AGB 100_ASU_ASSIGNMENT 2024_THE INFLUENCE ENTREPRENEURSHIP AND MANAGEMENT AGRIBUSINESS ON SUCCESS CATFISH BUSINESS IN KAMPAR DISTRICT

THE INFLUENCE ENTREPRENEURSHIP AND MANAGEMENT

AGRIBUSINESS ON SUCCESS CATFISH BUSINESS IN KAMPAR

DISTRICT

Introduction:

Micro, small and medium enterprises (MSMEs) are small-scale community economic

activities whose establishment is based on individual initiatives with the hope of improving

living standards and meeting net assets from annual sales revenue. MSMEs have the potential

and important role in designing strategies to realize national economic goals by utilizing

natural resources and the potential of local areas in producing goods and services. MSMEs in

Indonesia have successfully attracted attention to strengthen the structure of the national

economy and employment.

MSMEs on a global scale have successfully experienced attractive and competitive

competition in line with the implementation of an open economic system through trade

agreements and cooperation. There is a need for support in the development of MSMEs to

implement an open economic system that has succeeded in eliminating the boundaries

between economic activities in each country so as to obtain broad business opportunities and

increasingly competitive business competition. MSMEs are flexible so that they easily

mushroom in various layers of the middle to lower class society, making it easy for small

entrepreneurs to start a business at any time and participate in it.

The development of MSMEs in Indonesia has left a good impression, MSMEs were

once the savior of the Indonesian economy during the monetary crisis in 1998 which played a

strategic and very important role in supporting the Indonesian economy from the shock of the

crisis. Wicaksono and Audita (2012), Karunanithy and Jeyaraman (2013) reveal that MSMEs

are the backbone and the largest group of economic implementers in the economy in

Indonesia and have been tested as a solution to stabilize the national economy during the

economic crisis, and become a catalyst for post-crisis economic development.

MSMEs play a vital role in the national economy. Micro enterprises As micro, small,

and medium enterprises are able to absorb more than 90 percent of Indonesia's workforce, the

involvement of micro, small, and medium enterprises affects the improvement and growth of

the economy in Indonesia. Article 33 paragraph 4 of the 1945 Constitution emphasizes that

micro, small and medium enterprises are an integral part of the national economy that

prioritizes independence and has great potential in improving the welfare of the Indonesian

people.

In both developed and developing countries, micro, small, and medium enterprises play

a major role in creating more employment opportunities, increasing GDP, and providing

social assistance to low-income people to participate in the productive economy. Table 1

shows that micro, small, and medium enterprises have a very large total unit size, with an

average of more than 99.9 percent when compared to large enterprises of the total national

business. Micro, small, and medium enterprises were able to absorb more than 96.9 percent

of the total workforce in Indonesia in 2018 to 2019.

Micro, small and medium-sized enterprises (MSMEs) also accounted for more than 60

percent of GDP at current prices of total GDP at current prices compared to large enterprises,

which only accounted for more than 40 percent of GDP at current prices of total GDP at

current prices. MSMEs also managed to contribute more than 50 percent of GDP on a

constant 2000 basis while large enterprises only managed to contribute more than 40 percent

of total GDP on a constant 2000 basis nationwide.

The catfish business is a business where most business owners run micro, small and

medium scale businesses. The catfish business has a very high potential market demand, this

is influenced by the high public interest in consuming catfish as a source of high protein with

affordable prices. The Indonesian Ministry of Maritime Affairs and Fisheries issued a policy

to encourage people to do aquaculture business, especially catfish, this catfish business is

very supportive of the business and investment climate to grow and develop so that it can

increase people's income, move the real sector, and increase foreign exchange earnings.

Efforts to encourage the patin fish farming business are strengthened by the support of patin

fish farming entrepreneurs, patin fish entrepreneurs, and the government. This is reflected

through intensive programs to increase the volume of catfish production that are continuously

carried out in various communities in developing the business of catfish farming. The

growing desire of local communities and catfish entrepreneurs confirms the promising

prospects in the future.

The catfish business has good prospects in meeting national and international market

demand. The market demand for catfish is always increasing, and catfish has enormous

export potential in the European Union and America after the policies of the two countries

that prohibit the import of fish from Vietnam because catfish from Vietnam are considered

dangerous for consumption. In Table 2, the average volume growth of domestic catfish is

positive, although in 2019 the volume of catfish production is higher than the production

volume in 2020 to 2023, this is indicated due to the impact of the Covid-19 virus pandemic.

The increase in domestic demand for catfish reflects a surge in per capita fish consumption,

indicating a change to a healthier diet among Indonesians. People prefer fish as a source of

protein to adopt a healthy lifestyle.

The national fish consumption rate from 2019 to 2022 has increased every year. In

2022 the national fish consumption rate (AKI) in prognosis has reached 56.48 kg per capita,

which means that the Indonesian people in 2022 consumed an average of 56.48 kg of fish.

The province with the highest fish consumption rate in 2022 is Maluku with a prognosis of

80.36 kg per capita, followed by Papua with a prognosis of 78.96 kg per capita. On the other

hand, the province with the lowest fish consumption rate in 2022 is Yogyakarta with a

projected AKI of 35.43 kg per capita. Until the end of 2023, the government estimates that

the level of fish consumption in Indonesia will reach more than 61.02 kg per capita, an

increase of 2.85 percent. This means that to meet this demand, a minimum supply of fish

consumption of around a dozen million tons per year is required. It is estimated that by 2024,

national fish consumption will rise to 62.05 kg per person. Thus, a supply of fish for

consumption from fishermen and fish farmers is needed to support the target.

The production of catfish farming, which continues to increase every year, has a

positive impact on the processing of freshwater fishery products. Every year, the yield of

freshwater fish farming increases every year, thus providing a huge opportunity to be

significantly improved and developed. This can potentially result in the creation of new jobs,

expand the workforce, and improve the welfare of the community and increase the income of

the Indonesian people. This initiative is in line with the National Entrepreneurship Movement

(GKN) program launched by the government from 2011, with the aim of developing the

entrepreneurial spirit to foster new entrepreneurs, accelerate the increase in national

economic growth, and create more job opportunities. According to the Head of the Kampar

Regency Fisheries Service, the potential of catfish farming in Kampar Regency reaches

around 200 hectares, with an average production of 300 tons per month. However, the

government hopes that the production of catfish can be spread evenly throughout Kampar

Regency, because currently the distribution is not evenly distributed in each region. Utilizing

land that has the potential to be developed into a catfish farming business in Kampar Regency

is expected to improve the regional economy, and improve the overall standard of living of

the people in Kampar Regency.

The development of patin fish farming in Riau Province, especially in Kampar

Regency, has received support from the Government as evidenced by the Riau Governor's

decree Number: KPTS. 999/II/2000 dated February 28, 2000 which states that Kampar

Regency is the center of freshwater fisheries production in Riau Province, especially catfish.

Kampar Regency is one of the regencies with the largest production of catfish in Riau

Province. The Riau Provincial Government continues to encourage Kampar Regency to boost

freshwater fish production, especially catfish, which is popular among cultivators and the

public because of its affordable price and has a fairly wide market because it is in demand by

the people of Indonesia. Based on Table 3, Kampar Regency is the first ranked Regency with

the largest patin fish production in Riau Province from 2018 to 2021. In a month, Kampar

Regency can produce 300 to 400 tons of catfish.

The development of patin fish farming in Riau Province, especially Kampar Regency

in the future, is influenced by human resource factors (HR), creativity, innovation and high

competitiveness. This is in line with Pambudy and Dabukke (2010) who argue that in times

of competition, the people who compete are those who manage the manufacture of these

products, not agricultural commodities. Human resources in agribusiness systems and

industries are responsible for planning, implementing, and enjoying the production process,

as well as bearing the risks and consequences of all production activities carried out. Febriani

(2014) also states that the insights and expertise possessed by humans are in principle useful

in improving agricultural performance both in productivity, diversity of agricultural

production, and access to marketing of production broader agriculture, thus, it is the

entrepreneur who competes. Entrepreneurial spirit is the essence of entrepreneurial life that

fundamentally reflects entrepreneurial attitudes and behaviors. This can be seen from the

character, nature, and personality of individuals to creatively realize innovative ideas in

everyday life (Hartati 2008).

Activities that consist of risk-taking, collecting data, seeking financial encouragement,

processing data, identifying opportunities, technological capabilities and other inputs and

managing new industries and entering the market are called entrepreneurial behavior (Fogel

et al. 2005). Entrepreneurship is established because of the activity of interaction between

people and their environment, which in conclusion will affect their actions in carrying out

business through activities based on entrepreneurial ideas, namely activities that display

creative, innovative ideas and attitudes and the courage to risk (Delmar 1996). So it can be

concluded that risk-taking, creative and innovative are one of the important characteristics of

the entrepreneurial spirit factor. The entrepreneurial spirit can be used as a basis for assessing

an entrepreneur in developing his business by implementing management in the agribusiness

system.

An aspiring entrepreneur needs to have an understanding of the principles of

agribusiness management. This is necessary in order to effectively achieve agricultural

business goals. Entrepreneurial spirit and agribusiness management affect business success,

according to Hubeis and Najib (2014), a strategic work concept is needed to maximize efforts

in achieving a goal. This is due to the fact that the key to the success of a business depends on

the existence of strategic management related to growth to maintain the sustainability of

MSEs and achieve predetermined goals (Aremu et al. 2015). The ability to carry out technical

and managerial activities contained in entrepreneurs is referred to as entrepreneurial

competence which is also used to achieve business success. The success of the business can

be achieved to the maximum because of the drive possessed by the entrepreneur, so that in

the end the improvement of business performance is positively influenced by this ability. The

characteristics of a person's ability to act, behave and think in running a business is a

description of the entrepreneur's ability to complete various jobs as a result of encouragement

that affects performance (Spenser and Spencer 1993). Patin fish entrepreneurs who have an

entrepreneurial spirit will have an optimistic attitude in running their business, apply

innovation in solving problems, find creative ideas, take advantage of opportunities and

opportunities, and dare to take risks that will be faced in trying new things (Casson et al.

2006; Robbins and Coulter 2010).

An entrepreneurial spirit is necessary for catfish farmers as it allows them to adapt to

changing conditions and capitalize on economic opportunities. Fishery farmers with an

entrepreneurial mindset are more likely to embrace scale expansion and market mechanisms,

which can lead to increased profitability and political influence. In addition, the level of

entrepreneurial motivation, risk-taking propensity, locus of control, and self-efficacy are

important aspects that plays a role in the success of fisheries graduates in their career paths.

Furthermore, agribusiness management is important for successful catfish farming as it

involves principles and skills that contribute to optimal production and profitability. Effective

management ensures proper feeding, maintenance of water quality parameters such as oxygen

level, and temperature, and the use of appropriate farming methods. In addition, agribusiness

management plays an important role in the overall success of fish farming by addressing the

need for a shift towards an agribusiness focus, which is essential for the sustainability of the

agricultural economics profession.

Some of the views that have been presented previously can be understood as a form of

description of entrepreneurship as an important factor in an agribusiness activity. Various

previous studies have found that in order to strive for a business, entrepreneurs can increase

business success, then an important entrepreneurial approach is the application of the

entrepreneurial spirit in individual entrepreneurs and agribusiness management in business.

So it is concluded that a study with an entrepreneurial approach needs to be carried out on the

patin fish business with the hope that it will become a new approach in measuring the success

of the patin fish business in Kampar Regency.

1.1 Problem Formulation

One of t h e largest patin fish production centers in Riau Province is located in

Kampar Regency. Kampar Regency is commonly known by the nickname Bumi Sarimadu or

better known as the Porch of Mecca. Kampar Regency has a potential land area for

aquaculture of 6,512.30 ha and is the largest freshwater fish producing district in Riau

Province with catfish as its leading commodity.

Various government policies and encouragement through the ministry of marine affairs

and fisheries to encourage fisheries production in Indonesia, this is an opportunity for

entrepreneurs and catfish farmers in Kampar Regency to market catfish both in wet and

processed form. Therefore, Kampar Regency is included in the producers of catfish to meet

the needs of catfish in Riau Province. The role of Kampar Regency as the largest patin fish

production center in Riau Province is faced with the challenge of unstable patin fish

production, this is contained in the data presentation of the Kampar Regency Statistics Center

Agency.

In Figure 2, presents data on the growth in the number of catfish production in 2013

increasing until the peak in 2016. But in 2017 the amount of catfish production decreased.

Patin fish production increased again in 2018 and this percentage was greater than in 2016,

then again decreased dramatically in 2019 and in 2020 the amount of patin fish farming

production began to creep up. The unstable growth of catfish production is caused by several

things such as: 1) the price of fish feed continues to fluctuate; 2) low access to capital; 3) a

decrease in water quality causes a high mortality rate when cultivating; 4) the fulfillment of

the needs of parents and quality seeds has not been carried out independently; 5) can face

climate change.

Capital so that entrepreneurs and the community have independence and success in

their business can be done by fostering entrepreneurship. Production, price, cost, and income

risks are big risks and must be faced by entrepreneurs in running a catfish farming business.

The steps to overcome the above problems are to develop the human resources of patin fish

farming entrepreneurs, so that entrepreneurs have creativity and innovation that can be used

to compete and maintain business continuity. Changes in the business environment will

adjust to the success of patin fish farming entrepreneurs determined by entrepreneurial factors

owned by the entrepreneur. Management skills, market analysis, identifying and utilizing

opportunities are things that are considered by entrepreneurs.

Mkheimer (2018) explains that business success requires a long process and is faced

with various obstacles. To achieve success, a firm commitment is needed to move forward

and manage the business well. Success in business always involves monitoring the internal

and external conditions of the environment. Another factor that needs to be improved along

with the increasing success of the patin fish farming business is the ability of patin fish

farming entrepreneurs to manage their business. One of the fundamental competencies that

need to exist in individual patin fish farming entrepreneurs is the ability to manage a

business. According to Wang et al. (2021) business success can be influenced by various

factors such as technology, organizing structure, environment, and entrepreneurial ability

(Pamela et al. 2017).

Spenser and Spencer (1993) suggest that a competency that a person needs to have

includes the ability to think, behave and act as well as the ability to find solutions to problems

faced. Based on many studies that have been conducted including concluded that improving

agricultural business performance is positively and significantly influenced by one's

competencies (Gerli and Gubita 2011; and Pamela 2013).

Trang (2015) revealed that the success of small and medium-sized enterprises depends

on several factors including: 1) demographic characteristics such as age, education level, and

experience in business. In addition; 2) understanding of the business world; 3) managerial

skills such as organizational structure, planning, control, leadership, and time management

also play an important role; 4) entrepreneurial characteristics. Other factors mentioned by

Fauziyah et al (2015) such as flexibility, confidence, passion, and patience, also have an

influence on entrepreneurial success. According to Amir et al. (2018) business success is

influenced by entrepreneurial behavior, individual factors, and the environment. Limited

facilities and infrastructure are also an obstacle in the development of the patin fish farming

business, due to limited facilities and infrastructure, many patin fish farmers rent out their

ponds to others, and some patin fish farmers switch to the job of feeding and maintaining

patin fish ponds. Various factors that can affect catfish farmers, both internal and external

factors, are challenges that must be overcome by catfish farmers.

The success of an aquaculture business does not happen instantly, but depends on

several supporting factors such as capital and time invested in the business (Neiss et al.

2020), and entrepreneurial characteristics (Suhartini 2021). Business success also depends on

various factors, such as the level of curiosity, creativity, intelligence, ability to keep up with

technological developments, and expertise in applying them productively owned by

entrepreneurs (Kustini et al. 2021). Based on the opinion of Malerba and McKelvey (2020),

entrepreneurial characteristics consist of daring to face risks, adopting new technologies,

gathering ideas to become an innovation, not afraid to face uncertainty related to current

decisions that affect future results, and making opportunities with motivation to face changes

in the external environment (external).

The questions that caused this research to be carried out were based on the explanation

above, namely:

1) How does the entrepreneurial spirit influence the success of the patin fish farming business in

Kampar Regency?

2) How does agribusiness management affect the success of catfish farming in Kampar

Regency?

3) How does the entrepreneurial spirit and agribusiness management simultaneously affect the

success of catfish farming in Kampar Regency?

1.1 Entrepreneurial Spirit and the Factors that Affect It:

Today, to compete in business or the workplace, managers not only need leadership

skills, but entrepreneurial skills are also required. The combination of leadership and

entrepreneurial skills is a combination of leadership qualities and entrepreneurial spirit (Qosja

and Druga 2015). Based on the explanation that has been given, it is concluded that a

manager or entrepreneur, they need an entrepreneurial spirit to be able to achieve company

targets and be able to bring the company to develop in the future. Nandram (2006) revealed

that the entrepreneurial spirit needs to be grown, because an entrepreneur must have

innovative and creative behavior, be able to adapt, be able to face problems, be able to see

opportunities, maintain product popularity, be able to face challenges and capture growth

opportunities. Likewise, the entrepreneurial spirit is how someone produces something

different or has not existed before, but has higher quality, cheaper, and profitable results. This

activity can be carried out in all fields of work and companies (Haji et al. 2020).

Genoveva and Tanardi (2020) explain that the entrepreneurial spirit must be

measurable, which means providing added value to the company. In that sense,

entrepreneurship is not only to increase profits itself, but includes entrepreneurial traits and

characters that emerge and can be learned. Existing characters include; independent and

honest, business professionalism, discipline, initiative, creative, achievement and future

oriented, resilient, optimistic and responsible. Existing characters include; creativity, having

professionalism in business, tenacious, optimistic, disciplined, independent and honest,

having initiative, creative, achievement-oriented and future-oriented, and responsible. Zhao et

al. (2020) explain that an entrepreneur is someone who creates the latest business fields

without avoiding risk and uncertainty to make a profit and always looking for new

opportunities for the development of their business. From this description, it is stated that the

characteristics of entrepreneurs are having a strong drive to try, innovation, and not avoiding

risk.

Yusi (2022) revealed that these indicators are the same as the entrepreneurial spirit. The

results of research conducted by Zulfikri and Iskandar (2022) revealed that the

entrepreneurial spirit is the lifeblood of entrepreneurship. The entrepreneurial spirit includes

characters that prioritize the value of creative action, like to try various challenges, are

optimistic, can predict the direction of life goals, can manage risks, see change as an

opportunity, tolerate many choices, have initiative and need achievement, perfectionist,

insightful, appreciate time and have strong motivation.

1.2 Agribusiness Management and the Factors that Affect It

In the agricultural industry, "agribusiness" is used only as a combination of agriculture and

business, referring to the range of activities and disciplines encompassed by modern food

production. The United Nations Food and Agriculture Organization (FAO) operates a section

devoted to agribusiness development that seeks to promote the growth of the food industry in

developing countries (Maroa and Muturi 2015). In recent periods, there has been an increased

focus on sustainable intensification in agribusiness development. Global concerns over

environmental issues related to intensive agriculture.

Asmarantaka (2013) says that management is the most important aspect in trying to

achieve the business goals set by the business owner. These goals are stages to achieve the

mission of the company. In order for the mission to run efficiently, management functions are

needed in running the business planning (P), organizing (O), actuating (A), and controlling

(C), which are the first steps made by management such as making alternatives that can be

undertaken to achieve the mission. Therefore, planning is the beginning of all management

functions. Organizing, exerting on the application of activities from planning that are sourced

to groups or stages of application based on efficient methods or ways. Actuating, mobilizing

or motivating all the energy bases that the company has to create or implement business field

activities to achieve the mission. Controlling, supervision has the aim of monitoring what has

been tried in industrial activities, whether it has gone according to the mission or planning

that has been made (Barnard et al. 2012). A similar opinion is also stated by Arabiun (2014)

classifying management functions into four basic management functions, namely planning,

organizing, staffing, directing and controlling.

1.3 The Effect of Entrepreneurial Spirit and Agribusiness Management on Business Success

Business success explicitly or implicitly applies theoretical perspectives to design

hypotheses on empirical testing, and as such has contributed substantially to an in-depth

understanding of small business success factors (Omri et al. 2015). With this in mind, we

theorize that small businesses with greater access to financial resources are more likely to

engage in innovation, in turn, facilitating their success. It is this kind of innovation that

facilitates small business success. This makes it clear that human capital and social networks

are important to the achievement of small business success, as they strongly encourage the

innovation that drives such success.

Chittithaworn et al. (2011) revealed that the factors affecting the success of MSMEs

consist of growth, management knowledge, and the external environment, which is the most

significant factor in determining the success of MSME businesses. Based on the findings of

previous research, the factors influencing MSME business success are classified into the

following categories: 1) entrepreneurial characteristics; 2) MSME characteristics; 3)

management and knowledge; 4) products and services; 5) customers and markets; 6) ways of

doing business and cooperation; 7) resources and finance; 8) strategy; and 9) external

environment. Research conducted by Mulyaningtiyas (2019) shows that the entrepreneurial

spirit has an influence on the performance of farmer group businesses, with this

entrepreneurial spirit group members dare to take risks to develop their business and

ultimately can develop tilapia aquaculture businesses and have an impact on income, profits,

business feasibility.

Noted in Figure 3, the results of research conducted by Trang (2015) indicate that the

success of a small and medium-sized business is related to demographic characteristics,

education level, experience in the field of business, knowledge of business, managerial skills

such as planning, organization, leadership, time management, and entrepreneurial

characteristics such as flexibility, confidence, enthusiasm, and patience (Fauziyah et al.

2015). Furthermore, Zulfikri and Iskandar (2022) conducted research using SEM analysis

showing that the entrepreneurial spirit has an influence on company independence, as well as

entrepreneurial ideas and behavior, and will ultimately have an influence on business success.

Research conducted by Yusi (2022) on SME companies that have been registered at the

Office of Cooperatives and MSMEs in South Sumatra Province revealed that empowering

MSMEs by managing the entrepreneurial spirit, so as to be able to produce independent and

strong MSME players in the face of competition, especially from foreign products flooding

the domestic market today towards Farm Performance of Fish Cultivation Nile Tilapia,

Sleman Regency, Indonesia" revealed that as many as 150 respondents conducted research on

tilapia fish farmers. The data analysis method used in this study is the SEM (Structural

Equation Modeling) analysis method. Based on the results of the study, the entrepreneurial

spirit plays a role in improving farm performance, resulting in development in tilapia

farming, as well as income growth, profits, and business feasibility. The average member of

the tilapia aquaculture group has high income and profit, making this business feasible.

In principle, agribusiness management is the application of management in agribusiness

systems. Therefore, to start a business in the agribusiness sector, it is important to have a

strong understanding of the principles of agribusiness management, including knowledge of

management, management functions, basic principles of management, and various relevant

aspects of management (Barnard et al. 2012). According to Kinicki and Soignet (2022), there

are four basic functions of management: planning, organizing, leading and controlling. A

good and clear business mission will guide the company to success regardless of its size.

Therefore, the formulation of this strategy has a strong influence on the performance of

agribusiness firms. The study further concluded that the performance of agribusiness firms

cannot only be envisioned but most importantly requires an accurate strategic management

approach to be taken by those in leadership from the formulation of the strategic plan which

should include all stakeholders to the implementation, evaluation and control measures of the

firm to be put in place (Maroa and Muturi 2015).

Maroa and Muturi's (2015) research used a descriptive survey research design because

data were collected from sample companies that represented the entire population of small-

scale agribusiness companies. Researchers used stratified random sampling and simple

random sampling techniques. The sample size was represented by 70 selected agribusiness

companies. The data collected using structured and unstructured questionnaires are primary

data, and the respondents are owners or managers of agribusiness companies. The

respondents' level of knowledge regarding strategy formulation in their agribusiness is very

high as the research shows that the agribusinesses under study have important aspects in an

enterprise for their goals to be clear and achievable. In addition, respondents in agribusiness

understand the contents of their strategic plans, which indicates that a winning strategy will

help achieve the company's goals indicating a high level of awareness of the strategy or the

government emphasizes the same which triggers the need for awareness. In addition, some

indicated that a good mission statement will guide a company to success regardless of the

size of the company. This can be attributed to the sector based on the qualifications and skills

of members according to future business ideas. However, only 62 per cent said strategic

planning and formulation influenced the performance of agribusiness companies.

Research conducted by Arabiun (2014) revealed that the factor influencing the

development of agribusiness is management that acts as a coordinator of this capital in the

best way to achieve goals business. It is a documentary and internet-based study. It is an

attempt to meta-analyze the findings of the research they have done on the subject.

Theoretical Framework

3.1.1 Entrepreneurship:

Entrepreneurship involves creating something that has never existed before. This

creation process provides added value to individuals and communities, and is based on the

ability to understand and capture opportunities (Zacarés et al. 2021). According to Abdullahi

(2018) Entrepreneurship is a concept where entrepreneurs identify new opportunities and

markets with innovative ideas and the use of appropriate resources to create new businesses,

products and processes. This process associates itself with many risks, but often leads to the

introduction of new products or services that increase the profitability and productivity of the

entrepreneur. This type of entrepreneurship can create jobs, improve energy efficiency,

conserve natural resources, protect natural resources, and minimize environmental

degradation. Most developing countries are rural facing chronic unemployment, and among

the objectives of entrepreneurship development in the agricultural sector of developing

countries is to create new jobs and employment so as to reduce chronic unemployment.

Waheed et al. (2021) revealed that entrepreneurship, innovation, and creativity are the

fuel of the modern economic engine. Entrepreneurship is a combination of innovation,

solutions, and risks that lead to business growth and development. Entrepreneurship helps

generate overall food security. Entrepreneurs have an important role in economic growth in

terms of innovation, efficiency, job creation, competitiveness, productivity, and the flow of

new firm formation, therefore, a revolution in entrepreneurship and innovation is necessary

for economic growth and development. Entrepreneurship development in the agribusiness

sector is important in the modern economy, as entrepreneurs have an effective role in

enhancing economic growth and development.

Social and economic development is the important role that the agribusiness sector has

in the areas of job creation, food production, and agribusiness sector development. Saridakis

et al. (2021) revealed that entrepreneurship in the agribusiness sector is sustainable

entrepreneurship in the agricultural sector which is one of the solutions to help the growth

and development of the agricultural sector significantly so that it is expected to reduce the

environmental crisis at present and in the future. The development of agribusiness

entrepreneurship can help reduce poverty, promote higher economic development, address

environmental issues, and achieve food security. Sustainable entrepreneurship in the

agricultural sector is a form of business that not only meets the income needs of agricultural

actors and farmers, but also addresses environmental issues (Chen et al. 2016). Sustainable

agricultural entrepreneurship should be explored as a contributor to chain flexibility.

3.1.2 Entrepreneurial Spirit

The entrepreneurial spirit of an entrepreneur is reflected in the ability of an individual

to combine capital, labor, and natural resources to innovate and organize a business for higher

profits, even in the face of high risks (Huang et al. 2021). This characteristic needs to be

cultivated, as since the beginning of the 21st century, the world has placed more importance

on sustainable development. Entrepreneurs play an important role in sustainable development

efforts with a focus on reducing poverty and unemployment. Entrepreneurship, on the other

hand, is explained as the process of setting up a new company. Entrepreneurship is a very

important factor in driving economic growth and creating jobs in the effort towards

sustainable development. According to Sharda S. Nandram (2006) entrepreneurial spirit

inspires people to leave certainty, both material and immaterial, which refers to the

activation, enthusiasm, and enthusiasm of humans in running a business or creating a new

business. Entrepreneurial spirit is the spirit of a person to create opportunities, realize ideas

into added value, both concretely and in a form that is not physically visible. The

independence of micro and small businesses is highly dependent on the entrepreneurial spirit

that has become an integral part of an individual's personality and is internalized through the

principles of entrepreneurship applied by business people in society (Yusi 2022).

Furthermore, Haji et al. (2020) revealed that the entrepreneurial spirit is related to the

dimensions of human development. A person with a high entrepreneurial spirit is described as

someone who is creative and continues to look for opportunities to improve and develop his

business to increase profits. The most important factor that influences one's entrepreneurship

is the entrepreneurial personality. This highlights the fact that how confident a person is in

himself and his success. Research conducted by Tuti and Syarif (2022), indicators of

entrepreneurial spirit, namely having motivation, creating innovation, and taking risks.

Meanwhile, according to Huang et al. (2021), the entrepreneurial spirit can be seen from

several indicators, namely awareness of entrepreneurship, perception of opportunities, and

self-efficacy.

According to Ang and Hong (2000), there are two determinants of entrepreneurial

spirit, namely ability or personality, and motivation. Ability or personality consists of risk-

taking, tolerance for ambiguity, perseverance, achievement orientation, locus of control,

innovation, and independence, while motivation consists of profit motive or love of money,

social motive or desire for security, and individualistic motive or desire for status. In this

study, researchers used indicators of entrepreneurial spirit, namely motivation, perception of

opportunities (Huang et al. 2021), risk-taking, perseverance, achievement orientation, and

independence (Ang and Hong 2000).

3.1.3 Agribusiness Management

Management in the group of business fields is very much to be applied and mobilizes

managers to get maximum profit despite full of risks and uncertainties. In the era of

revolution 4.0 the focus of management has shifted from business policy to competitive

advantage and finally to corporate governance. Strategic management has also been changed

from focusing on long-term planning, strategic advantage, core competencies, and blue ocean

strategy. Companies combine several flexible corporate strategies that are suitable for the

rapidly changing modern environment (Chen et al. 2016).

There are eight stages or functions of management that can be explained, namely: 1)

determine the basic objectives of the company or guide all activities carried out to achieve

predetermined goals; 2) identify or formulate problems faced by the company; 3) make

observations, where managers need to observe, investigate, and look for alternatives to solve

existing problems; 4) collect information and analyze data; 5) make decisions or determine

options that can be taken; 6) implement or implement decisions taken; 7) adopt a responsible

attitude; and 8) evaluate results and conditions as feedback to be able to make future

decisions (Asmarantaka 2013). Barnard et al. (2012) stated that in a situation of high levels of

competition, agribusiness management is needed in order to get maximum profit, and the

ability and advantages in the field of agribusiness management are needed on an ongoing

basis. Basically, agribusiness is all agricultural activities ranging from agricultural logistics,

creation, processing and sale of materials to the hands of end customers. Business activities

are a way of dividing resources or production aspects used to carry out or obtain outputs that

match customer desires with a mission to seek profit or profit. Agribusiness is a productive

activity to achieve profit (Hove and Tarisai 2013). All of these activities are interrelated with

the mission of the business sector with industry and other business sector institutions to seek

maximum profit using the resource base owned by the industry.

Figure 5 illustrates the idea of management focused on discrete functions through the

representation of a wheel. The four management functions are the key elements that connect

managers to the organization's goals, targets, and desired outcomes. Only through the stages

of planning, organizing, directing, and controlling can a company's goals or business success

be achieved.

In various situations, a manager may focus on planning without significant involvement

in controlling or directing. Another manager may be intensely involved in directing, while

others are involved in all four functions. Regardless of the focus of tasks in one's job, it is

important for managers in agribusiness to understand each aspect of the four areas of

planning, organizing, directing, and controlling because at some point in the organization,

one needs to carry out these tasks to deliver products or services to the market. All of these

activities are intertwined with the mission of the business sector with other industries or

business sector institutions to seek maximum profit using the resource base owned by the

industry.

3.1.4 Business Success

Achieving a highly sustainable competitive advantage is one of the main goals of

organizations. Enterprise success is defined in terms of two main objectives: financial and

subjective or non-financial objectives (Mkheimer 2018). Enterprises are considered

successful based on financial performance, such as profit or revenue and non-financial

performance aspects comprising factors such as customer satisfaction, personal development,

and entrepreneur awareness (Abdullahi 2018; Saghaian et al. 2022). In addition,

entrepreneurs with managerial experience and skills, entrepreneurs who impress in the

family, practical knowledge, and having workers with unique skills score higher in the

general index of business success (Staniewski 2016). Lack of infrastructure, political

environment, market access, and related skills and experience have a significant effect on

entrepreneurial success. In addition, business and managerial knowledge and skills,

personality traits such as flexibility, risk-taking (Trang 2015).

Furthermore, the success of a business depends on the performance of the business.

Business performance depends on factors such as the type of business, ability to take risks,

customer service, human resources, and quality of goods sold. Developing entrepreneurial

capacity, innovation, risk-taking, financial, and infrastructure capacity by entrepreneurs in the

agricultural sector is considered a priority for enterprise success (Negrão 2020). Unger et al.

(2011) revealed that in the entrepreneurship literature, meta-analysis studies show three

dimensions of success: size, growth, and profitability. Sales growth is the most frequently

used growth indicator. Umar et al. (2018) suggest that in the long run, entrepreneurs must

focus on entrepreneurial competencies for business survival and profitability According to

Ng'ang'a and Gichira (2017), the successful performance of small and medium enterprises in

the agribusiness sector can be seen from the number of employees and the level of sales.

Furthermore, according to Ng'ang'a and Gichira (2017), the successful performance of small

and medium enterprises in the agribusiness sector can be seen from the number of employees

and sales levels. Furthermore, Unger et al. (2011) revealed that business success can be seen

from (1) company size such as the number of employees, sales and business volume, (2)

growth such as sales growth, asset growth, and profit growth, (3) profitability such as profit

and income.

3.2 Framework Operational

Data on the growth in the amount of catfish production in Kampar Regency in 2017 the

amount of catfish production decreased. Patin fish production increased again in 2018 and

this percentage was greater than in 2016, then again decreased dramatically in 2019 and in

2020 the amount of patin fish cultivation production began to creep up. The unstable growth

of catfish production is caused by several things such as: 1) the price of fish feed continues to

fluctuate; 2) low access to capital; 3) decreased water quality causes a high mortality rate

when cultivating; 4) the fulfillment of the needs of parents and quality seeds has not been

carried out independently; 5) climate. Entrepreneurial spirit and agribusiness management are

factors that influence the success of catfish businesses. Although entrepreneurs have various

motivations in running their businesses, field observations show that some of them are not

able to carry out business management optimally. Another factor that can cause the lack of

business development of an entrepreneur is the lack of aspects of the entrepreneurial spirit,

such as lack of courage in taking risks, both in the context of new product development and

market expansion.

The initial analysis of this research is to analyze the entrepreneurial spirit of catfish

farmers in Kampar Regency and agribusiness management applied by entrepreneurs in their

business on the success of catfish business, by analyzing using Partial Least Squares (PLS).

Observed variables and attributes that will be included in PLS are based on a theoretical basis

that states the influence between the variables of entrepreneurial spirit and agribusiness

management on the success of the patin fish business. Haji et al. (2020) revealed that the

entrepreneurial spirit is related to the dimensions of human development. A person with a

high entrepreneurial spirit can be described as someone who is creative and continues to look

for opportunities to improve and develop his business to increase profits. The most important

factor that influences one's entrepreneurship is the entrepreneurial personality. This highlights

the fact that how confident a person is in himself and his success. Research that has been

conducted by Tuti and Syarif (2022), explains that motivation, having innovation, and taking

risks are indicators of the entrepreneurial spirit. Meanwhile, according to Huang et al. (2021),

entrepreneurial spirit can be seen from several indicators, namely awareness of

entrepreneurship, perception of opportunities and self-efficacy. Furthermore, according to

Ang and Hong (2000), there are two determinants of entrepreneurial spirit, namely ability or

personality, and motivation. Ability or personality consists of risk-taking, tolerance for

ambiguity, perseverance, achievement orientation, locus of control, innovation, and

independence. Meanwhile, motivation consists of profit motive or love of money, social

motive or desire for security, and individualistic motive or desire for status. In this study,

researchers used indicators of entrepreneurial spirit, namely motivation, perception of

opportunities, (Huang et al. 2021), risk-taking, perseverance, achievement orientation, and

independence (Ang and Hong 2000).

Furthermore, Barnard et al. (2012) stated that in a situation of high levels of

competition, agribusiness management is needed in order to get maximum profit, and the

ability and advantages in the field of agribusiness management are needed on an ongoing

basis. Basically, agribusiness is all agricultural activities ranging from agricultural logistics,

creation, processing and sale of materials to the hands of end customers. Business activities

are a way of distributing resources or production aspects used to carry out or obtain outputs

that match the wishes of customers with a mission to seek profit or profit. Therefore,

agribusiness is all productive activities that have the aim of making a profit (Hove and Tarisai

2013). All these activities are interrelated activities with the mission of the business sector

with industry or other business sector institutions to seek maximum profit using the resource

base owned by the industry. This study uses agribusiness management indicators, namely

business planning, business organization, implementation, and control adopted from research

indicators used by Arabiun (2014) and Barnard et al. (2012). The research operational

framework is detailed in Figure 6.

4.1 Variables Research:

In this study, there are two types of variables used, namely latent variables and

manifest variables. Latent variables are types of variables that cannot be measured directly, so

they require indicators to make measurements. Meanwhile, manifest variables are indicators

that represent latent variables. The latent variables utilized include exogenous latent variables

and endogenous latent variables. Exogenous latent variables are entrepreneurial spirit and

agribusiness management. While the endogenous latent variable namely the success of the

patin fish farming business. This latent variable is influenced by manifest variables which are

used as indicators in measuring latent variables. Measurement of this variable uses indicators

that have been empirically tested, ensuring that the concept can be applied in the field with

accuracy and good fit.

4.1.1 Entrepreneurial Spirit:

Entrepreneurial spirit refers to a person's ability to be independent in finding sources of

income by opening a business or directing their creativity into a means of generating income.

The manifest variables used to reflect the entrepreneurial spirit in catfish farming in this study

are motivation, seeing opportunities, taking risks, being independent, perseverance, and

achievement orientation. Table 6 presents a description of these manifest variables.

4.1.2 Agribusiness Management

The application of management in the agribusiness system to master the principles of

management in the context of agribusiness. The manifest variables used to reflect

agribusiness management in catfish farming in this study are business planning, business

organization, implementation, and control. Table 7 presents a description of these manifest

variables.

4.1.3 Business Success (KU)

The state of a business experiencing an increase in the results obtained in operating a

business is defined as business success. The manifest variables used to reflect the success of

the patin fish farming business in the study consist of firm size, growth, and profit. Table 8

presents a description of these manifest variables.

4.2 Analysis Data

Qualitative data is described descriptively, while quantitative data is analyzed using the

SmartPLS 4.0 method.

4.2.1 Descriptive Analysis

Descriptive analysis was used to assess the general condition of the patin fish farming

business in Kampar Regency. Hair, William C. Black, et al. (2014) state that a class of events

in the present, a system of thinking, a certain condition, an object or a group of people is

studied using a method called descriptive analysis. Truth and accuracy about the actual

events, nature and relationships between the events being investigated and paintings,

descriptions, structured images are the goals of descriptive analysis. The interview technique

is a way of collecting data for analysis through the help of a questionnaire.

4.2.2 Partial Least Squares (PLS) Analysis

This study uses Partial Least Squares (PLS)-based structural equation modeling (SEM)

to test the proposed model. PLS-SEM refers to a multivariate analysis technique used to test

structural relationships between constructs (Hair, Hult, et al. 2014). According to Hair, Hult,

et al. (2014) PLS-SEM is the most useful method and tool for exploratory and mixed studies.

In addition, the PLS-SEM technique is used to increase the explanation of changes in

endogenous variables (Hair, Hult, et al. 2014).

The PLS technique is used to handle complex models even with small sample sizes.

This study completed data analysis in two stages. model measurement and model assessment.

In this study, all constructs were performed on the reflective measurement model instead of

the formative measurement model because all construct items are compatible and related

(Hair, Hult, et al. 2014).

Outer Model

1.) Convergent Validity

One of the evaluation standards in testing analysis with SmartPLS is convergent

validity. At the indicator level, convergent validity is known as indicator reliability.

According to Hair et al. (2014) for initial checking of the loading factor value less than equal

to 0.3 is considered to reach the minimum level, while a loading factor value equal to 0.4 is

considered a better level, and a loading factor value of more than 0.5 is generally considered

significant. The loading factor value used in this study is more than 0.5 to consider all

manifest variables significant.

2.) Discriminant Validity

Discriminant validity describes how far the empirical differences between one construct

and another. Discriminant validity measurement uses the Fornell and Larcker value, which is

the square root of each latent variable's AVE (Average Variance Extracted). To fulfill

discriminant validity, the AVE value must be higher than the correlation between latent

variables (Henseler, 2015).

a. Composite Reliability

The reliability of the model is also determined through the composite reliability and

Cronbach's alpha values. According to Hair, et al. (2014) Cronbach's alpha is used to

measure the reliability of the inner consistency of the construction. The minimum Cronbach's

alpha value of 0.6 is considered acceptable. Likewise, the composite reliability test is used to

measure the reliability of the model in construction. A composite reliability value between

0.6 and 0.7 is considered acceptable. This study analyzed the average variance extracted

(AVE) of all variables to evaluate convergent validity. The AVE value of each construct

higher than 0.50 is acceptable (Hair, Hult, et al. 2014).

b. Variance Inflation Factors (VIFs) Value

The variance inflation factors (VIFs) values are used to check for collinearity issues. In

the study, the VIFs value of endogenous variables was smaller than 10 (Hair, et al. 2014).

Inner Model

The coefficient of determination in this study is seen from the R squared value used to

assess the structural model and the accuracy of model predictions. The R Squared range of all

endogenous variables refers to the level of variance explained by all endogenous variables.

Analysis of variance (R2 ) is used to determine whether there is an influence of the

independent variable on the dependent variable and how much influence it has (Hair, Hult, et

al. 2014).

b. Hypothesis Test

To evaluate the research model, the bootstrap technique was used with a random

sampling of 5000 samples with returns at the 95 percent confidence level (Hair, Hult, et al.

2014).

Descriptive Analysis

5.1.1 A Brief History of Patin Fish Farming in Kampar Regency

The historical journey of Kampar Regency as the largest source of catfish production in

Riau Province began before it was designated by the Ministry of Marine Affairs and Fisheries

and the Governor of Riau through a decree of the Governor of Riau Number: KPTS.

999/II/2000 dated February 28, 2000 as a freshwater fisheries production center area in Riau

Province. Before it became famous as a patin fish producing district, Kampar Regency was

only known as a district that only utilized the plantation sector, especially rubber and palm

oil.

Every year Kampar Regency manages to become the most patin fish contributing

Regency in Riau Province. Patin fish in Kampar Regency, apart from being produced for

consumption in wet conditions, is also produced in processed form, around 80 percent of

patin fish in Kampar Regency is produced to be used as processed products, one of which is

salai fish and 20 percent is for wet consumption. One of the areas in Kampar Regency that

has succeeded in becoming the largest patin fish producing area is Kecamatan XIII Koto

Kampar, also known as Kampung Patin. Not only as a place of patin fish production,

Kampung Patin in XIII Koto Kampar District has also become a tourist attraction for visitors

from various regions in Indonesia and abroad to see the process of making processed patin

fish such as smoked or salted patin fish, patin nuggets, salai patin fish, and shredded patin

fish. In addition to seeing the process of making processed catfish, visitors can also visit

natural attractions.

5.1.2 Patin Fish Farming Business Potential

The total potential area of catfish farming in Kampar Regency reaches 200 hectares. Of

this total, 126 hectares have been used for catfish farming, while the remaining 74 hectares

are still available for further development. In a month, villages in Kampar Regency can

produce around 300 tons of catfish. The development of catfish farming in Kampar District

not only has the potential to increase catfish production, but can also contribute significantly

to the local economy. With an increase in catfish production, the income of the local

community will also increase. However, the development of catfish farming in Kampar

Regency also requires attention to several aspects. For example, there is a need to improve

the quality of catfish seedlings, improve cultivation technology, and improve the quality of

fish feed. In addition, environmental management of aquaculture ponds also needs to be

considered to prevent the spread of fish diseases.

In Kampar District, almost every house has at least one ponds for catfish farming. This

indicates that almost all houses in the village are involved in catfish farming. Business actors

are not limited to individuals, but also include business groups and Village-Owned

Enterprises (BUMDes). Every month, villages in Kampar District produce around 300 tons of

catfish. About 240 tons or 80 percent of the patin fish are used as ingredients for processing

into salai fish, which accounts for about 30 percent or 72 tons per month of the total

production. Meanwhile, the remaining 60 tons of fish are still wet and can be consumed

directly (Hendrik, 2022). Patin fish cultivated by micro, small and medium enterprises in

Kampar Regency has successfully entered the Chinese market. This indicates international

recognition of the quality of catfish products from Kampar Regency.

Kampar Regency in Riau Province has become a major center for catfish farming.

Every day, catfish farmers in Koto Masjid Village are able to produce around 15 tons of

catfish with an average weight of 1 kilogram per head. The results of this catfish cultivation

have been successfully marketed to Bengkulu, North Sumatra and several other regions on

the island of Sumatra. However, the current challenge in exports is related to the texture of

catfish meat. In the international market, there is a preference for white patin meat texture.

Currently, the meat color tends to be orange, so it is known as "mango fish". In addition,

there are great opportunities for marketing catfish fillets from Riau, due to high demand from

China. In Koto Masjid Village, there are around 1,000 catfish farming ponds consisting of

five fish farming groups, and a total cultivation area of 150 hectares. In addition to providing

fresh catfish, salai ikan patin, which is a processed product, currently has a market share in

Sumatra Island. Fresh catfish is marketed to West Sumatra, North Sumatra, Jambi, and

Palembang.

5.2 Characteristics of Respondents

Respondents in this study were catfish farmers located in Kampar Regency. This study

has a total of 153 respondents. The characteristics of respondents described in this study

based on several categories, namely gender, age, education level, length of business, number

of family members, income, initial capital, land area and number of workers are presented in

Table 9.

Table 9 shows that most of the patin fish farmers in Kampar Regency are male, with

103 respondents or around 67 percent of the total number of respondents, while the female

gender amounted to 50 or 33 percent of the total respondents. This happens because in

Kabupaten Kampar the majority of men who work are more than women who work. This

phenomenon is evidenced in the national labor force survey from the bps of Kampar Regency

in 2021, the number of people aged 15 years and over who work is more men, namely

254,292 people compared to 122,472 women. There are various factors that influence the

majority of men who work in Kampar Regency patin fish farming in Kampar Regency

compared to women. Some possible reasons for this are traditional gender roles in society

and the traditions and customs of the people of Kampar District. The preference or tendency

for work that is heavy, spends a lot of time outside and requires considerable energy is mostly

cultivated by men, such as the patin fish farming business. Meanwhile, jobs that tend to be

indoors and do not require a lot of energy are mostly undertaken by women, such as medical,

paramedical nurses, non-nurse paramedics and civil servants.

Distribution characteristics respondents based on age some most of the patin fish

farmers in Kampar Regency are 41-50 years old as many as 56 people or 37 percent of the

total respondents. Furthermore, followed by the age range 21-30 years with 33 people or 22

percent of the total number of respondents, the age range 31-40 years as many as 24 people or

16 percent of the total number of respondents, the age range 51-60 years totaling 23 people or

15 percent of the total number of respondents, the age range 11-20 years as many as 12

people or 8 percent of the total respondents, and the least patin fish farmers are aged> 61

years as many as 5 people or 3 percent of the total respondents. The large number of pain fish

farmers in the age range of 41-50 years is due to several factors including the age of the

transition period in a person's life has good work experience, extensive knowledge, maturity

level in career, maturity level in personal life, has more access to capital or financial

resources, has achieved financial stability, and has built strong professional networks and

relationships, so at the age of 41-50 years old farmers are ready to build strong professional

networks and relationships and face the challenges and risks associated with

entrepreneurship.

Most of the catfish farmers in Kabupaten Kampar have a senior high school education

level, as many as 56 people or 37 percent of the total respondents. Furthermore, the

SD/equivalent education level was followed by 18 people or 12 percent of the total

respondents, the junior high school/equivalent education level by 45 people or 29 percent,

and the Bachelor's/Postgraduate education level by 34 people or 22 percent of the total

respondents. Education is considered a very important aspect in efforts to improve the quality

of Human Resources (HR). In relation to the patin fish farming business, the level of

education is very decisive, especially the ability to make decisions so that in creating new

things it will affect the courage to take risks and independence. Based on the data, the

majority education level is high school. So at the high school education level this is enough

for someone to have the ability to make decisions to start a business. There are several factors

that influence the majority of high school education levels to become catfish farmers in

Kabupaten Kampar. Some possible causes are that starting a business does not always require

a higher education degree, having a natural interest and talent in entrepreneurship to look for

business opportunities, limited access to higher education given the tight competition to

continue education to the undergraduate level, formal education in college is not considered

an absolute requirement to start a business, the courage to take risks and be more adaptive to

challenges.

The distribution of respondent characteristics based on the length of business most of

the pangasius fish farmers in Kampar Regency have been running a business for 11 to 19

years as many as 65 people or 42 percent of the total respondents, running a business for 20

to 28 years as many as 54 people or 35 percent of the total respondents, and running a

business for 2-10 years as many as 34 people or 22 percent of the total respondents. The

majority of patin fish farmers in Kampar Regency have been running their business for 11 to

19 years or are classified as experienced in running a patin fish farming business so that

success can continue to be achieved, several key factors that support the success of patin fish

farmers in Kampar Regency.

The success of their patin fish farming business includes having a clear vision and

careful planning, quality products, adaptability to change, good management skills in

managing resources, prudent financial management, a workforce to ensure business

continuity, good market understanding, having built a reputation and customer trust, and

business ethics. This has been proven by patin fish farming entrepreneurs in Kampar Regency

who have succeeded in making Kampar Regency the patin fish center of Riau Province and

the largest contributor to patin fish production in Riau Province.

The distribution of respondent characteristics based on income, most of the catfish

farmers in Kampar District have monthly income below Rp 10,000,000. Most of the land area

of catfish farmers in Kampar Regency is 1 to 3 ha. Furthermore, the majority of workers

owned by catfish farmers in Kampar Regency have a workforce of 1 to 10 workers.

5.3 Overview of Entrepreneurial Spirit, Agribusiness Management and Business Success

Latent variables based on respondents' answer preferences are explained through

indicator values. The indicator score is the answer chosen by the respondent. There are seven

answer options using a Likert scale. This research focuses on the entrepreneurial spirit and

agribusiness management of catfish farming entrepreneurs. Each variable is represented by

several statements contained in the questionnaire answered by respondents through

interviews. Each statement of the indicators contained in the questionnaire will be calculated

standard deviation, mean score, score (percent) and score category of each respondent

characteristic can be seen in Table 10.

The entrepreneurial spirit of catfish farmers is measured through several manifest

variables, namely motivation, can see opportunities, dare to take risks, independent, diligent,

and achievement-oriented. This assessment is based on strongly disagreeing, disagreeing,

moderately disagreeing, neutral, moderately agreeing, agreeing, and strongly agreeing with

the entrepreneurial spirit possessed by catfish farmers. Table 10 shows that the average value

of the standard deviation of the entrepreneurial spirit is 0.75 which has a very good score

category with an average average score of 6.30. The highest average score is owned by the

entrepreneurial spirit variable, namely motivation with a score of 6.78 or 96.85 percent. This

means that catfish farmers consider motivation to be the most important factor for them to

have in the entrepreneurial spirit variable.

The majority of catfish farmers in Kampar Regency strongly agree on the motivation

statement, because catfish farmers have succeeded in becoming the main driver to start a

catfish farming business and change the potential of their land, which was previously the

majority of rubber plantations and oil palm plantations, to become the right area to develop

catfish farming businesses and make catfish as a driving economic commodity as the main

source of livelihood and succeeded in making Kampar Regency the center of catfish products

which has the largest volume of catfish production in Riau Province. In addition to

motivation, the manifest variable

The other categories of opportunity-seeing, risk-taking, independence, perseverance

and rainbow-oriented also have good and very good score categories with high average

scores above 5.04. This means that catfish farmers consider entrepreneurial spirit to be

important for them to have.

Agribusiness management of catfish farmers is measured through several manifest

variables, namely business planning, business organization, implementation, and control.

Table 10 shows that the average value of the standard deviation of agribusiness management

is 0.54 which has a very good score category with an average average score of 6.37. The

highest average score owned by the manifest variable of agribusiness management is

implementation with a score of 6.43 or 91.85 percent. This means that patin fish farmers

consider implementation to be the most important factor for them to have in agribusiness

management variables. The majority of catfish farmers in Kampar Regency strongly agree on

the statement that the implementation of catfish farming is the most important factor in

achieving the success of a catfish farming business in Kampar Regency. This is evidenced by

the patin fish farmers who have a successful business in patin fish farming understand the

concept of agribusiness management which consists of knowledge about management,

functions, and management functions, management principles and also fields in management

(Barnard et al. 2012). And they succeeded in becoming a driving force to protect prospective

patin fish farming entrepreneurs to participate in preserving the patin fish farming business in

Kampar Regency. In addition to implementation, other manifest variables, namely business

planning business organization, and control also have a very good category with a high

average score with a score above 6.29. This means that patin fish farmers consider

agribusiness management important to be owned by them.

The business success of catfish farmers is measured through several manifest variables,

namely company size, growth, and profit. Table 10 shows that the average value of the

standard deviation of business success is 0.82 which has a very good score category with an

average mean score of 6.19. This shows that the assessment of the perception of catfish

farmers towards the success of the patin fish farming business is classified as very good with

the support of entrepreneurial spirit variables and agribusiness management owned by current

catfish farmers. The highest average score owned by the business success variable is profit

with a score of 6.38 or 91.14 percent. This means that patin fish farmers consider profit to be

the most important factor for them to have in the business success variable. In addition to

profit, other manifest variables, namely company size and growth, also have very good score

categories with high average scores with scores above 6.34. This means that catfish farmers

consider business success to be important for them to have.

5.4 The Effect of Entrepreneurial Spirit and Agribusiness Management on the Success of

Patin Fish Business in Kampar Regency

In this section, a series of steps will be explained in conducting SEM model analysis

with the aim of analyzing the impact of entrepreneurial spirit and agribusiness management

on the success of catfish farming businesses in Kampar Regency. The stage begins with

testing the feasibility of the initial model if there is a mismatch, the model will go through a

respecification process. This test is repeated until the model reaches an adequate level of

feasibility in accordance with the goodness of fit. In this study, one respecification process

was carried out to achieve the best model. After obtaining an adequate model, the next step is

to analyze the relationship between variables to test the validity of the theory on which this

research is based. The research data after being processed using SmartPLS 4.0 is obtained as

follows.

5.4.1 Evaluation of the Measurement Model (Outer Model)

In the statistical analysis of the outer model as a scientific approach that allows to test

and validate the theoretical constructs used in a model or theory. In the context of evaluating

measurement models, there are two important concepts that are the main focus, namely

reliability and validity. Reliability leads to the extent to which the measuring instrument used

can provide stable and consistent results when repeated several times on the same subject or

unit. On the other hand, validity This relates to the extent to which the measurement

instrument actually measures the intended construct and has the right capture power to

describe the phenomenon being studied.

As an integral part of the validation process, measurement model evaluation also

considers the generalization aspect, where testing is conducted on different samples to ensure

that the measurement model can be widely applied to a wider population. This allows the

research results to have a higher level of validity and reliability. Not only that, the evaluation

of measurement models is also related to the analysis of the relationship between the

variables in the model, which can be done through approaches such as path analysis or

structural equation modeling (SEM). These methods make it possible to understand how the

relationships between variables are measured and how they interact with each other within a

theoretical framework.

Evaluation of the measurement model (outer model) is a crucial stage in the scientific

research process which aims to ensure that the model used is of good quality and reliable in

describing the phenomenon being studied. Success in evaluating the measurement model will

provide a strong foundation for accurate research and analysis results, so that it can make a

significant contribution to the development of science and our understanding of this complex

world.

Outer model analysis tests indicators against latent variables that are related to their

latent variables. The data was analyzed using SmartPLS 4.0. The criteria for using the outer

model data analysis technique are by looking at the loading factor value, Cronbach's alpha,

composite reliability and AVE.

The initial check carried out in this study is loading factor analysis, loading factor

analysis is one of the important stages to determine validity. This loading factor value ranges

from -1 to 1. Positive values indicate a positive relationship between variables and factors,

while negative values indicate a negative relationship between the two. The higher the

loading factor value of a variable on a factor, the greater the contribution of the variable in

explaining the factor. In addition, the loading factor also helps in evaluating the existence of

factors that can be interpreted meaningfully. Variables that have a low loading factor value

(close to zero) on all factors can be considered to have a weak contribution in describing

existing factors and can be considered for removal from further analysis.

According to Hair et al. (2017) a loading factor value of approximately 0.3 is

considered to reach the minimum level, while a loading factor value of approximately 0.4 is

considered a better level. A loading factor value of more than 0.5 is generally considered

significant and valid. According to Hair et al. (2017) based on the results of the SmartPLS

4.0 analysis, the loading factor of the statement items for each variable should be above 0.6,

while the lowest loading factor results (below 0.5) should be removed from the scale.

When all research variable items have a loading factor value greater than 0.6, this

indicates that the variable is very relevant in explaining the factor being studied. This means

that the variable has a considerable weight in forming and representing a particular factor.

The higher the loading factor value of a variable, the greater its contribution in explaining the

variation of the factor. In addition, when conducting analysis using SmartPLS, variables with

a loading factor above 0.6 are generally chosen to be retained because they have a significant

contribution to the model or theory being tested. The results of the loading factor values are

presented in Table.

The loading factor value based on Table 11 explains that all items of the

entrepreneurial spirit variable (JW1, JW2, JW3, JW4, JW5, JW6) are greater than 0.6, so it

can be concluded that all items of the entrepreneurial spirit variable statement are valid.

Loading factor agribusiness management (MA1, MA2, MA3, MA4) is greater than 0.6, so it

can be concluded that all agribusiness management variable statement items are valid.

Loading factor business success (KU1, KU2, KU3) is greater than 0.6 it can be concluded

that all items of statement of business success variables are said to be valid. Based on the

results of the loading factor value analysis, it can be concluded that all statement items are

valid because all statement items of entrepreneurial spirit variables, agribusiness management

and business success are above 0.6.

In Table 11, we can see that the manifest variable that has the strongest contribution in

reflecting the entrepreneurial spirit variable is motivation with a loading factor value of 0.77.

This value is greater than the loading factor value of other manifest variables that also reflect

the entrepreneurial spirit variable. This means that the more often farmers provide

constructive criticism and suggestions to themselves and employees, it will increase the

entrepreneurial spirit of catfish farmers, so that in the end the increase will affect the increase

in business success. Motivation can be shown by 1) monitoring the development of the patin

fish farming business and providing positive feedback and suggestions for improvement; 2)

setting realistic income targets; 3) setting specific and measurable business goals to provide

focus to workers; 4) increasing knowledge through training and education related to fish

farming techniques; and 5) improving knowledge through training and education related to

fish farming techniques.

Effective patin farming, good management, and understanding of the market; 5)

recognizing workers' achievements by applying incentives based on achieving targets or good

performance results; 6) encouraging cooperation among patin farmers; 7) establishing good

communication between management and workers; 8) monitoring and evaluating the

performance of the patin farming business to determine the right direction; and 9) ensuring

sound and transparent financial management.

The manifest variable that also has a significant contribution in reflecting the

entrepreneurial spirit variable is seeing opportunities with a loading factor value of 0.76. This

means that the capability of patin fish farmers in seeing opportunities to develop the patin

fish farming business greatly determines the entrepreneurial spirit in running their business.

The ability of catfish farmers to see opportunities is shown by their ability to identify

emerging markets, understand trends in consumer demand, and adjust cultivation methods to

meet increasing market demand. In addition, this skill also involves the ability to utilize

technological innovations or the latest practices that can improve the production, efficiency

and quality of catfish in aquaculture.

In addition, the manifest variables that also have a significant contribution in reflecting

the entrepreneurial spirit variable are achievement-oriented, risk-taking, independent, and

diligent with a loading factor value of 0.69, 0.68, 0.68, and 0.61. This means that the ability

of patin fish farmers to take risks, be independent, diligent, and achievement-oriented to

develop patin fish farming businesses determines the entrepreneurial spirit in running a

business. The ability of patin fish farmers to take risks, be independent, persevere, and be

achievement-oriented to improve the development of patin fish farming greatly determines

the entrepreneurial spirit in running their business. The ability of catfish farmers to take risks,

be independent, persevere, and be achievement-oriented is shown by the ability of catfish

farmers to try innovative approaches to new cultivation systems that have not been

commonly used which have risks but also have the potential for great profits, focus on long-

term goals, respond quickly to changing conditions, and manage various aspects of

cultivation such as feed management, setting the cultivation environment, and caring for

catfish.

The lowest manifest variable owned by the entrepreneurial spirit is perseverance, with a

loading factor value of 0.61. Diligence has the least contribution in reflecting the

entrepreneurial spirit variable because in catfish farming, supervision and control are not

carried out intensely because catfish tend to be more resistant to disease and have a fairly

good tolerance for certain environmental conditions. Patin fish farming is generally easier,

patin fish do not require complicated maintenance and have a relatively faster life cycle.

The manifest variable that has the strongest contribution in reflecting agribusiness

management variables is business organization with a loading factor value of 0.92. Based on

this, improving agribusiness management with the more frequent patin fish farmers organize

production planning, resource management, stock management more efficiently can stimulate

an increase in agribusiness management of patin fish farming, so that the increase will affect

the increase in business success.

The manifest variable that also has a significant contribution in reflecting the

agribusiness management variable is business planning with a loading factor value of 0.88.

This means that the capability of catfish farmers in assessing business planning to develop

catfish farming businesses determines agribusiness management in running their businesses.

The ability of patin fish farmers in business planning is indicated by the ability to develop a

comprehensive business plan, the ability to manage their resources, the ability to monitor

business progress regularly and the ability to build strong networks and partnerships with

suppliers, distribution or other related institutions to support the growth and sustainability of

the patin fish farming business.

In addition, the manifest variables that also have a significant contribution in reflecting

agribusiness management variables are implementation and control with a loading factor

value of 0.76 and 0.75. This means that the capability of patin fish farmers in implementation

and control to develop patin fish farming business determines agribusiness management in

running their business. The capabilities of catfish farmers in implementation and control are

indicated by the ability to control and maintain the environmental conditions of catfish

farming, the ability to control feeding with the right amount and quality according to the

needs of catfish, the ability to control and maintain the health of catfish, proficiency in the

application of cultivation techniques, accuracy of actions in management and consistency in

carrying out cultivation procedures.

In the business success variable reflected by three indicators, namely company size,

growth, and profit, it contributes positively and significantly in measuring the performance of

the patin fish farming business. The manifest variable that has the strongest contribution in

reflecting the business success variable is growth with a loading factor value of 0.90. This is

followed by the company size and profit indicators which have a loading factor value of 0.89

and 0.87. This means that increased growth, company size and profits can reflect increased

business success.

Furthermore, to determine the validity of this research statement item can be seen from

the cross loading value. This stage aims to evaluate and ensure the convergent validity and

discriminant validity of a PLS model involving several latent factors and observational

variables. Convergent validity refers to the extent to which each observational variable that is

considered an indicator or marker of a latent factor actually converges or converges together

to measure that factor. Discriminant validity, on the other hand, refers to the degree to which

a variable observations exclusively measure one latent factor and are not unduly influenced

by other latent factors. Therefore, cross loading is important to ensure that the indicators in

the PLS model have the right contribution to the intended factor and are not mixed up with

other factors.

In a measurement model, the cross loading value of the indicator variable on the latent

variable should be greater than the value on other latent variables. The quality of the

discriminant validity of the model will be good if the correlation between the construct and its

indicator is higher than the correlation with indicators from other block constructs (Hair et al.

2017). According to Table 12, the cross loading value of the entrepreneurial spirit variable,

agribusiness management and business success has a higher indicator correlation value with

the construct than the correlation value of the indicator with other constructs. Thus it can be

concluded that all constructs or latent variables already have good discriminant validity,

where the indicators in the construct indicator block are better than the indicators in other

blocks. Based on the cross loading test results in Table 12, it can be concluded that the

measurement model is valid.

The validity of statement items can also be assessed from the average variance

extracted (AVE) value. The AVE value aims to measure how much variance is contained in a

construct component collected from its indicators. In partial least squares (PLS) analysis,

AVE is one of the metrics used to evaluate the convergent validity of a latent construct or

factor. AVE measures the extent to which a variable observations used to measure a construct

truly represent the variance contained in the construct. AVE reflects how much the variables

extract or take variance from the represented construct.

AVE is calculated by summing the squares of the loading factors of a variable on the

latent factor represented, then dividing the sum by the number of variants observed in the

construct. AVE is the average of the squared loading factors of each observed variable on

latent factors. A high AVE value (close to 1) indicates that the variables used to measure the

construct have a large contribution in explaining the variation in the construct itself, and this

indicates good convergent validity. Conversely, a low AVE value (close to 0) indicates that

the variables are not good enough to describe the variance in the construct. According to Hair

et al. (2017) the recommended AVE value should be more than 0.50. The AVE value of each

latent variable is presented in Table 13.

Based on Table 13, the AVE value for all constructs, namely entrepreneurial spirit,

agribusiness management, and business success is more than 0.50. The recommended AVE

value must be more than 0.50. Thus, based on the results of the validity measurement model

in this study, it can be said to be valid. The AVE value above 0.50 indicates that the variables

used to measure the construct are good enough to reflect variations in the construct. Thus,

based on the results of the validity measurement model in this study, it can be said to be

convergently valid.

The next stage, validity measurement can be seen from the Fornell-Larcker value.

Fornell-larcker in PLS is an evaluation of the discriminant validity of a structural factor

analysis model. The purpose of this criterion is to ensure that the variables used to measure a

latent factor really have good discriminant validity, meaning that the variable is not overly

influenced by other latent factors. In PLS analysis, Fornell-Larcker is evaluated by

calculating the correlation between constructs and other variables in the model. Fornell-

larcker is calculated by comparing the square of the correlation between each construct and

the variables that measure it with the square root of the AVE (average variance extracted) of

the construct.

The Fornell-Larcker value requires that the value of each latent variable must be

greater than the correlation between other variables. The value of the Fornell-Larcker

criterion is done by comparing the correlation between each variable and the other variables

appropriate AVE value. The measurement model has good discriminant validity if the AVE

on the variable is greater than the correlation between other variables (Hair et al. 2017). The

results of the Fornell-Larcker criterion value test are presented in Table 14.

Based on Table 14, the fornell-larcker value of entrepreneurial spirit is 0.74. This value

is greater than the correlation value of the business success variable, which is 0.62 and

agribusiness management, which is 0.71. Based on the model evaluation, it is concluded that

the discriminant validity measurement model has been fulfilled and is said to be valid.

The next step is to conduct a reliability test. Reliability testing can be done by knowing

the composite reliability value. Composite reliability measures the extent to which the

indicator variables used to measure the construct are reliable and consistent in measuring the

latent factor being tested. In PLS analysis, latent constructs or factors are often measured by

several correlated indicator variables. Composite reliability describes how well these

indicator variables together measure the same latent factor with a high level of reliability.

Higher composite reliability values (close to 1) indicate better internal reliability. As a

general guide, the composite reliability value that is considered good and acceptable is 0.70

or more. However, if the composite reliability value is lower than the threshold (close to 0), it

signals a problem in the internal reliability of the construct. In this situation, researchers need

to consider improving the model or making changes in the measurement of indicator

variables to improve construct reliability (Hair et al. 2017). An indicator if it has a composite

reliability value greater than 0.70 is said to meet the reliability requirements.

Cronbach's alpha measure needs to be checked, to assess internal consistency.

Cronbach's alpha calculates how consistent the items or questions in a scale are in measuring

the same variable. Cronbach's alpha values range from 0 to 1. Higher values indicate higher

levels of consistency and better reliability. As a general guide, Cronbach's alpha values are

considered good if they are above 0.70 or 0.80. Internal consistency is achieved when the

reliability estimate is greater than 0.70 (Hair et al. 2017). A Cronbach's alpha threshold of

0.70 is considered the most commonly accepted cut-off point (Fornell and Larcker 1981).

Measures that show low levels of reliability should not be investigated further. (Fornell and

Larcker 1981).

Based on Table 16, it can be concluded that the Cronbach's alpha value of the

entrepreneurial spirit, agribusiness management, and business success variables exceeds 0.70,

indicating a good level of reliability. Generally, the Cronbach's alpha value in research is

considered satisfactory if it is in the range between 0.70 and 0.90 (Hair et al. 2017).

Therefore, these results show that each research variable meets the reliability assessment

criteria, and it can be concluded that all variables are considered reliable.

Furthermore, the collinearity test aims to test whether there is a correlation between

independent variables. The collinearity test in PLS is a procedure used to evaluate the level of

multicollinearity between indicator variables used in PLS analysis. Multicollinearity occurs

when two or more indicator variables in the model have a strong relationship with each other,

which can cause problems in the analysis due to difficulties in isolating the contribution of

each variable to the latent factor being tested. The main cause of multicollinearity in PLS is

the high correlation between indicator variables used to measure latent factors.

Under conditions of multicollinearity, the results of the analysis may become unstable

and proper interpretation becomes difficult. The collinearity test in PLS is performed by

checking the variance inflation factor (VIF) or tolerance value of the correlation matrix

between indicator variables. The VIF value measures how much of the variance of an

indicator variable can be explained by its correlation with other variables in the model. The

tolerance value on the other hand is the opposite of VIF and measures how much of the

variance of a variable cannot be explained by correlations with other variables. To analyze

the degree of collinearity by evaluating the value of

5.4.2 Structural Model Evaluation (Inner Model)

The inner model can be evaluated by looking at the r-square (indicator reliability).

Analysis of variance (R2) or determination test, which is to find out how much influence the

independent variable has on the dependent variable, the value of the coefficient of

determination or R square can be seen in Table 18.

Based on Table 18 in this study, it can be seen that the results of the R square test of

business success are 0.52, meaning that the entrepreneurial spirit and agribusiness

management variables contribute to business success by 52 percent, the remaining 48 percent

is explained by other constructs outside those examined in this study.

5.4.3 Hypothesis Testing

Hypothesis testing is a critical process in data analysis used to test the validity of

research hypotheses or proposed theories. Hypothesis testing aims to test whether the

relationship between certain variables in the statistical model has a significant impact or not

on the phenomenon being studied. At the hypothesis testing stage in PLS, PLS regression

analysis is used to test the relationship between the variables in the model. The results of the

statistical tests are used to make decisions regarding the research hypothesis. If the t-statistic

value is greater than the critical value corresponding to the specified significance level, the

null hypothesis (H0) is rejected, and the alternative hypothesis (H1) is accepted. That is, there

is a significant relationship or effect between the variables under study. Conversely, if the t-

statistic value does not reach the set significance level, then the null hypothesis (H0) cannot

be rejected, and there is insufficient evidence to support the alternative hypothesis (H1).

Hypothesis testing in this study was carried out based on the results of testing the inner

model and t-statistics. To see whether a hypothesis can be accepted or rejected, among others,

by paying attention to the significance value between constructs, t-statistics, and p-values.

Table 19 explains that hypothesis 1 shows a statistical T value of 2.98 greater than 1.96

and a P value = 0.000 (p ≤ 0.05), it can be concluded that the entrepreneurial spirit variable

has a positive and significant effect on the variable success of the catfish business in Kampar

Regency, so hypothesis 1 is accepted. Hypothesis 2 shows that the T statistic value of 7.47 is

greater than 1.96 and the P value = 0.000 (p ≤ 0.05), it can be concluded that agribusiness

management has a positive and significant effect on the variable success of the catfish

business in Kampar Regency, so hypothesis 2 is accepted. Based on the test results of

hypotheses 1 and 2, it can be interpreted that the better the entrepreneurial spirit and

agribusiness management of the catfish business, the greater the success of the catfish

business. The variable coefficient of entrepreneurial spirit and agribusiness management has

a direct influence on business success. This means that the impact of the growth and

development of the entrepreneurial spirit and agribusiness management will be able to

increase the success of the catfish farming business.

The results of hypothesis testing in Table 19 above can be concluded that the impact of

the growth and development of the entrepreneurial spirit and agribusiness management will

be able to increase the success of catfish farming. The manifest variable that has the strongest

contribution in reflecting the entrepreneurial spirit is motivation and the manifest variable

that has the strongest contribution in reflecting agribusiness management is organization.

Based on this, increasing motivation and business organization can stimulate an increase in

the entrepreneurial spirit and agribusiness management of catfish farmers, so that the increase

will affect the success of catfish farming. This can then be a recommendation for the Kampar

Regency government to create programs that can continue to encourage the improvement of

the entrepreneurial spirit and agribusiness management of catfish farmers such as increasing

research activities on patin fish farming from upstream to downstream, training on efficient

patin fish farming techniques, simplifying the licensing process, reducing the bureaucracy

attached to setting up a business, providing easy access to markets so that it can open up

greater opportunities for the development of patin fish farming businesses. It is hoped that

with various supports from the local government and the local community, catfish farming in

Kampat Regency will continue to grow and develop so that it becomes a means of creating

jobs every year in Kampar Regency, so that it can reduce the unemployment rate and improve

the welfare of the Kapar Regency community.

Evaluation of Measurement Models and Structural Models

5.4.4 The Effect of Entrepreneurial Spirit on Business Success

The effect of entrepreneurial spirit on business success can be seen in Table 19 which

shows that the statistical T value of 2.98 is greater than 1.96 and the P value = 0.000 (p ≤

0.05). These results indicate that the entrepreneurial spirit variable has a positive and

significant effect on the success of the catfish business in Kampar Regency. This means that

if the better or the effectiveness of the entrepreneurial spirit of catfish farmers in Kampar

Regency increases, the business success of catfish farmers in Kampar Regency will also

increase. The effect of the entrepreneurial spirit on the success of the patin fish business in

Kampar Regency is evidence that the entrepreneurial spirit is a factor that influences business

success.

Based on the results of the description analysis, it can be seen that the average score of

respondents' answers to the entrepreneurial spirit is 90 percent, proving that catfish farmers in

Kampar Regency strongly agree that the entrepreneurial spirit is very necessary for someone

in entrepreneurship. The most prominent indicator of the entrepreneurial spirit is motivation

with an average score of 6.78 or 96.85 percent with a very good score category. Based on the

loading factor value, the manifest variable that has the strongest contribution in reflecting the

entrepreneurial spirit variable is motivation. Motivation is the most influential indicator in

building the entrepreneurial spirit of catfish farmers in Kampar Regency in running a catfish

farming business.

Some of the motivations for patin fish farmers in Kampar Regency to do patin fish

farming are that the cultivation method is not complicated and does not require close

supervision at all times, the place for making ponds can be made in the yard of the cultivator's

house, has a high and stable market demand, gets support from the government, better

environmental potential, good resistance of patin fish to environmental conditions, fast

turnover of harvest periods. Motivated entrepreneurs will have clear goals and realize how

important it is to achieve them. By having clear goals, they will be more focused on taking

the right steps and avoiding distractions that can hinder business progress. The existence of

motivation in entrepreneurs will provide mental and emotional endurance to keep going and

find creative solutions in overcoming any obstacles faced.

Entrepreneurship has become an important vehicle in promoting sustainable

development, contributing to increased employment opportunities, and promoting economic

growth (Huang et al. 2021). The success of an entrepreneur in running his business does not

only depend on the amount of capital, facilities, and infrastructure owned, but more

importantly, the success depends on the ability of individuals who have an entrepreneurial

spirit, understanding of how to run a business, and the ability to identify opportunities and

turn them into economic value. Nandram (2006) revealed that the entrepreneurial spirit needs

to be cultivated, because an entrepreneur must have innovative and creative behavior, be able

to adapt, be able to face problems, be able to see opportunities, maintain product popularity,

be able to face challenges and capture growth opportunities. Likewise, the entrepreneurial

spirit is how someone produces something completely different from before, with higher

quality, cheaper, profitable results. This activity can be carried out in all fields of work and

companies (Haji et al. 2020).

The entrepreneurial spirit is an individual's drive to generate opportunities and ideas

that can be realized into added value, both in real and abstract form. The independence of

Small and Medium Enterprises (SMEs) depends on the existence of an entrepreneurial spirit

that has become part of the individual's personality, and has been internalized through

entrepreneurial values in the community business environment (Yusi 2022). This research is

in line with research conducted by Sumantri (2013), which says that the entrepreneurial spirit

has a positive and significant effect on business success. The results of the same research also

conducted by Mulyaningtiyas (2019) revealed that the entrepreneurial spirit affects the

performance of farmer group businesses, with this entrepreneurial spirit group members dare

to take risks to develop their business and ultimately can increase tilapia aquaculture business

and have an impact on income, profit, business feasibility. Furthermore, Zulfikri and Iskandar

(2022) said that the entrepreneurial spirit has an influence on company independence, as well

as entrepreneurial ideas and behavior, and will ultimately have an influence on business

success.

5.4.5 The Effect of Agribusiness Management on Business Success

The effect of agribusiness management on business success can be seen in Table 19

which shows that the statistical T value of 7.47 is greater than 1.96 and the P value = 0.000 (p

≤ 0.05). These results indicate that the agribusiness management variable has a positive and

significant influence on the success of the patin fish farming business in Kampar Regency. So

this can be interpreted that if the effectiveness of agribusiness management of catfish farmers

in Kampar Regency increases, the business success of catfish farmers in Kampar Regency

will also increase.

Based on the results of descriptive analysis, it can be seen that the average score of

respondents' answers to agribusiness management variables is 91 percent. The results of this

study suggest that the elements of agribusiness management implemented by pangasius

entrepreneurs in Kampar Regency are as follows has been implemented very well. Based on

the results of the analysis of the description of the respondent's achievement level of the most

prominent agribusiness management is the implementation with an average respondent's

answer of 6.43 or 91.85 percent with a very good category. These results prove that the

perpetrators of patin fish farming in Kampar Regency agree that implementation in

agribusiness management of patin fish farming is important to understand in addition to

planning, organizing and controlling. This is evidenced by the patin fish farmers who are able

to last a long time and have an increasing number of fish ponds every year, where the patin

fish farmers in Kampar Regency master and succeed in doing good agribusiness

management, especially the implementation indicators.

Based on the loading factor value, the manifest variable that has the strongest

contribution in reflecting the agribusiness management variable is business organization with

a loading factor value of 0.92. Patin fish farmers in Kampar Regency have received several

trainings on patin fish farming management from the Kampar Regency Government such as

planning activities in patin fish breeding such as creating a vision and mission and SOPs in

patin fish farming. Training on organizing has also been obtained by catfish farmers in

Kampar Regency such as on organizing methods and conducting direct supervision, so that

farmers understand what to do and are expected to be in accordance with the previously

designed plan. Furthermore, patin fish farmers have also been informed of supervisory

management, namely making effective supervisory procedures to carry out technical and

administrative activities in improving the patin fish breeding business in Kampar District.

In principle, agribusiness management is the application of management in the

agribusiness system. Therefore, if you want to start a business in agribusiness, you need to

understand well the concepts of agribusiness management which include management

knowledge, management functions, management principles, and management fields (Barnard

et al. 2012). According to Kinicki and Soignet (2022), this strategy formulation has a strong

influence on the performance of agribusiness firms. The study further concluded that the

performance of agribusiness firms can not only be envisioned but most importantly requires

an accurate strategic management approach to be taken by those in leadership from the

formulation of strategic plans that should include all stakeholders to the implementation,

evaluation and control measures of the company to be put in place (Maroa and Muturi, 2015).

This research is in line with the results of research conducted by Dananjaya et al. (2014)

suggested that agribusiness management has a positive and significant influence on business

success.

5.4.6 The Effect of Entrepreneurial Spirit and Agribusiness Management on Business Success

The effect of entrepreneurial spirit and agribusiness management on business success

can be seen in Table 20 which shows that the value of entrepreneurial spirit and agribusiness

management can be seen in Table 20 F count is 69.86 and a significance value of 0.000

which is smaller than 0.05 (0.000 <0.05). This means that the entrepreneurial spirit and

agribusiness management together (simultaneously) have a significant influence on the

success of the patin fish farming business in Kampar Regency. Kampar Regency as one of

the patin fish producing areas has a great opportunity to do patin fish farming business. The

industrial sector is a strategic sector that is expected to support the economic growth of

Kampar Regency. This has triggered an increase in the business passion of MSME players in

Kampar Regency to continue to improve their business, by always increasing their

understanding of entrepreneurship, participating in business training, and improving the

marketing system. This aims to create a business that is strong, independent, adapts to the

surrounding environment, and develops with its own power and capabilities. This is because

for business actors, this ability can make a major contribution to economic growth.

This study supports the results of previous research conducted by Purnami (2015).

Purnami shows that there is a positive and significant influence of entrepreneurial spirit and

agribusiness management on the progress of oyster mushroom business in Pacet Mojokerto.

The same research results were also conducted by Dananjaya et.al (2014) which stated that

the entrepreneurial spirit and agribusiness management had a positive and significant effect

on the success of the Gapoktan Simantri business in Tabanan Regency.

5.5 Managerial Implications

Based on the results of the research described above, it was found that the most

important and influential causal relationship to the variable success of the patin fish business

is agribusiness management. This is because the t-statistic value of the agribusiness

management variable is greater than the t-statistic value of the entrepreneurial spirit variable

which has a causal relationship with the success of the catfish business. This means that

planning, organizing, implementing and controlling the patin fish business in Kampar

Regency has been feasible to serve as a strong basis for increasing the success of the patin

fish business. Therefore, the need for support from various parties, so that catfish

entrepreneurs can increase the success of their business.

The results also show that the entrepreneurial spirit has a positive and significant effect

on business success. This implies that the motivation possessed by catfish entrepreneurs

needs to be maintained and increased to improve business success even better in the future. In

addition to maintaining and increasing motivation, what needs to be raised is the

perseverance of catfish entrepreneurs in running their business, because perseverance has the

lowest respondent achievement value in describing the entrepreneurial spirit. Perseverance

can be improved by getting positive support from within the family or the external

environment. Entrepreneurs need to actively seek changes and things that indicate

opportunities for business success.

5.7 Weaknesses of Research

Several weaknesses of this study should be noted. First, there are design biases in this

study that may affect the results of the study due to factors that were missed to be considered

thoroughly. One of them is sampling frame bias or t he sampling frame used in this study

does not cover the entire population to be studied. In this study, only patin fish farmer

respondents in 4 sub-districts in Kamar Regency, namely XIII Koto Kampar Sub-district,

Kuok Sub-district, Bangkinang Kota Sub-district, and Kampar Sub-district to represent patin

fish farmers throughout Kampar Regency. This may reduce the broad representation of the

diversity of factors that may exist throughout Kampar Regency. Second, there is response

bias or differences in respondents' perceptions in answering the questionnaire. This can be

caused by various factors such as educational background, experience, or even different

interpretations of the questions asked, where some respondents may have different

perceptions of the meaning of the same question when asked in the questionnaire. These

differences in perception can affect the validity of the data obtained and reduce the accuracy

of the conclusions drawn from the research.

6.1 Conclusion :

Based on the results of the research analysis using the SEM smartPLS model, it can be

concluded that:

1. The entrepreneurial spirit has a positive and significant effect on the success of catfish

farming businesses in Kampar Regency, with the most significant and strongest manifest

variable being motivation.

2. Agribusiness management has a positive and significant effect on the success of pangasius

aquaculture businesses in Kampar Regency, with the significant and strongest manifest

variable being organization.

3. The business success achieved is measured through three criteria, namely company size,

business growth and profit, with the most significant and strongest manifest variable being

growth.

4. Entrepreneurial spirit and agribusiness management together (simultaneously) have a

significant effect on the success of patin fish farming businesses in Kampar Regency.

AGB 100_ASU_ASSIGNMENT 2024_THE INFLUENCE ENTREPRENEURSHIP AND MANAGEMENT AGRIBUSINESS ON SUCCESS CATFISH BUSINESS IN KAMPAR DISTRICT

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