Tarbiat Modares University Journal of Agricultural Science and Technology 1680-7073 28 5 2026 09 01 Role of Characteristics and Competencies in the Business Performance of Functional Beverage SMEs 1097 1112 24117 10.48311/jast.2026.24117 EN Nuning Setyowati 1. Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia. 2. Center for Study and Assistance for Cooperatives and Small-Medium Enterprises, Institute for Research and Community Service (LPPM), Universitas Sebelas Maret, Indonesia. Kusnandar Kusnandar Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia. Mohamad Harisudin Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia. Erlyna Wida Riptanti 1. Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia. 2. Center for Study and Assistance for Cooperatives and Small-Medium Enterprises, Institute for Research and Community Service (LPPM), Universitas Sebelas Maret, Indonesia. Isti Khomah Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia. Rara Aulia Qonita Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia. Journal Article 2025 09 16 This study examines the effects of owner characteristics, product competence, and business capital on the business performance of Small and Medium Enterprises (SMEs) in the functional beverage sector. It also investigates the mediating role of owner competence in the relationship between owner characteristics and business performance. Employing a quantitative approach, data were collected via a structured questionnaire from 105 functional beverage SMEs in Solo Raya, Indonesia. Structural Equation Modeling with Partial Least Squares was used for analysis. The results indicate that business capital and product competence significantly and positively influence business performance. Owner characteristics do not have a direct effect on business performance, but influence it indirectly through full mediation by owner competence. The findings suggest that functional beverage entrepreneurs should enhance their self-competence encompassing knowledge, skills, and business experience, and strengthen business capital to improve performance. Additionally, developing entrepreneurial characteristics is crucial for boosting business outcomes through improved owner competence.<br><br><br> Business Capital Owner Characteristics Owner Competence Product Competence https://jast.modares.ac.ir/article_24117_80c1413fbbd611c47f878251d67a6ac6.pdf