Entrepreneurship intention in agricultural sector of young generation in Indonesia

Abstract

Purpose This paper aims to discuss Indonesia as a country having a young generation resource crisis in agricultural sectors, and this crisis contributes more than 32.9 per cent higher unemployment than other sectors. Therefore, creative youths are needed to build the sector through entrepreneurship activities. Design/methodology/approach The low condition of youth entrepreneurship intention in agricultural sectors leading the Agriculture Ministry of Indonesia launches an Agricultural Young Entrepreneurship Growing Program 2016 (Program Penumbuhan Wirausaha Muda Pertanian, PWMP 2016). Intention in growing phase is critical to avoid the program failure. Findings This research was aimed to analyze entrepreneurship characteristics and factors affecting the intentions. The research was conducted in three cities, Bogor, Lampung and Bandung, with 189 respondents who accepted business support from the PWMP in 2016. The accumulated data were then analyzed using descriptive analysis and structural equation model. Respondents have highly average trends on behavior belief, normative belief, motivation to comply, control belief, control belief power and intention. While, only the evaluation of the consequence to give the medium trend is about 50.26 per cent. Originality/value Factor affects to the entrepreneurship intention in agricultural sectors is a subjective norm or external factor, and both the attitude toward behavior and perceived behavioral control factors do not affect entrepreneurship intention in the agricultural sector.