Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 6, 8189-8195 2024 Publisher: Learning Gate DOI: 10.55214/25768484.v8i6.3761 © 2024 by the authors; licensee Learning Gate © 2024 by the authors; licensee Learning Gate * Correspondence: yulianakansrini67@gmail.com The influence of digital literacy on entrepreneurial innovation in the program for growing young agricultural entrepreneurs (PWMP) at the polytechnic of agricultural development Medan Yuliana Kansrini1,2*, Zulkarnain Lubis1, Ihsan Effendi1, Puji Wahyu Mulyani2 1Universitas Medan Area, Medan, Indonesia; yulianakansrini67@gmail.com (Y.K.) 2Politeknik Pembangunan Pertanian Medan, Indonesia. Abstract: One of the breakthroughs made by the Ministry of Agriculture to realize the creation of agricultural millennial entrepreneurs in agricultural Vocational Higher Education is through the Program for Growing Young Agricultural Entrepreneurs (PWMP). The implementation of the PWMP Program is carried out, among others, by the Agricultural Development Polytechnic (Polbangtan) Medan in North Sumatra Province. The PWMP Program target groups are still not achieving business success, based on information from the field, due to various internal factors such as personality, self- efficacy, intention, ability to create innovations, ability to manage digital literacy-based markets, and external factors, namely the entrepreneurial ecosystem. This study aims to determine and analyze the digital literacy skills and ability to innovate among entrepreneurs in the PWMP Program at Polbangtan Medan. In addition, this study analyzes the effect of digital literacy skills on the ability to innovate among entrepreneurs. This research uses a quantitative descriptive method. The population consists of PWMP Program participants from Polbangtan Medan alumni from 2021-2023, with a saturated sample of 60 respondents. The data collection technique involved administering a questionnaire measured using a Likert scale. Data analysis was conducted using the SPSS application through a Linear Regression Test with the Hayes Process. The results showed that the digital literacy skills of entrepreneurs were in the medium category (61.06%). The ability to innovate among entrepreneurs is still relatively low (41.81%). The results of the linear regression test using the Hayes process showed that there is a significant influence of digital literacy skills on the ability to innovate among entrepreneurs in the PWMP Program at Polbangtan Medan. Keywords: Agriculture, Entrepreneur, PWMP, Polbangtan Medan. 1. Introduction The Covid-19 pandemic has had a significant impact on various sectors in Indonesia. The impact is not only felt in the health sector, but also in various aspects of life, including the economy, social, and politics, in almost all countries, including Indonesia (Agung, 2020). The Micro, Small, and Medium Enterprises (UMKM) sector is one of the victims affected by the pandemic crisis. Bank Indonesia data shows that 87.5 percent of UMKM have felt the bitterness of the Covid-19 pandemic which has resulted in UMKM experiencing a significant decline in income and turnover (Wijayanto et al., 2022). This situation has triggered the need for a precise recovery strategy to revive the spirit of UMKM amidst the gloomy economic situation. Many UMKM are still struggling to survive, even forced to close down due to the pandemic. Therefore, a targeted and sustainable recovery strategy is needed to help UMKM rise again (Rizaty, 2022). With a targeted and sustainable recovery strategy, UMKM in Indonesia can recover and become the backbone of national economic recovery, especially UMKM in the agricultural sector which have great potential for growth (Rumayanto et al., 2022). UMKM The Indonesian agricultural sector is currently still facing various challenges. Such as limited access to capital, technology, and marketing that are still not well integrated, as well as the 8190 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 6: 8189-8195, 2024 DOI: 10.55214/25768484.v8i6.3761 © 2024 by the authors; licensee Learning Gate improvement of human resources that need to be improved again so as not to become a major obstacle in developing their businesses (Ari, 2023). Seeing this condition, strategic steps are needed by the government to empower agricultural sector UMKM in Indonesia. Especially in increasing access to capital, technology, and markets for entrepreneurs. One of them is through the Young Agricultural Entrepreneur Development (PWMP) program where the program provides opportunities for the younger generation, especially those with an educational background in agriculture, such as agricultural students or agricultural graduates to develop a career in agriculture. In accordance with the 2020-2024 National Long-Term Development Plan (RPJMN) which supports the achievement of 2.5 million millennial farmers by 2024 (RPJPN, 2023). Efforts to regenerate farmers are being carried out by the Ministry of Agriculture together with the Agricultural Extension and Human Resources Development Agency (BPPSDMP) with a target of reaching 2.5 million millennial farmers by 2024 (Kementerian Pertanian, 2020). According to data published by the Central Statistics Agency (BPS), the number of millennial farmers aged 19–39 years is 6.18 million people, or around 21.93 percent of farmers in Indonesia today (Badan Pusat Statistik, 2023). It is not only the role of the government that is needed, but also the need for support from educational institutions in supporting the achievement of the objectives of the Young Agricultural Entrepreneur Development (PWMP) program in Indonesia evenly. One of the educational institutions that supports the implementation of the PWMP program is the Medan Agricultural Development Polytechnic (Polbangtan Medan) which provides opportunities for students to participate in the PWMP program. Basically, innovative entrepreneurs will always have the opportunity to dominate the market so as to increase profits. Increasing the ability to innovate entrepreneurs is the main key to helping them develop and compete in the global arena. Thus, agricultural sector UMKM in Indonesia can reach their potential and become the backbone of national economic recovery. In addition to the ability to innovate, entrepreneurs need to have a high level of life adaptation. One of the adaptations that must be possessed by the current generation is the ability to utilize very sophisticated information technology. Entrepreneurs who are able adapting and utilizing information technology well will have a greater chance of success in today's digital era. (Purwadinata et al., 2021). According to the evaluation report of the Young Agricultural Entrepreneur Development (PWMP) program from 2020 to 2023, there were 143 groups receiving funds from the PWMP program. Of that number, 89.5 percent are still running their businesses. However, there are 10.5 percent of groups whose businesses are no longer active or have closed down. This is due to the lack of innovation and digital literacy skills of entrepreneurs in developing the businesses they run. The lack of innovation skills of entrepreneurs can be seen from the minimal variety of products and marketing strategies implemented by program recipients. This makes their businesses easily left behind by competitors and have not been able to attract consumer interest. On the other hand, low digital literacy makes it difficult for program recipients to utilize internet technology in developing their businesses. They are not familiar with e-commerce platforms, social media, and other digital tools that can help them reach a wider market and increase business efficiency. Therefore, the PWMP program needs to be optimized to improve the ability of program recipients to innovate and utilize digital technology (Panitia Program PWMP, 2019). Based on these phenomena and problems, the formulation of the problem in this study is: How is the digital literacy ability of entrepreneurs in the Polbangtan Medan PWMP program? How is the ability of entrepreneurs in the PWMP Program to create innovation in the businesses they manage? How does digital literacy affect the innovation ability of entrepreneurs in the Polbangtan Medan PWMP program? The expected benefits of this study include as an experience and adding knowledge and understanding of the influence of innovation and digital literacy on the success of entrepreneurs in the Polbangtan Medan PWMP Program and can be used as a consideration in making a policy in PWMP. Innovation is the ability to find new or old ways to solve problems. Entrepreneurs who innovate will succeed in their businesses (Hamka et al., 2021). Innovation development requires science. Science is essential for innovation progress. It can even be misdirected, short-lived, or just wishful thinking. Innovation is very useful in all aspects of life, so understanding some things about innovation is very important (Fattach et al., 2022). Meanwhile, according to the type of innovation Oslo Manual, (2006) 8191 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 6: 8189-8195, 2024 DOI: 10.55214/25768484.v8i6.3761 © 2024 by the authors; licensee Learning Gate divided into 4, namely product innovations, process innovations, marketing innovations, and organizational innovations. Continuous innovation is a basic need to make a company have a competitive advantage. Having a good idea alone is not enough to ensure that our business can grow, because the new product must be able to penetrate the market and reach the target consumer. This is where the role of digital literacy refers to the ability of entrepreneurs to use digital technology and communication senses via the internet to obtain, business materials, promotions, sales, and create business information widely. The use of digital technology is considered to be able to increase productivity, turnover and income of the business itself, and is also part of the original effort to maintain business continuity (Irawan, 2023). Digital literacy according to United Nations Educational, Scientific, and Cultural Organization (2022), is a set of basic skills that include the use and production of digital media, processing and retrieving information, and engagement in social networks. Digital literacy includes many unknowns, such as presenting information by including creative writing and visualization in information (Firmansyah dan Dede, 2022). Gilster (1997:3), states that there are four core competencies that a person needs to have so that they can be said to be digitally literate, including: internet searching, hypertext navigation, content evaluation, and knowledge assembly. 2. Literature Review The Covid-19 pandemic has had a significant impact on various sectors in Indonesia. The impact is not only felt in the health sector, but also in various aspects of life, including the economy, social, and politics, in almost all countries, including Indonesia (Agung, 2020). The Micro, Small, and Medium Enterprises (UMKM) sector is one of the victims affected by the pandemic crisis. Bank Indonesia data shows that 87.5 percent of UMKM have felt the bitterness of the Covid-19 pandemic which has resulted in UMKM experiencing a significant decline in income and turnover (Wijayanto et al., 2022). This situation has triggered the need for a precise recovery strategy to revive the spirit of UMKM amidst the gloomy economic situation. Many UMKM are still struggling to survive, even forced to close down due to the pandemic. Therefore, a targeted and sustainable recovery strategy is needed to help UMKM rise again (Rizaty, 2022). With a targeted and sustainable recovery strategy, UMKM in Indonesia can recover and become the backbone of national economic recovery, especially UMKM in the agricultural sector which have great potential for growth (Rumayanto et al., 2022). UMKM The Indonesian agricultural sector is currently still facing various challenges. Such as limited access to capital, technology, and marketing that are still not well integrated, as well as the improvement of human resources that need to be improved again so as not to become a major obstacle in developing their businesses (Ari, 2023). Seeing this condition, strategic steps are needed by the government to empower agricultural sector UMKM in Indonesia. Especially in increasing access to capital, technology, and markets for entrepreneurs. One of them is through the Young Agricultural Entrepreneur Development (PWMP) program where the program provides opportunities for the younger generation, especially those with an educational background in agriculture, such as agricultural students or agricultural graduates to develop a career in agriculture. In accordance with the 2020-2024 National Long-Term Development Plan (RPJMN) which supports the achievement of 2.5 million millennial farmers by 2024 (RPJPN, 2023). Efforts to regenerate farmers are being carried out by the Ministry of Agriculture together with the Agricultural Extension and Human Resources Development Agency (BPPSDMP) with a target of reaching 2.5 million millennial farmers by 2024 (Kementerian Pertanian, 2020). According to data published by the Central Statistics Agency (BPS), the number of millennial farmers aged 19–39 years is 6.18 million people, or around 21.93 percent of farmers in Indonesia today (Badan Pusat Statistik, 2023). It is not only the role of the government that is needed, but also the need for support from educational institutions in supporting the achievement of the objectives of the Young Agricultural Entrepreneur Development (PWMP) program in Indonesia evenly. One of the educational institutions that supports the implementation of the PWMP program is the Medan Agricultural Development Polytechnic (Polbangtan Medan) which provides opportunities for students to participate in the PWMP program. Basically, innovative entrepreneurs will always have the opportunity to dominate the market 8192 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 6: 8189-8195, 2024 DOI: 10.55214/25768484.v8i6.3761 © 2024 by the authors; licensee Learning Gate so as to increase profits. Increasing the ability to innovate entrepreneurs is the main key to helping them develop and compete in the global arena. Thus, agricultural sector UMKM in Indonesia can reach their potential and become the backbone of national economic recovery. In addition to the ability to innovate, entrepreneurs need to have a high level of life adaptation. One of the adaptations that must be possessed by the current generation is the ability to utilize very sophisticated information technology. Entrepreneurs who are able adapting and utilizing information technology well will have a greater chance of success in today's digital era. (Purwadinata et al., 2021). According to the evaluation report of the Young Agricultural Entrepreneur Development (PWMP) program from 2020 to 2023, there were 143 groups receiving funds from the PWMP program. Of that number, 89.5 percent are still running their businesses. However, there are 10.5 percent of groups whose businesses are no longer active or have closed down. This is due to the lack of innovation and digital literacy skills of entrepreneurs in developing the businesses they run. The lack of innovation skills of entrepreneurs can be seen from the minimal variety of products and marketing strategies implemented by program recipients. This makes their businesses easily left behind by competitors and have not been able to attract consumer interest. On the other hand, low digital literacy makes it difficult for program recipients to utilize internet technology in developing their businesses. They are not familiar with e-commerce platforms, social media, and other digital tools that can help them reach a wider market and increase business efficiency. Therefore, the PWMP program needs to be optimized to improve the ability of program recipients to innovate and utilize digital technology (Panitia Program PWMP, 2019). Based on these phenomena and problems, the formulation of the problem in this study is: How is the digital literacy ability of entrepreneurs in the Polbangtan Medan PWMP program? How is the ability of entrepreneurs in the PWMP Program to create innovation in the businesses they manage? How does digital literacy affect the innovation ability of entrepreneurs in the Polbangtan Medan PWMP program? The expected benefits of this study include as an experience and adding knowledge and understanding of the influence of innovation and digital literacy on the success of entrepreneurs in the Polbangtan Medan PWMP Program and can be used as a consideration in making a policy in PWMP. Innovation is the ability to find new or old ways to solve problems. Entrepreneurs who innovate will succeed in their businesses (Hamka et al., 2021). Innovation development requires science. Science is essential for innovation progress. It can even be misdirected, short-lived, or just wishful thinking. Innovation is very useful in all aspects of life, so understanding some things about innovation is very important (Fattach et al., 2022). Meanwhile, according to the type of innovation Oslo Manual, (2006) divided into 4, namely product innovations, process innovations, marketing innovations, and organizational innovations. Continuous innovation is a basic need to make a company have a competitive advantage. Having a good idea alone is not enough to ensure that our business can grow, because the new product must be able to penetrate the market and reach the target consumer. This is where the role of digital literacy refers to the ability of entrepreneurs to use digital technology and communication senses via the internet to obtain, business materials, promotions, sales, and create business information widely. The use of digital technology is considered to be able to increase productivity, turnover and income of the business itself, and is also part of the original effort to maintain business continuity (Irawan, 2023). Digital literacy according to United Nations Educational, Scientific, and Cultural Organization (2022), is a set of basic skills that include the use and production of digital media, processing and retrieving information, and engagement in social networks. Digital literacy includes many unknowns, such as presenting information by including creative writing and visualization in information (Firmansyah dan Dede, 2022). Gilster (1997:3), states that there are four core competencies that a person needs to have so that they can be said to be digitally literate, including: internet searching, hypertext navigation, content evaluation, and knowledge assembly. 3. Method This study was conducted at the location of the Polbangtan Medan PWMP program entrepreneurs from March to May 2024. This study involved the head of the Polbangtan Medan PWMP program 8193 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 6: 8189-8195, 2024 DOI: 10.55214/25768484.v8i6.3761 © 2024 by the authors; licensee Learning Gate entrepreneur group. This study was conducted using a quantitative descriptive approach method. Data collection was carried out tentatively, namely offline or online according to existing conditions. The data collection techniques used in this study were direct observation of entrepreneurs, questionnaires and unstructured interviews. The population in this study was 60 entrepreneurs registered in the Medan Polbangtan PWMP Program. The population was taken intentionally (purposive), namely the population was taken based on certain considerations. The considerations in this study were Muslim entrepreneurs who were group leaders of each registered Medan Polbangtan alumni business. Data collection used a questionnaire designed to collect information about business conditions including innovation and digital literacy skills of entrepreneurs. This questionnaire was distributed to selected samples. The data collection process ensured that all respondents had a clear understanding of the questions and provided their responses accurately. To ensure the reliability and validity of the data collected, several tests were carried out. Validity tests were used to ensure that the questionnaire accurately measured the concept to be measured. Reliability tests were carried out to ensure consistency of responses over time. Classical assumption tests including normality, linearity, and homoscedasticity tests were also carried out to meet the assumptions required in the regression analysis. The main analysis method used in this study was simple linear regression analysis and measurement using a Likert scale. The simple regression analysis technique was chosen to determine the relationship between digital literacy variables and innovation variables. Simple linear regression analysis allows for an assessment of the relative importance of each independent variable in predicting the dependent variable. The results of the simple linear regression analysis are used to identify the strength and significance of the relationship between variables. Measurement with a Likert scale was chosen to see the level of digital literacy skills and the level of innovation skills of Polbangtan Medan PWMP Program entrepreneurs. In summary, this study uses a comprehensive methodology involving quantitative data collection and analysis to explore the effect of hyper digital literacy skills on the innovation skills of Polbangtan Medan entrepreneurs. The use of structured questionnaires, rigorous validity and reliability testing, and advanced statistical analysis ensure the strength and reliability of the findings, providing valuable insights for PWMP committee management and future research. 4. Results and Discussion The data shows that PWMP entrepreneurs have two interesting sides. On the one hand, they show a fairly high ability to innovate processes of 61.13 percent. This shows that PWMP entrepreneurs are able to adopt new technologies and infrastructure to improve the efficiency and effectiveness of their business processes. This ability allows them to increase productivity, reduce costs, and gain competitive advantage. On the other hand, PWMP entrepreneurs showed weaknesses in marketing innovation of 38.21 percent. This means that they are still lagging behind in developing innovative and targeted marketing strategies. This lack of innovation in marketing can limit their reach, hinder business growth, and make them vulnerable to more innovative competitors. The results of the analysis show that the percentage of innovation of entrepreneurs in the Young Agricultural Entrepreneur Development Program (PWMP) of 41.81 percent can be interpreted as being in the low category. This can be caused by several factors that make an entrepreneur's innovation in running the PWMP Program not work, ranging from fear of failure to lack of resources and training support Herdiani dan Apriani, (2020). Saying that there is a close relationship between training and entrepreneurial innovation in improving a business. Entrepreneurs' participation in seminars or training increases the level of knowledge of entrepreneurs in creating an innovation, opening access to new information and experiences. Information obtained in seminars or training influences the opinions and beliefs of entrepreneurs, thus encouraging them to try new ideas in improving a business. Experience as a source of knowledge allows entrepreneurs to apply the knowledge gained in solving problems and improving the quality of the business. To foster innovation, entrepreneurs need to overcome these barriers by enhancing their knowledge and skills, identifying new opportunities, seeking adequate resources, and building a corporate culture that supports creativity and risk-taking. 8194 Edelweiss Applied Science and Technology ISSN: 2576-8484 Vol. 8, No. 6: 8189-8195, 2024 DOI: 10.55214/25768484.v8i6.3761 © 2024 by the authors; licensee Learning Gate The digital literacy level of entrepreneurs is in the moderate category with a score of 61.06 percent. This shows that entrepreneurs have a fairly good understanding of digital technology and its use in business. The dimension of knowledge assembly with a score of 61.18 percent. This score shows that entrepreneurs are quite good at combining information from various sources. However, there is still room for improvement. The lowest score is in the hypertext navigation dimension with a score of 58.26 percent. This score shows that entrepreneurs still need to improve their ability to use hypertext devices such as blogs, online stores, websites and others. Entrepreneurs can be categorized based on the results of the digital literacy measurement score. Based on the analysis, it can be seen that entrepreneurs have low digital literacy. Digital literacy in the low category indicates that entrepreneurs are less skilled in utilizing digital literacy in developing their businesses. This can be proven based on the results of the questionnaire on the internet search dimension on the statement using online platforms to find suppliers and business partners with the lowest score. This lowest score indicates that the use of online platforms is underutilized in finding partners, suppliers and marketing their business products. Through the results of the survey through unstructured interviews, it also shows that entrepreneurs are less able to use technology in developing their businesses. This can be proven by entrepreneurs who have not used sophisticated technologies in their businesses. For example, the use of social media is underutilized in marketing the products of the business being run. The use of social media or online stores in product marketing is a strategy that can be used to reach a wider target market. The rapidly growing digital literacy is currently a medium for entrepreneurs to achieve the sustainability and success of their businesses. This is supported by research by Aulia et al. (2021) digital literacy affects clothing traders in business sustainability. The expected business sustainability requires knowledge of digital, content evaluation, use of hypertext guides and internet searches to assist marketing and security. Overall, the digital literacy scores of entrepreneurs show that they have the potential to utilize digital technology more optimally to improve their business. 5. Conclusion The results indicated that digital literacy skills among PWMP entrepreneurs at Polbangtan Medan were generally in the medium category, with 61.06 percent of participants demonstrating a moderate level of digital competency. However, the ability to innovate remains a challenge, as only 41.81 percent of entrepreneurs displayed strong innovation capabilities. The linear regression analysis, conducted using the Hayes process, revealed a significant positive relationship between digital literacy skills and innovation ability. This suggests that as digital literacy skills improve, so does the capacity for innovation among these entrepreneurs. 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