This study aims to analyze the effect of entrepreneurial competence on the business performance of dairy farms in SASPRI Cijeruk, assess the effect of entrepreneurial capacity on business performance, and examine the role of entrepreneurial capacity as a mediator in the relationship between entrepreneurial competence and business performance. The research uses a quantitative approach with data collected through questionnaires administered to 41 dairy farmers who are members of SASPRI in Cijeruk District. The analysis was conducted using Structural Equation Modelling (SEM) based on Partial Least Squares (PLS) to evaluate the relationships among variables in the model. The results show that entrepreneurial competence does not have a direct effect on business performance, but it significantly influences the improvement of entrepreneurial capacity. Entrepreneurial capacity is proven to have a positive and significant effect on business performance. In addition, entrepreneurial capacity functions as a mediator that bridges the effect of entrepreneurial competence on business performance, indicating that competence impacts performance only through the enhancement of entrepreneurial capacity. These findings confirm that improvements in the performance of dairy farmers are largely determined by their entrepreneurial capacity in managing their businesses.
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