Analysis of the Role of Economic Profits in Increasing the Entrepreneurial Spirit of Sheep Farmers in Sumedang

Erwin Permana, Riyanto Adji

Abstract


West Java is the leading province in Indonesia for sheep production, with over 60% of the national sheep population originating from the region, according to data from the Central Statistics Agency. Sumedang Regency, located within West Java, benefits from its hilly topography, which is conducive to the growth of forage essential for sheep feed. Despite these geographic advantages, Sumedang's contribution to the province's overall sheep population remains modest. Data from the West Java Central Statistics Agency indicate that the sheep population in Sumedang is still relatively small compared to neighbouring regencies. Currently, sheep farming in Sumedang is primarily practiced by smallholder farmers, not as a market-driven business but as a means of financial security for their families. Consequently, farmers do not regard sheep farming as a viable full-time occupation. The objective of this study is to provide insights into the factors influencing the entrepreneurial spirit of smallholder sheep farmers in Sumedang Regency, with a particular focus on their motivations for engaging in livestock farming, even at a small scale. The research seeks to identify the key drivers that encourage smallholder sheep farmers to shift their focus towards profit-oriented sheep farming. A total of 23 villages were included in the study, with a sample of 200 farmers. The data collected were analyzed using classical assumption tests and hypothesis testing methods. The results of the hypothesis testing, conducted through multiple regression analysis, revealed that three factors—expected income from sheep farming, the desire to improve family economic welfare, and the perception of profit opportunities from sheep farming—have a significant influence on the entrepreneurial spirit of the farmers. This is supported by the F-test, which yielded a significance level of 0.000 (<0.05), and the t-test, which also showed significance values below 0.05, confirming the positive relationship between these factors and the entrepreneurial spirit of smallholder sheep farmers in Sumedang.

Keywords


Economic Welfare; Entrepreneurship; Income; Profit Opportunities.

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DOI: http://dx.doi.org/10.33021/firm.v9i2.5554

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