THE INFLUENCE OF FARMER’S SOCIAL CAPITAL AND BUSINESS COMMUNICATION ON THE ORNAMENTAL PLANT BUSINESS PERFORMANCE IN KENDARI CITY, INDONESIA

The agricultural sector is a significant contributor to state revenue. One crucial aspect that requires attention is the human resources of farmers, which play a vital role in the sustainability of agricultural businesses. This study analyses farmers' social capital, their business communication, and the performance of the ornamental plant business in Kendari City. Conducted in 2024, the research involved 30 ornamental plant farmers. Data collection was carried out through interviews using a questionnaire. In this study, the independent variables are social capital and business communication, while the dependent variable is the performance of the ornamental plant business. Descriptive and inferential statistics were employed for analysis. Descriptive statistics were used to characterize the state of the research variables, whereas inferential statistics were used to examine their relationships. The inferential statistical analysis utilized the Structural Equation Modelling-Partial Least Squares (SEM-PLS) method. The findings indicate that the social capital, business communication, and performance of the ornamental plant business in Kendari City all fall within a moderate range. Specifically, the study found that farmers' social capital has a significant positive effect on their business communication and on the performance of the ornamental plant business. Additionally, farmers' business communication positively affects the performance of the ornamental plant business in Kendari City. It is evident that both social capital and business communication among farmers, as well as the performance of the ornamental plant business, still require improvement. Enhancing farmers' social capital and business communication will improve performance in the ornamental plant business. Therefore, efforts should be made to strengthen ornamental plant farmers' social capital and business communication skills to improve their business outcomes.