Analyzing Entrepreneurship Among Organic Paddy Farmers in North Sumatra
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Currently, with the increase in health and environmental awareness, organic rice demand is likely to increase. This could be an opportunity for organic paddy farmers to improve their income. However, this could only be realized if the farmers have the entrepreneurial ability to manage the dynamics of the organic rice agribusiness system. The aim of this study is to analyze the entrepreneurship among organic paddy farmers in North Sumatra. Data were collected from depth interview with 45 organic, semi organic and conventional paddy farmers, and analyzed with Structural Equation Model (SEM). The level of entrepreneurship is formed by 4 possible factors namely networking, the ability to identify and solve problems, reasons to become a paddy farmer and risk taking behavior. The factor loadings indicate that among them only networking and risk taking behavior appear to be important. Four possible variables namely land size, level of education, age and cosmopolitan level are included in the model. The estimation result shows that only cosmopolitan level significantly influences the entrepreneurial level.