The Influence of Organic Certification, Education Level, and Age on Increasing the Income of Sustainable Agriculture-Based Entrepreneurs

Abstract

Organic products are economically promising, as shown by retail sales that increased by 30 percent in several countries during the Covid-19 pandemic, exhibiting the expansion of organic agricultural land in many countries and supporting the Sustainable Development Goals (SDGs) that support environmental safety and increased employment in the organic food industry business. In this case, organic certification is necessary. This paper highlights the importance of organic certification to boost income for entrepreneurs engaged in sustainable agriculture. Research conducted on the Vigur O Women’s Organic-Farming Association (KWT) in Malang, Indonesia, revealed several key findings: organic certification positively impacts income, age serves as an indicator of experience running the business, and education level does not show any influence income, especially for individuals with a relatively high level of education consider organic farming as a supplementary source of income. The analysis done using Smart-PLS (Partial Least Square) described that organic certification and age significantly correlate with increased income. Organic certification reflects respondents’ perception of usefulness for business, while reflects entrepreneurial experience. Notably, formal education does not affect the income of Vigur O KWT. Through in-depth interviews, for respondents who have higher education, organic farming is not the main source of livelihood.