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RED CHILI AGRIBUSINESS ENTREPRENEURSHIP MODEL

(Case Study in Gapoktan KiSingasari, Kawali District, Ciamis Regency, West Java)

Hepi Hapsari, Yayat Sukayat, Neni RostiniFaculty of Agriculture, Padjadjaran University

Jl. Raya Bandung – Sumedang Km. 21 Jatinangor 45363e-mail : hepihapsari14@gmail.com

Abstract. Red chilli prices can affect rupiah inflation is such a unique phenomenon. Central Bank of Indonesia is very concerned to foster the agribusiness of chili so the price is stable and with reasonable price. Red chili farmers are businessmen special figure in horticulture agribusiness. They manage the business of chili from upstream to downstream and involve many stakeholders. This research aims to: (1) describe the entrepreneurial process red chili farmers; (2) formulate a model of entrepreneurship red chili farmers. The research design was a qualitative with soft system metodhology (SSM). The respondents are chili farmers which is successful in business for the last ten years. The results showed that the motive red chili farmers done agribusiness was the motive of economic, social, and spiritual. Their entrepreneurial affecting factors were family background, social environment, personal character, the character of its business, and the values of entrepreneurship which was believed. The values of entrepreneur include rational-functional value, the value of social-emotional, and spiritual values. Chili farmer was an entrepreneur who has a figure of a positive self-concept and see things from the positive side. Red chili agribusiness entrepreneurial model was market oriented and balance of all the sub system in agribusiness. Keywords : model, entrepreneurship, agribusiness, red chili

Abstrak. Harga cabai dapat mempengaruhi inflasi rupiah merupakan fenomena yang unik. Bank Indonesia sangat berkepentingan untuk membina agribisnis cabai agar harganya stabil dan tidak telalu tinggi. Petani cabai merah adalah sosok pengusaha yang istimewa dalam agribisnis hortikultura. Mereka mengelola bisnis cabai dari hulu hingga hilir dan melibatkan banyak stakeholder. Penelitian ini bertujuan untuk : (1) mendeskripsikan proses kewirausahaan petani cabai merah; (2) merumuskan model kewirausahaan petani cabai merah. Desain penelitian kualitatif dengan metode penelitian soft system methodology (SSM). Responden penelitian adalah para petani cabai yang sukses dalam bisnisnya dalam sepuluh tahun terakhir. Hasil penelitian menunjukkan bahwa motif petani dalam agribisnis cabai merah adalah motif ekonomi, sosial, dan spiritual. Faktor-faktor yang mempengaruhi kewirausahaan mereka adalah latar belakang keluarga, lingkungan sosial, karakter pribadi, karakter bisnisnya, dan nilai-nilai entrepreneurship yang diyakini. Nilai-nilai entrepreneur meliputi nilai rasional-fungsional, nilai sosial-emosional, dan nilai spiritual. Petani cabai adalah sosok entrepreneur yang mempunyai konsep diri positif dan memandang segala sesuatu dari sisi positif. Model kewirausahaan agribisnis cabai merah berorietansi pasar dan keseimbangan semua sub sistem agribisnis.

Kata kunci : model, kewirausahaan, agribisnis, cabai merah

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The Background of Study.

Illustrated as an individual entrepreneur is innovative, creative, and have a need-

minded paradoxical achievement more than the average. Entrepreneur regarded as the

reference group (trendsetters), a source of inspiration and positive spirit to those who interact

with it. In the world of agribusiness, entrepreneurs touted as an agent of economic

development and social change agents agriculture due for creativity and innovation to

develop agribusiness impact on the prosperity of its farmers. Through the entrepreneurs,

farmers know the international markets, modern markets, post-harvest processing, sub-

tropical and cultivation techniques that had never previously occurred to farmers.

Agri-horticulture interesting to study because the technology is rapidly evolving

(innovative), broad market (traditional, modern, international), the price is volatile, can be

cultivated in all types and land use, and business actors ranging from small farmers to large

employers. Agribusiness become phenomenal appeal, unlimitted, and resistant to the

monetary crisis. After the financial crisis of 1997, many people engage in agribusiness.

Although there are successful, but some may have failed due to lack of experience only as a

follower.

Red chili is horticulture belle of concern to many parties, because prices tend to soar

chili, volatile, and is a strategic commodity needed by community. At current high prices,

farmers can reap the benefits of tens of millions. But when prices fall, kerugiannnya could be

larger. Therefore, Bank Indonesia as the monetary regulatory agencies concerned with the red

chili pepper prices due to fluctuations contributed significantly to inflation. Agribusiness chili

is an entrepreneur who dared to risk due to fluctuations in the price of chili. They are also

well-known as a progressive farmer in accordance with the character of the commodity is

cultivated. This study aims to: (1) describe the entrepreneurial process red chili farmers; (2)

formulate a model of entrepreneurship red chili farmers. The study was conducted in chili

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production centers in West Java namely District Kawali, Ciamis District and District Taraju,

district, Tasikmalaya, in April-October, 2016.     

Literature Review.

Humanistic Psychology states that "humanistic psychology is not just the study of

'human being'; it is a commitment to 'human becoming "(Matson, 1973: 19). According to the

humanistic view that the essence of humanity is not just a human being but a human

becoming. Man becomes more meaningful if he is seen as "being human" (becoming human)

not only on the basis of "humanitarian" (human being). A "process to" that part of human

nature of self.

Weber said that human society is a reality that is full of deep meaning. Therefore,

processes that affect the real history of mankind is more mentalitet. In this sense, the "social

structure" and also form social institutions can be said is simply a metaphor or a mirror of an

idea and the power of ideas. According to Weber, the development of modern economies rise

and orientation sustain growth, something to do with a shift in attitudes and social character

of the economic activity.

In line with the views of humanism, we will be able to reveal how nature herself an

entrepreneur when "the process of becoming" entrepreneur can be searched. How a process

occurs that a person experiences so that he became an entrepreneur a very different life than

before, will bring us to the explanation of the background or the reasons and motives (or

"account") to be an entrepreneur.

Of the ten informants were interviewed and observed its business activities, there are

some similarities and differences of events or the motive behind them being an entrepreneur.

Some of the events or similar motives will be made in a single category, in order to obtain

several categories. Categories-categories that as a first step to make the construction of the

second level. Creswell suggested that for the next stage after observing the general picture,

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the phenomenological study was to observe carefully the statement of the interview with a

"textual" and was made in several categories of construction, until it reaches the level of

saturation data. The result is a form of a set of data that is meaningful or meaning units.

(Creswell, 1998).

Some entrepreneurs put forward various motives why they plunge into the

agribusiness and will continue to pursue the field with the belief that agriculture is a

prospective business because Indonesia is an agricultural country. Almost certainly all

informants interviewed did not mention just one motif, and has a resemblance to one another.

In various ways and interviews more than once, data that has been saturated can be

considered as valid information for this issue.

According to McClelland (1961) in Winardi (2008), entrepreneurship is determined

by the achievement motive (achievement), optimism, attitude towards values (value attitudes)

and success (entrepreneurial status). McClelland looked at the behavior of entrepreneurs from

a psychological standpoint. Someone dares to be an entrepreneur because it has a high need

for achievement (achievement-oriented) or have a high n'Ach. They dare to do something

risky, previously unthinkable, incomprehensible environment with a view to a better life

economically, socially and inward. Mc Clelland also noticed sociological factors that may

explain the difference n-Ach on certain individuals and society different from the others. That

is why the Chinese community has n'Ach higher than indigenous people.

Psychosocial theories related to entrepreneurship emphasizes the motives or

objectives of an entrepreneur. Cole (1982) in Suryana (2010) noted the wealth, entrepreneurs

crave prestige, life assurance and social services to the community. Stepanek (1975) in

Suryana (2010) emphasizes the non-economic objectives of an entrepreneur, such as self-

esteem / existence, power and respect of the community. An entrepreneur who is generally

unsuccessful in formal education, may not be high officials or officials. He will show his

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existence through the establishment of their own businesses. There is no other choice for a

man who did not succeed in formal education, except for open employment or become

entrepreneurs themselves.

Most psychologists agree that successful triggers, including triggers for switching or

choose a profession become entrepreneurs (entrepreneurs), originated from yourself (Stoner,

1992) in (Winardi, 2008). The factors that are outside only affect a relatively small

(Muhammad, 2004). Based on some of the above opinion, the motive of entrepreneur can be

categorized into three, namely first economic motive (financially free), both social motives

(wanting to be the boss, free spirit of the employer, be a role model of society, appreciated,

close to family and the people a loved one, a lot of relation), the third motif psychiatric

(satisfied as useful to other people, create jobs, avoid dismissal at any time, avoiding post

power syndrome, creative freedom, freedom from routine, to reach the "dream" that became

his obsession, be perfect man and useful. an entrepreneur may have one, two or three motives

as well. According to Kiyosaki and Lechter (2003) in the business can not be separated from

the target profit and financially. Therefore, the main motive of someone doing business in

general because of the money. More , motifs can be developed along with the growth of

business and personal maturity entrepreneur.

1) Functional Value as economic motives .

The values of a function can be associated with the values of rational material. Initial

motive entrepreneurship generally because they want financial gain (money). Theories of

entrepreneurship was originally developed by economists, so that orientation is a fundamental

entreprenurship economy. Business orientation can be assessed based on the hierarchy of

human needs (Maslow, 1934 in Suryana, 2003) that begins with physical needs

(physiological needs). The motive, according Kertajaya (2003) belongs to the category of

functional value. The need for functional value is the most simple or primitive. While the

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needs of the most high value is self-actualization (self-actualization needs) or the work

challenge (challenge).

The most dominant motivation that affects a person's employer is financial freedom

(financial freedom). Achieve financial freedom by Kiyosaki (2003) in his book The Cashflow

Quadrant, occurs when a person is in the business line. In the line of business people working

for the entrepreneur and investor in the path, the money work for him. So all resources

working to serve entrepreneurs. Especially for a charismatic entrepreneur who holds the trust

value, all resources would be proud to associate with him.

2) Emotional value as a social motive

Rarely an entrepreneur starts a business for social motives first. Social motives

usually follow or complement the economic motives like two sides of a coin and then replace

the economic motives when a business has been running quite well established. Based on

Maslow's hierarchy of needs, social motives, including social and esteem needs. Kertajaya

(2003) enter the social motives as emotional value. Social motives, among others: want to be

the boss, free spirit of the employer, be a role model of society, appreciated, close to family

and loved ones, a lot of relation (friend).

Based on the theory of needs Maslow (1934) in Ritzer et.all. (2010) put the social

needs and esteem needs as the basis of social motive. While McClelland (1971) in Winardi

(2008) put the need for power (n'Pow) and the need for affiliation (n'Aff) as the basis of

social motive. n'Pow is a desire to influence, control, and dominate others. n'Aff is the desire

to be accepted and liked by others.

3) Spiritual value as a motive deeds.

Kertajaya (2003) calls this motif as a spiritual value. While Maslow (1934) in Ritzer

et.all. (2010) incorporate this motif as a follow-up self-actualization needs. The need for self-

actualization is the hierarchy of the peak in the theory of Maslow's needs. After money, old

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age security, relationships, and social status is obtained, people will look for challenges that

are not economically and socially. Challenge or self-actualization is more to the satisfaction

of the soul or spiritual. According to Maslow few people who can reach the top spiritual

needs because they have to travel four previous hierarchy and must race against the finite

human life. Many people who dwell on the lifelong physical needs without being able to meet

social needs, especially spiritual needs.

Methodology

The paradigm of qualitative research is to describe the process and models. The

research method is soft system methodology (SSM). The research location in Gapoktan

Kisingasari, Kawali, Ciamis. This location is the center of the best red chili in West Java.

The primary data is in the form of opinion research subjects (farmers businessman chili)

either individually or in groups, the observation of the farming and agribusiness chili.

Respondents' opinions about the values they believe entrepreneurship, the entrepreneurial

process in which they live, and the entrepreneurial model of agribusiness chili. Primary data

collection techniques with in-depth interviews (depth interview) and observational participate

(participatory observation). The respondent determined by purposive, as many as 25 farmers

succeed. Secondary data were obtained through a literature review of Gapoktan Kisingasari,

Department of Agriculture and Vegetable Crops Research Institute (Balitsa).

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Figure 1. The seven stage of Soft System Metodhology (Wilson, 2001)                               

Result and Discussion

1. Process Entrepreneurship Peasant to Farmer .

A process is a choice. By observing "the process of becoming", we will be able to

better understand why people choose a life as an entrepreneur who face many uncertainties

and risks willingly leave the profession earlier are on life assurance. When a person is

determining the choice of his life to become an entrepreneur, although it was initially unsure

about the future, not knowing what will happen next, it is doubtful even lamented by family

and friends since leaving the "establishment", then we will be able to understand why they

dare changing the way of life, thinking and behaving "different from the others", if we can

put ourselves in the essential values of entrepreneurial they believe, philosophy and their

ideals.

         Character entrepreneur is personal traits that are typical of an entrepreneur. The

character was oriented to the specific values that are believed entrepreneur. The values

include the entrepreneur economic values (material), social (human), culture (customs) and

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religious (spiritual). As a businessman, entrepreneur has the spirit of the pursuit of profit,

cooperating with others based on which he believes business ethics and dedication to God as

the ultimate goal of business. Business is social action, then the entrepreneur must also have

the spirit to build relationships and caring for others. According to the informant, the business

is something that is not certain, then the spiritual power will lead him to get that certainty.

Economic motives

Entrepreneur with economic motives, his past is not always poor or lack of money so

he changed professions to become entrepreneurs. Some of the respondents have a good

economic background. Business motives they originated from concerns about the future after

retirement, the risk of layoffs or less prosperous old age. They want to have a secure financial

security for the family and his old days, even though his salary as an employee actually

arguably inadequate.

All respondents had economic motives at the beginning of their careers as

entrepreneurs. Along with the mental maturity and peak of the learning process, then the

economic motives became not the first and not the only one. At the time of the study, all the

informants said that the economic motive is no longer become the first in the business. Even

if the financial benefits are endeavored, it is solely because an employee must live and many

farmers depend on market guarantees. Then the company must be lasting to obtain a

reasonable profit by auditors independent business. In addition, business development is also

intended to create more jobs with based on a sense of humanity that is fair, that takes into

account the rights of employees, farmers and consumers spearhead the company.

Social M otive

Several respondent admitted bored ruled people and wanted to be "liberated", began

its success story as agribusiness entrepreneurs. Better be a small boss than be big porters. So

they prefer to trade conditioned. Respondent interpret the success of agribusiness as a socio-

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economic revival of agriculture. They wanted to prove to the rich and powerful to agriculture.

Not minder into an agrarian society. Do not force yourself to industrialization. The stigma of

being a farmer means a setback, poor fool, was ignored. And when they succeed, many

people flocked into farmers' kagetan ", praised the officials, bankers offer credit, many

scientists researching the phenomena them.

Spiritual M otive

Religion teaches his followers to search for treasure as live a thousand years. With the

treasure, humans will be able to do good pious as if to die tomorrow morning. So to reach the

peak of spirituality, people should be able first to no longer think of an empty stomach.

According to respondents, the motive of satisfaction bore soul spirit "more serve or lots gave

many means a lot of luck. Because those will be gunning for the more vigorous search

again”. People who never gave going to happen decay and degradation. The third motive is

what makes entrepreneurs become fully human, human being useful to other people, to

prepare for a successful life after death. The third motif usually appear after the entrepreneur

reached the peak of material and social success.

According to respondents, the motive of satisfaction bore soul spirit "airport or lots

gave many means a lot of luck. Because those will be gunning for the more vigorous search

again ". People who never gave going to happen decay and degradation. The third motive is

what makes entrepreneurs become fully human, human being useful to other people, to

prepare for a successful life after death. The third motif usually appear after the entrepreneur

reached the peak of material and social success.

But there is also an entrepreneur who since the beginning has a philosophy of "money

number two, which is an important benefit others". The respondents argued that the name is

lucky if a business can be a charity, make better personal, increase knowledge, add

silahturahmi or a network of friends, and add to the welfare of others.

ALASAN MOTIF KATEGORI IDENTITAS

Pendapatan rendahTidak puasBakatTerinspirasi orang lainHobiTidak bisa jadi pegawaiTidak sukses sekolah

FINANSIAL

SOSIAL - SPIRITUAL

Entrepreneur Kapitalis

Entrepreneur Humanis

Entrepreneur Agamis

Kaya

Dermawan

Religius

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An entrepreneur may have more than one motivation. But at the start of business,

economic motivation is more dominant than any other reason. Furthermore, with increasing

age, personality more mature and growing businesses, the motive would be shifted toward

social and spiritual fulfillment. The informants found soul satisfaction arises when more and

more to give, because it shows the intrinsic existence.

Entrepreneur is the central figure in the agribusiness system, which must be able to

manage capital, ideas, energy and confidence of others in a responsible manner. Responsible

here understood as a responsibility to yourself, others and to God. If the business is growing,

net working its will also be benefited. Treasure investors will rotate, increase farmers' income

partners, employees can continue to work and state tax increases.

Figure 2. Motive, Categories and Identity Entrepreneur

Grouping motif, categories, and these identities are fluid dynamic and massively

segmented (fragmented). This means that an entrepreneur can be in one category to the other

category. For example capitalist rather humane. Certainly all the research informants have

been left completely capitalist nature and leads to the humanis and religious nature.

Entrepreneurs generally have all the religious identity of the rich, generous, and religious, 

IDEA OF INNOVATION Functional value

Organization :Structure, products, management, culture

Social Environment :Family, parent, reference, customers, competitors, partners farmer, sulier, investors, experts, government

GROWTHFunctional, Emotional & Spiritual value

IMPLEMENTATIONFunctional & Emotional value

Personal :Motivation, commitment, vision, experience,

Physical Environment:Opportunities, Resources

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Figure 3. Process of Agribusiness Entrepreneurship

2. Red Chili Agribusness Model

Red chili agribusiness model in Kawali Ciamis, in accordance with the opinion of

Harling (2005) on agribusiness management. Peasant and farmer are still dominant in the sub

system on farm. Trader and the dominant entrepreneur in the sub-system down stream and up

stream. There is a trend shift from peasant into a farmer, farmer acts also as a trader, and

traders become entrepreneurs who mastered all the sub-systems.

Seeds, fertilizers, pesticides, mulch for red pepper cultivation of more than 90% are

still manufactured products and imported from abroad. Provision is centered in the farm stall

district level, so that these are expensive. Technically farmers quite mastered the production

technology. Its weakness lies in setting continuous harvest schedule. This is caused by weak

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farmer institutions that have not been able to organize farmers into groups of business units,

still weak partnerships with market participants, and the weakness of local government

regulations.

Figure 4. Model Agribusiness Red Chili

Existing marketing chain are: agricultural producers - traders - traders wholesale

market - the traditional market traders - retailers - consumers. The length of the chain of the

trade system is causing the difference in price at the farm gate to the consumer so great. Very

weak bargaining position of farmers because the farmers are still individual. There are no

inter-agency partnership network of farmers with marketing agencies. Farmer groups and

associations are still not able to become a business unit that is well organized.

The role of sub-system supporting agribusiness chili is also not optimal. Government

regulation remains piecemeal against the perpetrators of farming from each sub-system. For

example, regulation of seed companies, fertilizer trade licenses, regulations production

centers, the selection of commodities and land use its only appeal is not binding. Amenities

capital cost is only given to farmers as a key actor agribusiness. Amenities capital cost is not

given to businesses upstream sub-systems. Consequently, the price of agricultural inputs

(input) expensive, high farming costs or expensive ultimately benefit farmers become low.

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Table 1. Red Chili Farm Income per Ha per Planting SeasonNo Analysis Amount1. Production (Kg /ha) 15.0002. Selling Price (Kg/Rp) 17.0003. Gross revenue (Rp/ha) 255.000.0004. Total Cost of Production /ha 80.000.0005. Net income (Rp/ha) 175.000.000

Sources: Primary data processed in 2016

Conclusion

Red chili farmer entrepreneurship process begins peasant into a farmer; farmer be a

trader; farmer and trader become entrepreneurs. The process of becoming an entrepreneur

farmer motivated by financial, social, and spiritual. Identity red chili farmer in Ciamis

Kawali, generally rich, Muslims and progressive.

Model red chili farmer entrepreneurship consists of the values of rationality,

emotional values, spiritual values, social interactions, environment, culture, and personal

character. Culture here include cultural community environment (culture macro) and farming

culture (culture micro).

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