Abstract
Purpose This paper aims to discuss Indonesia as a country having a young generation resource crisis in agricultural sectors, and this crisis contributes more than 32.9 per cent higher unemployment than other sectors. Therefore, creative youths are needed to build the sector through entrepreneurship activities. Design/methodology/approach The low condition of youth entrepreneurship intention in agricultural sectors leading the Agriculture Ministry of Indonesia launches an Agricultural Young Entrepreneurship Growing Program 2016 (Program Penumbuhan Wirausaha Muda Pertanian, PWMP 2016). Intention in growing phase is critical to avoid the program failure. Findings This research was aimed to analyze entrepreneurship characteristics and factors affecting the intentions. The research was conducted in three cities, Bogor, Lampung and Bandung, with 189 respondents who accepted business support from the PWMP in 2016. The accumulated data were then analyzed using descriptive analysis and structural equation model. Respondents have highly average trends on behavior belief, normative belief, motivation to comply, control belief, control belief power and intention. While, only the evaluation of the consequence to give the medium trend is about 50.26 per cent. Originality/value Factor affects to the entrepreneurship intention in agricultural sectors is a subjective norm or external factor, and both the attitude toward behavior and perceived behavioral control factors do not affect entrepreneurship intention in the agricultural sector.
Highlights
Indonesia is a country that has a high unemployment of about 7.24 million of its population and is increasing by 90 thousand compared to the previous year (BPS, 2014)
Contrasted with Nabila and Haryani (2015) research that entrepreneurial intentions of students in Malaysia is formed by the control behavior and support relationships of an entrepreneur. These findings indicate that not all factors affect youth entrepreneurial intention
The resulted structural equation model (SEM) data processing on attitude toward to behavior factors shows the result is insignificant meaning that H0 is accepted and H1 is refused. This infers that the attitude toward the behavior factor has no effect on youth entrepreneur’s intention in agricultural sector
Summary
Indonesia is a country that has a high unemployment of about 7.24 million of its population and is increasing by 90 thousand compared to the previous year (BPS, 2014). This phenomenon is dominated by youth unemployment which is increasing by years. The unemployment is prominently dominated by labor force in rural areas with averaged growth of about 9.8 per cent (Sakernas, 2012-2014). The sector contributes higher idleness number in Indonesia than other sectors This higher contribution indicates that agricultural employments are not able to accommodate those amount workforces or moving to other sectors. 35 per cent of those who are working on agricultural sector have a low productivity, and most of them are small-scale farmers and elderly
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