THE ENTREPRENEURIAL BEHAVIOUR OF MUNTOK WHITE PEPPER FARMERS IN BANGKA ISLAND

Abstract

Muntok white pepper is one of export commodities in Indonesia that is planted by farmers in rural area. The development constraint of the pepper are the low level of entrepreneurial competitiveness as farmers are considered as non-business oriented. It can lead to the non-optimal development of muntok white pepper farming activity and slowing down the production growth. The objectives of the study are: 1) to identify the entrepreneurial characteristics of farmers in the farming activity, 2) to identify the characteristics of business environment in the farming activity and 3) to analyse the influence of entrepreneurial characteristics and the business environmental factors towards the entrepreneurial behaviour of farmers. Survey was used to collect data using structural equation modelling (SEM) and smart partial least squares (PLS) to analyse the data. The study discovered that there were four entrepreneurial characteristics and three business environmental characteristics of farmers that supported the pepper farming activity. The entrepreneurial characteristics were risk-taking ability, opportunity response, innovative thinking and work motivation. While the business environmental characteristics were political issue, government policy and input availability. There were differences on entrepreneurial and business environmental characteristics between independent farmers and member of farmers group. In the aspect of entrepreneurial characteristics, the risk-taking ability and opportunity response were dominated by the independent farmers while innovative thinking and work motivation were dominated by the member of farmers group. In the aspect of business environmental characteristics, the independent farmers were more on political issue while member of farmers group were mainly on government policy and input availability. Furthermore, the study found that both entrepreneurial and business environmental characteristics affected positively significant the entrepreneurial behaviour of farmers. The entrepreneurial behaviour of both independent farmers and the member of farmers group were mainly influenced by the business environmental characteristics. Its behaviour was shown from affective, cognitive and psychometric to innovate. The study explained that the white pepper farming activity had potential contribution on increasing the potential entrepreneurs. The entrepreneurial behaviour can be developed by maintaining the motivation to independent farmers as well as creating the healthy business environment that can provide opportunity to express the entrepreneurial behaviour. The entrepreneurial training program should be well-prepared and adjusted with the psychological characteristics of white pepper farmers