Factors Which Determine Students’ Entrepreneurship Intentions

Sukardi Sukardi

Faculty of Teacher Training and Education, University of Mataram

sukardi@unram.ac.id

Keywords: entrepreneurial intentions, students.

Abstract: The present study aims at examining the factors which determine the entrepreneurship intentions of the

students: the support of entrepreneurship education, relational support, systemic support, and self-efficacy.

The present study employed survey methods, involving 133 students of Faculty of Education Mataram

University drawn through cluster proportional random sampling. The research instrument modified from the

one developed by Turker & Selcuk (2009) was applied to study the research variables involving support

entrepreneurship education, relational support, systemic support and entrepreneurial intentions, whereas self-

efficacy variable was measured with self-efficacy scale. Data were statistically analyzed using path analysis.

The results of the requirements analysis indicate that all research variables fulfilled the required normal

distribution, linearity, no autocorrelation, and the absence of multi-co-linearity. The results is shows that

entrepreneurship education support and relational support positively affect the entrepreneurial intentions,

either directly or indirectly through self-efficacy. Only systemic support variable which does not affect the

entrepreneurial intentions, either directly or indirectly through self-efficacy.

1 INTRODUCTION

Currently, the graduates of Indonesian higher

educations tend to be as a job seeker than as a job

creator, indicated on: the unemployment rate reaches

944,665 people (BPS, 2016). The crucial problems

are faced by the graduates of the Educational

Institutions of Teachers’ Training, who have the

teacher-student ratio reaches 1:15 (BPS, 2015).

On the issue, Schulte (2004) suggested the

importance of entrepreneurship education for the

establishment of entrepreneurial intentions. Focus on

entrepreneurial intentions because the intention plays

a distinctive role in directing action (Turker & Selcuk,

2009; Wijaya, 2008), with indicators such as:

choosing a career as a business and planning start a

business or entrepreneur (Wijaya, 2008; Indarti &

Rostiani, 2008)

Many factors are suspected of influencing

intention (including attitudes) of entrepreneurship,

such as: entrepreneurship education (Packham et al.,

2010) experience (Devonish et al., 2010), family

demographic factors, and in addition to cultural

heritage / orientation (Packham et al., 2010) Family

background (Wang & Wong, 2004). The Ertuna and

Gurel (2011) study found that achievement needs,

risk-taking, and entrepreneurial families were a

positive predictor of entrepreneurial intentions

through entrepreneurship education, but the locus of

control was not correlated. Different findings by Ang

and Hong (2000) that internal locus of control factors

predict entrepreneurial intentions. While the Turker

and Selcuk (2009) and Turker et al. (2005) found

educational support and structural support as a form

of entrepreneurial intentions, but not with relational

support and locus of control factors.

Taking note of the above findings, many seem

inconsistent results of the study. In addition, the

results of this study is not necessarily in accordance

with the context of students in Indonesia, let alone

students who are prepared to become prospective

teachers. Therefore, further studies are needed to

clarify the above findings in the Indonesian context.

The study was conducted by modifying Turker and

Selcuk (2009) and Turker et al. (2005) by specifying

education on entrepreneurship education obtained in

college, relational support, and system / structural

support and modification of moderator variables from

the locus of control to self-efficacy. The peculiarities

of entrepreneurship education, because of the many

findings that pay particular attention to this aspect

(Packham et al., 2010; Birdthistle et al., 2007).

Sukardi, S.

Factors Which Determine Students’ Entrepreneurship Intentions.

In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 697-701

ISBN: 978-989-758-308-7

697

Meanwhile relational support, such as family and

friends also influences career choices (Henderson &

Robertson, 2000), is included in the preparation of

Jusmin's business plan (2012). The third factor is

system / structural support, since entrepreneurial

intentions are also shaped by economic and political

mechanisms, governed by actors in government (in

Indonesia), society, private and other non-

governmental organizations (Turker & Selcuk, 2009).

Finally, self-efficacy has a positive relationship with

the entrepreneurial intention (Zhao et al., 2005).

Based on these theoretical ideas and frameworks,

this study is specifically conducted in order to know:

the influence of entrepreneurship education support,

relational support, system or structural support to

student entrepreneurship intent both directly and

indirectly through self-efficacy.

2 METHODS

This research uses quantitative approach of survey

type (Ary et al, 2010, p.372) conducted in Faculty of

Teacher Training and Education University of

Mataram. The population of this research is all MK

FKIP students of Mataram University who have

received 3333 entrepreneurship education courses

(FKIP Unram, 2015), outside the education science

department. The sample size was 133 people based on

the formulation of Daniel and Terrell (1986, p.202)

determined by cluster proportional random sampling.

The data collection instruments were modified

from Turker and Selcuk (2009) studies for the

variables of entrepreneurship education support,

relational support, system / structural support, and

entrepreneurial intentions. For self-efficacy measured

by self-efficacy scale based on Gaddam's study

(Wijaya, 2008, p 97) with indicators in the form of:

confidence in the ability to manage the business,

leadership of human resources, and start the business.

The entire instrument uses a Likert scale that has 5

scoring scales, namely: score 5 (strongly agree), score

4 (agree), score 3 (hesitate), score 2 (disagree), and

score 1 (strongly disagree). Because the instrument

has been tested, then in this study did not test the

validity and reliability of the instrument.

Analysis of this research data using path analysis

using spps program computer version 20.00 for

windows. Prior to the analysis, firstly tested

requirements analysis, including: homogeneity test,

autocorrelation, and multicollinearity

3 RESULTS AND DISCUSSION

The scatter of study result scores for all research

variables can be observed in Table 1. From Table 1

data shows that the highest mean value of the

structural / system support variables in Indonesia,

while the lowest average score is the relational

support variable.

Table 1: Below visualizes the scatter distribution of each

variable.

Variable

Min.

Max.

Mean

Sd.

Entrepreneurship

Education

11.985

1.555

Relational Support

7.676

1.395

System/Structural

Support

12.571

1.623

Self-Efficacy

11.662

2.066

Entrepreneurial

Intention

12.203

1.248

Furthermore, the results of the requirements

analysis test show that: (1) all variances of the four

variables to the entrepreneurial intention are

homogeneous; (2) there is no autocorrelation for

either the equation of one or the second equation

based on the Durbin-Watson test (Alhusin, 2003,

p.26) using a value based mean; And (3) there is no

multicolinearty problem based on eigenvalue and / or

condition index.

Table 2: Summary of hypothesis test results.

Variable

Dependent

Variable

Independent

Variable

0,181*

0,196*

0,000

0,132

0,000

Moderator

Variable

0,352**

0,068

0,080

-0,001

* Significance 5% **Significance 1%

EI: Entrepreneurial Intention, EE: Entrepreneurship Education, RS:

Relational Support, SS: System/Structural Support, and SE: Self Efficacy

Based on the summary as Table 2, it can be

explained below. There is a linear positive

relationship between entrepreneurship education

supports for entrepreneurial intentions, either directly

or indirectly through self-efficacy. The amount of

influence of entrepreneurship education support to

entrepreneurship intention is 0, 181 or 18.1%, while

the influence of entrepreneurship education support

to self-efficacy is equal to 0, 192 or 19.2%. Based on

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

698

these results, the effect of entrepreneurship education

support to the entrepreneurial intention through self-

efficacy is 0.068 (0.192 x 0.352) or 6.8%.

This study is relevant to what Murwani said

(2016, p.43-46) that through entrepreneurship

education, awaken entrepreneurial competence and

entrepreneurial characteristics. Findings Jusmin

(2012) also mentions the influence of entrepreneurial

learning on entrepreneurial intentions. Indirectly, the

level of self-efficacy affects a person's perception of

entrepreneurship education he / she obtains. This

finding is in line with what has been pointed out by

the European Commission in 2008 (Kirby & Ibrahim,

2011, p.182) as also cited by Murwani (2016, P. 12)

that entrepreneurship education contributes to

entrepreneurial business, Become "entrepreneurship

as a way of thinking and acting". Of course,

entrepreneurship education should reflect the quality

of entrepreneurial learning, both concerning

objectives, content, learning methods, and evaluation

of learning. The purpose of learning is not only to

teach about increasing awareness of students about

entrepreneurship, but at least to be entrepreneurs

(Fayolle and Gailly, 2008). On substance, includes

aspects of knowledge, skills, and work attitude as

found by Yuriani et al. (2012), even including "know-

why, know-how, know-who, know-when, and know-

what" as the study of Fayolle et al. (2008) and Fayolle

and Gailly (2008) as quoted by Murwani (2016, p21).

In terms of the learning model, as much as possible

using active and interactive learning models: such as

social reconstruction based learning, problem-based

learning and project-based learning (Murwani, 2016,

p 24) and others. From a practical point of view,

entrepreneurship education becomes essential for a

country's economic development, so it must be part of

the education policy in the College. Under the policy,

Turker and Selcuk (2009, p.156) in their study

suggested that entrepreneurship education in

universities.

Furthermore, based on Table 2, there is a linear

positive relationship between the relational supports

to the entrepreneurial intentions either directly or

indirectly through self-efficacy. The amount of

influence of relational support to entrepreneurship

intention is 0, 196 or 19.6% and the influence of

support of relational support to self-efficacy is equal

to 0, 229 or 22,9%. Based on these results, the effect

of relational support on entrepreneurial intentions

through self-efficacy is 0.080 (0.229 x 0.352) or by

8%. This finding differs from that of Turker and

Selcuk (2009, p. 150) that relational support factors

do not affect the entrepreneurial intentions. It is

understood because of the strong social ties (social

capital) for people living in Indonesian culture, as

collective energy capable of building cohesive social

relations (Dwiningrum, 2015). One element of social

capital is mutual trust (Dwiningrum, 2015,

Fiisabilillah et al., 2014), thus affecting one's actions,

including entrepreneurship. In his study, Priyanto

(2009) also illustrates the importance of such

relational support as an objective and subjective

reality. In the objective reality, the child will follow

the culture in which he lives or lives. Thus,

entrepreneurial social construction begins with

parents, friends, neighbors, teachers, who will

subsequently influence its subjective reality. At this

time, in the study of Downing (2005) as also quoted

Priyanto (2009) generalization occurs the nature of

entrepreneurship and which will ultimately produce

the intention of entrepreneurship or not to someone.

In subjective reality, the child will recognize the

existing institutions in society with a set of job

descriptions. This is where you get to know the

farmers, artisans, civil servants, traders and

businessmen, and others. If he sees that the craftsman

/ entrepreneur of his life is prosperous, then he will

dream of becoming a craftsman / entrepreneur

(Priyanto).

From the results of the study, the system /

structure support factor does not have a linear

relationship with the intention of entrepreneurship.

The amount of influence of support system / structure

support to entrepreneurial intention is 0, 132 or

13.2%, and the effect of system / structural support to

self-efficacy is -0, 003 or 0.3%. Based on these

results, the effect of system / structural support to the

entrepreneurial intention through self-efficacy is -

0.001 (-0.003 x 0.352) or 0.01% and is considered

insignificant. This finding also differs from Turker

and Selcuk (2009, p. 150) that to shape

entrepreneurial desires requires more comprehensive

support including collaboration from all sectors of

society. In the Indonesian context, these findings can

be understood as economic development still leaves a

gap or inequality (Iryanti, 2014). The inequality of

basic services is the cause of economic inequality

(Iryanti, 2014) so that the impact on the still

unemployment rate as well as data from BPS (2016).

Conditions like this cause all people living in

Indonesia to have perceptions, opinions, attitudes,

and behaviors may vary, including prospective

teachers (LPTK).

Factors Which Determine Students’ Entrepreneurship Intentions

699

4 CONCLUSIONS

Based on the results of the study, it is concluded that

there is a positive influence of entrepreneurship

education support and relational support to the

entrepreneurship intentions of students either directly

or indirectly through self-efficacy. Nevertheless, the

factor of economic system support in Indonesia does

not give effect to the entrepreneurship intentions of

students either directly or indirectly through self-

efficacy.

Based on these findings, the implications are: (1)

the importance of strengthening the education of

entrepreneurship education in universities to establish

student entrepreneurial intentions; (2) the importance

of providing experience during the entrepreneurship

education process through direct practice; And (3)

very important policy of development and

implementation of entrepreneurship education in

Higher Education and strengthening of relational

support during learning process.

ACKNOWLEDGEMENTS

Thank you to the University of Mataram who has

facilitated during this study. Thank you to the

University of Education Indonesia for facilitating

participation in The 2nd International Conference on

Economic Education and Entrepreneurship (ICEEE

2017).

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