Thirteenth International Conference on Design Principles & Practices

Abstract

North-South spatial inequality has long been a crucial issue in the Blitar region. The North subregion, where Blitar City is located, is more urbanized and equipped with better infrastructure and facilities. So, living in the North is considered more beneficial. The disparity is perceived by the people to also happen in the production function. However, a previous study has suggested that, as far as the benefit distribution function is concerned, the core is actually inequity. Meanwhile, micro to small economic activities are considered potential to alleviate poverty in developing countries, and it is despite the lack of facilitation. So, this research is aimed at answering “How can equity-based production function be ensured for micro to small businesses in the Blitar region?” A quantitative approach has been used complemented with essential qualitative information. This study has used the proportional random sampling for distributing questionnaires to respondents, and interviews with essential key informants from the policy makers and micro-small businessmen. The results show that as far as the four policy aspects of the production function are concerned, namely, the aspects of capital, land, business entry, and anti-rent seeking, the perceived spatial inequality does not seem to have anything to do. Evidence shows that equity failures occur, both in the North and South, at a moderate to low level with an improving trend on capital and land aspects, and worsening on business entry and rent-seeking. Measures to ensure more equitable process across the four aspects for micro-small businesses are recommended.