Financial Analysis of Business Feasibility and Maggot Black Souldier Fly Cultivation Development Strategy
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 01
Abstract
This study aims to analyze financial feasibility and develop strategies for developing Black Souldier Fly (BSF) maggot cultivation business. The research location in Omah Maggot Warna Warni, which is located in the village of Puntir Martopuro, Purwosari Pasuruan, was chosen with the consideration of having good prospects for BSF maggot cultivation. Respondents include 4 resource persons who are directly involved in maggot cultivation. The analysis used is a quantitative financial analysis by calculating the value (Net B/C, NPV, IRR, and Payback Period and BEP) with a discount factor (DF) of 11 percent. Sensitivity analysis was used to determine the sensitivity of BSF maggot cultivation to a decrease in production which was conditioned by a 10% to 40% decrease in production. Descriptive analysis with SWOT analysis is used to find strategies for developing Maggot Cultivation Business. The results showed that maggot cultivation was profitable to cultivate. This business is feasible because the NPV and Net B/C values are greater than 1, and the IRR value is higher than the interest rate. Based on the SWOT analysis, it shows that the position of the internal-external matrix of the Omah Maggot Warna Warni maggot cultivation business is in quadrant II or the growth and development strategy with the IFAS factor value of 2.39 and EFAS 3.03. This phase shows that the colorful Omah Maggot maggot cultivation business is undergoing a growth stage and must be developed because it has great potential to develop. The priority of the BSF maggot cultivation development strategy is to improve the quality of maggots, expand network marketing, and increase the use of cultivation technology and collaborate with the local government for the development of the Colorful Omah Maggot maggot cultivation business.
Authors and Affiliations
Evi Prihartini, Hamidah Hendrarini, Pawana Nur Indah
Keywords
Related Articles
- EP ID EP706825
- DOI 10.47191/jefms/v5-i1-03
- Views 70
- Downloads 0
Analysis of Exports, Inflation, Exchange Rates, Interest Rates on Foreign Exchange Reserves: ARDL Approach
The purpose of this study is to describe how inflation, interest rates, exports, and currency exchange rates affect Indonesia's foreign exchange reserves in the short and long run. In order to investigate short-term rela...
The Effect of Bank Efficiency, Industry Specification, and Macroeconomic on Banking Profitability in Indonesia
Banking in Indonesia has a long and dynamic history. The banking industry in Indonesia has distinctive and diverse characteristics. Banking in Indonesia faces various challenges and opportunities in the future. The purpo...
Determinants of Competitive Advantage of A and Excelled Accreditation Study Programs at Private Universities: A Concept Analysis with Mediation of Performance
The purpose of this study is to examine the link between the determinants of competitive advantage and competitive advantage itself at private institutions by mediating the performance of A and Excelled accredited study...
An Assessment of Risk Management Factors Delaying Construction Project in Nigeria
Risk management is a field that exists within the subject area of project management deals with the identification, monitoring and mitigation of risks. It is seen as the effect of uncertainty on objectives so this proces...
Effect of Unemployment Rate, Education on Human Development Index which is Mediated by Poverty
The human development index can measure the welfare of human resources; therefore the quality of human resources is the most important factor that greatly influences the process and determines the success of development....