The Entrepreneur Characteristics, Entrepreneurial Competencies and Business Performance of The Dairy Farm in Kania Dairy Farmer Group Bogor

Abstract

The entrepreneurship has a very strong positive relationship with economic growth in which an increasing number of entrepreneurs led to an increase in economic growth of a country. In its role in the economic growth, the entrepreneurship activities absorb local resources and create jobs. The livestock sub-sector is one part of the agricultural sector has developed various types of business and labor-intensive, one of which is dairy farm business. The dairy farm business has a good chance to develop because of the market demand for milk is still large and about 74 percent of the milk demand in Indonesia supplied by imported milk. The West Java Province is a province that has the third largest population of dairy cows in Indonesia that increased from 2008 through 2012. The Bogor Regency is one of the areas in the West Java Province that has a lot of dairy cow population. Dairy cow is also designated as one of 17 leading commodities by the Government of Bogor Regency. The dairy farms in Tajurhalang Village, Cijeruk District is one of areas of dairy farm which is located in Bogor Regency. The dairy farmers in Tajurhalang Village incorporated in Kania Dairy Farmer Group. The dairy farmers in Kania Dairy Farmer Group have skills in cultivating the dairy cow and processing the dairy products, but these skills have not been optimally utilized to develop the potential opportunities that exist. If it is utilized properly, it can improve the business performance of dairy farmers. The performance appraisal is one way to measure the success of a business. The performance related to skills, abilities and individual traits. Therefore, the research on the entrepreneur characteristics, entrepreneurial competencies and business performance needs to be conducted. This study aims to (1) analyze the entrepreneur characteristics, entrepreneurial competencies and business performance of the dairy farmers, (2) analyze the relationship of entrepreneur characteristics and entrepreneurial competencies with business performance of the dairy farmers, (3) analyze the relationship between the entrepreneur characteristics and entrepreneurial competencies together with business performance of the dairy farmers. The research objectives used descriptive qualitative analysis and quantitative analysis with correlation Kendall Tau (τ) test and Kendall W test. The respondents were 39 dairy farmers, determined using the census method, which the respondents are all active members of Kania Dairy Farmer Group who produce milk. The quantitative data in this study were processed using SPSS ( Statistical Package for the Social Sciences). In this study, the measured variable is divided into three sections, i.e the entrepreneur characteristics variable with 18 indicators, the entrepreneurial competencies variable with 18 indicators and the business performance variable with three indicators . The results showed that (1) the level of entrepreneur characteristics, entrepreneurial competencies and business performance of the dairy farmers are at a low level, (2) the entrepreneur characteristic has an adequate real positive significant relationship with entrepreneurial competencies of the dairy farmers. The entrepreneur characteristics and entrepreneurial competencies each with business performance has no real positive relationship, (3) the entrepreneur characteristics and entrepreneurial competencies together with business performance of the dairy farmers have a real strong positive relationship. This suggests that the efforts to improve the business performance of the dairy farmers, improvement in entrepreneur characteristics and entrepreneurial competencies level should be conducted jointly . The entrepreneur characteristics, entrepreneurial competencies and business performance of the dairy farm businesses in KTTSP Kania can be enhanced through the development of the dairy farmer group. The dairy farmer group has an important role in strengthening and developing of the entrepreneurial acitivities among dairy farmers in Tajurhalang Village. The dairy farmers should be stronger as a group to be able to face the challenges in operating a dairy farm. Therefore, strengthening Kania Dairy Farmer Group as a group that accomodate the dairy farmers should also be performed . The Ministry of Agriculture as government agencies has a role in providing counseling to improve the competencies of dairy farmers and as a policy maker is expected to make a better policies that take side the development of dairy farmers. In addition, the Ministry of Cooperatives and Small and Medium Enterprises is expected to create a better milk pricing policy for dairy farmers so the dairy farmers have a better incentives and will be motivated to improve their business performance. The Ministry of Cooperatives and Small and Medium Enterprises also has a role in supporting the entrepreneurial activities of the dairy farmers through the development of small and medium enterprises, so the dairy farmers can be more efficient in running the dairy farm business .