Rural entrepreneurship strategic planning a cognition perspective

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Introduction
Entrepreneurship is a concept that continues to develop especially in the study of economic development (Hisrich & Drnovsek, 2002).Entrepreneurship is one of the concepts that can drive the economy including the economy for rural communities (Thurik & Wennekers, 2004).One of the important keys of rural entrepreneurship is to develop the potential (Zampetakis & Kanelakis, 2010).Innovation is an important aspect to consider in order to survive (Rădulescu et all., 2014).Not only related to the network, but also rural entrepreneur research is also related to the abilities possessed by entrepreneurs (Matthews, et al., 2018).Knowledge about taking advantage of opportunities can influence business development in rural entrepreneurship (Zampetakis & Kanelakis, 2010) Ciappei, 2018).Rural entrepreneurship requires different strategies to survive and compete (Tang & Hull, 2012).Cognition can be obtained from various sources.Not only learn from theirs own experience but also can learn from others (De Jaegher, Di Paolo, and Gallagher, 2010).
Social Cognition provides knowledge and understanding of the results of social interactions (Albert, Dean, & Baron, 2016).Individuals absorb information, process, and produce knowledge on the results of interactions with the community.Both formal and informal community have an impact on rural entrepreneurs (Escandón-Barbosa et al., 2019).Formal communities are those that are formed by society and interconnection with the government (Thurik & Wennekers, 2004).The informal community also needs to participate in building rural entrepreneurs (Williams, 2011).Besides that, it is important to see entrepreneurs building networks with schools that study entrepreneurship (Eyal, 2008).
The entrepreneurs need to remember that they cannot thrive on their own.in other words, entrepreneurs need external encouragement to be able to develop their business and knowledge.Support could come from the formal and informal institutions (Escandón-Barbosa, Urbano, Hurtado-Ayala, Salas paramo, and Dominguez, 2019).they need a network to grow a business.network with business schools to develop knowledge (Eyal, 2008).When the owner has the attention to develop his skills, knowledge, and information related to his business, it will increase his business (Ayinla Alarape, 2007).various supports can come from the government to support social entrepreneurship (Thurik & Wennekers, 2004;Zampetakis & Kanelakis, 2010).Government and business schools can support to environment to be able to build an entrepreneurship ecosystem.that supports such as the promotion of entrepreneurship.various supports to provide this knowledge.For this reason, the aim of this research is to analyse the cognitive aspect in developing rural entrepreneurship.This research answers the questions 1) how does rural entrepreneurship perceives potential?2) how does rural entrepreneurship view the business environment in building strategy?3) how cognitive do entrepreneurs have in developing strategies?

Research Methods
This research uses the qualitative method.Qualitative research has the characteristics of not having a lot of data in order to obtain more information (Creswell, 2008).Qualitative research method can digging up deeper information ( Laferriere, 1986).research to obtain more unique data with various approaches.Qualitative research can combine various forms of datas (Neale, 2016).This research is a case study in the Patuk subdistrict, Gunungkidul, Yogyakarta, Indonesia.This study tested the validity by using triangulation.Qualitative research allows using triangulation to ensure the validity of research to provide a comprehensive understanding of a phenomenon (Carter, Bryant-Lukosius, Dicenso, Blythe, and Neville, 2014).This research uses method triangulation and data triangulation.This research uses grounded theory.Grounded theory arranges systematic steps to be able to obtain more complete qualitative data to meet scientific principles (Charmaz, 1996).The grounded theory emphasizes interaction making it appropriate for behavioural research (Creswell, 2008).This research explores related information Information seeking was carried out by in-depth interviews with stakeholders, Focus Group Discussion.The discussion is easier to provide coding for each data obtained Interviews were conducted with 37 Informan.Interviews were conducted with rural entrepreneurs and government officials The government, in this case, were the village government and the sub-district government.The sub-district head is a representative of the sub-district government, who is the key informant.Village officials from Bunder village, Patuk village, Beji village represent the village government.The researcher chose these three village officials because there were many entrepreneurs in their area.This study also conducted interviews with 33 entrepreneurs.This is to get balanced data.The data obtained with patterns of information related to the ability of entrepreneurs in implementing development strategies and also entrepreneurial cognition.The research team conducted three stages of interviews.First, the initial interview with the head of the Patuk sub-district.The information obtained is in the form of initial information related to the development of entrepreneurship and cognition of entrepreneurs in Patuk sub-district.Informants provide information related to the cognition of rural entrepreneurs.Not only that, but they also provide an overview of villages potential and entrepreneurs development.
Focus group discussions provide good quality data in qualitative research designs.FGD approach to obtain detailed information with homogeneous groups (Rabiee, 2004).FGD was conducted with rural entrepreneurs, village officials.FGD was conducted after receiving information from interviews.This study designed a simultaneous FGD for both entrepreneurs and representatives from the government.Informants were divided into groups based on the same characteristics.One group was entrepreneurs and the second group was representatives from the government.This is to get a more complete perspective.This design makes it easier and faster to search data.This FGD emphasized the business development strategy within the Patuk sub-district.It also discusses related to the cognition development of entrepreneurs.

Result and Discussions
This discussion will be carried out based on research objectives with the addition of location profiles and informants' profiles.The first is related to the general description of the location and informants.Second, the potential for developing entrepreneurship in the Patuk sub-district will be discussed.The three business development strategies by rural entrepreneurs.The fourth is related to the cognition of rural entrepreneurs.
Patuk Sub-District is part of Gunung Kidul Regency.The area of the district is 72.04 kilometers.Located in the main traffic of Yogyakarta Special Region province which is close to Sleman Regency.Patuk is the entrance to Gunung Kidul Regency.The total population is 34,914 people spread over eleven villages.Most of the labor force is taking care of the household with 12.7% of the total population.The total number of entrepreneurs in Patuk District is 4120 people.
This research has 33 entrepreneurs as informants.Each business operates in a different business.entrepreneurs in Patuk who are used as informants mostly work in the food industry.The variety of products is processed food, traditional food, and also culinary.As a key informant, the study interviewed the head of the Patuk sub-district.Besides that, interviews were conducted with several village officials in the Patuk sub-district.More details can be seen in appendix 1. FGDs were also conducted to complete the data.The FGD was conducted with 26 people who were later divided into two groups.

Village area Opportunities
Entrepreneurs realize that the patuk sub-district has great potential.Patuk subdistrict is part of the Gunungkidul Regency, Yogyakarta Province.There is potential for pioneering tourism villages and ready-made tourist villages.There is also that from outside Patuk (FDG, December 21, 2020).Tourism in Gunungkidul regency is one of the main attractions for the economic activities of the Patuk community.Recently, in the Patuk sub-district, a tourism area based on village potential is being developed.Generally, Patuk sub-district is a strategic area because it is an area adjacent to provincial roads.Vehicle traffic is very busy passing through the patuk sub-district.Unfortunately, the travelers, as well as the tourists, are just passing through the patuk area.This is very unfortunate because it could be a potential for mobilizing rural entrepreneurship in the Patuk area.Geospatial data is strengthening data related to the potential of the patuk area.In the aspect of agriculture, patuk has the potential, including rice, corn, cassava, peanuts, chocolate, medicinal plants such as ginger, lemongrass, rambutan fruit, durian, longan, sugar apple, jackfruit.the potential commodities is not much developed.So far, it has only been sold in the form of commodities and some of them have developed into processed products in the form of chips business with unattractive packaging.Other businesses include chicken and peanut brittle, making tempeh, woodworking, fashion, small food stalls, traditional food.Various initiatives to develop by exploring processed crystal guava, chocolate, rambutan skin, into processed products In addition to potential, there are also problems including loan sharks.Some entrepreneurs are caught in debt that cannot be paid.They even sell their assets, such as house and cattle.This problem is serious enough for residents to experience so that they are unable to continue their business.for those who are too big into debt, they leave the village to avoid debt.They still have difficulty managing their business as well, and also lack of product innovation and development of ways to market products.

Strategic Planning
The strategic planning in this study analyzes the internal and external in the Patuk district.Internal and external approaches use a SWOT analysis perspective.Internal is obtained from the strengths and weaknesses of being from external analysis with the perspective of opportunities and threats.

Internal Perspective
This internal perspective looks more at these entrepreneurs seeing the environment near the entrepreneurs involved in activities.The strength perspective is what they do and feel in doing business activities.The strength they have varies widely.Most of them put raw materials easily available within the businessmen environment, both in the village environment and at the district area.Most of them put raw materials easily available within the entrepreneurs, both in the village area and in the district area (FGD, December 21, 2021).Raw materials which tend to be easily available have an impact on the price offered which tends to be stable and competitive when compared to its competitors.They also provide good service to consumers.The entrepreneurs.try to provide quality that is maintained.the character of a rural person in Patuk is tenacious, patient, and hardworking.
The weaknesses they have are varied widely.The biggest weakness is the lack of product innovation.The products are only the imitation of the existing product.They are not yet able to develop a unique or innovative product to be offered.They produce by imitating existing products.another problem they have is marketing.there is still no marketing map, especially for markets outside his rural area.Moreover, regarding distribution, it does not yet have an extensive network.aspects of the production process they still use simple equipment, raw materials have a short lead time.if using machines, they experience difficulty.to maintenance repair production equipment.Another weakness is financial management skills.they often feel a lack of financial capital.some of them borrow money from a loan shark.they have trouble repaying the loan.

External Perpective
The opportunity is big because it is in the tourism traffic area.Gunung Kidul Regency is projected as a tourism development area.The Patuk area is an area that is passed by tourists.even in the patuk district itself, village-based tourism is developed.One of the impacts is the emergence of a souvenir store that can be used to introduce products from Patuk.besides those, many shops are selling daily necessities and small restaurants that can be used to sell products (FGD, December 21,2020).The people in the Patuk village tend to have social characteristics with a communal culture.they have a good relationship.communication between them also went well.they always maintain the customs of Javanese manners.the government is also involved in the 97 development of rural entrepreneurs.government events can be used to introduce the products of entrepreneurs.not only the government, there are external parties also involved in such as universities that hold training both product development training and capacity building training.There is training from outside parties to develop such as from universities.The traditional market environment outside the patuk area is still the target market choice.Raw materials are easy to find not only around the patuk area but also outside the relatively close distance.The opportunities seen by entrepreneurs are market opportunities, community character and external support to develop knowledge and skills.
Threats to entrepreneurs come from the social character, competitors of similar products, the continuity of raw materials, and the purchasing power of the surrounding community.the communal culture of the patuk community in addition to bringing opportunities also creates threats.Entrepreneurs who join an organization often have misunderstandings.Rural residents who have disagreements can destroy harmonization and eventually choose to walk alone and even choose to no longer run a business.competition for similar businesses is still the biggest challenge.similar products are still often found in other areas, so that gave rise to a lot of competition in the market.raw materials sometimes there are vacancies of staples at the vendor.there are times when they don't get the raw materials.This is because they still use seasonal raw materials.Also in it is the low purchasing power of the local community and also difficulties in obtaining business permits.Entrepreneurs have awareness regarding the problems both internally and externally.
Rural Entrepreneurs think of various strategies to overcome it.Marketing strategy is still a concern.They think about marketing related to the promotion.they want to promote products through social media, and through various village-level meetings such as by women or called PKK 1 meetings, as well as exhibitions held by the government.Entrepreneurs also think about creating products variations and the amount of product to be produced.They realized that they were not well informed and had less knowledge about the product.the innovations they get by engaging universities to train and provide information and knowledge.During this time they sell to neighbors, sell in traditional markets, schools, leave them in food stalls, souvenir centers.Human resource management is also still a problem, they want to find people who are recruited with sufficient abilities.Their production process is carried out by managing stock and looking for appropriate technology.The strategies they develop are mainly related to marketing, product innovation, resource development, and related to production

Support System
The government through the district government has launched a Ruralbased economic development program.Programs carried out with the One Village One Product (OVOP) approach.the Patuk district government has been developing since 2014.This program was inspired by the training conducted at 1 PKK is a government program for the welfare of the population by involving women Gadjah Mada University.The government hopes that the OVOP program will develop local potentials from production to marketing management.The district government claims that this program has succeeded in increasing the added value of agricultural commodities.The product consists of rambutan chips, a kind of nata de coco with the basic ingredients of rambutan, guava chips.The government also provides support with marketing.The government encourages citizens to continue to be proud of their products.
For this to be prosperous, it turns out that the community has potential, it just needs to be encouraged so that there is the ability and intention to be independent, both products are paid well (Suwardi, Personal Communication March 13, 2021).Entrepreneurs are encouraged to be more confident to promote their products.In case the government is also trying to get involved in promoting the product.the government carries out promotions by giving local specialties consumption and souvenirs at official government events.not only patuk regional events but also they introduce products at outside official events such as events in regional and provinces level.
Rural entrepreneurship development in Patuk also involves universities.The colleges consist of Sanata Dharma University, Gadjah Mada University, Sarjana Wiyata Taman Siswa University, Yogyakarta State University, Ahmad Dahlan University.universities provide training and assistance to develop distinctive products.They also provide knowledge related to business management.

Cognition Aspect
The patuk community has a strong value system.they maintain Javanese culture and manners.Beside culture, they also have religious values.The values that they follow have an impact on the way they do business.like they prevented debt from shark loan.district leaders took advantage of this approach to convince their communities to no longer make loans to shark loans.It seems that this method was quite successful in preventing the community from avoiding it.The character of the Patuk person is a person who works hard and is always enthusiastic, resilient, and patient in carrying out his duties.Socially they are very connected to one another.This closeness can be an asset in building rural entrepreneurship.
The social capital they already have can be one of the impetus for developing a business (Svendsen, Kjeldsen, & Noe, 2010).Not only is this an opportunity, but also the closeness of the patuk community can also be a problem.they are afraid of social sanctions.Residents have values so that their citizens have habits that already exist in the community.The habits are good, but this habit sometimes raises different opinions.So it's a bit disturbing business.so hard to grow (FGD, December 2020).They choose not to confront if they have different perspectives.this is what hinders the development of new ideas in developing rural entrepreneurship.innovation and creativity need to be a concern in developing rural entrepreneurship (Rădulescu et al., 2014).
The entrepreneurs in patuk, feel less innovative in developing their products.They mostly develop existing products.We also have to innovate.Great potential to make the same product that requires innovation and new products so that it can make products better and continue to innovate in other forms (Riaulo, February 12, 2021) The potential does not provide benefits if the entrepreneurs do not develop them into innovation.They only tend to imitate other people both in the village and outside the village.Entrepreneurs imitate others who have successfully developed a product.Gradually it can create competition in their business.those who have little financial capital are no longer able to continue their business because they cannot compete.even so, the district government continues to encourage new product innovations.Initially, they refused because they thought it was impossible.This is due to their tendency not to have sufficient knowledge.Entrepreneurs need a process to be able to learn and understand the business they are going to do (Deakins and Freel, 1998).they will learn from a failure (Lattacher & Wdowiak, 2020).Entrepreneurs in the patuk village need a breakthrough in both products and marketing.The ideas they get tend to be hereditary.they learn from the experiences of their predecessors and people around the village.recently they got a lot of ideas from training.The government encourages training by involving higher education institutions.the entrepreneurs are aware of the lack of knowledge so they enthusiastically carry out any training given to them.Armed with this training, they do business.
This discussion analyses the data findings that have been described previously.This study develops a model which is the findings of the research.This model uses the data found.The data has been elaborated on the results of research that has been elaborated previously.Entrepreneurs have cognition for strategy from the internal environment and the external environment.The internal environment is more to the rural community.This involves social conditions and values prevailing in the rural community.On the other side, there is external environment involvement to pull rural entrepreneurs.This external involves the government as well as universities.Illustrated through the following figure 2/ The cognition aspects of strategic planning in rural entrepreneurship are important (Lattacher & Wdowiak, 2020).Entrepreneurs need to develop knowledge in business activities.The potential in the rural area becomes more beneficial if they have knowledge and information.Rural entrepreneurs can also develop potential such as agriculture commodities, potential community culture, community values.Their learning process determines the direction of business.Cognitive process determine their success in continuing business .The higher desire to seek information and knowledge make the business grows.
The Cognition also increasing innovation (Rădulescu et al., 2014).Rural are potential can be optimized with sufficient knowledge (Zampetakis & Kanelakis, 2010).Commodity products can have added value and generate more income.Agricultural potential, for example, if it does not have sufficient capacity, it will only sell in the form of commodities.otherwise, if village entrepreneurs can develop their knowledge, they can sell it in the form of processed products.Cognition can also avoid entrepreneurs from trouble.Knowledge about Marketing and business management seem to be problems that are often experienced by entrepreneurs (Weerawardena & Coote, 2001;Williams, 2011).Rural entrepreneurs will not borrow from loan sharks if they can analyse the problem.Entrepreneurs will also realize the importance of developing a flexibility strategy (Combe & Greenley, 2004).
Sufficient knowledge makes them confident in formulating strategies.Rural entrepreneurs, who most of them small business owners, need to be able to think of a strategy that they do.(Wrona & Ladwig, 2015).They need to analyse their business environment (Tang & Hull, 2012).In fact, they already have a strategy they want to do.Of course, it is not optimal because they feel they have limited knowledge and limited reference sources.They formulate a strategy after receiving insight and reinforcement from the training they have received.This training is the key for them to have the courage to design strategies that they did not initially think about.
Business and production that imitates the efforts of others who have succeeded.If there is a new one, it is not necessarily imitated, so need insight (FGD, December 21, 2020).Cognition can come from outside the rural entrepreneur.they also have to interact with the rural community.They are also required to have a social cognition (Matthews et al., 2018).They tend to follow society's values.the references they get tend to come from around them.So that the tendency is trapped in clerical and routine activities, without further development innovation becomes a problem in doing business (Tang & Hull, 2012).Entrepreneurs are facing competition within similar product.If they do not develop innovation, they will not able to compete and difficulty to survive.
Unfortunately, the knowledge possessed by rural entrepreneurs is limited.that's why they need outside support.Support for knowledge to development can be obtained from government and universities.additional knowledge makes village entrepreneurs more confident.The knowledge they have also determine their competitive strategy.They can analyse internal and external environment to build a strategy.In fact, they have strategy development.Experience in doing business and looking around enable them to divide strategies in term to get income.
Rural entrepreneurs have limitations in developing their businesses.They need the role of other institutions to develop their business continuously (Escandón-Barbosa et al., 2019;Galindo-Martín et al., 2019).These various developments require the involvement of the government that provides support to entrepreneurs.The government provides policies to support rural entrepreneurs.On the other side, universities have a significant role.Universities can give insight ideas to develop business.Various universities are involved in developing citizen knowledge, such as Ahmad Dahlan University, Sarjana Tamansiswa University, Sanata Dharma University (Suwardi, Personal Communication March 13, 2021)

Conclusion
The cognition aspect is a determinant of success for rural entrepreneurs.Rural entrepreneurs can gain cognition from the village's internal.They got the idea from their predecessor.They inherited the way, which they have been doing all this time.Apart from that, rural entrepreneurs also follow the values in the village.They do business based on the ways that have been done so far.
The pull from the village's external environment is also a determinant of cognition.Rural entrepreneurs need support to define their strategies.The external environment of the village can inspire business development ideas.Rural entrepreneurs also hear a lot from their discourse.The external environment comes from the government.The government is at the village, sub-district, and district levels.Apart from the government, rural entrepreneurs also get insight from universities.They share knowledge with entrepreneurs to develop their business.
This research has several limitations.Limitations in this study are due to the pandemic, making it difficult for the process of further observation.More data should be obtained, but due to various restrictions it is difficult to make observations.The other side, the object under study is only limited to the subdistrict level spread over several village areas.The Second limitations of using only qualitative methods.This method can be deeper in analyzing.however, it just needs a wider scope.In other side, research uses cognition in general as a variable.cognition is used to see the ability to make strategic planning.
Based on the limitations, the researcher provides suggestions for further research.First, it uses a wider scope so that it can capture a broader picture related to cognition.Researchers also provide suggestions that not only use a qualitative approach but also use a quantitative approach to better provide an overview of the relationship between variables.Researchers provide suggestions that not only variable aspects of cognition but also use other variables such as social cognition.

Figure 2 .
Figure 2. Cognitive Strategy on Rural Entrepreneurship