Academic journal article Journal of Entrepreneurship Education

Effect of Entrepreneurship Education, Self Efficacy and Need for Achievement toward Students' Entrepreneurship Intention: Case Study in Febi, Iain Surakarta, Indonesia

Academic journal article Journal of Entrepreneurship Education

Effect of Entrepreneurship Education, Self Efficacy and Need for Achievement toward Students' Entrepreneurship Intention: Case Study in Febi, Iain Surakarta, Indonesia

Article excerpt

INTRODUCTION

There is a paradox about the increasing number of unemployment rate in Indonesia, when the largest unemployment rate is actually created by educated group. By percentage, unemployment rate of university graduates also increased from 5.34% in 2015, to 6.22% in 2016. The conditions faced will worsen with the global competition situation, the implementation of the ASEAN Economic Community (MEA) which will confront Indonesian university graduates to compete openly with graduates from foreign universities. Suharti & Sirine (2011) stated that college graduates need to be directed to not only as job seekers oriented but can and are ready to be work creator.

The cultivation of entrepreneurship to the younger generation needs to be improved. This is in accordance to the findings of Ernst & Young (2011) which revealed that more than half of success entrepreneurships start their business at the age of 20-29 years old. Education has an important role in fostering the entrepreneurship spirit (Hegarty, 2006). Ghina et.al., (2017) stated that entrepreneurship education can produce highly educated businessman who has the potential to provide broader employment opportunities. The same thing is said by Kolvereid & Moen (1997) that college-students who graduated with entrepreneurship spirit tend to have entrepreneurship ambition and start new business compared to other students.

Growing college-students' entrepreneurship intention can be an alternative in reducing unemployment, because degree-holder are expected to become young educated entrepreneurs and able to pioneer their own business and create jobs for others (Retno & Trisnadi, 2012). Zimmerer (2002) stated that the factors driving the growth of entrepreneurship one of them lies to universities's role in the implementation of entrepreneurship education. University needs to apply a concrete entrepreneurship learning pattern based on empirical input to equip college-students with meaningful knowledge in order to encourage college-students' spirit in entrepreneurship (Suharti & Sirine, 2011).

Some studies conducted by previous researchers have answered the question in detail such as;

1. Mueller's (2008) research about what lecture characteristics are more effective in fostering entrepreneurship character;

2. Potishuk's, et. al., (2017) research about the factors that stimulate college-students' entrepreneurship attitudes and intentions in universities;

3. Ramayah's et al., (2012) research about the importance of prior experience in growing entrepreneurship attitudes;

4. Souitaris' et al., (2007) research about the programs that can enhance entrepreneurship attitudes and intentions;

5. Bhat & Singh (2018) research about the relationship between entrepreneurial education with subjective norms in shaping perceptions and attitudes in entrepreneurship;

6. Melati et al. (2018) describe the different pattern of start-up business who have owned businesses in various fields as seen from their different economic backgrounds;

7. Khuong & Huu An (2016) investigate about the influence of personal traits, previous entrepreneurial experience, external environment, social norms and perceived feasibility of entrepreneurial intention;

8. Aziz et al. (2018) examine how the relationship of entrepreneurship education to the career intention of female students.

This research examines the effect of entrepreneurship education, self efficacy, and need for achievement in fostering college-students' entrepreneurship intentions. Previous researches (Fayolle et al., 2005; Noel, 2001; Paco et al., 2012; Hassan & Wafa, 2012; Fayolle & Gailly 2015; Bhat & Singh, 2018) proved the relationship between entrepreneurship education and entrepreneurship intention. Entrepreneurship education will increase college-students' entrepreneurship intentions. According to Paulina & Wardoyo (2012), variables that can grow the intention are self-efficacy and need for achievement, so that educators are required to improve college students' self-efficacy and the need for achievement through entrepreneurship education. …

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