The role of small agribusiness in regional development: the case of Sumatera Utara province

Friendly City 4 'From Research to Implementation For Better Sustainability'

地球科学;经济学

Subhilhar^1

Department of Political Science, Faculty of Social and Political Sciences, Universitas Sumatera Utara, Indonesia^1

关键词: Agriculture sectors;    Business units;    Case-studies;    In-depth interviews;    Potential needs;    Quantitative approach;    Regional development;    Working capitals;   

Others  :  https://iopscience.iop.org/article/10.1088/1755-1315/126/1/012070/pdf
DOI  :  10.1088/1755-1315/126/1/012070

来源: IOP

【 摘 要 】

The agribusiness is an emerging sector in Indonesia and its potential needs to be fully explored. Its development can contribute to a development of regions or correct the discrepancy in welfare benefits between groups and regions. The development of small agribusiness is important and strategic. There are more than 32 million small agribusinesses with their working capital less than Rp. 2 billion per year. In Indonesia, out of this 90 percent (about 21.30 million business units) are household businesses which run business in the agriculture sector. The aim of this study is to identify the contributions of small agribusiness to regional development in Sumatera Utara. The method that used in this study is quantitative approach by using survey and case studies through an in-depth interview. The result shows that small agribusinesses do contribute significantly towards regional development in Sumatera Utara. This study found that annual business turnover significantly contributes toward regional development. The main contribution of small agribusinesses is in the utilization of labor force and local tax revenues.