Investigating the entrepreneurial behaviour of farmers to encourage the development of horticultural agribusiness clusters: The case of shallot farmers in Solok Regency, West Sumatera

In Indonesia, shallot production fluctuations can impact price fluctuations and even lead to inflation. The government program to develop new production centres of shallot to fill the supply gap during the off-season are expected to stabilize the prices. One of the emerging development centres of shallots is Solok Regency, West Sumatra. A study on farmers’ entrepreneurial behaviour is needed to support the implementation of the development program and analyze the influence of entrepreneurial behaviour on the performance of shallot business. A survey was conducted in Solok Regency. The survey was carried out by purposive sampling method, with a total sample of 95 shallot farmers. Data were analyzed using Partial Least Square (PLS) to understand the influence of internal and external factors on farmers’ entrepreneurial behaviour and how the entrepreneurial behaviour influences business performance. The results showed that internal and external factors positively and significantly affect entrepreneurial behaviour, and entrepreneurial behaviour has a positive and significant effect on business performance.