The Influence Analysis of Entrepreneurial Behaviour of Orchid Farmers on Bussiness Performance: Cases in Gunung Sindur and Parung, Bogor Regency, and in Serpong, Tangerang Selatan Municipality

Abstract

The opportunities of orchid development in Indonesia is still potentially increased because of the genetic resources of orchid are abundant, in addition the agro-climatic conditions, availability of land is relatively wide, the support of labor and technology, and the potential market at domestic and abroad, those are comparative advantage that potential to be developed into a competitive advantage. But instead, the performance of orchid industrialization still in low performance. The low performance of the national orchid industry due to the lack of competence orchid farmers, such as: (1) lack of knowledge of consumer preferences, (2) lack of technology in breeding, cultivation, and post-harvest, and (3 ) lack of responsiveness to the market information. The present of orchid farmers entrepreneurial behavior hopely could increase the bussiness performance. In order that, the purpose of the research are; (1) describe the orchid farmers characteristics, (2) to analyse the influence of internal and external factors on entreprenerial behavior, and (3) to analyse the influence of entreprenenurial behavior on bussiness performance. This research used 115 data of orchid farmers, than its analized by SEM using Lisrel 8.3 programs. Based on the results obtained that the characteristics of orchid farmers generally include: (1) the majority of the level of education orchid are high school graduates, (2) they have quite long experience in orchid cultivation, (3) for most farmers this effort is the main livelihood, (4) generally, the venture capital obtained from private equity, (5) the standard of living and welfare of orchid growers generally still in low conditions, due to small-scale enterprises, which in turn impact on revenue, and the majority of orchid growers were oriented only for daily needs. The result by using SEM are; (1) The Entrepreneurial behavior is influenced positively and significantly by the internal factors,instead (2) The external factors gave the negative and significant influences, but it’s directly influence the bussiness performance positively and significantly, (3) entrepreneurial behavior gave positive and significant effect on business performance. SEM shows the test results with the internal factors positive and significant impact on enterpreneur behavior with effect coefficient 0,56. Internal factors measured by indicators; venture scale, capital ownership, ownership of production facilities and infrastructure, motivation achievement, the perception of orchids business and entrepreneurship intentions. Increasing the internal factors will increase the entrepreneurial behavior orchid growers. This shows the increase in business scale, enterpreneurial intentions, motivation achievement and perceptions of high effort, can increase entrepreneurial behavior. External factors significantly and negatively related with entrepreneurial behavior, which the influence coefficient is -0.15. While External Factors significantly and negatively related to entrepreneurial behavior, this is due to government support in the aspect of education and counseling, assistance and capital inputs, promotion and marketing, business regulations, and the availability of market information, are not in accordance with the needs of farmers and not on target. Generally the government support in terms of extension and training, procurement assistance and capital inputs, promotion and marketing, business regulations, and the availability of market information, until now felt not sufficient, and not support the formation of behavioral entrepreneurship. Overall, the governments through the relevant agencies are less able to understand the needs and problems faced by the farmers, so that the benefits that have been given are not in accordance with the perceived needs of farmers. Entrepreneurship Behaviour is positively and significantly impact on business performance. Entrepreneurial behavior direct and positive impact on the performance of the business with coefficient effect 0,55, and t-value 7.51 on the 5% significance level. Thus the increase of entrepreneurial behavior will improve the business performance of orchid growers. This shows that entrepreneurial behavior is an important role in improving business performance, so with diligence, responsiveness to opportunities, innovative, risk-taking and independence will ultimately affect the performance of the business.