The Influence of Environment and Entrepreneurship Factors toward the Farming Performance (Case on Manager Farmers of Cloves Plantation in Buleleng Regency, Bali Province)

Abstract

The aims of this research are to analyze the influence of the physical and economic environments toward the entrepreneurship of farmers and farming performance then to analyze the influence of the entrepreneurship of farmers towards farming performance. This research is conducted in Buleleng Regency as the largest producer area of cloves in Bali Island. Three villages selected as location that representing the Buleleng Regency. Farmers sample determined at each village with simple random sampling method. The analysis method that used in this research is Structural Equation Modelling (SEM) with four latent/unobserved variables. The result of this research shows that the physical and economic environments influence on entrepreneurship of farmers with different direction. The physical environment has negative influence on entrepreneurship of farmers, while the economic environment has positive influence towards entrepreneurship of farmers. Physical and economic environments have no influence towards the farming performance, but the physical and economic environments have indirect influence on farming performance through entrepreneurship. This is means that the higher value of the physical and economic environments, the higher value of farming performance, if the value of entrepreneurship also high. The entrepreneurship has positive influence on farming performance.

Keywords: physical environment, economic environment, entrepreneurship, farming performance