Canggu's prefarable future 

Destination III - The established Canggu in South Bali


With a group with members from Germany, the Netherlands and Indonesia we were researching on Micro & Small size Enterprises (MSE).

The research goal was to collect and evaluate relevant information for strategic decision making in order to:

1. Advice on the match between the present destination area Features (supply) and the attending markets (demand).

2. Advice about effective interventions required to achieve the destination area’s preferable future.

This part of the report shows you how Canggu can reach the preferable future with effective interventions for MSE's.

Effective interventions


MSEs that have been interviewed for this report, mostly had a vision of how they want the area of Canggu to look like in the future. Yet, current developments and trends might be able to endanger this preferable future. The researchers of the report attempted to listen closely to what MSEs in Canggu would see as most beneficial for their own businesses as well as for the area as a whole in order to provide effective interventions, that are likely to have a positive effect on the wishes for the preferred future of the destination.


During the research process it became apparent, that successful businesses, whether they are survivors, adapters or innovators, have one thing in common: they are all part of a network. Some networks consist of family bonds, others are comprised of relationships between a few businesses, and occasionally they are rooted in the community itself. These networks provide them with stability and help in times of need, but rarely overlap. Interviewee 8 explained that from her perspective, a strong relationship between her and other businesses with similar structures exist. She described, that they do not see each other only as competitors, but also as friends, who help each other out. If it was up to her, new enterprises who open up in the area would introduce themselves to the existing ones, which happens less and less. Additionally, interviewee 7 mentioned how they were supported by already existing enterprises in the area, while they were in the process of opening their Business.


The researchers believe, that it it would be beneficial for the MSEs in the Canggu area to create a strong bond amongst one another in which each group of stakeholders can benefit and learn from another. This bond could be established between the already existing networks to form a larger, encompassing network that will make MSEs more likely to withstand against outside forces and undesired developments. Even though the researchers aim for creating a network amongst all the different kinds of enterprises, the purpose is not to change the way of each businesses operation. It is important to point out, that although the businesses can learn and benefit from another, all groups of stakeholders has their place in the supply economy of Canggu. Survivors will and should not be turned into innovators and vice versa. What the proposed interventions are likely to help with, is that each group of stakeholder can make the best out of their position within the area. Furthermore, the researchers believe, that it is likely to reach the preferable future, if proposed interventions are being followed. The researchers believe, that MSEs in the area are adaptive enough to make proposed interventions come true. Furthermore, many of them are driven by a strong love for the area of Canggu. Momentarily, Canggu has a size and the atmosphere,  in which it is still possible to create a network amongst a large number of MSEs. Furthermore, the researchers believe that the attending markets would be likely to support the endeavors to form a network, since many tourists, expats and locals have a sense of a responsible lifestyle. The researchers believe, that in the context of the responsible lifestyle way of thinking, it could benefit innovators and even larger organizations to exist in a community of helping one another. It could be part of a corporate social responsibility strategy, and used as a marketing tool at the same time. Since all types of businesses are vital to the Canggu are, a  tight-knit, mutual beneficial community, so the researchers believe, it is less likely for businesses to move to another.

In the following the possible effective interventions, which consist of three steps, are going to be proposed:

1. Set up an educational sharing and networking programme

2. Creating a circular module

If businesses in the area of Canggu cooperate and form a network, following the believe that they are stronger as one on its own, it is more likely that undesired outside influence change Canggu for the worse. If all enterprises work together and Canggu is promoted to tourists as one, it is more likely that the desired customer profile is being attracted. In order to create a bond in which this is possible, the researchers propose the creation of a circular model. This model includes variables such as trust, knowledge, self-efficacy, competence, and performance (Clegg & Spencer, 2010) that makes businesses be able to thrive. Firstly, the researchers believe, that the creation of a sense of identity and trust could help the community in Canggu to achieve a stronger strategic position in the future.


Therefore, a possible strategic intervention could be not only to network between one another, but also to engage in creative activities and product development. Interviewee 3 mentioned, that he believed that the creation of new products such as cooking class, woodcarving, and smoothie bowl classes could be set up. Moreover, a community project in which members of the created network design a graffiti or a landmark together could help to give the MSEs in Canggu a sense of identity as one. Through this sense of identity, a sense of mutual trust is likely to be established. Knowledge production and a sense of self-efficacy could be promoted to above mentioned educational and sharing programme. In an inclusive, all stakeholder encompassing community like this, where competencies of each type of business are valued, enterprises are more likely to see their own strengths. Which, in turn, will have positive effects on their strategic position in the future.


Ultimately, so the researchers believe, through educational programmes and knowledge sharing, the performance of each stakeholder can be improved. Researchers also think that with a good quality of job, innovative, and consistency on every process will make the position of MSE’s strategically stronger and braced to face every condition that will happen in the future in the Canggu area. To truly empower MSEs in the Canggu area, it would be beneficial to break down divisions between sectors, include residents, businesses and social accelerators alike.

3. Make use of the banjar as a mediator


The banjar can play a big role as a mediator for every stakeholder group to establish a community. This community should invite every categorized stakeholders to have a common goal for a better Canggu area, that directly and indirectly will help all tourism stakeholders to get more quality and profit in the future. In this case, survivors which are dominated by the locals will come because the local respect and also as a part of banjar itself. Then adaptors and innovator also will appreciate this step as the part of respect of locals that known as one of the key success for every enterprises in Canggu area. However in the process of community, banjar also have to internalize the purpose of community which related with education as investment for every stakeholders.

Ultimately, the researchers advice the banjar to share their tourism master plan for Canggu, so that every stakeholders can gain an understanding what will be happen in the future. This condition will further the process of knowledge sharing between every stakeholders for their own business strategy and also how they can adapt with the idea of future Canggu area. Then, the collaborations between every stakeholders with the managing influences from Banjar expected will help to implement the common goal of Canggu area.


The overlapping issue in the Canggu area is the rapid change in a short period of time. Therefore, for many community and development stakeholders, finding a balance between economic growth and culture preservation will be the biggest challenge thus is their preferable future. It can be concluded that the preferable future of the Canggu area is to keep it as successful as it already is with controlled growth. Developments are already happening and cannot always be influenced, but as mentioned in the advice, keeping the Canggu area together as one, is something that is preferred by both the stakeholders and the visitors. The loss of culture is something that is preferred to be avoided in the Canggu area and growth is preferred to be controlled by responsible parties, such as the banjars. The Canggu area prefers to avoid to become like other uncontrolled destinations in Bali, such as Kuta and Seminyak, which includes a massive change in the visitor profile and in the atmosphere of the area itself. Furthermore, MSEs in the area wish for positive economic development, in which innovators, adapters and survivors alike can sustain their businesses and thrive without becoming a mass-tourism destination.

As explained before, Bali has a special characteristic of a social and cultural community which is called banjar in every area. Such as other destinations, the Canggu area has some banjars that help to preserve their tradition, culture and social relation. Every banjar has their own plan with the purpose of creating a sustainable life condition for their area as the “social and cultural keeper”. Based on the interviews, the banjar has a strong social power to manage the system and relations between every enterprises as well as locals in the Canggu area.

In fact, all groups of stakeholders operate at different stages and established various strengths. A programme where these skills can be shared in a network environment will be beneficial for each of the businesses. For example innovator’s strength lies in the economical knowledge, while survivors can share their knowledge about culture.

The programme can be organized in a way that entrepreneurs come together on a regular basis. For implementing a programme like this an enterprise as initiator needs to be found. It is recommendable that this enterprise is willing to hold events and has suitable facilities. During the research an Enterprise that is most likely to function as a facilitator has been found. This business is led by a woman who has a very well-established network within the community already. Moreover, she has a great understanding for all stakeholders: local-, foreign-owned businesses as well the banjar. On top of that she is already so successful that she is not very economically-driven anymore. A suggestion for a long term vision is that the events can be held in a rotative system through other enterprise’s venues.

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