Using Principal Component Analysis To Measure The Readiness of Sorghum Entrepreneurs To The Marketplace

Abstract

People should be competitive in order to foster an entrepreneurial mindset and produce effective entrepreneurs. The factors that determine sellers in choosing a market place are the higher organizational readiness, external environment encouragement and perceived benefits. faith, Quality of e-marketplace site, Cost and Product Reputation.

This research uses the Principal Component Analysis (PCA) methodology, to made the structure of the analyzed dataset to the measurement of readiness entrepreneur sorghum to the marketplace. In the early stages of this research, a questionnaire-based poll was conducted, and was designed based on a literature study from seven studies that have been reviewed. The seven studies on marketplace readiness factors were then integrated and mapped to produce seven marketplace readiness factors as the basis for assessing marketplace readiness at UES. Number of respondents are 127 consisting of entrepreneurs, employees and buyers.

The conclusions that can be drawn from this research are from the initial seven variables in the dataset (Organizational Readiness, External Environment Encouragement, Payment, Delivery, Site Quality, Price, Product reputation), after data reduction using the Principal Component Analysis (PCA) method two new variables (factors) were obtained which were able to explain the total variance (cumulative percent of variance) of 83.81%. The two factors formed are named Organization and Technology. From the two factors obtained, a measurement of the readiness level of marketplace implementation is then carried out. The results obtained are Organizational factors in the category "Ready with the need for a little improvement", Technology factors are in the category "Ready to proceed".