Entrepreneurship behaviour effect on the performance of virginia tobacco in East Java

Abstract

Tobacco is a commodity that has contributed and strategic position to farmers and to the country, where the average land area in Indonesia tobacco crop per year of 200 000 hectares with a production of 170 000 tonnes and 600 000 households involving farmers. Cultivation of tobacco face a variety of problems, both technical and non-technical issues. Tobacco farming also has a big risk in production, prices, costs, and revenues. Human resource development is a key issue because nowadays we need creative and innovative farmers in order to survive and compete. Factors determining the success or failure of entrepreneurial farmers in adapting to the changing of business environment. Entrepreneurial behavior is influenced by the nature of individual and environmental factors which consists of the economic environment, social environment, political environment, and physical environment. Beside influence entrepreneurial behavior, the nature of the individual and the environment also affects the performance of tobacco farming. Therefore, the relationship and influence between individuals, environmental factors, entrepreneurial behavior on the performance of farming will be tested, so this study aims to : 1) Determine the factors that influence entrepreneurial behavior and performance of the farm; 2) Analyze the influence of personality traits and environmental factors to entrepreneurial behavior; and 3) Analyze the influence of personality trait, environmental factors, and entrepreneurial behavior to the performance of individual tobacco farming. Influence of the independent variable on the dependent variable was measured by using multiple linear regression analysis. The results showed that the factors that influence the behavior of the individual nature of entrepreneurship among other things, the economic environment, and the physical environment, while the factors that affect farm performance, among others personality trait, economic environment, political environment, physical environment, and entrepreneurial behavior. The nature of individual and environmental factors influence entrepreneurial behavior with the greatest influence comes from personality trait. Entrepreneurial behavior have a significant effect on the performance of the business, but not a dominant factor affecting the performance. Economic environment being the most influential variables on the performance of agriculture due to tobacco farmers generally very responsive to changes in price. Entrepreneurial behavior alone had no significant effect on performance because of tobacco cigarette industry faced with oligopsony market structure that makes farmers have no bargaining power and thus require a supportive environment. Thus, entrepreneurial behaviour should be viewed as only one causal factor in a complex model of factors that promote performance.