Time for PNG to Own Its Businesses

Across Papua New Guinea today, it is becoming increasingly common to see foreign-owned shops, trade stores, and small businesses operating not only in towns but deep inside villages and urban settlements. In many places, locals have become customers rather than owners, renting out land or simply watching as outsiders dominate everyday trade. This situation raises serious questions about why Papua New Guineans themselves are not leading in business ownership within their own communities.

This discussion is not about blaming individuals, but about understanding the deeper social, cultural, economic, and systemic issues that discourage local entrepreneurship. While many Papua New Guineans are hardworking and capable, several barriers continue to hold them back. Unless these challenges are openly discussed and addressed, the gap between local participation and foreign dominance in small-scale business will continue to grow.

1. Lack of business knowledge and practical training

Many Papua New Guineans are never exposed to basic business education. Skills such as pricing, profit and loss, stock control, savings, reinvestment, and customer service are rarely taught at grassroots level. As a result, people may start small ventures without understanding how to manage them properly. When problems arise, the business collapses, reinforcing the belief that business is too difficult. Foreign traders often arrive with prior experience or guidance from family members already established in business.

2. Fear of failure and social judgement

In PNG society, failure is often mocked or criticised rather than treated as part of learning. When a business fails, the owner may face ridicule from the community. This discourages many from even trying. Foreign entrepreneurs, however, tend to accept failure as part of growth and restart until they succeed, giving them a long-term advantage.

3. Preference for quick money instead of long-term investment

Many people focus on short-term income rather than long-term business growth. Profits are quickly spent on daily needs, ceremonies, or social obligations instead of being reinvested. This prevents businesses from expanding beyond survival level. Foreign traders usually plan long-term, reinvest profits, and grow gradually but steadily.

4. Pressure from the wantok system

The wantok system, while culturally important, places heavy pressure on local business owners. Relatives and friends may demand free goods, discounts, or credit, and refusing can cause conflict. Over time, unpaid debts weaken the business. Foreign traders do not face these obligations and can enforce strict payment rules, allowing their businesses to remain stable.

5. Limited access to startup capital and finance

Access to finance in Papua New Guinea remains difficult for ordinary citizens. Banks require collateral, formal employment records, and documents many people do not have. Government and donor programs often fail to reach rural communities. In contrast, foreign traders may pool family funds, receive overseas support, or use community financing systems to start and grow businesses.

6. Poor financial discipline and record keeping

Many small local businesses mix personal and business money, making it hard to track profits or losses. Without records, owners cannot plan or budget properly. When money runs out, the business collapses. Foreign-owned businesses usually keep daily records, control expenses, and maintain clear financial discipline.

7. Weak delivery of government support at grassroots level

Although policies exist to support local entrepreneurship, they often do not reach people in villages and settlements. Information about grants, training, and loans is poorly communicated. Bureaucracy, favoritism, and political influence also limit access, leaving genuine small entrepreneurs unsupported.

8. Employment mindset instead of entrepreneurship mindset

From school to adulthood, many Papua New Guineans are taught to look for jobs rather than create them. Success is often defined as formal employment. This mindset limits creativity and risk-taking. Foreigners often arrive with the goal of self-employment and building businesses that support entire families.

9. Weak enforcement of business and trade laws

Laws exist to reserve certain small-scale businesses for citizens, but enforcement remains weak. Some foreigners operate trade stores or informal businesses meant for locals. Corruption, lack of monitoring, and fear of confrontation allow this to continue, enabling outsiders to dominate even village-level markets.

10. Low confidence and belief in local potential

Over time, repeated failures, lack of role models, and systemic barriers have weakened confidence among many Papua New Guineans. This self-doubt allows others to take advantage of opportunities. Yet experience shows that with the right training, support, and encouragement, locals are fully capable of running successful and sustainable businesses.

Way Forward

Despite these challenges, Papua New Guineans are not incapable or unwilling to do business. Across the country, many locals are already succeeding in agriculture, retail, transport, tourism, and services, often under very difficult conditions. The growing presence of foreign businesses should not be seen as a permanent loss, but as a reminder of the urgent need to strengthen local capacity.

Improving access to finance, delivering practical business training, enforcing fair trade laws, and promoting an entrepreneurship mindset are critical steps forward. With the right support, mindset change, and policy direction, Papua New Guineans can reclaim space in their own economy, build competitive enterprises, and create sustainable livelihoods that benefit families, communities, and the nation as a whole.

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