Abstract

The entrepreneurship possesses the energy to generate innovation and improvement of agricultural clusters. However, it somehow has yet been successful to reach marginalized groups including Small and Medium Enterprises (SMEs) in agricultural clusters. The research questions to be addressed are thus: (1) how public policy at both national and regional levels contribute to entrepreneurship capacity-building in developing agricultural cluster in order to achieve SMEs empowerment. (2) Empiric actuality of entrepreneurship in agricultural cluster development. The research is a qualitative-descriptive research, case study on agricultural cluster at Subdistrict Lembah Gumanti of Solok Regency in the province of West Sumatra. Research result indicates that entrepreneurship policy has indeed yet at its best in the development of SME-based agricultural clusters due to the fact that entrepreneurial policy in agricultural clusters is still dominated by personal/private and corporation-based entrepreneurship.

Highlights

  • Entrepreneurship has long drawn global attention as it possesses the drive to generate innovation

  • The support of national and local public policy towards entrepreneurship in agricultural clusters was reviewed based on the formal structure of public policy in Indonesia

  • Entrepreneurial policy in agricultural clusters is identified in the national policies on agricultural clusters, and entrepreneurship

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Summary

Introduction

Entrepreneurship has long drawn global attention as it possesses the drive to generate innovation. Some of the roles played by entrepreneurship are improving competitiveness, contributing to the achievement of prosperity, dropping unemployment rate, and improving the economic development and regional growth. 2014) The active roles that entrepreneurship played have improved agricultural clusters and numerous countries created entrepreneurial policy to develop agricultural clusters (Sefrioui 1999; Ikatrinasari 2010; Malek et al 2009; Ahmad et al 2014; Fajzrakhmanov et al 2013; Balabanova et al 2014; Ashari 2016; Malek 2017). Public policy as an output of a government is aimed to achieve an outcome i.e. the expected condition of society’s life. Throughout Asia the presence of these smal-scale agricultural operations reached a percentage of 85%

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