The Effect of Farmers' Entrepreneurial Behavior on Business Performance of PUAP Program in Pandawai Sub-district, East Sumba Regency

Abstract

Rural Agribusiness Development (<em>PUAP</em>) was a program for poverty alleviation among farmers through capital assistance with entrepreneurship training. This study were aimed to determine: (1) the effect of internal factors, <em>Gapoktan</em> dynamics and supporting factors of the <em>PUAP</em> program on farmers' entrepreneurial behaviors and (2) the effect of farmers' entrepreneurial behavior on the farmers' business performance whose received <em>PUAP</em> programs. This research was conducted in Pandawai sub-district, East Sumba regency. Data were obtained from 115 farmers respondent who received <em>PUAP</em> funds, that had been selected by simple random sampling technique. Parameter estimation procedures were carried out with the Structural Equation Model (SEM) analysis approach by using AMOS 24 software. The result showed that the internal factors of <em>PUAP</em> recipient farmers had a positive yet not significant effect on entrepreneurial behavior, while the dynamics of <em>Gapoktan</em> and the supporting factors of <em>PUAP</em> program positively and significantly influenced farmers' entrepreneurial behavior. Entrepreneurial behavior had positive and significant effect on business performance. Thus, by increasing the entrepreneurial behavior, it will improve the business performance of farmers who received the <em>PUAP</em> programs in Pandawai sub-district.