Commercialization of Indigenous Products and Its Impact on Inclusive Economic Growth in Selected Rural Communities

Mark Jay M. Espiritu
University of Perpetual Help System DALTA
Las Piñas, Manila, Philippines

DOI: https://doi.org/10.54476/apjaet/59820

                                                                                          Abstract

This study investigated the extent to which the commercialization of indigenous products contributes to inclusive economic growth in rural communities in Binangonan, Rizal. Guided by Endogenous Growth Theory and the Sustainable Livelihoods Framework, the study assessed commercialization across five dimensions: product development and innovation, market access and distribution, value addition and packaging, financial and institutional support, and entrepreneurial capacity and training. Inclusive economic growth was measured through income generation, employment creation, household economic participation, and community reinvestment and livelihood sustainability. Using a quantitative descriptive-correlational approach, data were collected from 385 indigenous entrepreneurs selected through purposive and stratified random sampling. A validated researcher-developed instrument was used, and data were analyzed using weighted mean, standard deviation, Pearson correlation, t-test, and ANOVA. Results indicated high levels of commercialization in market access (M = 3.34), value addition (M = 3.35), income improvement (M = 3.39), and employment creation (M = 3.38), confirming active economic participation. However, financial and institutional support reflected lower scores (M = 2.55), suggesting gaps in cooperative linkages, credit access, and formal enterprise support structures. Pearson correlation revealed a strong, statistically significant positive relationship between commercialization and inclusive economic growth (r = .87, p < 0.05), indicating that improved commercialization significantly increases rural income, local job creation, and economic reinvestment. Further analysis showed significant differences in commercialization levels when grouped by demographic variables, particularly education level and years of industry engagement (p < 0.05). The study concludes that indigenous product commercialization is a powerful driver of inclusive rural development when supported through structured funding mechanisms, enterprise training, institutional partnerships, and market linkage expansion. To bridge existing development gaps, the study introduces the IndieCom-Grow Framework, a localized, culturally anchored, and sustainability-driven commercialization model designed to strengthen indigenous enterprise ecosystems and promote equitable rural economic development in the Philippines.

Keywords: indigenous product commercialization, inclusive economic growth, rural enterprise, sustainable livelihoods, cultural entrepreneurship, market access, community reinvestment

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