab business while promoting financial stability for fishing communities.

Table 3 illustrates a cyclical fishing schedule in which crab-catching occurs for 25 days each month, with production levels shifting according to seasonal variations. During the 7–8-month high season, daily yields range from 3 to 7 kg, allowing fishermen to maximize their productivity and increase their earnings. In contrast, the 4–5-month off-season sees a reduction in both fishing activity and output, with production dropping to 2–3 kg per day and fishing days decreasing to 9–10 days per month. This seasonal rotation ensures a balanced approach to resource use, enabling fishermen to optimize their income during peak months while maintaining a steady, albeit lower, income during the off-season. Such a schedule supports sustainable fishing practices, safeguards marine resources, and promotes financial stability for local fishing communities.

The fishing schedule serves as a crucial tool for the integration of crab fishing and processing activities, with LEOs playing a pivotal role in its design and implementation. By structuring schedules around peak and off-peak production periods, LEOs enable communities to optimize crab yields, ensure sustainable resource use, and generate stable incomes. The alignment of fishing schedules with processing timelines facilitates a continuous flow of production activities, supporting the seamless transition from fishing to processing. This approach promotes the efficient use of resources, ensures the availability of fresh crab meat for processing, and strengthens the local crab value chain [54].

3.3.1 Enhancing community participation and economic empowerment

LEOs play a pivotal role in promoting gender-sustainable rural development by enhancing women’s participation in local economies. Women’s understanding of LEO functions often surpasses that of men, as they have direct experience in small-scale enterprises, community involvement, and social networks. Their engagement with LEOs enables them to recognize the potential of these organizations to drive job creation, increase household income, and foster community well-being. Women view LEOs as more than just facilitators of financial support or market access. They see them as platforms for communication, knowledge sharing, and community-building [49,55]. As a result, women’s heightened awareness and involvement strengthened LEOs’ role in advancing sustainable rural development.

LEOs play a crucial role in empowering communities by driving economic development, especially through promoting job creation and enhancing household income. Women exhibit a deeper understanding of the responsibilities and impact of LEOs compared to men. Their awareness stems from their direct involvement in small-scale enterprises and their active participation in community activities. This participation enhances their networking capabilities, adaptability, and economic empowerment [56,57]. Women recognize LEOs as essential facilitators of marketing, financial support, community engagement, and communication channels [49]. Their heightened awareness underscores the significant role LEOs play in community development and economic upliftment.

Women are pivotal in LEO-led economic activities, particularly in fisheries-related enterprises. In Ampekale Village, women play a key role in processing and marketing crabs caught by their husbands, with men predominantly engaged in fishing operations. The distinction of roles between men and women reflects gendered patterns in small-scale fisheries enterprises, where women handle value-added processes such as cleaning, peeling, and cooking crabs before marketing them [37]. The division of labour highlights the essential contribution of women in post-harvest activities, underscoring their integral role in the LEO’s operational success.

As shown in Table 4, the LEO has enabled community members to actively participate in key aspects of rural development, including decision-making, strategic planning, implementation, and evaluation. This participatory approach not only enhances local capacity but also strengthens community ownership of development initiatives. By mobilizing resources and promoting collective action, the LEO has facilitated critical infrastructure projects such as dock construction, mosque renovations, and sanitation drives, addressing essential needs that would have otherwise remained unmet due to limited local government funding. Furthermore, effective leadership and negotiation by the LEO have secured the approval of vital programs, including free electricity meters, road construction, and the renovation of wells and mosques [58]. These achievements highlight the LEO’s capacity to bridge gaps in public service delivery, foster economic growth, and improve the quality of life for community members. Through its inclusive approach, the LEO not only strengthens local governance but also enhances the community’s resilience and capacity for sustainable development.

3.3.2 Gender-specific contributions to economic activities

The roles that men and women play within LEOs vary significantly, reflecting traditional gender norms and local economic structures. Women’s contributions are especially significant in areas such as processing and marketing, while men often engage in production and fishing activities. For instance, in Ampekale Village, women are responsible for post-harvest activities, such as cleaning and packaging crabs, which aligns with cultural perceptions of women’s domestic and culinary skills. By recognizing and valuing these roles, LEOs enable a more inclusive approach to economic development. Women’s participation extends beyond traditional roles, allowing them to co-manage community development projects, negotiate for essential village infrastructure, and strengthen financial independence [37].

Craft fishing and processing significantly contribute to household income and economic empowerment, especially for women. It provides consistent livelihood opportunities, promotes financial stability, and supports asset accumulation. The profit-sharing model and reinvestment in production inputs strengthen community resilience, ensuring sustainable growth and long-term development.

Table 5 illustrates the diverse sources of women’s income from LEO activities, highlighting the transformative role of LEOs in enhancing women’s economic well-being and strengthening rural household financial stability. The significant financial benefits achieved by members, particularly women engaged in crab processing activities in UP. Women play a vital role in processing raw crab materials, producing semi-processed and fully processed products such as crab crackers, which are essential to the household economy. On a daily basis, they process 35–60 kg of crab, generating daily profits of IDR 850,000–900,000, while monthly earnings range from IDR 600,000 to IDR 3,500,000, depending on production levels. This steady income, which accrues over 9–10 months annually, allows families to finance children’s education, purchase essential household goods, and undertake home renovations. Moreover, a portion of the profits is reinvested as group capital to support future production needs, such as the procurement of crab traps, fostering sustainability and self-reliance within the community [36,39,59].

The income analysis in Table 6 shows that crab processing is a profitable business for rural communities, generating significant value after covering production costs. The business ensures sustainable income for members through profit-sharing and reinvestment in production inputs. By promoting local employment, resource efficiency, and financial growth, the enterprise supports rural development and strengthens community resilience.

Table 6 highlights the profitability of crab processing for rural communities, with a total product value of IDR 2,447,500 from 8.9 kg of processed crab. After covering production costs of IDR 1,581,000, which include raw materials, labour, operational inputs, and depreciation of IDR 27,000, the business generates a profit of IDR 866,500. This substantial profit margin demonstrates the viability of crab processing as a sustainable source of income, promoting rural economic development, improving household livelihoods, and enhancing community resilience.

The active involvement of women in LEOs highlights the interplay between gender, empowerment, and sustainable development. By engaging in activities traditionally assigned to women, such as food processing, packaging, and marketing, women gain a nuanced understanding of LEO operations. This participation not only challenges gender stereotypes but also reinforces women’s economic agency and leadership roles in community development. As highlighted in UP, women’s engagement in crab processing and related value-chain activities positions them as key drivers of rural sustainable development [20,55,60,61]. Their contributions highlight the transformative potential of LEOs in promoting gender-inclusive rural development.

3.3.3 Gender perspectives in business development

Gender perspectives in business development play a critical role in fostering sustainable rural development by promoting inclusive economic participation, reducing gender disparities, and enhancing community resilience. LEOs serve as platforms for this transformation, highlighting the complementary roles of men and women in production, processing, and marketing activities. The division of labour within LEOs not only reflects traditional gender norms but also demonstrates the growing involvement of women in business management and entrepreneurial roles.

The existence of gender disparities in enterprise operations is apparent in the overall organizational framework. Men participate in fishing and capturing operations, primarily generating raw materials as fishermen or catchers. In contrast, women mostly engage in domestic industry activities, specifically processing work as processors [23,38]. This distinction demonstrates a clear division of labour, with men making large contributions to the earliest stages of manufacturing while women assume vital roles in the subsequent processing stages (Table 7).

Table 7 illustrates the gendered nature of business activities, with men primarily engaged in labour-intensive tasks such as fishing, crab catching, and raw material production. Their responsibilities include setting traps, managing fishing equipment, and navigating hazardous sea conditions, often at night. These activities lay the foundation for further value addition. Women, on the other hand, play a vital role in processing, packaging, and marketing, where they transform raw products into high-value items like refined crab meat, shredded crab, and crab crackers. In the UP crab processing enterprise, men focus on catching crabs, while women handle processing, packaging, and marketing. Unlike men, who typically market raw materials, women lead the sale of value-added products, boosting household and LEO revenue. Their roles also extend to financial management and administration, highlighting their growing influence in business leadership [20,23,38].

Moreover, the notion that women exhibit a heightened inclination towards organization in handling financial matters enhances the perception of their competence in positions related to business and money (Table 8). Beyond task allocation, gender perspectives shape the strategic positioning of women in business operations. Women are perceived as more organized and meticulous in managing household-scale enterprises, aligning with traditional beliefs that view commercial tasks as an extension of domestic roles. This perception is supported by Table 8, which highlights women’s suitability for activities like business management, financial reporting, and marketing. Women’s roles in financial management are particularly noteworthy, as they are seen as more thorough and detail-oriented, a quality that enhances financial accountability within LEOs. This gender-driven division of roles allows businesses to benefit from the unique strengths of both men and women, promoting operational efficiency and shared responsibility [62].

Table 8 highlights the crab business at UP as a model for women’s economic empowerment and sustainable rural development. Women play a pivotal role in transforming raw catch into high-value products like crackers and shredded crab while managing administrative, financial, and marketing tasks [63,64]. Their involvement in marketing strengthens negotiation skills, fosters partnerships, and mitigates operational risks, ensuring steady product sales. This active participation in key business functions enhances value chain development, boosts household income, and promotes community welfare [30].

The allocation of responsibilities within LEOs reflects the dynamics of gender-based roles. While traditional roles see men assuming leadership in local development organizations, UP disrupts these norms by promoting a cooperative model where both men and women contribute to production, processing, and marketing. Task allocation within LEOs is often formalized through contracts or policies, reflecting the principle of equal participation. This approach enables women to play a more active role in business-oriented organizations, unlike in development-focused organizations where men often dominate leadership positions [65].

Women’s participation in business activities, particularly in value-added agriculture like processing and marketing, fosters sustainable rural development. By engaging in profitable enterprises and taking on leadership roles in production, financial management, and marketing, women transition from subsistence roles to economic contributors. Capacity-building initiatives, such as training in leadership, business management, and digital literacy, help women navigate competitive markets and enhance their business acumen. This shift promotes inclusive economic growth, reduces gender disparities, and strengthens social welfare, with broader benefits such as improved education and health outcomes for families and communities [62,66,67]. Empowering women in business development not only promotes gender equity but also reinforces the foundation for sustainable rural development.

3.3.4 Impact of gender perspectives in business integration

Gender integration in business fosters inclusive economic growth, enhances operational efficiency, and drives sustainable development. By leveraging the unique contributions of both men and women, business integration creates diverse perspectives, promotes equitable participation, and strengthens value chains. Women’s involvement in processing, financial management, and marketing adds value to products and boosts household income, while men’s contributions in production and resource acquisition ensure a steady supply of raw materials. Gender-balanced business practices not only improve economic outcomes but also empower communities, support social equity, and enhance overall community resilience.

Table 9 highlights the gendered perspectives on the benefits of LEOs for rural communities. Women prioritize business outcomes, such as adding value to products, raising prices, and creating new business opportunities, while also holding leadership roles like chiefs, secretaries, and treasurers in the crab production industry. Men, on the other hand, focus on socio-economic impacts, emphasizing job creation, increased household income, and the establishment of commercial networks that facilitate trade and market access [24]. This complementary division of focus strengthens the role of LEOs in driving sustainable rural development.

Informant quotations reveal that LEOs have significantly improved household earnings, created employment opportunities, and met the essential needs of rural families. For men, the impact is particularly profound, as they no longer need to seek temporary work outside the village, allowing them to remain with their families. This change is especially beneficial for “sawi” – labouring fishermen without their own vessels – who previously relied on high-interest loans from “Ponggawa,” wealthy financiers who control fishing enterprises and exploit the financial vulnerability of sawi. The integration of two LEO groups, one for crab catching and the other for crab processing, has streamlined credit payments and crab sales, reducing dependence on Ponggawa and enabling fishermen to secure better financial outcomes. This integration strengthens local economic resilience, promotes financial independence, and enhances sustainable livelihoods in rural communities.

LEOs also drive broader socio-economic development by supporting education, improving living conditions, and promoting financial inclusion. Women play a central role in these improvements, prioritizing children’s education, fulfilling daily needs, and securing bank accounts to manage household finances.

Table 10 shows that women have a stronger perception of life improvements through LEO participation than men. Their role in managing household savings from employment in crab processing fosters self-reliance and strengthens their financial independence. Men, on the other hand, focus on tangible asset acquisition, such as purchasing fishing boats and motorcycles. The gendered differences in impact perception reflect the varied ways in which LEOs influence the lives of men and women in rural communities.

Male members of the fisherman group have the advantage of selling crabs at inflated rates, while their female counterparts, who are part of the crab processing group, gain from the enhanced value of processed crab goods. The introduction of the LEO has greatly improved the socio-economic well-being of the rural community, with noticeable differences in its effects on men and women. This integration ensures that every member of the fishermen’s families can now generate revenue, indicating a significant increase in the overall economic prosperity of the community [25,34].

Men predominantly prioritize tangible possessions, with a particular emphasis on vehicles such as fishing boats and motorcycles. On the other hand, women prioritize the improvement of human resources by ensuring that their children obtain education and by fulfilling the everyday requirements of their families. Having a bank account is essential for women, as they skilfully handle their accounts and efficiently take money from automatic teller machine terminals. Their employment as crab cracker processors serves as the primary source of financial savings in these accounts, empowering spouses to manage household finances effectively monthly. The subtle difference in perceived enhancements highlights the varied ways in which LEO has a beneficial influence on the lives of both males and females in the rural community.

The broader impact of gender-inclusive LEOs extends beyond individual households to the wider community. By fostering entrepreneurship, generating employment, and improving access to financial resources and training, LEOs build economic resilience and community self-sufficiency. Additionally, LEOs promote social cohesion by encouraging community collaboration and trust-building through collective development projects [66,67]. Women’s participation in LEO activities enhances community leadership, builds local capacity, and strengthens the social fabric of rural communities. Initiatives such as educational programs, capacity-building workshops, and leadership training further support women’s empowerment, ensuring that they play a vital role in the long-term sustainability of rural development [62,68].

In conclusion, the integration of gender perspectives in business activities through LEOs significantly impacts sustainable rural development. The complementary roles of men and women within LEOs enhance the efficiency and value of rural economic activities, increase household income, and promote community welfare. Women’s active participation in business management, financial control, and value-added production strengthens their economic independence and leadership roles. Meanwhile, men’s engagement in production and resource acquisition fosters family stability and community resilience. Together, these gendered contributions support a holistic approach to rural development, fostering economic growth, social well-being, and sustainable livelihoods for future generations.