Impact of entrepreneurial characteristics, access to credit and product innovation on the coffee powder agroindustry business performance in rural areas

Abstract

The competitiveness of rural coffee agroindustry needs to be designed to increase the income of coffee entrepreneurs in rural areas. The purpose of this study was to analyze the impacts of entrepreneurial characteristics, Access to Credit, and product innovation on the business performance of the coffee powder agroindustry. Data collection was carried out through field observations in-depth interviews. Key informants were all parties related to the development of the Robusta coffee agroindustry, and the research respondents were 49 coffee powder processors in coffee canters in Tanah Datar Regency. Data analysis was performed using descriptive methods and the Structural Equation Model (SEM) using smartPLS. Entrepreneurial characteristics have a significant effect on access credit, and then Access to Credit has a significant effect on business performance. The entrepreneurial characteristics also have a significant effect on the coffee powder agroindustry business performance.