Last modified: 2023-09-19
Abstract
Many people in Indonesia make the decision to open a business, especially on small and medium scales. The decision to have a business is certainly motivated by various factors. Using household survey data from the fifth Indonesia Family Life Survey, this study aims to analyze the factors driving Indonesia’s household decisions to open an agricultural business. The data in this study is cross-section with the logistic regression method. The findings of this study indicate that a person's decision to open an agricultural business is strongly driven by hereditary factors from their parents. In addition, the length of a person's education level tends to reduce a person's probability of opening an agricultural business. Other factors influencing the decision to open an agricultural business are ethnicity, gender, marital status, age, and area of residence. Meanwhile, the large number of family members was not found to have an effect on a person's decision to open an agricultural busines
Keywords: Agricultural business, Education, Hereditary, Parents, Rural