Entrepreneurial characteristic effect on business performance of millennial farmers

Abstract

The Indonesian agricultural sector still has considerable potential for growth, but this is not currently being realised due to a lack of adequately trained human resources, particularly among the younger generation. It is anticipated that the younger generation will assume leadership roles within this sector. However, there is a dearth of interest among this demographic in pursuing careers in this field. The issue can be addressed by fostering an entrepreneurial mindset among millennial farmers. Therefore, the purpose of this study was to determine the entrepreneurial characteristic effect on millennial farmers’ business performance. Data were obtained through in-depth interviews and observations using a questionnaire. Additionally, the sample size was 120 millennial farmers in Central Java within ten selected regencies. Snowball sampling was determined based on data from millennial farmers designated as ambassadors by the Ministry of Agriculture and data analysis used Partial Least Square Structural Equation Modelling (PLSSEM). The results showed that the business performance of millennial farmers was measured based on four key indicators: turnover, source of capital financing, production capacity, and marketing reach. The findings indicated that entrepreneurial characteristics, as measured by individual features, risk-taking courage, and self-confidence, had a positive and significant effect on business performance. In this context, the business performance of millennial farmers could be enhanced by leveraging their individual characteristics, including a strong commitment, a mature evaluation of risk, and high confidence in their capabilities. Individual characteristics play a pivotal role in business performance. To build their brand in developing businesses, millennial farmers receive capacity-building training