FACTORS INFLUENCING STUDENT’S INTENTION TO BE AN

ENTREPRENEUR (LITERATURE STUDY)

Andi Amrullah1, Sigit Wahyudi2, Maulani Mega Hapsari3
1,2,3
Universitas Sebelas Maret
[email protected]

Abstract
Indonesia's workforce continues to experience a decline in productivity, poor management skills, and an inability
to respond to world challenges and competition. Therefore, comprehensive preparation is needed through human
development and community initiatives. Based on the highest education completed by the labor force, the Open
Unemployment Rate (Tingkat Pengangguran Terbuka/TPT) in February 2022 has almost the same pattern as
February 2021. In February 2022, the TPT from vocational high school (SMK) graduates was still the highest
compared to graduates of other levels of education. The semi-systematic or narrative literature review approach
is designed for topics that have been conceptualized differently and studied by different groups of researchers in
different disciplines and that hinder the process of full systematic review. Given that situation at all levels of
student’s environment encourage schools to embed an enterprising entrepreneurial skill into the national
educational system, and together with the high desirability from students. There are at least four major factors
that influencing student to be an entrepreneur; Family conditions have a significant influence on student
entrepreneur interest. The family environment, in which the majority of the members are entrepreneurs, will
serve as an example for the students; Entrepreneurship education and school environment has a positive impact
on students' entrepreneurial ambitions and mindset; Personality on student independence for entrepreneurship,
personality has a beneficial impact on student independence for entrepreneurship; Gender, a modest impact of
entrepreneurship education on entrepreneurial intention with gender as a moderating element; schools must
present all male and female student activities.
Keywords: vocational school, entrepreneur intention, entrepreneur education, family role, gender

1. Introduction
Indonesia is experiencing a demographic transition phenomenon. This can be seen from the results of the
2010 population census which showed a positive trend in the population of productive age (15–64 years). In
2010 the share accounted for 66 percent of the total pen- sitting. The increase in the productive age or working
age has caused a smaller value of the population dependence rate. Therefore, it is necessary to control population
growth in a country so that the country can maximize the potential of its production factors (Maryati et al.,
2021).
Indonesia's workforce continues to experience a decline in productivity, poor management skills, and an
inability to respond to world challenges and intense competition; Therefore, comprehensive preparation is
needed through human development and community initiatives (Nurfitriani & Hartarto, 2018). Based on the
main employment status, the working population can be categorized into formal and informal activities.
Residents who work in formal activities include those with the status of trying with the help of permanent/paid
laborers and laborers/employees/employees, while the rest are categorized as informal activities (self-effort,
trying to be assisted by non-permanent laborers/unpaid laborers, free workers, and family/unpaid workers). The
level of education may indicate the quality and productivity of labor. In February 2022, the working population
is still dominated by elementary school graduates and below (no/never school/have not finished elementary
school/finished elementary school), which is 39.10 percent. Meanwhile, the working population graduated from
diploma I/II/III and universities by 12.60 percent. The distribution of working population by education still
shows the same pattern as February 2021 (Statistic Indonesia Agency, 2022).
The Ministry of Education, Culture, Research and Higher Education pioneered 125 vocational schools that
have expertise in accordance with national development priorities, namely Maritime, Tourism, Agriculture, and
Creative Industries spread throughout Indonesia. In fact, the high unemployment rate shows a discrepancy

International Conference on Education Innovation and Social Science (ICEISS) 237

between the quality of vocational school graduates and industrial needs. Such discrepancies are due to the lack of
industrial training of teachers, the lack of industrial facilities and equipment, the low quality of teaching and
learning, the lack of budget, and the lack of working skills. To reduce this gap, the Minister of National
Education through the Directorate General of Vocational High School Development (DPSMK) launched a
teaching factory learning model. Teaching factory is an industry-based learning concept (products and services)
through synergy between schools and industry partners to produce competent graduates (Triyanto et al., 2019;
Wulandari & Sudiyatno, 2019).
The success of vocational schools does not only depend on professional educators or teachers, but the
active role of students during the learning process is also one of the things that can determine the success of
education (Edi, 2021). The application of block learning systems in classrooms and practice rooms provides
opportunities for students to develop their skills. Teaching factory has strategic value in vocational education and
training in increasing the competitiveness of SMK graduates in the labor market, because it has a mechanism to
keep up with the rapid development of the industry so that the competence of graduates is highly considered
(Subekti et al., 2019).

Figure 1. Open Unemployment Rate (Tingkat Pengangguran Terbuka) According to The Highest
Completed Education (percent), February 2020—February 2022 (Statistic Indonesia Agency, 2022)

The fact based on the highest education completed by the labor force, the Open Unemployment Rate
(Tingkat Pengangguran Terbuka/TPT) in February 2022 has almost the same pattern as February 2021. In
February 2022, the TPT from vocational high school (SMK) graduates was still the highest compared to
graduates of other levels of education, which was 10.38 percent. Meanwhile, the lowest TPT is in elementary
school education (SD) and below, which is 3.09 percent. Compared to February 2021, the decline in TPT
occurred in all categories of education, with the largest decrease in the SMK education category, which was 1.07
percentage points.
The main challenge of vocational school education is to make graduates ready to work in the business
world or industry. But the relevance between education and the graduate workforce of these challenges is a
serious problem. Data shows that the contributor to the unemployment rate is Javanese school graduates, which
is 5.81%. This condition is certainly not in accordance with the purpose of entrepreneurship education, namely
graduates who can open jobs for themselves and others. The essence of entrepreneurship is the ability to create
something new and innovative through creative thinking and acting to create opportunities. Entrepreneurship is
compassionate with the creativity of new products, therefore to achieve entrepreneurial results requires skills that
can be developed through a process of training or education (Dalyanto et al., 2021; Gunadi et al., 2020).
Entrepreneurship education is very important for the development of human capital to learn knowledge
about skills, and entrepreneurial attitudes, as well as stimulate entrepreneurial intentions, especially in vocational
school students. In addition, Entrepreneurship education is an activity that involves a mindset and influences a
person's attitudes, beliefs, and values to trigger and hone entrepreneurial intentions. This mindset, attitudes,
beliefs and values possessed by a person create entrepreneurial intentions and influence new ideas and new
businesses. In addition, entrepreneurship education also provides real experience by engaging successful

International Conference on Education Innovation and Social Science (ICEISS) 238

entrepreneurs to become speakers or by providing real case studies in entrepreneurship structured to inspire
learners and offer positive aspects of entrepreneurship in their future careers (Salam et al., 2021).
Entrepreneurial intent is a subtopic in business literature. As a result, entrepreneurial aspirations not only
form students' personalities, but also influence their priorities in changing living situations based on their
preferences and expectations. At least there are four major influences impacting a student’s intention to become
an entrepreneur. Given that situation at all levels of student’s environment encourage schools to embed an
enterprising spirit and entrepreneurial skills into the national educational system, and together with the high
desirability from students, we may see how it is imperative to explore the relationship among entrepreneurship
education, family, personality, gender, and entrepreneurial intention.

2. Method
This research uses qualitative research procedures. Qualitative procedures show a different approach to
scientific investigation of quantitative research methods. Qualitative investigations use different philosophical
assumptions; investigation strategy; and data collection methods. analysis. and interpretation. Although the
process is similar. qualitative procedures rely on text and image data, have unique steps in data analysis. and
utilizing a variety of investigation strategies (Creswell, 2009). The qualitative procedure that will be used is
related to the literature review of previously conducted research related to the factors that influence to become an
entrepreneur in SMK students.
The semi-systematic or narrative literature review approach is designed for topics that have been
conceptualized differently and studied by different groups of researchers in different disciplines and that hinder
the process of full systematic review. In addition to aiming to review a topic, semi-systematic reviews often look
at how research in the chosen field has evolved over time or how a topic has evolved across research traditions.
In general, the review seeks to identify and understand all the potentially relevant research traditions that
have implications for the topic being studied and to synthesize it using meta-narratives instead of measuring the
size of the effect. It provides an understanding of the complex area. However, while covering a broad topic and
different types of studies, this approach states that the research process must be transparent and must have a
research strategy developed that allows the reader to assess whether the arguments for the judgments made are
reasonable, good for the chosen one. topic and from a methodological perspective (Snyder, 2019).
The quality of the literature review is determined by the careful selection and reading of books, academic
and professional journals, reports, theses, conference proceedings, unpublished papers, and the like. Academic
books and journals are the most useful source of information in general. Other sources, such as professional
journals, studies, and even newspapers, can provide you with detailed real-world information about markets,
industries, or companies. As a result, it is almost always necessary to use a combination of information
resources. The specific combination of resources is determined by the nature and objectives of the research
project (Sekaran & Bougie, 2016).

3. Results and Discussion

The skills of vocational high school graduates are only higher than those of high school graduates based on
the opinions of some industries. On the other hand, SMK still has the same competence as diploma graduates,
this indicates that the competence of graduates according to some industries is still low compared to other
graduates. One of the low skills of graduates occurs due to incompatibility with the skills needed by the industry,
this is that there is still a mismatch between labor suppliers (Vocational School/SMK) and labor needs (industry).

International Conference on Education Innovation and Social Science (ICEISS) 239

 3
Bersertifikat 7
5

10
SMA 5
0

1
Diploma 10
4

2
TKA 7
6

0 5 10 15

Lebih Tinggi Sama Lebih Rendah

Figure 2. Keterampilan Lulusan SMK (Kementerian Pendidikan, Kebudayaan, Riset, Teknologi, dan
Pendidikan Tinggi Indonesia, 2022).

Vocational education (SMK) when viewed from its vision and mission has advantages compared to other
high schools, including: (1) SMK provides knowledge and prepares its graduates to be able to continue to the
higher education level, all universities, both public and private, are always ready to accept SMK graduates; (2)
SMK prepares graduates of middle-level skilled workers through national and international standard competency
test certification. This illustrates the character of work that SMK graduates have with other workers. The
following is presented data on the work character of SMK graduates Kementerian Pendidikan, Kebudayaan,
Riset, Teknologi, dan Pendidikan Tinggi Indonesia, 2022). Human resources that are competitive in having high
competence and productivity will be born from quality vocational education and are relevant to the demands of
the business and industrial world (Dunia Usaha Dunia Industri) that continues to develop. For this reason,
Indonesia as a nation with a large area in achieving competitive human resources needs to focus on preparing
and real work so that Indonesia can make leaps and bounds of progress and catch up with other countries.
SMK graduates can become skilled and qualified workers if they really master the aspects of hard skills and
soft skills. SMK must combine knowledge, skills and attitudes and behaviors to meet the proficiency standards
of prospective workers. This is done by combining core skills, employability skills and vocational skills.
Thebiggest challenges in the world of vocational education are; (1) Producing graduates who have academic
skills; (2) Ability to master specific skills (technical skills), and (3). Balanced employability skills. The
establishment of national standards for vocational education through the Regulation of the Minister of Education
number 34 of 2018 is a positive policy step to answer future challenges.
Based on the level of Indonesian National Qualifications Framework (Kerangka Kualifikasi Nasional
Indonesia/KKNI) level, SMK graduates are placed at the KKNI level II level for SMK 3 years and the Level III
KKN level for SMK 4 years, making this SMK competency can also be achieved by skill education institutions
(LPK / LKP) from non-formal and self-taught pathways from informal channels. Level II KKNI is generally in
the position of operator in one particular type of work that can be achieved or trained in just a few months. This
condition makes the industry, especially the labor-intensive industry, open job opportunities for all levels of
education without prioritizing SMK graduates with the requirement that prospective workers have a mental
assassination to want to work and are ready to learn and adapt to be trained in the company. BPS data in August
2018 released about the Labor Force Participation Rate (Tingkat Partisipasi Angkatan Kerja/TPAK) was
recorded at 67.26 percent, an increase of 0.59 percentage points.
The results of mapping the quality of vocational education above which have the lowest scores are the
standards of educators and education personnel as well as educational facilities and infrastructure. This indicates
that currently SMK is not ready to compete. These two standards are vital components among other standards,
students are required to master various competencies but are not balanced with the facilities provided by the
International Conference on Education Innovation and Social Science (ICEISS) 24
0
school and the lack of existing educators. The high unemployment of SMK graduates can be one of the
indicators of the competitiveness of SMK graduates in the world of work. This happens because some industries
think that students are unsatisfactory which results in losing competition so that they become unemployed. Job
opportunities in Indonesia are still limited, unable to accommodate all graduates who enter the world of work.
Freshly graduated graduates will lose to compete with older graduates who are more prepared and experienced.
However, when entrepreneurship education is provided effectively, the cultivation of creativity and
innovation will significantly affect the intention of SMK students to become entrepreneurs. Some preliminary
works show that entrepreneurship education has the potential to encourage a person's intention to become an
entrepreneur.

Discussion
Conceptually, vocational education was characterized as a broad variety of courses/skills that prepare
students for work. Furthermore, technical and vocational education is limited to training young people and adults
for work, a process that is frequently seen as technical and practical in character (Suharno et al., 2020). An
entrepreneurial attitude must be possessed by every individual so that it can support self-efficacy in
entrepreneurship. Many studies have examined entrepreneurial attitudes. Entrepreneurial education provides the
information, skills, attitude, and intention required to shape the entrepreneurial character. Entrepreneurship
education should begin in vocational schools and progress to higher education; it should be integrated into
business and non-business fields such as engineering and science, where students are under-educated in the
knowledge and skills necessary for start-ups (Arquisola & Muanar, 2019; Rukmana, 2018).

Family
The family has a role in individual development, it is explained that individual development can be
influenced by the nature of the family, birth order, changes in the family, parenting techniques and parent-
adolescent conflicts, sibling relationships, and family changes in an ever-changing society (Astuti & Sukardi,
2013). An entrepreneurial family may guide their children's social learning skills and instill in them the ideals of
hard work and independence. The desire to become self-employed emerges from the way parents provide
informal introductions to company ideas. The amount to which a family member has been exposed to
entrepreneurial modeling effects his or her desire to become an entrepreneur (Arquisola & Muanar, 2019).
The study conducted by Astuti & Sukardi (2013) there is a positive influence between the family
environment and students' independence for entrepreneurship. This means that there is a positive influence
between the family environment and students' independence for entrepreneurship. The results are actually
aligned with the findings found by Arquisola & Muanar (2019) which indicate that family influences vocational
students' entrepreneurial inclinations significantly. These findings are backed by descriptive analysis, which
shows that respondents feel their family will firmly support their decision to pursue a future career as an
entrepreneur, despite the dangers associated in starting a new business. They anticipate assistance in the shape of
advice and funding to help them launch their small business initiatives. However, respondents did not think that
because their family has a business, they will ultimately start their own. Very few of them agreed that they will
follow in the footsteps of their parents (mother or father) and become entrepreneurs as well. Liavli et al. (2017)
also agree that family at least have 40% influence for the student to be an entrepreneur.
The findings by Nurmaliza et al. (2018) indicate that family circumstances have a major effect on student
entrepreneur interest. The family atmosphere, in which the majority of the members are entrepreneurs, will serve
as a model for the students and encourage them to engage in entrepreneurial activity. Furthermore, the role
model environment is the family setting of parents, relatives, friends, and entrepreneurs who admired idol
influence to the entrepreneurial ambitions. Children grow and develop in their familial setting. It has a
significant impact on children's personalities since it is the first and longest setting, they will encounter during
their development. According to the preceding statement, one of the variables’ influencing personality is the
home environment.
The findings of the study conducted by Kusumojanto et al. (2021) support prior research on the influence of
parental education and environment on entrepreneurial attitude and intention. According to TPB Ajzen (2002),
the environment, particularly parental support, fosters students' desire to become entrepreneurs. Education,
personal beliefs, environment, age, and job history are among factors that influence students' decision to become
entrepreneurs. In research by Vemmy (2013) strengthens the previous findings, where the value of the

International Conference on Education Innovation and Social Science (ICEISS) 241

coefficient of parental influence is positive which indicates that the variable of parental influence has a positive
and significant influence on entrepreneurial intentions.

Entrepreneur Education and School Environment

An effective school is a school that can advance, improve or develop academic achievement, social skills,
manners and student skills that enable students to continue to higher education or work. Thus, an effective school
can be conditioned by the school management system itself, which includes the school curriculum,
infrastructure, and teachers. Thus there is a positive relationship and influence between the school environment
and students' independence for entrepreneurship (Astuti & Sukardi, 2013). In the study conducted by Salam et al.
(2021), it was discovered that entrepreneurship instruction, entrepreneurial extracurricular activities, and
entrepreneurial inspiration all had a beneficial effect on vocational school students' entrepreneurship intention.
Furthermore, because the variables had a medium link that was considerably greater than the other components,
entrepreneurship education program and entrepreneurship extracurricular activity were the best associated to
entrepreneurial intention.
Entrepreneurship education favorably influences students' entrepreneurial intentions and mentality. Indeed,
our study found a strong link between entrepreneurial attitude and entrepreneurial goals among vocational
students. Furthermore, entrepreneurship education has been shown to significantly influence vocational students'
entrepreneurial goals via the entrepreneurial attitude. Students who have completed entrepreneurship courses
will have inherent values and entrepreneurial qualities that will heighten their interest and enthusiasm for the
entrepreneurial sector. Entrepreneurship education should focus on establishing inventive and creative values in
reacting to opportunities, generating opportunities, and developing entrepreneurial skills and
knowledge(Arquisola & Muanar, 2019; Handayati et al., 2020; Nurmaliza et al., 2018).
Wibowo et al. (2018) conducted a study regarding the teachers’ creativity on the students’ entrepreneurial
intention. This study found that: first, instructors' creativity has a beneficial direct influence on entrepreneurial
education. Second, entrepreneurial education has a direct and beneficial influence on entrepreneurial intention.
Third, entrepreneurial education moderates the effect of instructors' inventiveness on entrepreneurial intent.
Meanwhile, the originality of the professors had no direct influence on entrepreneurial ambition. Although the
findings of this study indicate that instructors' creativity has no direct beneficial influence on entrepreneurial
goals, they can serve as the initial step in subsequent development research, allowing students to directly feel the
impact of teacher creativity.
Entrepreneurship education, according to the idea, influences students' entrepreneurial inclinations.
Surprisingly, the study by Kusumojanto et al. (2021) discovered that entrepreneurial education cannot explain
students' desire to become entrepreneurs. However, our findings suggest that the implementation of
entrepreneurship education programs in vocational schools has been ineffective and inequitable. The application
of entrepreneurial education varies each vocational school. This study also indicates that entrepreneurship
education has not had a significant impact on student entrepreneurial intent in the Indonesian environment.

Student’s Personality
The entrepreneurial mentality is directly tied to psychology, specifically personality psychology. The rise
of a personality-driven entrepreneurial approach. The entrepreneurial mentality is associated with the capacity to
think creatively, to search for possibilities rather than problems, and to propose solutions rather than complaints.
Furthermore, entrepreneurship mentality involves familiarity with individual behavior and entrepreneurial
activity (Handayati et al., 2020).
Personality is an internal component that is innate and unique to each individual. A person's personality
will influence his or her career choice. Of course, one's personality influences one's decision to pursue an
entrepreneurial career. A person's personality influences his or her interest in student entrepreneurship. Of
course, the personality alluded to in this research is one of responsibility and leadership. Entrepreneurship
education and family environment have an impact on entrepreneurship passion via personality. The immediate
impact may be observed in entrepreneurship education, which helps to increase entrepreneurship enthusiasm
(Nurmaliza et al., 2018). Vemmy (2013) also stated that the need for creativity, independence, courage to take
risks, tolerance of ambiguity, parental influence and self-efficacy have a positive and significant influence on the
intensity of entrepreneurship, either partially or simultaneously.
The influence of personality on student independence for entrepreneurship, there is a positive influence
between personality and student independence for entrepreneurship (Astuti & Sukardi, 2013). Students'

International Conference on Education Innovation and Social Science (ICEISS) 242

entrepreneurial intentions are influenced by reference groups, economic motives and entrepreneurship education
in schools, the results of the research are that economic motive variables have a strong influence on students'
entrepreneurial intentions, motives for meeting needs, motives for making profits, motives for obtaining awards,
motives for gaining power, and social motives and motives to provide better for the family are the basic reasons
for students to choose entrepreneurship as their career choice. The influence of credibility on the formation of
students' entrepreneurial character partially proves the phenomenon that entrepreneurship teachers have not
made a significant contribution to the formation of entrepreneurial character (Rukmana, 2018).

Gender
Males and females have different worries and interests, which may influence their decision to become
entrepreneurs. The disparity in interest in entrepreneurial activity is due to females' socially and culturally
defined gender roles. Women, in comparison to males, have lower professional goals because they think they
lack the necessary competencies and skills. This is a sad scenario, as research reveals that ladies who take on
endeavors that need assertiveness contribute significantly to the firm's performance. Entrepreneurial role models
affect women more than males; consequently, it is suggested that more entrepreneurial role models are needed
for women to increase their appeal and desire to become entrepreneurs (Arquisola & Muanar, 2019).
The government and academics in Spain devised an entrepreneurship education curriculum that is claimed
to boost entrepreneurial intention and performance in both men and women. Entrepreneurship education is seen
as a crucial technique for encouraging both young men and women to pursue entrepreneurial endeavors. This
strategy offers students with the information, attitudes, and abilities they need to establish and operate their own
businesses in the future. Many students felt that encouraging entrepreneurial goals requires entrepreneurship
education (Salam et al., 2021).
Nonetheless, the study's findings by Salam et al. (2021) show a modest impact of entrepreneurship
education on entrepreneurial intention with gender as a moderating element; schools must present all male and
female student activities. In terms of gender, study conducted by Arquisola & Muanar (2019) reveals that both
male and female respondents feel that males and females should be given equal opportunities to be
entrepreneurs; nevertheless, female respondents have the strongest voice in this respect (average 43.6 percent),
while only an average 22 percent of males agree. Female respondents are more likely than males to want to start
a business (54 percent) (52 percent). The effects of gender on entrepreneurial intents must be addressed by
schools, social services, and the government in order to equip female students with interventions that will
enhance their confidence in their capacity to become entrepreneurs, since this study demonstrates that women
have less confidence. Females have numerous options when it comes to deciding what activities to do to boost
their confidence in their entrepreneurial ability. They must use their underlying greater urge for business to their
advantage.

4. Conclusion

Vocational education was conceptualized as a broad range of courses/skills that prepare students for job.
Furthermore, technical and vocational education is restricted to preparing young people and adults for
employment, a process that is typically characterized as technical and practical in nature. Furthermore, when
entrepreneurship education is successfully performed, the nurturing of creativity and invention has a substantial
impact on SMK students' desire to become entrepreneurs. According to early research, entrepreneurship
education has the ability to increase a person's desire to become an entrepreneur. There are four major factors
which also the most frequent variables in finding out the factors influencing students in SMK to have an
entrepreneurial intention. First, individual development may be impacted by the nature of the family, birth order,
changes in the family, parenting approaches and parent-adolescent disputes, sibling relationships, and family
changes in an ever-changing society, it is said. Family conditions have a significant influence on student
entrepreneur interest. The family environment, in which the majority of the members are entrepreneurs, will
serve as an example for the students and motivate them to pursue entrepreneurial endeavors. Secondly,
entrepreneurship education has a positive impact on students' entrepreneurial ambitions and mindset. Indeed, the
research discovered a robust relationship between entrepreneurial mentality and entrepreneurial ambitions
among vocational students. Despite the findings of a research by Kusumojanto et al. (2021), entrepreneurial
education cannot explain students' motivation to become entrepreneurs. However, our findings indicate that

International Conference on Education Innovation and Social Science (ICEISS) 243

entrepreneurship education programs at vocational schools have been unsuccessful and inequitable in their
implementation. Each vocational school has its own approach to entrepreneurship education.
Third, the impact of personality on student independence for entrepreneurship, personality has a beneficial
impact on student independence for entrepreneurship. Students' entrepreneurial ambitions are impacted by
reference groups, economic motives, and entrepreneurship instruction in schools, according to the research
findings. Economic motive factors have a considerable influence on students' entrepreneurial intents, according
to the findings. The last one is gender, a modest impact of entrepreneurship education on entrepreneurial
intention with gender as a moderating element; schools must present all male and female student activities.

5. Acknowledgement

This area is to express gratitude and appreciation of a certain people that involved in the research.

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International Conference on Education Innovation and Social Science (ICEISS) 245