Determinant Factors Affecting the Introduction of Entrepreneurs to

Overcome Intellectual Prevention: A Case Study at Faculties of

Economics of Private Universities in Medan

Tamrin Hasibuan

, Azhar Apriandi

Management Department, Faculty of Economic, UISU, Medan

Economic Development Departemen, Faculty of Economic, UISU, Medan

Keywords: Student Entrepreneurship, Determinant Factor, Internal Factor, External Factor, Contextual Factor, and

Entrepreneurial Interest.

Abstract: The background of this research is the lack of graduates who dare to start entrepreneurial activities.

The interest in student entrepreneurship is still lacking. The increase in the number of

undergraduate graduates who are not comparable to the capacity of work available in the company

will become a national problem resulting in many educated unemployed. The world of education,

especially universities, has educated students and prepared graduates to study entrepreneurship and

make entrepreneurship a part of the curriculum offered, but efforts to incorporate entrepreneurship

education into the college curriculum are not always balanced by students' intention to do business.

The purpose of this study is to describe the actual conditions of the determinants that influence

students 'entrepreneurial interests and form a method of approach to increase students'

entrepreneurial interest in overcoming intellectual unemployment. This research will be conducted

at six Private Economics Faculties in Medan City. This study uses a descriptive approach, primary

data obtained from questionnaires of 100 selected respondents. This study concludes that partially

internal factors influence the interests of entrepreneurship a lot, while external and contextual

factors do not affect. Simultaneously the three variables, namely internal, external, and contextual,

have an influence on the interest in entrepreneurship, but the effect is very small, which is only

15.8%, meaning that in general the interests of entrepreneurs are relatively low.

1 INTRODUCTION

Students as youth and the younger generation are the

backbone of national development. The future of the

nation and the ideals of a just and prosperous society

rest on the shoulders of young people. This is

certainly not an easy task; therefore, youth

empowerment needs to be done and must receive

special attention. This can be done by developing

abilities, skills and characters that must be carried out

continuously. Without special attention, the younger

generation might be a burden to the State.

The world of labor competition is increasing

rapidly, and this is inversely proportional to the

availability of employment, which certainly makes

the unemployment rate in Indonesia still high. In

relation to the quality of human resources, education

is considered as a means to improve the quality of

human resources themselves. Good education is

expected to be able to provide good human resources.

But in reality, currently education is also considered

to be closely related to unemployment, especially

educated unemployed workers.

Based on Central Agency data North Sumatra

Statistics (BPS), the unemployment level of college

graduates especially in North Sumatra is still quite

large and dominating. In 2016, it increased 6.22%

from 2015 by 5.34% (BPS, 2016). This means that

university graduates in North Sumatra are the highest

education level contributing 6,22% unemployment.

This number can be a sign that it turns out that

university graduates do not guarantee someone has a

job.

Based on current conditions, the profession as an

entrepreneur seems to be one of the right solutions.

People no longer depend on the work available but

start thinking about how to make it create their own

Hasibuan, T. and Apriandi, A.

Determinant Factors Affecting the Introduction of Entrepreneurs to Overcome Intellectual Prevention: A Case Study at Faculties of Economics of Private Universities in Medan.

DOI: 10.5220/0008892907150722

In Proceedings of the 7th International Conference on Multidisciplinary Research (ICMR 2018) - , pages 715-722

ISBN: 978-989-758-437-4

715

jobs. The government also began to intensively

launch the National Entrepreneurship Movement.

The entrepreneurial Student Program was actually

launched by the Director General of Higher

Education of the Ministry of Education and Culture

in 2013.

The Entrepreneurial Student Program (PMW)

which will be implemented and developed by tertiary

and private tertiary institutions aims to provide

knowledge and skills, attitude and entrepreneurship

based on science and technology to students so that

they can change the mindset of job seekers to create

jobs. This program is also expected to reduce the

unemployment rate of college graduates.

Based on the fundamental problem, namely the

lack of student entrepreneurship, the low interest of

students in entrepreneurship, and the lack of

institutional intervention in improving student

entrepreneurship, researchers felt interested in

conducting research entitled "Determinants of

Influencing Entrepreneurial Interest to Overcome

Intellectual Student Unemployment of Faculty of

Economics, in Private Universities in Medan City.

The formulation of problem in this research is

how is the influence of Internal, External, and

Contextual Factors on student entrepreneur interest.

2 METHODOLOGY

2.1 Research Design

The object and scope of this study are external

factors, internal, contextual, and entrepreneurial

interests. The research method used in this research is

explanatory research. Explanatory research method is

a research used to obtain description, description

systematically, factual and accurate about facts,

nature and relationship between variables studied

(Sekaran and Bougie: 2010)

2.2 Variable Operationalization

Internal factors, namely personal skills about the

problem of how we manage ourselves. External

factors, namely social skills related to how we deal

with a relationship, contextual factors, namely

academic support by teaching entrepreneurship

courses taught through education and training, and

interest in Entrepreneurship is an interest in students

in entrepreneurship. The variable operation used is

the Linkert scale.

2.3 Population and Sample

The populations in this study are the Faculty of

Economics students who have obtained courses

entrepreneurship at the Islamic University of North

Sumatra, Muhammadiyah University of North

Sumatra, Muslim Nusantara University, Alwasliyah

University, Sari Mutiara University, Nomensen

University, Darma Agung University, and Methodist

University, with sampling techniques using Slovin

formula and obtained 100 respondents.

2.4 Testing Research Instruments

Testing the research instrument aims to test the

quality of the data whether the items stated in the

questionnaire are adequate and in accordance with

conditions in the field or not. In this study used the

validity test and reliability test.

To find out items that are valid and invalid, it is

done by comparing the value of r count with rtable at

the level of trust 95%, in other words the error rate

tolerated (α) in this study is 5%. If the value of ritung>

rtable then the instrument item is declared valid, and

vice versa if the value of rcount <rtable then the

instrument item is declared invalid, n = 100 then the

r table is obtained 0, 194. In this study, all items in

question are valid because r count> r table.

A variable is said to be reliable or cannot be seen from

the croncbach Alpha r value. If the value of r> 0.60,

the instrument is declared reliable (Imam Ghazali,

2001, p. 42). The reliability test results in this study

show the value of cronbach's alpha> 0.60, so that all

indicators of each variable in the questionnaire are

reliable. It means that all the questionnaires in this

study are reliable questionnaires.

2.5 Data Analysis Technique

The data analysis technique used in this study is

Descriptive Statistics, Multiple Linear Regression

Analysis, Classical Assumption Tests, and

Hypothesis Tests.

2.5.1 Test Descriptive Statistics

The results of the descriptive statistics are shown

below:

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716

Table 1: Test Descriptive Statistics.

N Min Max Mean

Std.

Deviation

Internal 100 42 70 58.38 5.799

external 100 32 57 43.21 6.021

contextual 100 35 68 53.20 6.153

Interest 100 43 65 52.77 4.807

Valid N 100

(listwise)

2.5.2 Description of Variable Interest in

Entrepreneurship (Y)

Data on Entrepreneurial Student Interest variables

were obtained through questionnaires with the

number of respondents 100 students. This variable

uses research indicators, namely interest in

entrepreneurship, independence, social environment,

and a good future with a total of 13 statements.

This study uses a Likert Scale with 5 alternative

answers from strongly agree to strongly disagree.

Data analysis using computer program assistance

shows that the Entrepreneurial Student Interest

variable has the lowest value of 43 and the highest

value of 65; The mean value is 52.77; and the

standard deviation value is obtained at 4,807. The

variable Interest in Entrepreneurship is high.

Table 2: Tendency Categories of Variable Frequency

Student Interest.

No.

Interval Frekw %tase cate

> 47,66

90 90%

30,34 s/d

47,66 10 10%

Midle

< 30,34

0 0% Low

Total 100 100%

Based on the calculation of the data tendency of

Entrepreneurial Student Interest, out of 100

respondents, 90% of respondents are in the high

category, 10 respondents in the moderate category

(10%), and no respondents in the low category. These

results indicate that respondents' assessment of the

variable Interest in Entrepreneurship is high.

2.5.3 Description of Internal Factor

Variables (X1)

Data on Internal Factor variables were obtained

through questionnaires with the number of

respondents 100 students. This variable uses research

indicators, namely attitudes and personalities with a

total of 14 statement. This study uses a Likert Scale

with 5 alternative answers from strongly agree to

strongly disagree. Data analysis using computer

program assistance shows that the Internal Factor

variable has the lowest value of 42 and the highest

value of 70; The mean value is 58.38; and the

standard deviation value is obtained at 5.799

Table 3: Frequency Trend Category Internal Factor

Variables.

No.

Interval Frekw %tase

Cate

1. > 51,33 89 89%

32,67 s/d

51,33 11 11%

Midle

3. < 32,67 0 0% Low

Total 100 100%

Based on the calculation of the data tendency of

the Internal Factor variable, out of 100 respondents,

90% of respondents are in the high category, 11

respondents in the moderate category (11%), and no

respondents in the low category. These results

indicate that respondents' assessment of the Internal

Factor variable is high.

2.5.4 External Variable Description (X2)

External factor variable data were obtained through

questionnaires with the number of respondents 100

students. This variable uses research indicators,

namely attitudes and personalities with a total of 12

statement. This study uses a Likert Scale with 5

alternative answers from strongly agree to strongly

disagree. Data analysis using computer program

assistance shows that the Internal Factor variable has

the lowest value of 32 and the highest value of 57;

The mean value is 42.21; and the standard deviation

value obtained is 6.021.

Table 4: Frequency Trend Category External Factor

Variables.

No.

Interval Frekw %tase

Category

1. > 44 34 34%

2. 28 s/d 44 66 66%

Midle

3. < 28 0 0% Low

Total 100 100%

Determinant Factors Affecting the Introduction of Entrepreneurs to Overcome Intellectual Prevention: A Case Study at Faculties of

Economics of Private Universities in Medan

717

Based on the calculation of the data tendency of

the External Factor variable, out of 100 respondents,

34% of respondents are in the high category, 66% of

respondents in the moderate category, and no

respondents in the low category. These results

indicate that respondents' assessment of the External

Factor variable is moderate.

2.5.5 Contextual Variable Description (X3)

This variable uses research indicators, namely

attitudes and personality with a total of 14 statements.

This study uses a Likert Scale with 5 alternative

answers from strongly agree to strongly disagree.

Data analysis using computer program assistance

shows that the Internal Factor variable has the lowest

value of 35 and the highest value of 68; The mean

value is 53.20; and the standard deviation value is

obtained at 6.153.

Table 5: Frequency Trend Category Variable Contextual

Factor.

No.

Interval Frekw %tase

Cate

1. > 51,33 66 66%

32,67 s/d

51,33 34 34%

Midle

3. < 32,67 0 0% Low

Total 100 100%

Based on the calculation of the data tendency of

the Contextual Factor variable, out of 100

respondents, 66% of respondents are in the high

category, 34 respondents in the moderate category

(34%), and no respondents in the low category. These

results indicate that respondents' assessment of the

Contextual Factor variable is high.

2.6 Multiple Linear Regression Test

Data analysis in this study uses multiple linear

regression analysis. Based on the data above, the

following multiple linear regression equations are

obtained:

Y = 32,097 + (0,263) Internal + (0.117) External +

(0.005) Contextual + e (1)

From the results of multiple linear regression, it

can be concluded:

a) 2,097 shows that if the Internal, External, and

Contextual variables are zero (0), the value of

Entrepreneurship Interest is 32,097.

b) 0.263 shows that if the Internal variable is

increased by 100%, the value of

Entrepreneurship Interest increases to 26.3%

c) 0.117 indicates that if the External variable is

increased 100%, the value of Entrepreneurship

Interest increases to 11.7%.

d) 0.005 shows that if the contextual variable is

increased 100%, the value of Entrepreneurship

Interest increases to 0.50%

2.7 Test the Hypothesis Partially

(t-test)

This test is done to test whether the independent

variables (X); Internal, External, and Individual

contextuals have a positive and significant influence

or not on the dependent variable (Y), namely

Entrepreneurship Interest.

The criteria for acceptance/rejection are as follows:

1) If count> t-table, Ho is rejected the meaning is

influential.

2) When calculating <t-table, Ho is accepted which

means there is no effect.

From the results of the t test, it is produced as

follows:

a) Internal factors tcount> t table = 3.078> 1.985

can be concluded that the variable X1 has a

contribution to Y. The value of positive t

indicates that the variable X1 has a relationship

that is in line with Y, and the significance is

0.003 <0.05. It is stated that H1 is accepted and

Ho is rejected at α = 5% which shows that

partially Internal Factors affect the Interests of

Entrepreneurship. The value of the Beta

coefficient standard is 0.317, which explains the

influence of Factors Internal to Entrepreneurial

Interest at 3.17%.

b) External factors tcount <ttable = 1.391 <1.985

can be concluded that the variable X2 does not

have a contribution to Y, and the significance is

0.168> 0.05. This is stated that Ho accepted

means that there is no influence of External

Factors on Entrepreneurship Interest.

c) Contextual factors tcount 0.063 <1.391 can be

concluded that variable X3 does not have

contribution to significance = 0.950> 0.05. This

is stated that Ho meaning has no influence on

the Factors Contextual Entrepreneurship.

2.8 Simultaneous Test (Test F)

This test is conducted to determine whether or not

there is an influence between the independent

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variables namely Entrepreneurship Education,

Family Environment, Personality towards the

dependent variable namely Entrepreneurial Interest

used by the F test.

From the results of the analysis, it is known that

the value of Fcount> Ftable is 6.002> 2.699, and the

significant value is 0.001 <0.05. This means that Ho

is rejected. If Ha is accepted, it can be concluded that

Internal Factors, Factors External, and Contextual

Factors significantly influence the Interests of

Entrepreneurship together.

2.9 Determination Coefficient

This test is done to see how big the independent

variable is able to explain dependent variables. Based

on the table above, it is known that the coefficient of

determination (R Square) is equal to 0.158 or 15.8%.

This means that Internal, External, and Contextual

Factors in explaining Entrepreneurial Interest are

15.8%, while the remaining 84, 2% is explained by

other factors which are not included in this study.

3 ANALYSIS

3.1 Analysis of Factor Influencing

Internal against Interest

Entrepreneurship

The results of statistical tests between internal factors

and entrepreneurial interests obtained tcount> t table

are 3.078> 1.985 (sig = 0.003 <0.05) which indicates

that internal factors influence entrepreneurial

interests. Of the 14 questions about internal factors

(attitudes and personality), 93% agreed that students

dare to accept challenges and business opportunities,

they need freedom for example the freedom to use

time, that is, we can determine time flexibly at work

but remain committed to completing tasks and

responsibility at work. This is in line with the

statement from Siswadi (Siswadi, 2013) stating that

freedom in work is a work model where a person does

a little work but gets great results. An entrepreneur

will have free time for himself, not bound by working

hours as employees in the company (points 1-6, 8-

14). 7% answered that neutral/ hesitant would work

with risk as well as the potential for large profits

compared to the risks and potential profits small/

ordinary, meaning that students have not dared to take

risks (point 7).

Kurnianto and Sulistya (Kurnianto and Sulistya,

2012) stated that to be able to develop students'

interest in making a career as an entrepreneur, efforts

are needed to improve their personality factors.

Personality factors include the need for achievement,

locus of control, friendship with uncertainty, and

courage to take risks and confidence. These

personality factors can be nurtured and improved

through the development of their soft skills. In

addition, curriculum improvement, learning and

teaching methods still need to be addressed.

3.2 Effect of External Factors on

Entrepreneurial Interest

From the results of the statistical test between

external factors and entrepreneurial interests, tcount

<ttable is 1.391 <1.985 (sig = 0.168> 0.05) which

indicates that external factors have no effect on

Entrepreneurial interest. Of the 12 questions about

external factors (family and environment social), 8%

of students who answered agreed (point 12) that

students were sure they could manage time well

between matters personal, college/ academic, running

a business and getting along with the environment,

and 92%, answering neutral / showing doubts (point

1-11), because the factor of work of parents still has

a considerable influence, where there are still many

parents who work as employees also expects their

children to work as employees who are considered to

have a lower risk than being entrepreneurs.

Conversely, parents who work as entrepreneurs are

believed to be able to become role models

(entrepreneurial role models) that will shape

children's interest in entrepreneurship in the future

(Galoway, et al., 2006).

3.3 The Effect of Contextual Factors on

Entrepreneurial Interest

From the results of statistical tests between contextual

factors and entrepreneurial interests, tcount <ttable is

0.063 <1.985 (sig = 0.950> 0.05), which indicates

that the contextual factor has no effect towards

Entrepreneurial interest. Of the 14 questions about

factors contextual (Educational support, Experience

and debriefing entrepreneurship), 76% (Points 1-9,

and 11-14) agree that entrepreneurial knowledge and

skills obtained from formal and non-formal education

are important factors for running a business. Besides,

curriculum and learnings which focuss more on

mastering the theory than practical application which

are in synergy with learning methods and facilities at

the Faculty of Economics can optimize the

improvement of student’s abilities/ competencies

which contain knowledge about values, spirit, spirit,

Determinant Factors Affecting the Introduction of Entrepreneurs to Overcome Intellectual Prevention: A Case Study at Faculties of

Economics of Private Universities in Medan

719

attitude, behavior in order to have entrepreneurial

thinking, socialism - economy, in order to be able to

experience entrepreneurship and entrepreneurship

gain empirical experience from previous

entrepreneurs, equip production techniques to get it

produce or produce products in the form of goods,

services or ideas, anticipation techniques for various

possible things in entrepreneurship in the form of

problems, problems and other risks.

University and Faculty facilitate the growth of

entrepreneurship new by providing laboratory,

gallery, program incubators, training, workshops and

the like, allocate internal budget to support

Entrepreneurship courses and the growth of new

entrepreneurs. 24% (point 10) answered neutral /

showing doubt, that curriculum and learning at the

Faculty of Economics are still interested emphasize

mastery of theory compared to the application of

practice, where the lecturer becomes the center

teacher centered learning must be more competent

and skilled in running the Entrepreneurship Course.

The educational approach sees that this condition

occurs because of weak entrepreneurship education in

schools and colleges. Whether viewed from the

aspect of curriculum, instructor, learning process,

learning facilities, sources of learning and evaluation,

the implementation of entrepreneurship education

still has fundamental problems (Rianti, 2003).

3.4 Effects of Internal, External, and

Contextual Factors

From the results of statistical tests between internal,

external, and contextual factors with entrepreneurial

interests obtained Fcount> Ftable = 6,002> 2,699 and

significant value = 0,001 <0,05, it is seen that Internal

Factors, External Factors, and Contextual Factors

significantly influence the Interests of

Entrepreneurship together. Of the 13 questions about

entrepreneurial interest (General attitude towards

entrepreneurial activity, Specific awareness to like

entrepreneurial activities, feeling happy with

entrepreneurial activities, and Entrepreneurial

activities have important meaning for individuals),

100% agree; it means that students have a high

interest if internal, external and contextual factors are

very supportive.

The value of the determination coefficient (R

Square) is 15.8%. It can be said that the interest of

Faculty of Economics students in Medan City for

entrepreneurship is generally relatively low. This is

indicated by the lack of individuals and groups

entrepreneurial students; low student involvement in

training, debriefing, seminars and the like inside and

outside the campus environment; and the lack of a

business proposal submitted/ competed, individual

characteristics, family environment and socio-

demography and academic support are the most

dominant factors determining the high and low

interest of student entrepreneurs. The tendency of

high interest in student entrepreneurship is due to

there is a feeling of being more free, independent and

productive when entrepreneurship; love to work

according to personal intuition; confidence in ability

and self-potential; and the courage to accept

challenges and take risks. The low interest in student

entrepreneurship is because the majority of parents

and families work as civil servants and private

employees so that they direct their children to

continue their careers in the formal sector. Public

perception that social status and welfare guarantees

employees are better than entrepreneurs also make

student entrepreneurial interests low. The climate of

entrepreneurial learning is still dominated by

theoretical aspects and is also one of the factors that

influences the low interest of student entrepreneurs.

Students do not have field orientation and experience

because the learning model is still conventional.

Facilities in the form of physical, capital, and

programs that can be accessed on campus internally

are availabe but relatively limited that it does not

support the student entrepreneurship interest.

Some ways that can be done to increase student

entrepreneurship interests include (a) increasing the

frequency of entrepreneurial practices, socialization

and access to information about entrepreneurship on

campus internally as well as possible to the widest

possible extent. student, (b) implementing periodic

contextual learning in the form of field studies in

Micro, Small and Medium Enterprises (MSMEs) in

the campus area, especially those owned and

managed by alumni. (c) providing and completing

entrepreneurial facilities on campus such as

laboratories, galleries, workshops and the like, (d)

holding special programs such as business incubators

and competitions writing business plans for students

(business plans) with certain prizes / bonuses that

have an impact in increasing entrepreneurial interest

and skills, (e) allocating adequate budget to groups of

students who after certain selection meet the

requirements and have prospects for developing

businesses, and (f) building integrated

entrepreneurship development networks with local

stakeholders who have similar programs such as

Dinas Industry and Trade Cooperatives, Bank

Indonesia and the Chamber of Commerce and

Industry in Medan City (Herwin Mopangga: 2014).

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720

4 CONCLUSIONS AND

SUGGESTIONS

4.1 Conclusion

Based on the data analyzed, conclusions can be drawn

as follows:

a) Internal factors influence the interest in

entrepreneurship.

b) External Factors do not affect the Interests of

Entrepreneurship.

c) Contextual factors do not influence the interests

of entrepreneurship.

d) Internal Factors, External Factors, and

Contextual Factors significantly influence the

Interests of Entrepreneurship together.

4.2 Suggestion

From the results of the conclusions above, the

suggestions can be put forward as the following:

a) There needs to be new innovations in

entrepreneurship learning that are more creative

by giving not only theory but also direct practice

in the field for entrepreneurship which makes it

one of the consideration values for

entrepreneurship courses.

b) Parents as the first-place for children to get

education must provide examples and

motivation for children to become entrepreneurs

because the environment family has a positive

effect on the interest in entrepreneurship.

c) Based on the results of this study, internal

factors have a positive and significant effect on

the interest in entrepreneurship so that students

have to change the mindset of job seekers to

become job creators

d) Universities and Faculties must provide

facilities and infrastructure as a place for

students to channel their entrepreneurial

interests.

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