1

Some Factors Influencing Student Motivation to become an Entrepreneur

Abdul Holik
Gallyn Ditya Manggala
Alumni of Master of Economic Sciences, Padjadjaran University
Email:abdulholik57@yahoo.com
gallyn.ditya@yahoo.com
Abstract
This research aims to find some factors influencing studentsinterest to become
entrepreneurs. This research uses explanatory survey from students of Indonesian Education
University. The indicators as variables included are family support, attitude to become
entreprenurs, andstudents perception about entrepreneurship. The result shows that all
variables have positive significant impact towards students interest to become entrepreneur.
This finding is the same as many researchs before which conducted in other countries.
Keywords: entrepreneurship, student interest, economic activity
JEL:L26
1. Introduction
Entrepreneurship is one of the most important elements in boosting economic
growth, because it includes innovation, and freedom of creativity. Entrepreneurship can be
defined as an ability to look at and consider a business opportunity, to gather resources to
gain benefits and to decide strategyto make success.
To become entrepreneur means to provide employment for own self and the others.
Until now, there are 230 million inhabitants of Indonesia, but for about 0.2% are
entrepreneurs. Ideally the amount of entrepreneurs in one country is 2% of total population.
Problem of unemployment still not be solved by the government yet. Since 2009
until 2010, Ministry of Employment andTransmigration (Kemenakertrans) was able just to
cut unemployment rate for about1.5% of total unemployment. By 2011 the amount of
unemployment was about 9.25 million people. If the growth of entrepreneurship is still high,
Indonesia can be able to pursue developed economies, because through entrepreneurship new
employment, higher income, innovation and competitiveness can be achieved.
Meanwhile the growth of formal employment does not preeced the number of labor
forces. After graduation students must face the difficulties in getting a job. Entrepreneuership
is solution. However, the entrepreneur is high risk world, and not everyone can enjoy in it.
The education system in Indonesia does not support spirit of entrepreneurship yet. Besides
some parents are still proud if their children become wage-takers rather than salary-givers.
The situation will be worse if those mattres neglected by the government. One
solution by government to reduce unemployments is to provide job opportunities widely.
However, high educated people do not have preference except with higher standards as they
have university degree. The preference is being balanced with high costs when they study.
Their expectation is to get high rate of return as they spend.
According to some education experts, there is a tendency more aducated people
more secured jobs they want. They do not want to get risky work, like entrepreneurship. The
option of graduates is to become employer; working to other people or institution with fixed
income every month. Based on the Sakernas (national employment statistics) of first semester
in 2007, there are four people of total seven who graduated to choose employer status. For all
graduates there are only 5% who has eager to run business as entrepreneur.

There is fortunately a small group of graduates who want to become entrepreneur.

They do not consider the real condition of opportunities of formal jobs which anually
published. The opportunities are too limited. Eventually when they were tired to try, they
choose informal entrepreneurship as their career for a rest of life.
The reminder of this paper is follow. Section 2 describes the literatures review.
Section 3 contains the methodology of research and data. Section 4 shows the result and
policy suggestions. Section 5 concludes the research.
2. Literature Review
Theoretical Support

2.1

Entrepreneurship is process in doing new creativity and innovation which has

benefit and value-added (Suryana, 2000). The benefit and value-added were invented by new
expanding technology, new technics, new method in producting goods and services, and new
ways in satisfying customer.
Suryana (2000) describes some characteristics of entrepreneur i.e.,desire for
responsibility, preference for moderate risk, confidence in their ability to success, desire for
immediate feed back, high level of energy, future orientation, skill at organizing, value of
achievement over money. Therefore a single entrepreneur must be able to look forward,
thinking with many considerations, choosing alternative ones to solve the risks (Alma, 2001).
The intent of entrepreneurship influenced by someone interets.According to Theory of
Planned Behavior, there are factors influencing peoples interest: personal attraction,
subjective norm and perceived behavioral control (Ajzen, 2005). This theory often used to
analyze entrepreneurship.
An entrepreneur is a person who has willingness to get higher achievement than a
person who does not have. The need for achievement is a motivation supporting an individu
to reach target with comparing to the others. Motivation is very important thing to influence
someones interets of entrpereneurship.
Entrepreneur barely has meaning that is someone has ability to start and run a
business. Previously entrepreneurship convinced as a gift which related to the direct
experiences, talent since someone was born, so that entrepreneurship could not be studied and
taught. However, nowaday entrepreneurship is a discipline, social sciences, which can be
studied and spread to the others (Suryana, 2000). Some empirical research has conducted to
strengthen literature review.
2.2.

Empirical Evidences
Research of Gathungu and Mwangi (2014) concludes thatculture, gender, and intent
of entrepreneurshipdetermine the establishment of new firms. The impact of culture has three
ways: environment where the people live, social capital, and social network. Male is more
strong than female. The intent of entrepreneurship includes financial freedom and wise
management to use it, and control of risk (Gathungu and Mwangi, 2014).
Adjei et al. (2014) find some variables having bitter impact towards an alumnus of
Ghanas School of Business in starting a business. In the research, they also find that only
inappropriate teaching methods having significant impact towards interest of alumny to
become entrepreneur (Adjei et al., 2014). The other variables, like lack of saving, lack of
entrepreneurial support, lack of information, fear of staring a business, fear of failure, lack of
exposure, course content influence not significantly towardsinterets of entrepreneurship.
Oliveira et al. (2014) find that attitude of entrepreneurs who run franchise business
has larger tendency to make exploration-innovation and management-persistence rather than
entrepreneurs who run their own business. This is evidence that franchise business model can

support the creativity larger because of rude competitiveness than classical business type.
However, their research has several lacks. Besides the number of respondents is quite small,
(15 franchise entrepreneurs and 15 business owners), there is also the differences between
times in doing business.
Shinnar et al. (2012) in their research find that perceived lack of support, fear of
failure, perceived lack of competency influence entrepreneurial intentions among the
students. Their research conducted in Cina, United States of America and Belgia. It concludes
that genders impact to entrepreneurship varies among the countries. The result of the United
States shows that students of university differ in the importance of gender as a barrier to
entrepreneurship. Meanwhile, there is no statistically significant difference of gender as
barrier to entrepreneurship amongChinas students.The result of Belgia shows the moderate
position among two previous countries, i.e., for some people the gender differs as barrier to
entrepreneurship and not to the others.
The personal condition determines peoples aim to become entrepreneur. Lthje and
Franke (2003) conclude in their research that entrepreneurship and personal attitude have
close relation. The aim to entrepreneurship is to include risk taking propensity and control
internal locus of control. It is evidenced that more risk-taker people the higher propensity
they are to become entrepreneur. It is because an entrepreneur has not fixed income. Personal
condition influences peoples attitude towards entrepreneurship as their chosen future career.
Then the attitude influences their aim to run own business. Beside personal condition, Lthje
and Franke (2003) also show other considerations which influence the aim of entrpreneurship
based on the external factors, i.e., perceived barrier and perceived support.
Empirical finding of Muhammad et al. (2003) is almost same as ofresult of Lthje and
Frankes research (2003). Internal condition of students consists of power of behavioral
control and personal attitude can be ultimate factor in running business (Muhammad et al.,
2003). Several students who ever joined business planning program have higher propencity to
run business rather than who did not. It is a proof that to increase entrepreneurship motivation
among the youths, the important thing is to awake their awaraness about the importance of
entrepreneurship. The intense support to them is needed very much.
Literature study conducted by Sirajavah and Achchutan (2013) concludethat
entrepreneurial motivation is the key fact to enhance the entrepreneurial intention among the
undergraduates. Besides, factor of personal demographic involving chosen study program at
university, year of study program, gender, family income and family business experience are
the key factors to moderate self-employment.
Iqbal et al. (2012) study students attitude in Saudi Arabia based on Ajzens theory
approach (2005). Based on the result, it is concluded that social norm, personal attitude, and
achieved personal control of university students can boost entrepreneurship intent after they
graduated. Socialnorm includes school environment, and family condition have important
role on students intent to run business. It is evidenced in their research that business school
environment has larger impact rather than people whose family just has traditional business
(Iqbal et al).
Nwankwo et al. (2012) find evidence the differences between male and female on
intent of entrepreneurship. Male respondents have larger propencity to entrepreneruship
rather than female respondents. This tendency regards some male instincts: loving challenges,
risk-taker, creative attitude and agresivity. On the other side there is a proof that self-efficacy
relates closely to entrepreneurship intention. The students ability and confidence determine
their interest to become entrepreneurs. Their confidence is basic capital in doing business and
a support to control the environment. Otherwise, students with no big confidence have
thought that their environment cannot be controlled, so that they do not want to become
entrepreneur (Nwankwo et al., 2012).

From the explanationn of literatures above, it is known that family environment,

attitude to entrepreneurship, and students perception on entrepreneurship affect their interest
very much to entrepreneurship.

3. Method
The method used in this research is technique of parametric statistic analysis with
multiple linear regression. The MSI (Methode of Successive Interval) used to transform data
from ordinal scale to become interval scale. The multiple linear regression is based on the
OLS method.
This research uses interest of students on entrepreneurship as dependent variable.
Meanwhile, family condition, students attitude on entrepreneurship, and students perception
on entrepreneurship as independent variables. It uses explanatory survey limiting the research
on the data from sample as representative of total population by questionaire. The population
of this research is amount of undergraduate students of Indonesian Education University, i.e.,
total 52 students. They collected from two faculties: Faculty of Economics and Cooperation
Education and Faculty of Social Sciences Education.
Some technique of collecting data in this research as following:
1) Observation, whichis conducted by direct observation to object closely.
2) Interview, which is a process of collecting direct informationfrom the respondents.
3) List of questions given to respondents which is capable in use of research.
4) Documentation, which is process to get data directly from field of research,
including relevant books, rules, booklets, photos, documentary films, and the other.
The model of the analysis is:

Where:
Yi = Students Motivation on Entrepreneurship
0 = Constant
X1i = Family Support
= Coefficient ofRegression
X2i = Students attitude on Entrepreneurship
e = error term
X3i = Students Perception on Entrepreneurship
The diagram in this research as follow:
Family Support

Student Attitude on
Entrepreneurship

Student Perception
on Entrepreneurship

Student Motivation to become Entrepreneur

The male respondentsare 18 persons (34,65%) andfemale respondents are 34 persons
(65,35%). Male respondentsare smaller than female.The difference among the respondents
based on the age as following:
Age

Frequency

Percentage (%)

5
18 Years Old
19 Years Old
20 Years Old
21 Years Old
22 Years Old
Total

1
12
35
3
1
52

1,91
23,07
67,38
5,73
1,91
100

From the table 4.5 it is known that the age of respondents is between 18 until 20 years
old. The majority of them are 20 years old: 35 students (67,38%). The table of 4.5 can be
illustrated as following below:

Frequency
18 Years Old

19 Years Old

20 Years Old

22Years Old

21Years Old

4. Analysis and Result

4.1. Analysis
Based on the calculation of mulpile linear regression by running SPSS 16, all the
independent variables have positive significant impact towards dependent variable. The result
of interval estimation table can be seen in the appendix 1.
The notation of result is following:
Y

= 11,675 + 2,251 X1 + 2,384 X2 + 2,149 X3

Se

= (4,422)

(0.311)

(0,366)

(0.344)

t-stat = (2,640)

(2,190)

(6,507)

(2,609)

R2

= 0,654

From the equation above there are some following explanations:

1.

2.
3.

If the family support (X1), attitude of student on entrepreneurship (X2), and perception
of student on entrepreneurship (X3) are constant, so every raising 1% motivation of
student on entrepreneurship (Y) will cause the raise itself 11,675 %.
The regression coefficient of X1 is 2,251. It depicts that an increase 1% family support,
will raise student motivation on entrepreneurship 2.25% ceteris paribus.
The regression coefficient X2 is 2.384. It means that increase of 1% student attitude on
entrepreneurship will raise student motivation on entrepreneurship 2.38% ceteris
paribus.

4.

The regression coefficient X3 is 2.149. it shows that every increase 1% student

perception on entreprenuership will raise student motivation on entrepreneurship
2.149% ceteris paribus.

The t-test analysis used to know the significance statistically of the each independent
variables towards dependent variable. The result of analysis shows that all the t-statistics of
independent variables have greater value than t-table. The table of result is following:

Variable

Table 4.21
t Test
t stat t table

Family support (X1)

Attitude of student on entrepreneurship (X2)
Perception of Student on Entrepreneurship (X3)

2,190
6,507
2,609

1,67
1,67
1,67

Statement

Impact

Reject H0
Reject H0
Reject H0

Significant
Significant
Significant

With significant value 5 % df (degree of freedom) = 52 4 = 48, so t table is 1,67.

From the analysis we get that family support, student attitude on entrepreneurship, and
student perception on entrepreneurship have significant impact towards student motivation to
entrepreneurship.
F-test analsys used to test simultaneously impact of all independent variables
towards dependent variable. Based on the analysis using SPSS 16 we get the following table:

f calculation
30,248

>

f table
2,56

Table 4.22
Statement
Reject H0

Impact
Simultaneous impact

Based on the calsulation fstat has value probability 0,000. The value of f calculation is 30,248,
meanwhile f table is 2,56. It shows that f calculation > f table, so we reject H0 and receive Ha. From
this analysis, simultaneoulsy that all independent variables have impact towards dependent
variable.
The value of determination coefficient (R2) is 0,654. It shows that 65% of dependent
variable variation in model can be explained by family support (X1), student attitude on
entrepreneurship (X2), and student perception on entrepreneurship (X3). The remaining, 35%,
explained by other factor beyond the model in this research.
4.2 Result
Family condition is small group of people consists of father, mother, and child. The
family condition in this research is first place which affects very much interest of students on
entrepreneurship. Result of estimation shows that family environment has positive impact
towards students interest on entrepreneurship.It means that the family has capabilty to
support the students to become entrepreneur.
Student attitude on entrepreneurship is internal factor which influences someones
interest in doing business. By this strong attitude in a persons heart, he/ she will be brave and
responsible in business with all risks. Attitude is a readiness which can be learned to reponse
special object whether it is favorable or unfavorable for someone.
Students perception is also internal factor which influences student motivation. By
considering their perception, the motivation to conducting business can be explained, with all
possibilties and the chances to get succes.

The result of research shows that family support, attitude of student, and perception
of student have positive significant impact towards student motivation to become
entrepreneur. Students of faculty of Economics and Cooperation Education, and faculty of
Social Sciences Education at Indonesian Education University, actually have strong potency
to become entrepreneur. Some aspect which incluence them consist of external and internal
factors. To promote them to become entrepreneur is not easy task. Lecturers and family have
important role in supporting their spirit, by keen knowledges and opening their mind to start
business. Entrepreneurship is not just a gift which is granted from the god. But it is a talent
which everyone can get, by endeavor and strong heart.
5. Conclusion
Indonesia is a big country, with many of the people are in the productive ages. But the
amount of entrepreneurs in this country is still small, especially among the young people.
Neglecting their role in business area is unwise choice.
This research concludes that motivation of students to become entrepreneurs affected
by family support, attitude, and perception regarding with entrepreneurship. All independent
variables have positive significant impact towards dependent variable. Therefore, the strategy
to boost motivation to become entrpreneurship among the students must be noticed from
these aspects.
This research still has some lacks, regarding with the objects and method of analysis.
However, researchers can start their finding from this paper to sharpen and widen their
perspective about entrepreneurship.
Reference
Adjei, Kwabena, Samuel Broni-Pinkrah, and Richard Denanyoh (2014), Barriers to
Entrepreneurship among Business Students in Sunyani Polytechnic of Ghana,
International Journal of Innovative Research and Development, April, Vol. 3, No.
4: 30-36.
Ajzen, Icek (2005), Attitude, Personality, and Behavior, New York: McGraw-Hill Education.
Alma, Buchari (2006), Kewirausahaan. Bandung: Alfabeta.
Iqbal, Adnan, Yahya Melhem, and Husam Kokash (2012), Readiness of The University
Students towards Entrepreneurship in Saudi Private University: an Exploratory
Study, European Scientific Journal, July, Vol. 8, No. 15: 109-131.
Gathungu, James M., and Pauline W. Mwangi (2014), Entrepreneurial Intention, Culture,
Gender, and New Venture Creation: Critical Review, International Journal of
Business and Social Research (IJBSR), February, Vol. 4, No. 2: 112-132.
Lthje, Christian, and Nikolaus Franke (2003), The Making of an Entrepreneur: Testing a
Model of Entrepreneurial Intent among Engineering Students at MIT, R & D
Management, 33, 2: 135-147.
Muhammad, Aliyu D., Mohamed Aslam Haneef, and Isa Ado Abubakar (2003),
Entrepreneurial Intention among Undergraduate Students in International Islamic
University Malaysia (IIUM): Empirical Evidence, Australian Journal of Basic
and Applied Sciences, October, 7 (12): 184-191.

Nwankwo, Barnabas E., Mary I. Marire, Gabriel C. Kanu, and Shyngle K. Balogun (2012),
Gender-Role Orientation and Self Efficacy as Correlates of Entrepreneurial
Intention, European Journal of Business and Social Sciences, October, Vol. 1,
No. 6: 09-26.
Oliveira, Joo Bento, Particia Pegini, Juliana Moro Bueno Mendoa, Andre Carlos Martins
Menck (2014), Entrepreneurial Attitudes: Comapring Independent Business
Owners with Franchisees, International Journal of Business and Social Research
(IJBSR), March, Vol. 4, No. 3: 126-136.
Riduwan. 2004. Metode dan Tehnik Menyusun Tesis. Bandung: Alfabeta
Santoso, Singgih (2010), Mastering SPSS 18. Jakarta: PT Elex Media Komputindo.
Shinnar, Rachel S., Olivier Giacomin, Frank Janssen (2012), Entrepreneurial Perceptions
and Intentions: The Role of Gender and Culture, Entrepreneurship Theory &
Practice (E T & P), May: 465-493.
Sirajavah, K., and S. Achchuthan (2013), Entrepreneurial Intention among Undergraduates:
Review of Literature, European Journal of Business and Management, Vol. 5,
No. 5: 172-186.
Suryana. 2000. Kewirausahaan. Bandung

Appendixes
Please answer these questions correctly by checklist ( ) at the alternative answer choices
that you feel proper.
No.

Statement

I like to do business and often condut what business

people does
I always note interesting business-idea and most
benefit opportunity
I am interested with actual business activites
After gradute, I want to do business
I am doing business as I am studying
I am glad and often give attention to business
activities and the owner of the business.
I always watch opportunity and business prospect.
I have business magazines.
I often watch business program on TV.
I often read a tabloid or an article about business.
I like to question directly to businessmen.
I like to read business books since I am in
undergraduate study.
I often attend business lectures and presentations.
I always attend business meetings.
I join business trainings.

2
3
4
5
6
7
8
9
10
11
12
13
14
15

Answer Choices
HA A
D NA HNA

16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

My family support me to start business.

I live around the family environment which supports
me to start business.
I often involved directly with my parents business.
My family provide the fund for me to start business.
Economical condition of my family urges me to do
business.
My family ask me to start business.
I have brave to start business since I am in the
undergraduate study.
I spend my money to buy business magazines.
I often spend my times to do business.
I am glad to read everthyng which is business figures
in there.
According to me the business people face high risk.
I like to comment the business people.
According to me the business people are very busy.
I consider that business people are people who have
much money.
I am glad to appraise to the business people or the
owner of the business.
I am glad to appraise that the business people are
hard workers.

HA

: Highly Agree

: Agree

: Doubt

NA

: Not Agree

HNA : Highly Not Agree