The Effects of Entrepreneurship Education on Entrepreneurial Intention

Abstract

High poverty level and unemployment rate in Indonesia suggest that the country's large population is not in line with its economic power. Adding to the number of entrepreneurs is the solution. As an entrepreneurship-based educational institution, X University aims to create new entrepreneurs for Indonesia. However, statistics suggest that only 33.76% of the students' business projects lasted until the last semester. The low sustainability percentage indicates the lack of entrepreneurial intention among students. The purpose of this study was to determine the effect of entrepreneurial education on entrepreneurial intentions with the mediating variables of attitude toward behavior, subjective norm, and perceived behavioral control. This study is a quantitative study with the population of Management class of 2014 students. Saturated sampling is used as sampling method to obtain 291 students as research samples. Data analysis technique involves Structural Equation Model with WarpPLS3.0 software. Research results suggest that entrepreneurship education does not significantly or positively affect entrepreneurial intention in a direct manner. Rather, it affects entrepreneurial intention through attitude toward behavior and subjective norm as mediating variables. On the other hand, perceived behavioral control provides no significant or positive impacts.