Business Feasibility and Soybean Directiveness Product Institutional Pattern in Jember District

Abstract

Jember regency is the only district in East Java that is able to export soybean to foreign countries.Efforts to achieve the welfare of rural communities should be encouraged by developing the potential of rural communities,utilizing the resources they possess and optimizing the results so that these efforts should culminate and rely on the welfare of rural communities by developing agro-industry sectors through the creation of farms that will impacts on improving the welfare of farmers, land use that is not optimal, the opening of new employment in the village and the decline in urbanization numbers and the impact on increasing the original income of Village Government.This paper aims to analyze the feasibility of various derivative products made from soybean raw material and find institutional model of soybean based business for the creation of added value of agribusiness of soybean. The type of research that will be used is survey research, qualitative research that will be implemented in JemberDistrict.The results of this study show that all derivative products of soybean are financially feasible which can be seen from R/C ratio is greater than 1. The development of soybean derivative business is not enough to see financial analysis only because this research finds that financial analysis in the long run is not a determinant of the business continuity. Social capital has an important role in maintaining business continuity in the long term either in the form of a sense of friendship, solidarity, social relationship and maintained consciously to maintain its business.