THE ENTREPRENEURIAL COMPETENCE AND BUSINESS

Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 253

36. THE ENTREPRENEURIAL COMPETENCE AND BUSINESS

PERFORMANCE OF DAIRY FARMERS Case Study: KTTSP Kania, Tajurhalang Village, Cijeruk District, Bogor Yustika Muharastri 1 , Rachmat Pambudy 2 , dan Wahyu Budi Priatna 3 1,2,3 Science in Agribusiness Graduate Program, Faculty of Economics and Management, Bogor Agricultural University, Jl. Kamper, Wing 4 Level 5, Bogor Agricultural University Campus, Dramaga, Bogor 16680, West Java E-mail: muharastriyahoo.com ABSTRACT Dairy farming is the main job and the major income source for the most of dairy farmers in KTTSP Kania, Bogor Regency. The entrepreneurial competencies of dairy farmers as an entrepreneur are important to support the business performance. This study aims to: 1 analyze the entrepreneurial competencies of dairy farmers and business performances of the dairy farmers 2 analyze the correlation between the entrepreneurial competencies and business performance of the dairy farmers. The data were collected in March to June 2013. Applying statistical analysis on data from interview and questionnaire to 39 dairy farmers as respondents with census method, the data were analyzed with Kendall Tau Correlation analysis. The result of this study showed: 1 The entrepreneurial competencies and business performance of the dairy farmers are at the low level, 2 The entrepreneurial competencies in general has no correlation with business performance of the dairy farmers. Technical competencies and managerial competencies have a positive correlation with the real incomes of dairy farmers. Keywords: Entrepreneurship, Competence, Performance, Dairy Farmer. INTRODUCTION Entrepreneurship is the driving wheels of economic growth of a nation. Winardi 2004 stated that the role of entrepreneurship in economic development not only includes increasing output and per capita, but also bringing the changes in the structure of business and society. Entrepreneurship can absorb local resources. With the entrepreneurial activities, job opportunities can be opened, so it can have implications for the reduction in the unemployment rate. Kasmir 2006 defines that entrepreneurship is an ability in terms of creating business activity. The ability to create business activities requires the existence of creativity and innovation continuously to find something different from pre-existing so that creativity and innovation are at last able to contribute to the community. Casson et al. 2006 explained that entrepreneurial thinking is a popular notion that entrepreneurship is based on the premise Joseph A. Schumpeter 1934 stated that entrepreneurship is a picture of an innovator who creates new industries and accelerate the way the major structural changes in the economy. Robbins and Coulter 2005 defines entrepreneurship as the process experienced by a person or group of dairy farmers who dare to take the time and financial risks in an organized manner to pursue opportunities to create value and growth through innovation and uniqueness, regardless of the current resource control. Kao 1989 defines entrepreneurship as an effort to create value through the introduction of business opportunities, management risk taking according to the odds, and through the communication and management skills to mobilize human resources, finance and materials needed to bring a project towards an outcome.Building economic independence through entrepreneurship is a very important thing. Livestock sub- sector is one part of the agricultural sector has developed various types of businesses. The livestock subsector produces products with economic value that can contribute to the national Gross Domestic Product GDP. Data of General Directorate of Livestock and Animal Health 2012 showed that in 2011 the GDP value of the livestock sub-sector reached 929.2 billion dollars or 39 amounted to 1.62 percent of total national GDP. The GDP value of the livestock sub-sector from 2007 to 2011 has increased by an average growth rate of 3.93 percent per year. Businesses in the livestock sub-sector is the substantial main employer. Data General Directorate of Livestock and Animal Health 2012 showed that in 2011 the livestock sub-sector Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 254 employment as much as 4,204,213 dairy farmers or of 11.51 per cent of total employment in the agricultural sector. From the total employment, the number of male workers are 2,387,097 dairy farmers 56.78 percent and the employment of women are 1,817,116 dairy farmers 43.22 percent. Dairy farm is one of the types of businesses in the livestock sub-sector that has a good chance to develop. Fresh milk is the main product of the dairy farm. In 2012, production of fresh milk in the West Java Province is the second largest fresh milk production in Indonesia with 326 115 tonnes, or about 32.04 percent of the total fresh milk production General Directorate of Livestock and Animal Health 2012. The first biggest fresh milk producer is the East Java Province with 570 082 tonnes or 56.00 percent and the third largest is the Central Java Province with 106 224 tonnes or 10.44 per cent of the total production of fresh milk in Indonesia. The milk consumption of Indonesia continues to increase in the last five years. Increased consumption of cows milk is an opportunity for dairy farm business in the country. The consumption of dairy products has increased from 2009 to 2011. In 2011, the consumption of fresh milk in Indonesia reached 0.156 liters per capita per year or an increase of 50 per cent of fresh milk consumption in 2010 is equal to 0.104 liters per capita per year General Directorate of Livestock and Animal Health 2012. The consumption of dairy products including fresh milk, sweetened condensed milk, milk powder, baby milk powder and cheese in general showed an upward trend from 2009 to 2012. The fresh milk production in the West Java Province from 2008 to 2012 has increased. GeneralDirectorate of Livestock and Animal Health 2012 showed that the production of fresh milk in the West Java Province reached 326 115 tonnes in 2012. The average rate of increase in fresh milk production in the West Java Province reached 11.60 percent per year from 2008 to 2012.Beside producing milk, dairy farm also produces other products that have economic value, the calf and manure. The manure can be used for biogas or bio coal to meet energy needs, used as compost to fertilize crops and used for worms breeding media. The cow urine can be used as plant fertilizer and natural pesticide Sharif and Harianto 2011. The Bogor Regency is one of the areas in the province of West Java that has a lot of dairy cow population. Dairy cows is also designated as one of 17 leading commodities by the Government of Bogor Regency BP4K 2011. The population of dairy cattle and milk production in Bogor Regency has increased from 2004 to 2010. The average rate of increase in dairy cow population in Bogor regency from 2004 to 2010 was 5.60 percent per year. The average rate of increase in milk production in Bogor Regency from 2004 through 2010 reached 0.16 per cent. The dairy farm in the Tajurhalang Village, Cijeruk district is a center of dairy farm located in Bogor Regency. The population of dairy cows in the Tajurhalang Village in 2011 reached 321 cows BP4K 2011. Tajurhalang Village is a region with the third largest population of dairy cows in Bogor Regency after Cisarua District with 1 393 cows and Cibungbulang District with 604 cows BP4K 2011. Tajurhalang Village has a favorable geographical conditions as a center for the development of the dairy farm business. Dairy farmers in the Tajurhalang Village incorporated in Dairy Farmers Group KTTSP Kania and currently has a membership of 62 dairy farmers, with the number of active members who produce the milk of 39 dairy farmers. Most of the farmers do the dairy farming business as a main job and as a main source of income in the household. The majority of dairy farmers in the village of Tajurhalang make dairy farming as a handed down business from family. The dairy farmers in KTTSP Kania has a great potential to develop the dairy business. The dairy cattle business conducted by the dairy farmers in KTTSP Kania currently are the production of fresh milk, the fresh milk sales, and the processing of fresh milk. The production of the fresh milk produced by Kania KTTSP distributed to KPS Dairy Farmers Cooperate Bogor, to the entrepreneurs that using milk as the raw material yoghurt and milk soap household producers, and personal purchases. For the dairy products, the dairy farmers process the milk becomes dodol, caramel candies, kerupuk, pangsit, and stick snack. The dairy products are only produced when getting orders from customers because the dairy farmers have difficulty in marketing the dairy products. The dairy farmers have cultivating skills and making dairy products in dairy farming business, but these skills have not been optimally utilized to develop the potential and take advantage of the business opportunities. The management of dairy farms in the Tajurhalang Village are relatively traditional. Most of the dairy farmer businesses are in a small scale. Based on these conditions, it can be concluded that the dairy farm business in KTTSP Kania Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 255 Tajurhalang Village still can be developed to be a better businesses in order to increase the income of dairy farmers. Therefore, it is necessary to conduct research on the entrepreneurial competencies and the business performance of the dairy farmers in KTTSP Kania, Tajurhalang Village. Thus, it is expected that the dairy farm businesses in Tajurhalang Village can be developed in both on-farm subsystem and downstream subsystem, including the processing and the marketing of the livestock products. The performance assessment is one step to measure the success of a business Riyanti 2003. The performance related to job satisfaction and the level of consideration given magnitude, and is affected by the skills, abilities, and individual traits Moehoeriono 2009. This suggests that there ia a relationship between the entrepreneurial competencies and the business performance of entrepreneurial ventures. The entrepreneurial competencies related to the success of a business in small and medium enterprises Ahmad et al. 2010. A higher level of competence will have an impact on the success of the business higher. Man et al. 2008 suggests that the entrepreneurial competencies related to the business performance in small and medium-sized businesses, measured by competitive scope and organizational capabilities.Based on these conditions, it is necessary to do an analysis of the entrepreneurial competencies and the business performance of the dairy farmers in the KTTSP Kania, Tajurhalang Village, Bogor. This study aims to analyze the entrepreneurial competencies and the business performance of the dairy farmers and analyze the entrepreneurial competencies relationship with the business performance of the dairy farmers. METHODS The data used in this study were primary data and secondary data. The primary data were obtained through questionnaires and direct interviews with respondents. The secondary data were obtained from literature books and journals. The respondent retrieval methods used in this study was the census method of all active members of the dairy farmers in the KTTSP Kania, Bogor Regency with 39 dairy farmers. In this study, the measurement of the variables is divided into 2 parts, ie the entrepreneurial competencies with 18 indicators and the business performance variables with 3 indicator. Each indicator measurements done with the ordinal scale refers to the principle of the Likert scale with a scale of 1 to 4. Related to the validity of the data in this study, the result test of the validity of the instrument and the validity of the instrument or scale can be found in Appendix 1 and 2. The reliability test was conducted in the study to determine the level of consistency of the instrument when used anytime and by anyone so will result in the data of the same or nearly the same as before. The reliability test using Cronbach formula Cronbach Alpha was tested in 30 respondents produced Cronbach Alpha value of 0.854, which means that that the instruments used reliable. The reliability test results can be seen in Appendix 3. The data used in this study were analyzed using the descriptive analysis and the Kendall Tau correlation analysis. The correlation analysis stated the degree of the closeness of the relationship between the variables Trihendradi 2009. RESULTS AND DISCUSSIONS The Entrepreneurial Competences of The Dairy Farmers The average level of the entrepreneurial competencies of the dairy farmers in the Tajurhalang Village is at a low level. The most of the dairy farmers have entrepreneurial competence in a low level, with 20 dairy farmers 51.28 percent. A total of 1 diary farmers 2.56 per cent belongs to the low level, 13 dairy farmers 33.33 percent were included in the medium level and 5 dairy farmers 12.82 percent categorized into the high level. This shows that in general the dairy farmers still do not have the expertise skills in organizing the dairy farm business. Table 1 The levels of the entrepreneurial competence of the dairy farmers No. Competence Level Score Total dairy farmers Percentage 1 Very low 72-125 1 2.56 2 Low 126-179 20 51.28 3 4 Medium High 180-233 234-288 13 5 33.33 12.82 Total 39 100 The entrepreneurial competence level per indicators categorized into four based on the average score of the items of each competency indicator questions, which are very low score 4-7.99, low score of 8- 10.99, medium score 11-13.99 and high score 14-16. The average level of the entrepreneurial competence in the dairy farmers in KTTSP Kania is at a low level with an average total score 10.23. The Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 256 entrepreneurial competence level is divided into two parts, namely technical competence and managerial competence. The average level of technical competence of dairy farmers is at a low level with an average score of 10.35. The average level of managerial competence of the dairy farmers is at a low level with a mean score of 10.22. The indicator of the technical competence that has the low score average value is lactation skill. It is caused by the ability of the farmers to maintain the cleanliness and the hygiene during lactation process is low. The weakness of the farmers in lactation skill affects the milk quality total of the bacteria and the resulting impacts on the low milk prices received by farmers from KPS Bogor. The indicator of the managerial competence that has the lowest value of the average score is marketing skill. The farmers are still depends on KPS Bogor to market their milk though the prices that received by the dairy farmers is low. The dairy farmers are also still have many difficulties in marketing the dairy products, so the dairy farmers only produce the dairy products based on consumer orders only. Table 2 The levels of the entrepreneurial competence of the dairy farmers per indicator No. Competense Average score Competence level 1 Technical Competence Development of livestock breeds 10.72 Low 2 Nutrition and animal feed 9.90 Low 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Reproduction Lactation Dairy biosecurity Dairy comfort Recording Processing of livestock products Average Managerial Competence Business plan Human resource management Marketing management Finance management Business evaluation Communication Negotiation Leadership Ability to find the opportunities Ability to establish cooperation with partners Average 11.03 9.67 11.28 10.44 10.05 9.69 10.35 9.33 10.54 9.97 9.05 9.08 11.36 10.41 11.28 9.54 11.64 10.22 Medium Low Medium Low Low Low Low Low Low Low Low Low Medium Low Medium Low Medium Low Average of the entrepreneurial competence 10.23 Low The Business Performance of The Dairy Farmers The measurement of the business performance in this study consists of three indicators, ie. the productivity of the lactating dairy cows, the number of dairy cows ownership and the income from dairy businesses. The classification level of the business performance per indicator classified by the score of 3, ie very low score of 3 to 5.34, low score 5,35-7.59, moderate score 7.60-9.75, and high score 9.76-12. The most of the dairy farmers are at the level of the business performance, with 15 dairy farmers 38.46 percent. A total of 11 dairy farmers 28.21 percent belong to the very low level, 10 dairy farmers 25.64 percent classified as medium, 3 dairy farmers 7.69 per cent belong to the high level. The average level of the business performance of dairy farmers are at a low level with a mean score of 2.3. Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 257 Table 3 The levels of the business performance of the dairy farmers No. Competence Level Score Total dairy farmers Percentage 1 Very low 3-5,34 11 28.21 2 Low 5.35-7.59 10 25.64 3 4 Medium High 7.6-9.75 9.76-12 15 3 38.46 7.69 Total 39 100 The business performance indicators of the dairy farmers in KTTSP Kania indicator are divided into four levels, ie very low score 1-1.7, low score 1.8-2.4, medium score 2.5-3.2 and high 3.3-4. The average of the cattle productivity is at a low level with an average score of 2.36. The average ownership of the lactating cows is at a low level, ie with an average score of 2.31.The average income of the dairy farmers is at a low level, with the average score 2.53 Table 4 The level of the business performance of the dairy farmers No. Business performance Average score Business performance level 1 Lactating cows productivity 2.36 Medium 2 Dairy cows ownership 2.31 Low 3 Dairy farmer income 2.53 Low Average 2.40 Low The productivity of the lactating dairy cows is the average milk production of lactating cows per day. Rusdiana and True 2009 stated that in the dairy business in Indonesia, the average lactation production is 10-12 literscowday. The average productivity of the lactating dairy cows in KTTSP Kania is 9.19 literscowday or included in a low category. The most of the productivity of the dairy farmers belong to the low level, with 19 dairy farmers 48.72 percent. A total of 2 dairy farmers 5.13 per cent belong to the very low category, 16 dairy farmers 41.02 percent included in the medium category and 2 dairy farmers 5.13 per cent in the high category. The low level of the lactating dairy cows productivity in KTTSP Kania caused by the feeding. The feeding does not always conform to the ideal dose, so the milk production of the dairy cows was not optimal. In addition, the unfavorable lactation livestock management caused the large number of the dry lactating cows or the cows do not produce at all, without balanced with a minimum number of the lactating dairy cows. The ideal business scale for dairy farm agribusiness is a minimum 7 lactating cows. To maintain this number, the minimum number of dairy cows that are 10 cows Rusdiana and True 2009. The number of the productive and non productive dairy cows need to be managed, because too many non-productive dairy cows will lead to low income. The average percentage the ownership of the lactating cows is classified in the low category. The most of the dairy farmers have a very low ownership, with 14 dairy farmers 35.90 percent. A total of 10 dairy farmers 25.64 percent classified in the very low category, 4 dairy farmers 10.25 per cent belong to the low category and 11 dairy farmers 28.21 percent belong to the high category. The dairy farmers income is revenue earned from the dairy farm business milk and dairy products each month. The average income of the dairy farmers reached Rp 1,822,368 per month which can be classified as the middle income. The majority of dairy farmers in the Tajurhalang Village has a very low income with 18 dairy farmers 46.15 percent, 6 dairy farmers 15.38 per cent belong to the low income level, 7 dairy farmers 17.95 percent were classified in the middle income level and 8 dairy farmers 20.51 per cent belong to the high income level. Generally, the low income of the dairy farm business caused by the unbalanced ownership of productive and non-productive lactating cows. It causes a higher feeding costs then have an impact on the low income of the dairy farmers. The availability of the feed and the milk prices had impact on the profitability Siregar SB and Kusnadi U 2004. The selling price of the fresh milk that relatively low also Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 258 causes the low income of the dairy farmers. There is 22 dairy farmers 56.41 percent that the dairy farm business become their primary source of the household income. The Correlation Relationship between The Entrepreneurial Competence and The Business Performance The entrepreneurial competence in general has no a real positive correlation with the business performance, with =0.062 and significance value of 0665, the real level of α=0.05 level. The entrepreneurial competence has no correlation with the productivity of the dairy cows and the lactating dairy cows ownership. Only the dairy farmers income indicator that were correlated with the entrepreneurial competencies, with =0.462 and significance value of 0.001, with the significance level α=0.05 level. Table 5 The relationship correlation between the entrepreneurial competencies with business performance of the dairy farmers No. Business performance Competence Kendall Tau Coefficient Significance 1 2 3 Business performance Lactating cows productivity Dairy cows ownership Dairy farmer income 0.062 0.179 0.152 0.462 0.665 0.227 0.284 0.001 Generally, the entrepreneurial competence is not significantly correlated with the business performance in KTTSP Kania dairy farmers Appendix 4. The technical competence and the managerial competence of each has no a real correlation with the productivity of the lactating dairy cows and the dairy cows ownership. The technical competence and the managerial competence each has a correlation with the incomes of the dairy farmers from the dairy farm business. The technical competence has a real positive correlation with the income , with =0.424 and the significance value of 0.002, the significance level α=0.05 level. The managerial competence has a positive co rrelation with income, with =0.493 and the significance value of 0. 000, the significance level α=0.05 level Appendix 5. CONCLUSSION The average level of the entrepreneurial competencies of the dairy farmers in KTTSP Kania, Tajurhalang Village is at the low level. The average level of the business performance of the dairy farmers is at the low level. The entrepreneurial competence in general has no a real correlation with the business performance. The technical competence and the managerial competence each have a real positive correlation with the incomes of the dairy farmers from the dairy farm business. The training needs to be done to improve the technical competence and the managerial competence involving farmers directly in practice. The activation of dairy farmers group activities involving dairy farmers could be increased to improve the entrepreneurial motivation of the dairy farmers. In addition, the re- activation of dairy farmers group activities related to the milk processing and the marketing of the dairy products also needs to be conducted to increase the value-added of the milk so it can increase the income of the dairy farmers in KTTSP Kania, Bogor. REFERENCE Ahmad NH, Ramayah T, Wilson C, Kummerow L. 2011. Is Entrepreneurial Competency and Business Success Relationship Contingent Upon Business Environment? A Study of Malaysian SMEs. International Journal of Entrepreneurial Behaviour and Research. 163:182-203. Badan Pelaksana Penyuluhan Pertanian, Perikanan, and Kehutanan. 2011. Data Kelompok Tani Ternak di Kabupaten Bogor Tahun 2011. Bogor: Pemerintah Kabupaten Bogor. Casson M, Yeung B, Basu A, Wadeson N. 2006. The Oxford Handbook of Entrepreneurship. New York: Oxford University Press. Direktorat Jenderal Peternakan and Kesehatan Hewan, 2012. Statistik Peternakan and Kesehatan Hewan 2012. Jakarta ID: Kementrian Pertanian RI. Kao, J. 1989. Entrepreneurship, Creativity, and Organization: Text, Cases, and Readings. New Jersey: Prentice Hall. Kasmir. 2006. Kewirausahaan. Jakarta: PT. Raja Grafindo Persada. Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 259 Man TWY, Lau T, Snape E. 2008. Entrepreneurial Competencies and The Performance of Small and Medium Enterprise: An Investigation through a Framework of Competitiveness. Journal of Small Business and Entrepreneurship. 213: 257-265,267-271,273-276,377. Muharastri, Yustika. Karakteristik Wirausaha, Kompetensi Kewirausahaan, dan Kinerja Usaha Peternakan Sapi Perah di KTTSP Kania Bogor. Tesis. Institut Pertanian Bogor. Riyanti BPD. 2003. Kewirausahaan dari Sudut Panandg Psikologi Kepribadian. Jakarta: PT. Gramedia Widiasarana Indonesia. Robbins SP, Coulter M. 2005. Management 8 th ed. New Jersey: Pearson Education International. Rusdiana S, Sejati WK. 2009. Upaya Pengembangan Agribisnis Sapi Perah and Peningkatan Produksi Susu melalui Pemberdayaan Koperasi Susu. Forum Penelitian Agro Ekonomi. 271: 43-51. Siregar SB, Kusnadi U. 2004. Peluang Pengembangan Usaha Sapi Perah di Daerah Dataran Rendah Kabupaten Cirebon. Media Peternakan. 272:77-78. Winardi J. 2004. Entrepreneur and Entrepreneurship. Jakarta: Prenada Media. APPENDIX Appendix 1 The validity test results of the entrepreneurial competence indicators of the dairy farmers No. Competence Validity Correlation Coefficient Significance α≤ 0.05 Validinvalid 1 Development of livestock breeds 0.718 0.000 Valid 2 Nutrition and animal feed 0.800 0.000 Valid 3 Reproduction 0.825 0.000 Valid 4 Lactatation 0.820 0.000 Valid 5 Dairy biosecurity 0.697 0.000 Valid 6 Dairy comfort 0.831 0.000 Valid 7 Recording 0.808 0.000 Valid 8 Processing of livestock products 0.660 0.000 Valid 9 Busines plan 0.844 0.000 Valid 10 Human resource management 0.791 0.000 Valid 11 Marketing management 0.876 0.000 Valid 12 Finance management 0.880 0.000 Valid 13 Business evaluation 0.860 0.000 Valid 14 Communication 0.882 0.000 Valid 15 Negotiation 0.906 0.000 Valid 16 Leadership 0.756 0.000 Valid 17 Ability to find the opportunity 0.773 0.000 Valid 18 Ability to establish cooperation with partners 0.907 0.000 Valid Appendix 2 The validity test results of the business performance indicators of the dairy farmers No. Business performance Validity Correlation Coefficient Significance α≤ 0.05 Validinvalid 1 Lactating cows productivity 0.458 0.003 Valid 2 Dairy cows ownership 0.549 0.000 Valid 3 Dairy farmer income 0.754 0.000 Valid Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 260 Appendix 3 The reliability test result Case Processing Summary N Cases Valid 39 90.7 Excluded a 4 9.3 Total 43 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .854 35 Appendix 4 The correlation relationship between entrepreneurial competence and the business performance No. Competence The correlation between entrepreneurial competence and the business performance Correlation Coefficient Significance Technical Competence 0.105 0.376 1 Development of livestock breeds 0.165 0.185 2 Nutrition and animal feed 0.274 0.030 3 Reproduction 0.094 0.452 4 Lactation 0.063 0.611 5 Dairy biodiversity 0.091 0.467 6 Dairy comfort 0.084 0.506 7 Recording 0.082 0.509 8 Processing of livestock products 0.006 0.960 Managerial Competence 0.211 0.074 9 Business plan 0.254 0.039 10 Human resource management 0.212 0.087 11 Marketing management 0.177 0.149 12 Finance management 0.205 0.096 13 Business evaluation 0.228 0.062 14 Communication 0.254 0.042 15 Negotiation 0.264 0.035 16 Leadership 0.236 0.056 17 Ability to find the oppotunity 0.156 0.209 18 Ability to establish cooperation with partners 0.262 0.034 Entrepreneurial Competence 0.062 0.665 Appendix 5 The correlation relationship of the technical and managerial competence with the business performance of the dairy farmer No. Business performance Technical Competence Managerial Competence Correlation Coefficient Significance Correlation Coefficient Significance 1 2 3 Lactating cows productivity Dairy cows ownership Dairy farmer income 0.244 0.152 0.424 0.089 0.273 0.002 0.097 0.076 0.493 0.495 0.581 0.000 Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional Jatinangor, 16 November 2013 ISBN: XXXXXX 261

37. PENGEMBANGAN MODEL PEMBIAYAAN RANTAI PASOK