Dual Sector Entrepreneurship and Rural Poverty Reduction: The Mediating Role of Community Empowerment in Indonesia

This study examines the role of agricultural and tourism entrepreneurship in reducing rural poverty through community empowerment within a place-based development framework. Using data from 400 respondents in Jambi Province, Indonesia, and employing Partial Least Squares Structural Equation Modeling (PLS-SEM) combined with the Analytical Hierarchy Process (AHP), the results reveal that agricultural entrepreneurship (β = 0.482, p < 0.001) and tourism entrepreneurship (β = 0.361, p < 0.001) significantly enhance community empowerment. In turn, community empowerment has a strong negative effect on poverty (β = -0.533, p < 0.001). The mediation analysis confirms that empowerment fully mediates the relationship between entrepreneurship and poverty reduction. Furthermore, AHP results indicate that community empowerment is the highest policy priority (44.2%), followed by agricultural entrepreneurship (33.8%) and tourism entrepreneurship (22.0%). This study contributes to the literature by integrating dual-sector entrepreneurship and identifying empowerment as a key mechanism in sustainable and inclusive rural development.