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The Iban are the largest ethnic group in Sarawak. This paper analyses their participation in one of the most common forms of rural non‐agricultural activities in Sarawak, namely commercial handicraft production (CHP). Traditionally, the Iban produce handicrafts for personal use. With the introduction of the Iban to the cash economy, the presence of demand for their handicrafts, and the growing insecurities in the rural economy one would expect Iban craftspersons to participate actively in RNAE and produce handicrafts for commercial purposes. Some Iban craftspersons have taken up CHP, while others have not. Some have achieved economic “success” while others have failed. This suggests that there are different responses to, and impact of non‐agricultural activities (particularly CHP) on the Iban in rural Sarawak. This paper addresses the following key questions: What are the factors preventing rural communities from taking up and/or succeeding in RNAE, particularly commercial handicraft production? Is it due to the lack of willingness among Iban craftspersons to participate in commercial activities? Is it due to limited access to market and institutional support? This paper is based on a survey conducted on 200 Iban craftspersons from eleven longhouses in Kapit Division, Sarawak between 1993 until 1996

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