Abstract

Purpose of Study: To analyze and examine empirically the influence of entrepreneurship education, personality traits (need for achievement, locus of control and risk taking propensity), and subjective norms through the mediation of entrepreneurial attitude towards student’s entrepreneurial intention.

Methodology: Based on the literature research and analysis of previous works, a conceptual model based on Theory of Planned Behavior and Personality Traits was introduced.

Result: This conceptual model provides an analysis of the influence of entrepreneurial intention in higher education.

Implications/Applications: This model can be used to further develop the entrepreneurial curriculum strategy in higher institution.

Introduction

he problems of employment in Indonesia have been rooted from the orientation where most people tend to get higher education and look for a job. Annually, there are 3355 universities in Indonesia produce more than 339.000 graduates competing in work field, with less jobs opportunities available 1,2,3,4 . Unfortunately, the fact that people assume that a university graduates should work as an officers is not an ideal situation.

The existing paradigm in society saying that a university graduates should work as officer contributes to the open unemployment. It can be seen through the increase of unemployment from university graduates in 2006-2016 periods. Higher education graduates tend to become a civil servant or work in companies 5 that they feel not confident and embarrassed if they are not working as the academic background. Therefore, it’s not surprising that many university graduates become new open employments.

Data from Statistics Indonesia shows the trend of open unemployment from university graduates. There was a decline in 2013; 434.185 people. However, it continuously increases and reach 695.304 unemployed graduates in 2016.

Figure 1.Open Unemployment ofUniversity Graduates.Source:Indonesian Statistics Agency 2017

Another factor in escalating the number of unemployment is the stereotype in society that entrepreneurship is not an interesting career to choose as the threat of uncertainty and number of challenges to start new business 6,7,8 . It is a classical opinion that every university graduate expects to get a good job with a good salary with satisfactory career path. Becoming a civil servant is the most preferred job, though the number of employment is limited. For this reason, becoming entrepreneur is indeed unattractive to university graduates 9,10. Consequently, entrepreneurship is often underestimated; nonetheless new employment is created by entrepreneurship.

University play role as front guard in encouraging the nation – developing where higher education prepare a qualified and professional individual in all knowledge disciplines who are able to provide solutions and create the impact of learning entrepreneurship education in the form of educated entrepreneur generation 11 . There have been many experts in an opinion that entrepreneurship brings an impact in stimulating the interest, passion and entrepreneurial interest among youth generation 12 . Hence, university should play important role in stimulating the students’ entrepreneurial intention, one of the ways is to provide entrepreneurship education.

Many studies found that entrepreneurship education contributes to the development of entrepreneurial interest 13,14,15,16,17,18,19 .

A number of entrepreneurship models have been developed since 1980s to 2000s; Entrepreneurial Event Model (EEM) by 20 , Davidsson Model 21 , Entrepreneurial Attitude Orientation Model (EAO) by 22 , Entrepreneurial Potential Model (TPM) proposed by 23 and Theory of Planned Behavior (TPB) of 24 . The Theory of Planned Behavior (TPB) is among the most popular theory 25 .

Similarly, 18 proposed a general structure based on TPB 24 which created in purpose of examining the behavior change and students’ way of thinking. Ajzen model explains and predicts how culture and social surrounding affect the human behavior. It suggests that intention is the function of three basic determinant namely, attitude toward behavior (individual evaluation) or personal behavior, subjective norms (social pressure) or social norms and perceived behavior control (ability to control behavior) or behaviors control. Personal behavior and social norms are two factors reflecting will to do a particular behavior. Behavior control reproduces perception (self efficacy). This theory confirms previous research 26,27,28,29,30 .

The TPB implementation cannot be separated from intention aspect of entrepreneurship, it implies that entrepreneurship can be learnt that it will be studied as subject in university can be a career path for students of university. Therefore, factors influence the intention to become entrepreneur among students should be investigated further.

In addition to TPB, 31 proposed a conceptual model which arranged to find out factors influencing entrepreneurship intention. However, this model is not specifically designed for students of university. Mostly, the approach differentiates between internal and external factor. Internal factor may determine career choice dominated by model trying to identify individual features and stable behavior 32,33,34 . Individual features as (personality traits), the tendency to take risk (risk taking propensity), need for achievement (the need for achievement), and locus of control, are factors influencing entrepreneurship 35.

External factor focuses on social, economy and education aspects. Contextual variable can influence the intention of an individual to be entrepreneur (such as the image of entrepreneur in the community and the availability of funds). In this context, external factor affect students’ decision found in university and their didactic activity as well 31. Entrepreneurship education which derived from firmed learning can contribute to an increasing knowledge and promoting psychology attribute related to entrepreneurship 36 tion of entrepreneurship 37 and 38 , and 39,40 suggested that the most important element contributing to students’ intention to start a company is education.

Furthermore, 22 in their research recommend that achievement, innovation, and locus control and self- confidence can predict entrepreneurship behavior. Entrepreneurship characteristic consist of internal locus of control, need for achievement, tolerance for ambiguity and propensity to risk has significant influence toward entrepreneurship attitude 41 . It proves to become contributing factor creating entrepreneurship intention 14 , focus on Personality Traits; risk taking propensity and internal locus of control are factors caused toward entrepreneurship attitude. It is influenced by education, policy maker, and successful business founder.

The concept of current research is designed to analyze how the background factors are; risk taking propensity, need for achievement, locus of control, and entrepreneurship education influence the intention and entrepreneurship attitude. This effect is not only investigated directly but also with mediation through entrepreneurship attitude as developing concept of Theory of Planned Behavior. A number of research shows the important role of risk taking propensity, need for achievement, locus of control, entrepreneurship education, entrepreneurial intention and entrepreneurship attitude 1,14,36,41,42,43,44,45,46,47,48 . The following table is the summary of previous research.

Research gap Author Finding
Difference about the influence of need for achievement toward entrepreneurial intention 47,36,44,49,1,12 Need for achievement contributes positively and significantly toward entrepreneurial intentionNeed for achievement there is no significant positive influence toward entrepreneurial intention
Difference about the influence of locus of control toward entrepreneurial intention 1,14,46,50,51,52,36,53 Locus of control influence positively toward entrepreneurial intention Locus of control there is no significant positive influence toward entrepreneurial intention
Difference about the influence risk taking propensity toward entrepreneurial intention 1,44,47,48,36 Risk taking propensity influence positively toward entrepreneurial intention Risk taking propensity influence positively toward entrepreneurial intention
Difference about the influence of subjective norms toward entrepreneurial intention 1,6,54 Subjective norms has direct influence on toward entrepreneurial intention Subjective norms there is no significant positive influence toward entrepreneurial intention
Table 1.Previous Research

Having studied the previous study on entrepreneurial intention, very little is known about research gap on factors that affect the entrepreneurial intentions. Therefore, this study focuses on examine the influence of personality traits (internal factor); need for achievement, locus of control and risk taking propensity and use Theory of Planned Behavior (TPB) in the current context is denominated by subjective norms and how the entrepreneurship education (external factor) contributes toward the students’ entrepreneurial intention. Background factors of entrepreneurial intention are not only investigated directly but also mediated through entrepreneurship attitude.

The purpose of this research is to examine and analyze empirically entrepreneurship education, personality traits (need for achievement, locus of control and risk taking propensity), and subjective norms through the mediation of entrepreneurial attitude towards student's entrepreneurial intention. The researcher will examine the conceptual model to the undergraduate students of Economic Education programme at School of Education, Universitas Sriwijaya, Indonesia, where some alumni have their own business.

There are many students run their business while they are studying in the university. However, their interest to to become employees after graduated from university is still high. This inspires the research to find out what factors influenced their entrepreneurial intention, and how is the form of entrepreneurial intention.

This research is expected to contribute the development students’ entrepreneurial intention model, also developing appropriate education program to create and improve the growth of young entrepreneurs in Indonesia. In the end of this paper a conceptual model of entrepreneurship is proposed.

Hypothesis and Literature Studies

Entrepreneurship Education

Entrepreneurship education as pedagogy program or education process related to entrepreneurship skill intensifying individual skill exclusively focus on the making of new commerce immediately 14 . The influence of entrepreneurship education has been claimed as a contributing factor to grow and encourage interest, soul and behavior among youths 12 .

Students who joining entrepreneurship course to be having more successful commerce than those who do not take the entrepreneurship course 44 . It has a countable impact which is strong toward students’ entrepreneurship intention. However it is not significantly control self-behavior self-efficacy, also influencing the students’ intention for entrepreneurship 14 . Based on the previous study above, two hypotheses are then proposed as follows:

H1: Entrepreneurship education influence significantly and positively toward entrepreneurial attitude.

H2 : Entrepreneurship education influence significantly and positively directly towards the entrepreneurial intention.

Personality Traits

Personality Traits or personal character has been proved to be predictor of many aspects of entrepreneurship 55. Personality Traits referring the personal trait of the entrepreneur. A number of personality traits, such as risk taking propensity, need for achievement, and locus of control are the factors affecting entrepreneurial intentions 35 .

Entrepreneurship characteristics consist of internal locus of control, need for achievement, tolerance for ambiguity and propensity to risk has significant influence toward entrepreneurial attitude, and entrepreneurial attitude significantly influences the entrepreneurial intention 41 . Entrepreneurial attitude has been proven to contribute to the formation of entrepreneurial intentions, 14 focus on Personality Traits which is risk taking propensity and internal locus of control is the factor trigger entrepreneurial attitude

Therefore, the hypotheses are:

H3 : Need for achievement positively and significantly influence toward entrepreneurial attitude

H4 : Locus of control positively and significantly influence toward entrepreneurial attitude

H5 : Risk taking propensity positively and significantly influence toward entrepreneurial attitude

H6 : Need for achievement positively and significantly influence toward entrepreneurial intention

H7 : Locus of control positively and significantly influence toward entrepreneurial intention

H8 : Risk taking propensity positively and significantly influence toward entrepreneurial intention

Subjective Norms

Subjective norms or social norms on the perceived social pressure to do or not to do the desired behavior 24 . Pressure from family, friend or society influence an individual to be. Subjective norms are significant to entrepreneurship examining first grader in Norway 26 . Furthermore, Kolvereid replicated the previous study in 1999 with Tkachev by examining students sample from Russian University from many learning process and subjective norms found is positively correlated to entrepreneurship intention 27 .

Based on the previous study, the hypotheses can be formulated as follows:

H9 : Subjective norms positively and significantly influence toward entrepreneurial intention.

Entrepreneurial Attitude

Based on planned behavior from 56, entrepreneurial attitude is one of the factors that shape the intention of an individual to do something. Therefore, the understanding of entrepreneurial intention reflects to run commerce. Entrepreneurial attitude is proved to be contributing in the form of entrepreneurial intention 14.

Entrepreneurial Intention

Entrepreneurial intention is a behavior which is not done without forethought and follow the information consistently the relevant and useful information and weaken by emergency situation 24. Entrepreneurial intentions according to Katz and Gartner in 12 is an information search used to achieve the goal of establishing a business.

Based on the previous study above, the hypothesis is:

H10 : Entrepreneurial attitude influence positively and significantly toward entrepreneurial intention

Conceptual Framework

Having studied over previous literature research, there are three groups that can influence the entrepreneurship intention.

  1. Entrepreneurship education
  2. Personality traits, consist of
    1. The need of achievement
    2. Locus of control
    3. Risk taking propensity
  3. Subjective norms

The Entrepreneurship education and the personality traits become the attitude towards the intention, while the subjective norms directly shape the intention. The model is then propose in Figure 2. This model can be the base of entrepreneurship intention in higher education system.

Figure 2.Conceptual FrameworkSource: Hasmidyani,Suranto, and Soetjipto 2018

CONCLUSION

This article purposes at conceptualizing entrepreneurial intention which has been conceptualized explicitly in the existing research on entrepreneurship. The research aims at examining empirically influence entrepreneurship education, personality traits (need for achievement, locus of control and risk taking propensity), and subjective norms through mediation entrepreneurial attitude toward students’ entrepreneurial intention.

The present research is expected to contribute decent information in the development students’ entrepreneurial intention, developing education program to create and develop the growth of youth entrepreneur in Indonesian. Throughout this article, the research arranges a conceptual model and supporting research that will be examined in the future article.

ACKNOWLEDGEMENT

This research is supported and fund by Indonesian Education Scholarship (LPDP)

References