Entrepreneurial Orientation Model in Cluster Development of Potato Agribusiness

Abstract

Abstract-The objectives of this study is to design a model of entrepreneurship in the cluster development of potato agribusiness as an effort to increase revenue and bargaining position of farmers in Aceh Province. System dynamics methodology was applied to achieve these objectives. The study was carried out in Aceh Tengah and Bener Meriah Districts as potato production center in Aceh Province. Identification required for cluster models had been conducted through study of literature and interviews with experts from stakeholders including practitioners and the policy makers involved in providing input supply, cultivation, and marketing of potato output. Data collected consisted of primary and secondary data. The primary data were obtained through observation, discussion, and in-depth interview with respondents, While secondary data had been obtained from the study of literature from various sources of literature, books, scientific journals, and a variety of publications related to this study. Formulation of the models was conducted by using Vensim DSS software, followed by simulation. The results of this study showed that the higher the market opportunities and farmer returns, the higher the motivation of new entrepreneurs in investing, and after adding a number of farmer's competent scenarios, showed an increase in production of potato farmers.