Entrepreneurial Empowerment of Agriculture and Industrial Sector in Rural Areas of Semarang Regency Indonesia

Abstract

Sources of income of farmers not only from the agricultural sector, but farmers often also work in other sectors such as in the non-agricultural sector. In this regard, the economic empowerment of farmers should also consider the development of the capacity of farmers outside the agricultural sector. This research aims to develop a general model of entrepreneurial empowerment in agriculture and non-agriculture industry based on factors that affect economic welfare of farmers who sought in agriculture and non-agricultural industries in rural areas in Semarang Regency. The study was conducted by distributing questionnaires to 342 farmers who only work in agriculture and farmers have a second job in the agro-processing industry sector. The analysis was performed by multiple linear regression analysis approach. The results found in this study is the empowerment of poor rural farmers not only can be done by increasing the capacity of physical resources (land tenure, irrigation networks), but also non-physical resource capacity (capacity management, social capital, entrepreneurship), and the relationship between business sectors farmer. The implications of the results of this study are farmers with low agricultural land tenure and no access to irrigation should be encouraged to self-employed in the industrial sector in addition to the agricultural sector to increase their revenue through the development of management and entrepreneurial capacity.