THE EFFECT OF ENTREPRENEURIAL CAPACITY ON THE WELFARE OF COCOA FARMERS IN KULON PROGO REGENCY

Ayu Indah Lestari; Burhanuddin Burhanuddin; Rachmat Pambudy

doi:10.14710/agrisocionomics.v10i2.29497

DOI: https://doi.org/10.14710/agrisocionomics.v10i2.29497

THE EFFECT OF ENTREPRENEURIAL CAPACITY ON THE WELFARE OF COCOA FARMERS IN KULON PROGO REGENCY

*Ayu Indah Lestari - Department of Agribusiness, Faculty of Economics and Management, Bogor Agricultural University, Indonesia

Burhanuddin Burhanuddin - Department of Agribusiness, Faculty of Economics and Management, Bogor Agricultural University, Indonesia

Rachmat Pambudy - Department of Agribusiness, Faculty of Economics and Management, Bogor Agricultural University, Indonesia

under http://creativecommons.org/licenses/by-sa/4.0.

BibTex Citation Data :

@article{Agrisocionomics29497,
    author = {Ayu Lestari and Burhanuddin Burhanuddin and Rachmat Pambudy},
    title = {THE EFFECT OF ENTREPRENEURIAL CAPACITY ON THE WELFARE OF COCOA FARMERS IN KULON PROGO REGENCY},
    journal = {Agrisocionomics: Jurnal Sosial Ekonomi Pertanian},
  volume = {10},
    number = {2},
    year = {2026},
    keywords = {Entrepreneurial Capacity; Business Performance; Farmer Welfare; Cocoa; PLS-SEM},
    abstract = {This study aims to analyze the effect of entrepreneurial capacity on business performance and the welfare of cocoa farmers in Kulon Progo Regency. This study uses a quantitative approach with a survey method and snowball sampling technique involving 178 respondents. Data were collected through interviews using a Likert scale-based questionnaire. Data analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationship between latent variables. The results of the study indicate that entrepreneurial capacity has a positive and significant effect on business performance and farmer welfare. Business performance proved to be a mediating variable that strengthened the relationship between entrepreneurial capacity and farmers' welfare. Farmers who have business management skills, good decision-making abilities, and good cultivation practices are able to maintain an average land productivity of 7.74 tons per hectare even though the land area is relatively small. The results of the study also found that business diversification and employment outside the agricultural sector are important strategies in maintaining household economic resilience. The recommendations from this study are for local governments and relevant stakeholders to strengthen farmer institutions, provide access to capital, and develop marketing partnerships so that farmers' incomes are more stable and sustainable.},
   issn = {2621-9778},  doi = {10.14710/agrisocionomics.v10i2.29497},
    url = {https://ejournal2.undip.ac.id/index.php/agrisocionomics/article/view/29497}
}

Citation Format:

Abstract

This study aims to analyze the effect of entrepreneurial capacity on business performance and the welfare of cocoa farmers in Kulon Progo Regency. This study uses a quantitative approach with a survey method and snowball sampling technique involving 178 respondents. Data were collected through interviews using a Likert scale-based questionnaire. Data analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationship between latent variables. The results of the study indicate that entrepreneurial capacity has a positive and significant effect on business performance and farmer welfare. Business performance proved to be a mediating variable that strengthened the relationship between entrepreneurial capacity and farmers' welfare. Farmers who have business management skills, good decision-making abilities, and good cultivation practices are able to maintain an average land productivity of 7.74 tons per hectare even though the land area is relatively small. The results of the study also found that business diversification and employment outside the agricultural sector are important strategies in maintaining household economic resilience. The recommendations from this study are for local governments and relevant stakeholders to strengthen farmer institutions, provide access to capital, and develop marketing partnerships so that farmers' incomes are more stable and sustainable.

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Keywords: Entrepreneurial Capacity; Business Performance; Farmer Welfare; Cocoa; PLS-SEM

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Section: Articles

Language : EN

In Vol 10, No 2 (2026): June 2026

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