The effect of self-efficacy, motivation, and business knowledge on Millennial Farmers’ business success

Abstract The agricultural sector in Indonesia holds significant potential for contributing to economic growth and development, particularly in terms of income and employment. Despite annual fluctuations in the number of workers, the agricultural sector in Central Java Province continues to be a major contributor to the Gross Regional Domestic Product (GRDP). This study aims to examine the impact of self-efficacy, motivation, and business knowledge on business success, with commitment serving as a mediating factor, among millennial farmers in Central Java. The research employs a descriptive method and a quantitative approach. Data were collected through in-depth interviews, observations, and questionnaires. The research was conducted in Central Java Province and the location was selected purposively for its relevance. A total of 104 millennial farmers were chosen as respondents through purposive sampling. Data analysis was performed using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) approach. The results of this study indicate that self-efficacy, motivation, business knowledge, and commitment all have a direct, positive, and significant impact on business success. Moreover, the mediation analysis reveals the relationships among self-efficacy, motivation, and business knowledge, mediated by commitment, exhibit partial mediation effects.