Academic journal article Journal of Entrepreneurship Education

Entrepreneurship Education and Its Influence on Financial Literacy and Entrepreneurship Skills in College

Academic journal article Journal of Entrepreneurship Education

Entrepreneurship Education and Its Influence on Financial Literacy and Entrepreneurship Skills in College

Article excerpt

INTRODUCTION

Economic growth is one of the main macroeconomic indicators in creating the welfare of a country's society (Issues & Economic, 2015). Economic independence is the key to national economic development by encouraging the number of entrepreneurs. Entrepreneurship encourages employment, productivity and economic growth (Kritikos, 2014). The low number of entrepreneurs of a State will encourage economic problems such as poverty, unemployment that will ultimately affect inflation and low income and state revenues from taxes. In general, the quality of a country's human resources will be seen from the number of entrepreneurs who can grow and develop.

Based on data from the Indonesian Central Bureau of Statistics, Indonesia's population reached 265 million by 2017. Indonesia faces a demographic bonus (Health & Indonesia, 2018) a condition where the composition or population structure is profitable regarding development because the population is large. Population growth of 4 million per year or 1.49%. The ratio of the productive age population to the workforce age reaches a 48.9% dependence rate that every 100 productive age persons bear 48-49 people of non-productive age. The number of Indonesian entrepreneurs compared to other countries is very small. Indonesian entrepreneurs according to the Indonesian Chamber of Commerce are very low earning only 0.2-0.3% of the population of Indonesia, Malaysia 2.1%, Korea 4.4%, China 10%, Japan 10%, and the United States 12%. It indicates the need to encourage young entrepreneurs. David McClelland said that a country could be prospered if at least must have the number of entrepreneurs or entrepreneurs as much as 2% of the total population.

Entrepreneurship skills are developed through education and learning of educational institutions in Croatia (Hunjet et al., 2015); College Students in China (Zhou & Xu, 2012); even requiring effective learning methods in the field of entrepreneurship (Lekoko et al., 2012). Campus as an educational and economic mining institution can be a means of developing entrepreneurship learning skills. Why entrepreneurship is relevant to the economic points of view. This has worked fairly well for elective courses on higher level education (Lackeus, 2015). The development of technology and information enables students to learn, start new businesses, and grow their business online while studying; even Entrepreneurship education produces successful business and industry leaders, champions of innovation.

The entrepreneurial challenge in business is managerial (Vonortas & Kim, 2011) and finance (John & Sylvester, 2011); (Harner, 2011). Entrepreneurship education on campus teaches good business management and financial management is obtained through lectures in Accounting. Financial literacy becomes an important factor for students entering entrepreneurship and curbing the risk of entrepreneurial failure (Avlijaš et al., 2014) because the online payment mechanism and financial management require good knowledge (Musie, 2015) in transactions credit. Based on the above study then Entrepreneurship skills need to be analyzed and evaluated as the process and results of universities in improving new entrepreneurship.

ENTREPRENEURSHIP SKILLS

"Entrepreneurs as individuals who exploit the market opportunity through technical and organizational innovation" employed (Adeyemo, 2009). "Entrepreneurship is about taking a risk" so it takes entrepreneurship skills and Good Business Idea in entrepreneurship (Scott, 2017). Educational institutions can develop good entrepreneurship skills (Zhou & Xu, 2012; Lackeus, 2015).

Skills refer to the abilities and capacities of people who perform tasks demanded of them in a work environment. Skills can be generic, referring to general transferable skills, computing, dealing with risk and uncertainty, or developing a new product or service. Skills in good entrepreneurship will be able to increase business profits (Irawan, 2016; Agbim, 2013) so that creativity and innovation are very important for entrepreneurs. …

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