ABSTRACT
Driven by the low entrepreneurial capacity and unpreparedness of traditional market traders facing competition with modern retailers, this study aims to formulate a communication model to build readiness for changes among traditional market traders. It used a survey to interview 559 traditional market traders using questionnaire. The study results were analyzed by Structural Equation Modelling (SEM) with LISREL tool and reinforced by in-depth interviews. The result shows that traders are in uncertainty facing revitalization. All elements (trader characteristics, message sources, messages, and participatory communications) have a positive impact on merchant readiness for revitalization with high entrepreneurship capacity. Therefore, to build the readiness of traders, it is the most important to build the traders’ entrepreneurial capacity. A lack of success in building entrepreneurial capacity causes traders’ unpreparedness to change. An appropriate communication model should involve the market operators/authorities as a credible source of messages and information about the benefits and risks of revitalization, which will be effective if it develops merchant motivation to change and uses media that permit direct responses from communicators.
Keywords: entrepreneurship capacity, change readiness, participatory communication, traditional market trader