Analysis of Attitudes and Motivation of UMN Al-Washliyah Students

on Interest in Entrepreneurship

Ernita

, Farida Yani

, Habiebie

, Firmansyah

and Ratna Sari Dewi

Agribusiness Department of Fakultas Pertanian UMN Al Washliyah Medan, Indonesia

Mathematic Education Department of FKIP UMN Al Washliyah Medan, Indonesia

Accountancy Department of Fakultas Ekonomi UMN Al Washliyan Medan

Keywords: Attitude, Motivation, Interest, Entrepreneurship

Abstract: The purpose of this study is to see the influence and the relationship between attitudes and motivations on

the students' interest in entrepreneurship at Universitas Muslim Nusantara Al-Washliyah Medan. Through

the entrepreneurs it is expected that young entrepreneurship, especially students, could make new jobs to

create equity of welfare. The population of this research is students of University Muslim Nusantara Al-

Wasliyah Medan who have got Entrepreneurship and Cooperative course at Faculty of Agriculture and

Faculty of Economics. The sample used in this study are 175 students. Sampling is done intentionally, using

a Likert scale questionnaire instrument (1-5). The results show that simultaneously, attitudes and motivation

of students significantly increase in the interest to entrepreneurship (F-test=14.153

). Partially,

entrepreneurship motivation of student significantly affects the entrepreneurship interest, with t=4,627

while entrepreneurship attitude of student has no significant effect (t = 0.675) in entrepreneurship interest.

The result of Pearson's correlation analysis shows that there is a significant correlation between

entrepreneurship interest and entrepreneurship attitude, as well as entrepreneurship motivation of UMN Al-

Washliyah students, by rEA = 0.265

, and rEM = 0.53

respectively.

1 INTRODUCTION

1.1 Background

Globalization is a new phenomenon born due to the

development and progress of the era. In this

condition, every organization is required to always

do various innovations in order to anticipate the

existence of challenges and very tight competition.

Therefore, every organization is required to have

competitive advantages both in terms of quality

products, services, cost, and human resource of

professionals.

In a global competition, the existence of

professionals and professional human resources has

a more strategic role than any other resource. Human

resource is the most valuable and important asset an

organization must possess. A qualified human

resource is one of the prerequisites for developing a

country's natural resources to achieve the prosperity

of the country.

Indonesia is a country that has a high population

growth rate. This high population is a great potential

in carrying out the development process, because in

the universal values, the population is the

perpetrator, and at the same time the target of

development that enjoys the development result.

This can be realized if the large population is

accompanied by the composition and distribution of

human resources in a more equitably quality. But a

large population can also be a burden if the quality is

low. As the perpetrators of development, the low

quality of the population will prevent us from

reaching opportunities.

Entrepreneurship is instrumental in filling this

development. According to Acs, and Audretsch

(2010:1) the existence of entrepreneurs gives a great

impact on economic growth since they will offer a

geat deal of employment. In developed countries the

role of entrepreneur is very dominant in supporting

economic growth and development. However, in a

developing country like Indonesia, very few people

want to work as entrepreneurs, whereas economic

growth is strongly influenced by the existence of

these entrepreneurs. One factor is due to the low

interest in entrepreneurship among students.

Ernita, ., Yani, F., Habiebie, ., Firmansyah, . and Dewi, R.

Analysis of Attitudes and Motivation of UMN Al-Washliyah Students on Interest in Entrepreneurship.

DOI: 10.5220/0008884703250332

In Proceedings of the 7th International Conference on Multidisciplinary Research (ICMR 2018) - , pages 325-332

ISBN: 978-989-758-437-4

325

1.2 Research Purposes

The purpose of this study is to see the influence and

the relationship between attitudes and motivations

on the students' interest in entrepreneurship of

University of Muslim Nusantara Al-Washliyah

Medan.

2 LITERATURE REVIEW

2.1 The Concepts of Entrepreneurship

Entrepreneurship is a dynamic behaviour that takes

risks and is creative and growing. Entrepreneur is

someone who is able to create a business by making

a product either in the form of goods or services by

looking at opportunities that exist and use it, as

expressed by Bygrave and Zacharakis (2014) states

that entrepreneur as the person who destroys the

existing economic order by introducing new

products and services, by creating new forms of

organization, or by exploiting new raw materials.

Entrepreneur is someone who can create something

new, goods or service, within an organization and

able to break down the existing economic system

2.2 Characteristics of

Entrepreneurship

Kuratko and (Hodgetts, 2004), state that

entrepreneurship is a dynamic process of vision,

change, and creation. It requires an application of

energy and passion towards the creation and

implementation of new ideas and creative solutions.

Essential ingredients include the willingness to take

calculated risks in terms of time, equity, or career;

the ability to formulate an effective venture team;

the creative skill to marshal needed resources; and

fundamental skill of building solid business plan;

and finally, the vision to recognize opportunity

where others see chaos, contradiction and confusion.

According to Izedonmi and Okafor (2008) the

entreprenuer must be able to oversee and identify the

opportunities and search for the sources in order to

achieve the goals.

The other experts also state the characteristics of

entrepreneurship as follows;

a. Requirement of achievement (McClelland,

1987:2011)

b. Locus of control (Rotter, 1966)

c. Risk taking (Brockhaus, 1980)

d. Proactive (Crant, 2000)

e. Tolerance againts the unexpected thing (Bateman

and Grant, 1993)

f. Creativity (Drucker, 1985)

Futhermore, Meredith et al (1982:38-39) argue

that the characteristics of entrepreneur are

confidence, task and outcome-oriented, risk taking,

leadership, originality, and future-oriented. These

characteristics show that the one and only needed by

entrepreneur is creativity which is not innate ability

that something already learned.

Lambing and Kuehl (2006:16) state four basic

elements of a successful entrepreneur:

a. Ability (IQ and skill)

b. Courage (EQ and mental)

c. Consistency (sel-motivation)

d. Creativity (experiences)

Barringer and Ireland (2012:10) describe four

characteristics of a successful entrepreneur:

a. Eagerness to do the bussiness

b. Focus on product and customer

c. Consistency despite failure

d. Skills

2.3 Attitude and Behavior

According to Calhoun and Joan (1995:315), attitude

is feeling and or belief in particular object, and there

is a tendency to act againts that object with

particular ways. Human attitude is not innate ability,

yet it is something learned. So, attitude is easily

built, influenced and changed. It means that attitude

comes from stimulus affecting some factors, such as

personality, environment and learning process. If the

stimulus is positive, a good attitude will be built,

whereas negative stimulus will build a bad attitude.

The general attitude is available and can then

be bias processing of information. Individuals who

hold favourable attitudes are likely to notice, attend

to, and process primarily the object’s positive

attributes whereas individuals with unfavourable

attitudes toward the object are likely to direct

attention to negative qualities (Ajzen, 2011). The

attitude approach has been used in many areas

including in evaluating entrepreneurship education.

Thus, to increase the level of entrepreneurial

initiative among students is necessary to enhance a

positive attitude towards entrepreneurship, so

attitude can be seen as a stepping stone toward

entrepreneurial interest (Hannan, 2004).

(Ajzen, 2011), points out the theory of reasoned

action which explains the relationship between

attitude and behavior. It describes decision of

showing a particular attitude that takes a long

ICMR 2018 - International Conference on Multidisciplinary Research

326

rational process and it is also built from sequences of

thinking. In other words, behavior building is started

from attitude choice consideration, then all the

concequenes are evaluated, and last decision making

whether to undertake or not. Shortly, the decision is

such a reflection of behavior.

2.4 Motivation Theory

McClelland (2011), points out that we all have these

three types of motivation regardless of age, sex,

race, or culture. The type of motivation by which

each individual is driven derives from their life

experiences and the opinions of their culture.

McClellands Theory of Need for Achievement (N-

Ach), shows Three Needs of Theory or Acquired

Needs and the theory is focusing on human

motivation.

1. Need for achievement

They prefer working on tasks of moderate

difficulty, prefering work in which the results are

based on their effort rather than on anything else,

and prefer to receive feedback on their work.

Achievement based individuals tend to avoid both

high-risk and low-risk situations. Low-risk situations

are seen as too easy to be valid and the high-risk

situations are seen as based more on the luck of the

situation rather than the achievements that individual

made.

This personality type is motivated by

accomplishment in the workplace and an

employment hierarchy with promotional positions.

2. Need for affiliation.

People who have a need for affiliation prefer to

spend time creating and maintaining social

relationships, enjoy being a part of groups, and have

a desire to feel loved and accepted. People in this

group tend to adhere to the norms of the culture in

that workplace and typically do not change the

norms of the workplace for fear of rejection. This

person favors collaboration over competition and

does not like situations with high risk or high

uncertainty. People who have a need for affiliation

work well in areas based on social interactions like

customer service or client interaction positions.

3. Need for power.

People in this category enjoy work and place a

high value on discipline. The downside to this

motivational type is that group goals that can

become zero-sum in nature, that is, for one person to

win, another must lose. However, this can be

positively applied to help accomplish group goals

and to help others in the group feel competent about

their work. A person motivated by this need enjoys

status recognition, winning arguments, competition,

and influencing others. With this motivational type

comes a need for personal prestige, and a constant

need for a better personal status.

According Atkinson and Howard (2008:7)

productivity of an economy can grow in two

different ways. First, productivity can be increased

by raising the value of goods and services produced

(e.g., shifting production from standardized

commodities based on existing technologies to new,

higher performance technologies for which

consumers are willing to pay a premium and also

gain greater economic benefit). Second, productivity

can grow by producing a given set of goods or

services in a more technically efficient manner.

While, Drucker, P.F (2007) states that

entrepreneurship is the ability to create a brand new

offer. Zimmerer, et al (2008:5) states that

entrepreneurship is the process of implementation

and finding the oppurtunity to have a better life.

(McClelland, 2011) points that the relationship

between achievement level and entrepreneurs

attitude are as follows;

a. Taking the risk.

The attitude of entrepreneur, who has the

high value achievement chooses the most

possible ways to reach out the achievement,

even though the risk is being occured.

b. Having responsibility.

The entrepreneur keeps thinking of every

task with its own values; so an entrepreneur

really knows how to be responsible in

accompolishing and deciding anything that he

is doing.

c. Knowing the consequences.

The entrepreneur not only learns from the

mistakes and experiences, but also oversees

and accepts either expected and unexpected

thing. So an entrepreneur knows the

consequences of the particular task.

d. The ability of designing and organizing the

long-term planning.

The entrepreneur should plan any strategy

to reach out the high value achievement

ahead. Entrepreneurs will continue to

organize time, oppurtunity, strategy

effectively and efficiently.

Various researches on entrepreneurship have a

positive impact on the improvement of

organizational performance. Ernita, et al., (2014ab,

2015 and 2016); point out that member participation

Analysis of Attitudes and Motivation of UMN Al-Washliyah Students on Interest in Entrepreneurship

327

is very essential in influencing cooperatives

performances. In addition, Aziz, et al (2014)

examines how entrepreneurial orientation can affect

the business performance of small and medium

enterprises in Malaysia. Significant conclusion from

this study is that entrepreneurial orientation has a

significant positive effect on business performance.

"Also study of Bakar and Mahmood.s (2014)

findings reveal significant and positive relationships

between transformational leadership and

performance, and corporate entrepreneurship and

performance. In addition, corporate entrepreneurship

is found to partially mediate the transformational

leadership and performance relationship. Further,

Bakar, et al (2017) in his research found that

indicated of three dimensions of ESE (financial

control ESE, ESE innovation, and risk taking ESE)

were found to be associated with HEI performance.

2.5 Interest in Entrepreneurship

Since the beginning of the 1980s, interest in

entrepreneurship has been growing around the world

(Klofsten, 2000). The main factor contributing to

this interest was the suffering of industrialized

countries from economic recession, high

unemployment rates and fluctuation in international

trade cycles which most of these countries have not

experience before. This situation has tended to

increase the attention to the potential role of

entrepreneurs (Garavan and O’Cinneide 1994a) as

one of possible solution to the problems face by the

most of the countries. Many development agencies,

such as educational and training institutions around

the world are facing this challenge of how to create

an enterprise culture and many of them already

provide valuable and much needed assistance such

as advice and financial aspects. Today

entrepreneurship has become a commonly taught

subject in universities. Some of the universities in

the world offer courses in entrepreneurship, and

many business or management schools offer major

field of academic programs in entrepreneurship

beside traditional business or management areas

such as finance, accounting, marketing, human

resource management and basic management.

However research on entrepreneurship education

into non- business programs is still not fully

investigated especially in a developing country such

as Indonesia.

According to (Pintrich and Schunk, 1996) the

indicators of interest in entrepreneurship are as

follows:

1) The general attitude toward the activity is the

feeling of dislike, agree disagree with the general

activity towards positive attitude or like activity.

2) A specific awareness to like activity is to decide

to like an activity or object.

3) Feeling happy with the activity with all things

related to the activity of interest.

4) Such activities have meaning or importance to

the individual (personal importance or

significance of the activity to the individual).

5) The intrinsic interest in the content of the activity

is a pleasant emotion to center on the activity

itself.

6) Participating in activities.

3 METHODS

The population in this study is all students at the

Faculty of Agriculture and Faculty of Economics of

Universitas Muslim Nusantara Al-Washliyah Medan

that have received entrepreneurship courses.

Samples used are as many as 175 (one hundred

seventy five) people, with intentional sampling

technique. Instruments used are questionnaires with

Likert scale (1-5), with format: Strongly disagree;

Disagree; Less/ Somewhat Agree: Agree: and

Strongly agree.

A preliminary study is conducted to measure the

reliability and validity of the instrument /

questionnaire by using the Alpha Cronbach

coefficient. The instrument said to be reliable if it

has Alpha Cronbach coefficient α ≥ 0.6. The

classical assumption test includes normality test,

multicoleniarity test and heterocentasticity test.

3.1 Spearman Rank Correlation

In this study, for the relationship between variables

Rank Spearman correlation coefficients is used. The

essence of correlation analysis is to measure the

strength of relationships between variables, without

indicating a causal relationship (through computer

assistance using the SPSS program v20).

3.2 Multiple Linear Regression

Analysis

The Regression Equation Model is:

αβ1EA β2 EM

(1)

where:

Y = Entrepreneurship Interest of Student (EI)

α = Constants

ICMR 2018 - International Conference on Multidisciplinary Research

328

β1, β2 = Regression coefficient of independent

variables

EA = Entrepreneurship Attitude of Student (X1)

EM = Entrepreneurship Motivation (X2)

3.3 Research Hypothesis

In accordance with the purpose of this study, the

research hypotheses are formulated as follows:

H1: The entrepreneurship attitude of the students

correlates significantly in increasing

entrepreneurship interest of the students.

H2: The entrepreneurship motivation of students

correlates significantly in increasing the

entrepreneurship interest of the students.

4 RESULT

4.1 Preliminary Research

The main purpose of this preliminary study is to

examine the reliability and validity of the

instruments used in this study.

Reliability and Validity Test Results

Table 2: summarized the results of the validity and

reliability test on the instrument.

Table 2: Summary of Instrument Reliability Test.

From Table 2 above it can be seen that all

assessment instrument variables are valid because

they have Cronbach alpha coefficients of variable: α

> 0.6 respectively.

4.2 Classic Testing

Multiple linear regression model must fulfill some of

the so-called classic test questions, namely:

Normality test

There are several ways of performing data normality

tests, such as looking through histogram data

patterns or graph analysis and Kolmogorov Smirnov

tests. In this study both test analysis is used.

Figure 1, 2 and 3 below show that the data

pattern of the study is normal distribution. In

addition to viewing from the histogram data pattern

as shown below, the data normality is also viewed

through Normality test using Plot of Possible

Normal.

From the picture above, it appears that the

residual points are located and follow the normal

distribution pattern. It also uses the test of normality

Kolmogorov Smirnov, shown as follows.

Table 3: Classical Assumption Test Result.

ariable KS- Z asymp.sig

(2-tail)

Collinearity

Tolerance VIF

EA 0.832 0.493 0.856 1.169

EM 1.364 0.058 0.856 1.169

EI 1.471 0.076 - -

Table 3 above shows that the value of Asymp.

Sig. (2-tailed), indicates that all observed variables

are entrepreneurship attitude, entrepreneurship

motivation student’s and entrepreneurship interest,

each having p value = 0.493; p = 0.058; and p =

0.076, it means that all study variables have p >

0.05, so it can be concluded that the data is normally

distributed. The results of this test indicate that the

data can be tested using parametric statistics.

Multicolinearity Test

Multicollinearity is the existence of a perfect linear

relationship between some and all independent

variables (Gujarati, 2003). The multicollinearity test

can be observed from the Variance Inflation Factor

(VIF) and Tolerance values. If the VIF value is

around one and the Tolerance number is close to

one, multicolinearity may occur (Singgih, 2001).

However, if the Tolerance value > 0.10 and VIF

<10, then the regression model does not occur

multicollinearity.

From the multicollinearity test results it is

found the Tolerance and VIF values as in Table 3, so

it is concluded that there is no multicolinearity

Analysis of Attitudes and Motivation of UMN Al-Washliyah Students on Interest in Entrepreneurship

329

because the study variables have Tolerance > 0.10

and VIF <10.

Heteroscedasticity Test

The heteroscedasticity test used in this study is to

use a column plot. In Figure 5 it is shown that the

residual plot is random, not describing a particular

force such as wavy, widened or narrowed, so it can

be concluded that the linear regression model in this

study is liberated rather than heteroscedasticity.

4.3 Pearson's Corellation Analysis

The table below shows the results of Pearson's

correlation analysis of each study variable. From

Table 4 above it can be seen that all the independent

variables are significantly correlated with the

dependent variable ie entrepreneurship variable,

with the correlation coefficient of each rEI = 0.265

rEM = 0.53

. Thus, entrepreneurial motivation

variable with entrepreneurship attitude variable is

significantly correlated by rEM = 0.385

Table 4: Pearsons Correlation Coefficient.

EI EA EM

EI 1

0.265

0.011

0.530

0.385

0.000 0.000

4.4 Multiple Linear Regression

Analysis

The table below shows the results of multiple linear

regression analysis of each study variable.

Table 5: Results of Multiple Linear Regression Analysis.

Variables B

ilai

Constants 1.993 3.915 0.000

EA 0.097 0.675 0.505

EM 0.418 4.627

0.000

0.284

st R

0.263

F-Tes

14.153

. (2-tail) 0.000

From Table 5 above, it can be seen that the

entrepreneurial motivation variable shows a

significant effect on entrepreneurship interest with

the level of significance below 5%, while the

entrepreneurship attitude variable shows no

significance with the entrepreneurship interest

students of University Muslim Nusantara Al-

Washliyah Medan, with the level of significance

more than 5%. Furthermore, from Table 5 above, it

can be seen that the value of R

is 0.284, it means

that the 28.4% change of the entrepreneurship

interest variable can be explained by the independent

variable that is entrepreneurship attitude and

entrepreneurship motivation variable, while the rest

71.6% is explained by other variables outside the

independent variables studied.

The F-test value of 14,153

with α <5%, means

that simultaneously independent variables

significantly influence entrepreneurship interest of

UMN Al-Washliyah Medan students. From Table 5

above, then obtained Models of Multiple Linear

Regression Equation from research are as follows:

 1.993  0.097 EA  0.418 EM

(2)

where: Y = Entrepreneurship of Interest (EI)

EA = Entrepreneurship of Attitude

EM = Entrepreneurship of Motivation

5 DISCUSSION

Simultaneously, the entrepreneurship attitude and

entrepreneur motivation student’s from University of

Muslim Nusantara Al-Washliyah Medan

significantly influences the interest in

entrepreneurship, but partially only entrepreneurship

motivation factor that significantly increases

entrepreneurship interest, while the entrepreneurship

attitude factor of students does not significantly

increase student entrepreneurship interest.

ICMR 2018 - International Conference on Multidisciplinary Research

330

The motivation factor of students in

entrepreneurship is driven by the ambition of

independence in the form of the desire to open their

own business and likes to freedom in the move. On

the self realization factor is motivated by the desire

to gain a better position, and the desire to motivate

and direct others. Another driving factor for

becoming an entrepreneur is the desire to earn extra

money. Assessment of students in other

characteristics of entrepreneurship for organizational

behaviour factors, students assess to provide

opinions and suggestions to others and able to

convince and inspire others in a better way.

6 CONCLUSION AND SUGESTION

6.1 Conclusion

Simultaneously, variables of entrepreneurship

attitude and entrepreneur motivation student’s

University of Muslim Nusantara Al-Washliyah

Medan significantly correlate and increase student’s

interest in entrepreneurship, but partially only

motivation entrepreneurship that significantly

increase entrepreneurship interest, while

entrepreneurship attitude student’s is not

significantly increase student entrepreneurship

interest.

The results of this study indicate that the interest of

students in entrepreneurship is shown from the

indicators of the existence of student knowledge and

information about the entrepreneur, then followed by

the sense of interest to become entrepreneurs.

Feeling challenged and happy and proud to be

entrepreneurs, even a sense of courage in

entrepreneurship has not grown well. Therefore, it is

necessary to provide insight into the knowledge and

training of entrepreneurship better so that students

can understand that entrepreneurship is a preferred

form of job that much in demand in the future.

Fertilizing the entrepreneurial spirit should also be

done through doing entrepreneurial training by

practitioners. Training students’ self-confidence is

expected to change their opinion to become an

entrepreneurs which will be able to provide a better

life. This research will be more useful if University

of Muslim Nusantara Al-Washliyah can apply

entrepreneurship education courses to all existing

study programs.

6.2 Suggestion

Interest and mindset students from University of

Muslim Nusantara Al-Washliyah in running

entrepreneurship have not reached the satisfactory

stage because it is still in the stage of understanding

or knowing about entrepreneurship, so it takes hard

work to improve the quality through training and

learning. Changing the mindset that

entrepreneurship is an honourable job choice needs

to be done by giving examples of successful

entrepreneurs. It is necessary to undertake the

fertilization of the entrepreneurial spirit of the

student with the initial practice of entrepreneurship

practice. The experience of students will train their

self-confidence and this is expected to change their

mindset that being an entrepreneur can provide a

better life.

The attitude of most students does not like the

challenge and does not dare to take risks. In

addition, students tend to be afraid of being in debt.

In relation to risk tolerance, students should be

trained to make mature business planning, how

much profit and loss, so that it can reduce the risk of

failure. Students are trained to seek relevant

information that supports their efforts in making

decisions quickly and confidently on the basis of

careful business planning. To improve negotiation

skills, ability to sell and cooperate with others,

students are trained in some skills such as training

for managerial skills, business, establishing good

relationships in developing their business through

organizational development in campus environment

and training soft skills so that students not only

master the theory. To foster entrepreneurship

interest, students can apprentice to successful

entrepreneurs, so students can immediately see

examples of what actions, decisions, and skills are

used and practice the overall factors that drive

success in entrepreneurship.

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