Abstract

Seaweed is one of the main aquaculture products which has high economic value and serves as strategic business opportunities. Seaweed farming becomes the main livelihood for people in Takalar Regency, so it is necessary to improve the working quality of seaweed farmers through the development of entrepreneurial behavior as a new variable in improving the performance of seaweed business. This research is intended to examine the effects of the environment on farmers’ entrepreneurial behavior and the effects of entrepreneurial behavior on seaweed business performance. This research takes place in two different production districts, which are Mangarabombang district and Mappakasunggu district, with 150 respondents of seaweed farmers conducted by simple random sampling. The data analysis method used in this research is the Structural Equation Model (SEM) using AMOS 23 software. The result shows that there are insignificant positive impacts of the internal environment on farmers’ entrepreneurial behavior as the value of t-statistic is 1.61 < 1.96, while there are significant positive impacts of the external environment on farmers’ entrepreneurial behavior with the coefficient value of 0.58 and t-statistic of 2.50. The entrepreneurial behavior is found to give significant and positive impacts towards farm performance with the coefficient value if 0.41 and t-statistic of 5.26 > 1.96. It shows that the development of farmers’ entrepreneurial behavior will improve the seaweed business performance in Takalar Regency. Keywords: entrepreneurial behavior, business performance, seaweed, structural equation model

Highlights

  • Seaweed is one of the main aquaculture products which has high economic value and serves as strategic business opportunities

  • This research takes place in Mangarabombang dan Mapakasunggu districts, Takalar Regency, South Sulawesi. Both districts are chosen because they are the production center areas of seaweed and actively participate in training related to seaweed cultivation conducted by the Ministry of Maritime Affairs and Fisheries and other parties

  • Secondary data which serve as supporting documents for primary data, it consists of related study of literature from various sources, research, publications, data archives taken from Ministry of Maritime Affairs and Fisheries, Statistics Indonesia (BPS), Provincial Maritime and Fisheries Service (DKP), and Indonesian Seaweed Association (ARLI)

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Summary

Introduction

Seaweed is one of the main aquaculture products which has high economic value and serves as strategic business opportunities. Indonesia has some competitive advantages of seaweed farming because Indonesia is located close to the equator; its climate is entirely tropical and Indonesia has many regions that have good potential for aquaculture businesses. Seaweed production is being one of the main export commodities, so it is expected to give value-added for foreign exchange earnings for both countries and the production center areas. The current seaweed export is still dominated by raw material product, the government should be optimistic to keep supporting the technical and non-technical development of seaweed commodity in several production center areas to improve the quality and production diversification of seaweed. Rimmer (2010) mentioned that Indonesia has a great potential in seaweed farming but lack of infrastructure and competent workers. Added by Qalsum et al (2018), the main constraint of seaweed production comes from the traditional method used by the farmers who do not take other aspects into account, which are low control and application of technology, inadequate promotion, and limited capital ownerships

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