Measurement Model on Community Farmer for Agriculture Cluster Development

Abstract

Community entrepreneurship (CE) is an established synergetic network between the community and social entrepreneurship. CE in agricultural cluster area development (ACD), which is based on small-medium enterprise (SMEs) comprises the collaborative engagement between farmer community, agribusiness cluster, and common resources. This research aims to analyze CE performance in ACD based on SMES through emerging CE variables and how to manage CE’s variables most effectively. This study contributes to the enhancement of CE performance in ACD. It also contributes to the methodology through the community effectiveness entrepreneurship index (CEEI). CEEI is a model to measure CE in ACD. It is an average score of 30 indicators from CE functions: collective innovation, collective supply chain management, collective accessibility to economic resources and opportunities, profit accumulation, and benefit-sharing. Using a factor analysis validation, CEEI has been applied to farmer groups in Lembah Gumanti subdistrict, Solok regency, West Sumatra province, Indonesia as a pilot test. The results indicated constructing the measured performance of CE in ACD identified CE performance supported by all CE variables. There are three CE effectiveness categories in ACD; strong (4), fair (3), and weak. Primarily, the management has yet been effective for CE variables. This is because the majority of CE is still not managed by non-social business communities. Community social businesses are better at managing synergies with the dimensions of collective action for innovation, SCM, accessibility, profits, and benefit-sharing.