Entrepreneurial competencies and farm management performance of potato farmers in Solok Regency

Abstract

Solok Regency has excellent potential in growing vegetables and fruit, which significantly contribute to West Sumatra’s economy. Solok Regency is the largest potato-producing area in West Sumatra. However, since 2015 there has been a drastic decline in potato production. The negative growth of potato production was affected by several factors, including sub-optimal farming management. Farmers’ lack of passion and entrepreneurial ability is one of the socioeconomic factors that hinder the development of their potential in managing productive businesses in rural areas. This paper analyses the entrepreneurial competency of potato farmers in Solok Regency and examines the effect of entrepreneurial competency on the farm management performance of potato farmers in Solok Regency. This study finds that the level of entrepreneurial competency of potato farmers is at a moderate level. Moreover, PLS path analysis found that the variables of individual characteristics of farmers, entrepreneurial characteristics, and business environment are a reference in measuring the entrepreneurial competency of Potato Farmers. Furthermore, entrepreneurial competency, individual characteristics of farmers, entrepreneurial characteristics, and business environment positively and significantly affect the farm management performance of Potato Farmers in Solok Regency. Farmer entrepreneurs do not work alone. However, they operate in a complex and dynamic environment. Despite the level of farmers’ competency ranging from moderate to high, it needs support from other parties to give farmers access to superior seeds and better prices for inputs and output.