Abstract
The purpose of this research was to analyze the effect of individual factors, enviromental factors, entrepreneurial behavior on business performance of cassava SMEs agroindustry in Padang. This research was conducted in January-March 2017, and the number of respondents was 53 entrepreneurs. The analysis method used was quantitative analysis using Partial Least Square (PLS) version 2.0. The results showed individual factors have positive and significant effect on entrepreneurial behavior with the influence coefficient 0.430. The most dominant individual factor that reflected entrepreneurial behavior was the experience with the load factor (λ) 0.877. Environmental factors have a positive and significant effect on individual factors with the influence coefficient 0.478. Environmental factors have a positive and significant effect on entrepreneurial behavior with the influence coefficient 0.405. The most dominant environmental factor that affected entrepreneurial behavior was training with the load factor (λ) 0.840. The entrepreneurial behavior factor has a positive and significant effect on business performance with influence coefficient 0.575. The most dominant entrepreneurial behavior that influenced the business performance was the innovativeness with the load factor (λ) 0.774. Keywords: individual factor, environmental factor, entrepreneurial behavior, business performance, partial least square (PLS)
Highlights
In th early 20th century, entrepreneurship became one of the interesting aspects to learn because of its role in economic development
The results of this study showed that entrepreneurial behavior was directly influenced by individual factors, namely personal factors of entrepreneurs and external factors coming from the environment
Based on the results of the research, it has been found that (1) The performance of cassava SMEs agroindustry is determined by entrepreneurial behavior with the coefficient of entrepreneurial behavior effect 0.575
Summary
In th early 20th century, entrepreneurship became one of the interesting aspects to learn because of its role in economic development. Indonesia is a country that supports the formation of entrepreneurship It can be seen from many government programs that massively support to increase the number of entrepreneurs, one of which is in the field of food and beverage manufacturing industry. Food and beverage manufacturing industry in Indonesia generally is on small, micro entrepreneurship (SMEs). SMEs is one of the strategic economic sectors that are related to many people’s lives, so it can be an important national economic development. Similar to this opinion, Karunanithy and Jeyaraman (2013) stated that small dan micro entrepreneurships are the back bone of all developing nations. SMEs is a big economic actor in Indonesian economic development and has proved to be a national economic safeguarding key and a deciminator of post-crisis economic growth
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