Entrepreneurship Competency Model for Coffee Farmers: Construction and Validation

Abstract

This study aims to develop and validate a questionnaire grounded in the Entrepreneurial Competency Model (ECM) to provide a reliable measure of the entrepreneurial competencies of coffee farmers. This study examines the entrepreneurial skills of coffee farmers in Bandung Regency who are members of farming cooperatives. A quantitative approach was employed to collect data from October to December 2024. Results show exploratory Factor Analysis (EFA) was employed to develop the Entrepreneurial Competency Model (ECM) for coffee farmers, identifying five core competency factors: Strategic Thinking, Adaptability, Partnerships, Seizing Opportunities, and Innovation. The EFA produced 27 manifest variables with strong correlations (KMO = 0.939) and a significant Bartlett’s test, accounting for 66.64% of the total variance. Strategic competency emphasizes planning, evaluating, and implementing business strategies with a long-term vision. Adaptability reflects openness, flexibility, and networking abilities. Partnership competency highlights collaboration with institutions and the consistent achievement of goals. Opportunity competency captures the ability to identify and leverage business prospects, while Innovation encompasses risk-taking and creative problem-solving. Confirmatory Factor Analysis (CFA) validated the model, demonstrating satisfactory reliability (Cronbach’s alpha > 0.7 and Average Variance Extracted [AVE] > 0.5) as well as discriminant validity. The Entrepreneurial Competency Model (ECM) for Bandung coffee farmers encompasses five key competencies: strategic, adaptability, partnerships, opportunity, and innovation, that collectively enhance competitiveness, sustainability, and development. It provides a practical framework to guide decision-making, foster innovation, and support long-term growth in smallholder coffee farming.