

Entrepreneurial Intention: A Case of Entrepreneurs in Creative

Economy

Yussi Ramawati and Christine Winstinindah Sandroto

Universitas Katolik Indonesia Atma Jaya, Jl. Jendral Sudirman Kav. 51, Jakarta, Indonesia

Keywords: Entrepreneurial Expertise, Entrepreneurial Intention, Perceived Desirability, Perceived Feasibility, Propensity

to Act.

Abstract: The creative industry is the utilization of creativity, skills, talents, interests and individual competencies. The

purpose of this study is to find out entrepreneurial intention in the creative economy, in line with the

Indonesian government's program to advance the creative economy. The population of this research included

all creative entrepreneurs, in Jakarta and Balikpapan. Five measurement instruments are used in this study:

(1) entrepreneurial expertise, (2) perceived desirability, (3) perceived feasibility, (4) propensity to act, and (5)

entrepreneurial intention. This study distributed questionnaires to 305 respondents consisting of 162

respondents in the Jakarta area and 143 in Balikpapan, with convenience sampling technique. It was found

that entrepreneurial expertise has a positive and significant effect on (i) perceived desirability, (ii) perceived

feasibility, and (iii) propensity to act. Perceived Desirability has a positive and significant effect on

entrepreneurial intention. Perceived feasibility has a positive and significant effect on entrepreneurial

intention, and propensity to act has a positive and significant effect on entrepreneurial intention.

1 INTRODUCTION

The slow macroeconomic growth can reduce

unemployment in Indonesia. Nearly two million

Indonesian people go into the workforce every year,

this is the biggest challenge for the Indonesian

government in stimulating the establishment of the

new workplaces so that every year employment can

attract new manpower can always increase, the young

unemployment rate is one of the main concerns and

needs a quick action and solutions. Below is the

number of workers and unemployment in Indonesia.

The Central Statistics Agency recorded an Open

Unemployment Rate in February 2018 which had

decreased by 140,000 people or 0.20% when

compared to the same period in 2017. "The open

unemployment rate in February 2018 was 5.13% if

compared to last year open unemployment rate there

was a decrease from 5.33% to 5.13% or down by

0.20%. "In February 2018 the total manpower was

133.94 million, attain to increase of 2.93 million if we

compared to the first quarter of 2017. This growth is

in line with the manpower participation rate of

69.20%, attain to increase of 0.18%. "The increasing

on manpower participation indicates a potential

economic increasing from the supply side of

manpower,". Based on the area of residence, OUR in

urban areas is higher than in rural areas. Whereabout

the TPT in rural areas in the amount of 3.72%

decreased by 0.28% from August 2017 in the amount

of 4.01%. Meanwhile, the open unemployment rate

in urban areas was 6.34%, decrease 0.16% from

August 2017 in the amount of 6.79%. “Of course this

is exciting news, with a note that the unemployment

rate in the urban is much higher than the rural areas,

he said”. Refers to the level of education, in February

2018 Vocational School became the highest

contributors to open unemployment rate among other

education levels. recorded at 8.92%, decreased from

August 2017 which amounted to 11.41%. Then,

followed by the Diploma level in the amount of

7.92%, increased from August 2017 in the amount of

6.88%. in other words, there are manpower offers that

do not attract, especially in vocational and diploma I

/ II / III levels. "Those with low education tend to

accept any job. And this can be seen from the below

elementary TPT is the lowest among all vocational

levels which are 2.67%,". If categorized by gender,

the male has always dominated the highest rank of

workers. However, this year female workers actually

has increased than men. "However, there was

encouraging news, the male TPAK actually declined

Ramawati, Y. and Sandroto, C.

Entrepreneurial Intention: A Case of Entrepreneurs in Creative Economy.

DOI: 10.5220/0008430803190328

In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World (ICIB 2019), pages 319-328

ISBN: 978-989-758-408-4

319

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slightly from 83.05% to 83.01%. In contrast, LFPR

for women increased from 55.04% to 55.44%,"

although there were gaps, the level work participation

between men and women there is a tendency that

female LFPR increases from February 2018

(https://economic.okezone.com Monday 07 May

2018).

Indonesia is the fourth most populous country in

the world (after China, India and the United States),

which has a total population of around 260 million. In

Indonesia, almost half the population of Indonesia is

a young and entrepreneurial. This shows that the

population of Indonesia has potential manpower that

will be growing bigger in the future, and provide

opportunities to be able to create jobs in the largest

economy in Southeast Asia. Indonesia also has

several islands that are rich in natural and human

resources, diverse cultures are also very valuable. this

is very possible to run out if it is not managed and

utilized properly. One of the government's efforts to

reduce unemployment and help to create new jobs is

to encourage creative economic programs to create

new jobs through 16 sub-sectors. The government

expects HR to be able to produce creativity by

becoming entrepreneurs in their respective regions by

bringing the cultural characteristics of each region in

order to help improve the economy of their respective

regions.

The creative industry is the utilization of

creativity, skills, and talents as well as individual

interests and competencies. To be able to create

prosperity and employment, and can exploit the

individual's creative and creative power. This can

support long-term government programs for the

development of the creative economy in Indonesia, so

it is very relevant if the competitiveness of the

creative industry is also accompanied by HR

competency and interest in entrepreneurship in the

creative economy. According to Tian & Gao (2011),

a creative economy is a form of advanced economic

development that relies on fewer natural resources.

The main driver is not pure technology or information

but human creativity, creative products are unique

because they combine culture, passion, and habits, the

creative industry is a human-oriented industry.

Protection from intellectual property functions to

maintain vital energy from the creative industry. The

development of the creative industry depends not only

on the behavior of individuals and several companies

but also the interaction between companies and

clusters. Companies benefit from mutualism

symbiosis and access from high industrial value

chains. According to Wang & Peng (2009), the

creative industry is different from the industry of

goods produced by machinery or the labor industry

where people sell their energy to get a salary, the

creative industry produces an output of intellectual

capital labeled originality. The Creative Economy

Board (or known in Indonesia as Bekraf) is a non-

ministerial government institution for the sixteen

sub-sectors of the creative economy: 1. Application

and Game Development; 2. Architecture; 3. Interior

design; 4. Visual communication design; 5. Design

Products; 6. Fashion; 7. The Movie, Animation, and

Video; 8. Photography; 9. Craft; 10. Culinary; 11.

Music; 12. Publishing; 13. Advertising; 14.

Performing Arts; 15. Art; and 16. Television and

Radio.

Many researchers argue that entrepreneurship is

important for the continued dynamics of the modern

market economy and that the entrance of new

businesses can encourage competition and economic

growth (van Praag and Versloot, 2007). Likewise, it

becomes clear that entrepreneurs are a key driver of

economic development because they produce high

rates of economic growth by creating new jobs,

forming innovations, increasing competition and

increasing productivity (Acs et al., 2004).

Entrepreneurial intention can be interpreted as the

first step of a business establishment process that is

generally long-term (Lee & Wong, 2004). Basically,

the formation of entrepreneurial spirit is influenced

by internal and external factors (Priyanto, 2008).

Internal factors originating from within the

entrepreneur can be in the form of personal traits,

attitudes, willingness and abilities of individuals who

can give individual strengths to entrepreneurship.

Whereas external factors originate from outside the

entrepreneur's actors which can be in the form of

elements from the surrounding environment such as

the family environment, business environment,

physical environment, socio-economic environment,

and others. Being a successful entrepreneur must be

brave enough to accept the risk and strive and have

the intention to accept the challenge. The

characteristic of being a successful entrepreneur is

having a strong intention in entrepreneurship.

Theory of Planned Behavior (TPB) provides a

framework for studying attitudes toward behavior.

The theory states that the most important determinant

of a person's behavior is the intention to behave.

Individual intention to display behavior is a

combination of attitudes to display the behavior,

subjective norms and perceived behavioral control

(PBC). Individual attitudes toward behavior include

beliefs about a behavior, evaluation of behavioral

results, subjective norms, normative beliefs and

motivation to obey (Zakarija, 2010).

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According to Ajzen and Fishbein (1980), Theory

of Planned Behavior postulates three conceptual

determinants of intention. Specifically, the intention

is based on variables, namely attitudes toward

behavior (attitude towards behavior), subjective

norms, and control of perceived behavior. Attitudes

toward behavior (attitude towards behavior) refer to

the level of evaluation or positive or negative

assessment of an individual from the behavioral

performance. This attitude is based on prominent

behavioral beliefs and evaluation of results.

Behavioral beliefs refer to the perceived likelihood of

an expected outcome because it is involved in a

particular behavior, and evaluation of results involves

an assessment of the possible consequences of certain

behaviors (Han and Kim, 2010).

Previous research according to Giagtzi, Z. (Zoi).

2013, said that the influence of desire felt in the

intention of entrepreneurship was stronger. Likewise,

Kamariah and Jamaliah, 2004 found that

entrepreneurial intentions among National students

are high, which is around 80% of respondents (n =

324). But it is different from Alhaj, Yusof, and Edama

(2011), said that Entrepreneurship Intention is only

influenced by the desire and active behavior of a

person, while positive past experiences also do not

have a positive relationship that can affect the

intention in entrepreneurship. because the

entrepreneurial experience they have is not a real

entrepreneurial experience but only experience in the

ordinary business. respondents did not engage in

creative and innovative activities that could improve

their perceptions of entrepreneurship. But according

to Krueger et. Al. Niat Entrepreneurship (2000),

efforts to develop entrepreneurship training need to

consider the factors that can encourage the intention

towards entrepreneurship. But from the research of

Indriati, R. (2008) Readiness of instruments and

previous work experience became a determinant of

entrepreneurial intention.

Therefore, a comprehensive study is needed to

measure entrepreneurial intentions so that the

objectives of developing entrepreneurs can be

achieved. Based on the formulation of the problem

above, several research questions can be proposed as

follows:

1. Does entrepreneurial expertise has an effect on

perceived desirability?

2. Does entrepreneurial expertise has an effect on

perceived feasibility?

3. Does entrepreneurial expertise has an effect on the

propensity to act?

4. Does the perceived desirability has an effect on

entrepreneurial intention?

5. Does the perceived feasibility has an effect on

entrepreneurial intention?

6. Does propensity to act has an effect on

entrepreneurial intention?

2 LITERATURE REVIEW

Entrepreneur.

An entrepreneur is a person who creates a new

business in the face of risks and uncertainties for the

purpose of achieving profit and growth by

identifying significant opportunities and gathering

the resources needed to use them. (Norman & Jeffrey

2016). Entrepreneurs are action-oriented, highly

motivated and risk-taking and future motivations

(Pambudy et al., 2005) but few have more meaning

for Gartner (1988, p. 11) defining entrepreneurship

as "the creation of organizations" In this study the

author defines entrepreneurship as the creation of

independent activities. In addition, the focus is

placed on potential businesses that have not yet

reached "full existence", "organization in creation"

(Katz and Gartner, 1988) or "newborn businesses"

(Kelley et al., 2015). Entrepreneurship according to

Kelley et al. (2015) can open new employment

opportunities that function as the absorption of

unemployment and become a driver of the country's

economic growth; and become national

competitiveness between one country and another.

Entrepreneurship is not easy, there need some

proper tips to be able to survive in managing a

business in the era of globalization and free markets.

The Behavior Plan (TBP) theory can be used as a

basis for analyzing entrepreneurial intentions. A

study by Sommer (2011) proves that TBP can be used

to analyze entrepreneurial intentions and their impact

on past behavior. Van Gelderen et al. (2008)

suggested that to investigate in detail about

entrepreneur intentions, TPB was needed where the

intention was perceived as a result of attitudes,

perceived behavioral control and subjective norms.

The same way with Saheed and Kavoos (2016)

suggests that entrepreneurship of young people in

Africa has a positive attitude that is active and ready

to take risks and be independent. Similarly, Ahmad

(2014) stated that attitude was the strongest factor

affecting entrepreneurial intentions among students

from Nigeria at the University of North Malaysia.

The intention of entrepreneurship is a reflection

of the state of mind and encourages people to take

entrepreneurship instead of being employed (Gerba,

2012; Karimi et al., 2016). Entrepreneurial intentions

can be defined as internal involvement or individual

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intention to start a new business (Dinis et al., 2013).

This intention is also related to the behavior and

commitment of individuals who are motivated or

encouraged to start a new business (Gerba, 2012).

Existing literature has confirmed that intention is an

important consequence of planned behavior (Krueger,

2002; Shook et al., 2003; Edelman et al., 2008).

Entrepreneurial intentions have a positive effect on

extraversion, openness, and support of the closest

people who are part of subjective norm factors (Ismail

et al., 2009). Contrary to (Robledo et al. (2015)

research, perceptions of behavioral control and

attitudes influence entrepreneurial intentions, while

subjective norms do not affect entrepreneurial

intentions. Moreover, findings indicate that the

effects of gender moderation have a positive effect on

women to develop entrepreneurial intentions

(Yeasmin and Latif, 2015). But in Kemat's research

(Baharu Kemat Alhaj 2011) said that perceived

feasibility does not have a positive relationship to

entrepreneurial intentions and extensive experience

also does not have a positive relationship to perceived

feasibility this is because respondents do not have

many activities creativity and innovation business.

Entrepreneurial Intention.

Soutaris et al. (2007) in Mohammad et al., (2015)

define entrepreneurial intention as someone's desire

to start entrepreneurial activities. According to

Shapero & Sokol, (1982), someone will have the

intention of being an entrepreneur or not be

influenced by 3 things, namely perceived desirability,

perceived feasibility and propensity to act. This

means that someone who truly intends to become an

entrepreneur usually has personal desires personal

interests, then the person also feels capable and

finally, the person unconsciously takes actions to

realize that desire.

In the theory of intention, Shapero & Sokol (1982)

adapted the theory of Planned Behavior from Fishbein

& Ajzen (1975) and applied it specifically in the

world of entrepreneurship. According to Shapero &

Sokol intentions are influenced by three dimensions:

1. Perceived desirability; 2. Perceived feasibility; and

3. The propensity to act. Krueger (2000) then tested

this hypothesis and looked at its position in the

Shapero entrepreneurial event intention model. In an

effort to uncover this model Krueger then found that

'prior entrepreneurial experience' is an antecedent of

perception, both perceived desirability and perceived

feasibility.

Furthermore, the previous entrepreneurial

experience can be seen from two sides, namely

quantity, and quality. Quantity is related to previous

experience in a family business, the involvement of

family members in business, or participation in

starting a new business. This quantity is then called

the breadth of experience. Whereas the quality aspect

is one's perception of the experience, whether good

or bad. This quality aspect is finally referred to as

positiveness of experience. Alhaj, Yosuf, and Edama

(2011) stated that the previous indirectly influential

intention experience through attitude and perceived

control. Therefore, the exposure toward a new

business should be predictor compared to any types

of experiences. A good experience will bring positive

influence in attitude compared to a bad experience. In

this study, the past experience was measured through

entrepreneurial expertise, which included having

experience in the field of business involved, both

financial, accounting, production, marketing, and

other skills that were in line with the business being

pursued (Spencer & Spencer, 1993).

Intention Theory.

Ajzen (1991) developed the theory of Planned

Behavior. This theory comprises several variables:

(i) background factors; (ii) behavioral belief; (iii)

normative beliefs; (iv) subjective norms; (v) control

beliefs; and (vi) perceived behavioral control

perception. According to the Theory of Planned

Behavior, a person can act based on intention only if

he has control over his behavior. This theory not only

emphasizes the rationality of human behavior, but

also on the belief that behavioral targets are under the

control of the individual's consciousness or that

behavior does not only depend on one's intentions,

but also on other factors that are not under the control

of the individual, for example, the availability of

resources and opportunities to display these

behaviors. Based on the Theory of Planned Behavior,

the intention is a function of three determinants, one

of which is personal, the second reflects the social

influence and the third is related to the problem of

control (Ajzen, 2005).

Several studies have attempted to explain

entrepreneurial intentions from a cognitive

perspective. According to this perspective,

everything we say or do is the result of mental

processes such as motivation, attitudes, and beliefs

(Krueger, 2003). Much emphasis has been given to

perception, as a key element of entrepreneurial

cognitive processes. Potential entrepreneurs shape

their behavior and attitudes through perceptions that

capture the influence of the external environment

(Linan, 2011). Linan (2011) divided perceptions into

three groups, individual perceptions (self-efficacy,

role models), perceptions of economic opportunities

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and socio-cultural perceptions (perceptions of social

legitimacy of entrepreneurship).

Level of Education and Entrepreneurial

Intention.

Previous research found that new venture creation

was planned (Bird, 1988; Autio et al., 1997; Tkachev

and Kolvereid, 1999 in Mushtaq et al., 2011 and

Shapero and Sokol, 1982). Entrepreneurship is

sometimes difficult and experiences many challenges,

so many newly established businesses fail.

Entrepreneurship requires an increasingly significant

management capability when the business gets bigger

and this is important in order to survive in business

competition.

Some studies also show the importance of

education in universities to anticipate and clarify

individual behavior related to business creation

(Kolvlereid, 1996; Krueger 1993 in Mushtaq et al.,

2011). Entrepreneurship education and training have

an immediate influence on their students and

behavioral intention (Kolvereid and Moen, 1997)

which indicates that there is a difference between

those who take entrepreneurship lessons and those

who do not. So now the world of education plays an

important role in increasing entrepreneurship and

entrepreneurs. In new venture creation, entrepreneurs

usually depend on network support, social norms, the

perception of feasibility, and entrepreneurial

experience

3 METHODS

Types of Research.

The approach used in this study is a quantitative

approach. The quantitative approach is done using a

questionnaire, which is used to see the description of

the research variables from the measurement results

in the form of numbers (Kumar, 2005). The

questionnaire consisted of respondents'

demographics, then followed by (1). Entrepreneurial

Expertise (EE), (2). Perceived Desirability (PD), (3).

Perceived Feasibility (PF), (4) Propensity to Act

(PA), (5) Entrepreneurial Intention (EI).

Research Model.

The research model can be seen in figure 1.

Figure 1: Research Model.

Conceptual Hypothesis.

1. There is an effect of entrepreneurial expertise on

perceived desirability.

2. There is an effect of entrepreneurial expertise on

perceived feasibility.

3. There is an effect of entrepreneurial expertise on

the propensity to act.

4. There is an effect of perceived desirability on

entrepreneurial intention.

5. There is an effect of perceived feasibility on

entrepreneurial intention.

6. There is an effect of propensity to act on

entrepreneurial intention

Population and Sampling.

The population of this research included all creative

entrepreneurs, in Jakarta and Balikpapan. These

cities were chosen due to the similarities between

potential and existing differences in industry

management. Convenience sampling was performed:

questionnaires were distributed to 305

entrepreneurs—162 in Jakarta and 143 in

Balikpapan. The sampling method used in this study

is non-probability sampling, ie not all subjects have

equal opportunity to be a research sample (Kerlinger

& Lee, 2000).

Data and Measurement.

Measuring the research variables, this study adapted

the scales that had been formerly developed.

Entrepreneurial expertise was measured using

Spencer and Spencer scale (1993) containing 7 items

of questions. Respondents were asked to indicate

their level of approval of question items on a 7-point

Likert scale, ranging from strong disagreement (1) to

strong agreement (7). Validity and reliability test

results show the scale to be valid and reliable

(correlation coefficient entrepreneurial expertise

ranged from 0.718-0.796; p <0.01; Cronbach' alpha

coefficient entrepreneurial expertise = 0.924.

Perceived desirability (PD), perceived feasibility

(PF), and propensity to act (PA) was measured

through a scale developed by Riyanti et al., 2016

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(adapted from Shapero and Shokol, 1982). This scale

consisted of 7 question items. PD containing 15 items

of questions, PF containing 13 items of questions, and

PA-containing 10 items of questions, Respondents

were asked to indicate their level of approval of the

item questions on a 7-point Likert scale, ranging from

strong disagreement (1) to strong agreement (7). The

validity and reliability test results show that this scale

was valid and reliable (correlation coefficient PD

ranged from 0.435 - 0.755 and significant at 0.01;

Cronbach' alpha coefficient PD = 0.902; correlation

coefficient PF ranged from 0.448 - 0.820 and

significant at 0.01; Cronbach' alpha coefficient PD =

0.896; correlation coefficient PA ranged from 0.599 -

0.808 and significant at 0.01; Cronbach' alpha

coefficient PD = 0.884).

The entrepreneurial intention was measured using

Alhaj, Yusof, and Edama scale (2011) containing 8

items of questions. Respondents were asked to

indicate their level of approval of question items on a

7-point Likert scale, ranging from strong

disagreement (1) to strong agreement (7). Validity

and reliability test results show the scale to be valid

and reliable (correlation coefficient EC ranged from

0.825 – 0.941; p <0.01; Cronbach' alpha coefficient

PD = 0.806.

Description of Respondents.

This study distributed questionnaires to 305

respondents consisting of 162 respondents in the

Jakarta area and 143 in Balikpapan. Of the 305

respondents, not all answered all questionnaire

questions so that the number of respondents in some

of these questions was not the same. Furthermore, for

testing hypotheses, this study removes detected data

as outliers so that the number of respondents for

several research models is also not the same.

Table 1: Characteristics of Respondents.

Respondents Percentage

Jakarta

Balikpapan

Age (n=161)

(n=140)

16 - 26 42.9 12.1

27 - 37 28.0 29.3

38 - 48 15.5 37.1

49 - 59 11.8 20.0

60 - 72

1.9 1.4

Gender

(n=161) (n=139)

Male 57.1 38.1

Female

42.9 61.9

(n=15

(n=136)

Marital status 2)

Married 57.2 86.8

ot married 39.5 12.5

Widow/widower

3.3

umbe

of years

(n=144)

(n=69)

working as

entrepreneur

< 6 60.4 54.5

6 - 11 21.5 23.9

12 - 17

6.9

10.3

18 - 22

4.2 5.2

23 - 28

3.5 2.8

29 - 35

3.5 3.3

Education

(n=155) (n=139)

Primary school

3.2

Junior high school 14.2 10.8

Senior High School 54.8 57.6

Diploma

2.6 0.0

Undergraduate 23.9

29.

degree

Postgraduate degree

1.3 1.4

Monthly revenue

(n=156) (n=131)

(in millions of

rupiah)

< 10 42.3 57.3

10 - 30 25.0 30.5

31 - 50 10.3

8.4

510 - 100 10.3

1.5

101 - 500

7.1 2.3

> 500

5.1 0.0

As in table 1, the length of work/entrepreneurship

of respondents in Jakarta 81.9% is the longest of 11

years, the rest between 12-35 years. Balikpapan as

many as 71% is at most 11 years, the rest is between

12-35 years. Both of Jakarta and Balikpapan, the

highest percentage for final education is high school

and is followed by a bachelor's degree, while the

other is spread between the elementary, junior high

school, Diploma III, and Master degree.

Table 2: Meanscore.

Variables Meanscore

Entrepreneurial 5.18 Moderate to high

Expertise

Perceived Desirability 5.37 High

Perceived Feasibility 5.41 High

Prospensity to Act 5.69 High

Entrepreneurial 5.87 High

Intention

Refers to the table 2, it is known that the level of

entrepreneurial expertise of respondents is moderate

to high, while perceived desirability, perceived

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feasibility, propensity to act, and entrepreneurial

intention of respondents are high.

Hypothesis Testing

Inductive Statistics

Table 3: Simple Regression Analysis 1.

Modelᵃ

Unstd. β t-value

PD = EE + ɛ .674 7.406

PF = EE + ɛ .657 8.190

PA = EE + ɛ .509 8.450

Note: ᵃ PD = Perceived Desirability; PF = Perceived

Feasibility; PA = Propensity to Act; EE =

Entrepreneurial Expertise;

p < 0.01;

p < 0.05;

< 0.1

Based on the results displayed in Table 3 above, it

can be concluded that entrepreneurial expertise has a

positive and significant effect on (i) perceived

desirability, (ii) perceived feasibility, and (iii)

prospensity to act.

Table 4: Simple Regression Analysis 2.

Modelᵃ

Unstd. β t-value

PD = NY + ɛ .217 1.802

PF = NY + ɛ .325 2.470

PA = NY + ɛ .163 1.642

Note: ᵃ PD = Perceived Desirability; PF =

Perceived Feasibility; PA = Propensity to Act;

NY= Number of years working as an

entrepreneur;

p < 0.01;

p < 0.05;

p < 0.1

Based on the results displayed in Table 4, it can

be concluded that the number of years working as an

entrepreneur has a positive and significant effect on

(i) perceived desirability, and (ii) perceived

feasibility. However, the number of years working as

an entrepreneur does not influence the propensity to

act.

Table 5: Simple Regression Analysis 3.

Modelᵃ

Unstd. β t-value

EI = PD + ɛ .295 9.053

EI = PF + ɛ .336 9.353

EI = PA + ɛ .510 10.602

Note: ᵃ PD = Perceived Desirability; PF = Perceived

Feasibility; PA = Propensity to Act; EI=

Entrepreneurial Intention;

p < 0.01;

p < 0.05;

p < 0.1

Table 5 shown that perceived desirability,

perceived feasibility, and propensity to act, partially

has a positive and siginificant effect on

entrepreneurial intention.

4 MANAGERIAL

IMPLICATIONS

Entrepreneurial expertise has a positive and

significant effect on (i) perceived desirability, (ii)

perceived feasibility, and (iii) propensity to act. The

results of this study support previous research (Alhaj,

Yosuf and Edama, 2011). The perceived desirability

has a positive and significant effect on

entrepreneurial intention. Positive perceived

feasibility has a significant effect on entrepreneurial

intention, and propensity to act positively and a

significant effect on entrepreneurial intention. The

results of this study are in line with the theory of

Shapero & Sokol, (1982) Krueger (2000), which

states that perceived desirability, perceived

feasibility, and propensity to act are antecedents of

entrepreneurial intention. The direction is positive,

which means that the higher perceived desirability

will increase entrepreneurial intention, as well as the

higher perceived feasibility and propensity to act, the

more entrepreneurial intention will be.

The level of entrepreneurial expertise of the

respondents was moderate to high, while perceived

desirability, perceived feasibility, propensity to act,

and the entrepreneurial intention of respondents were

high. Although their entrepreneurial intention is high,

it turns out that the monthly revenue they generate

each month is not large. As many as 42.3% of

respondents in Jakarta and 57.3% of respondents in

Balikpapan generate monthly revenue of less than ten

million Rupiah every month. This figure of revenue

is relatively not large and means that the profit

generated is far below 10 million rupiahs per month.

For this reason, they must strive to increase revenue,

and this can be done by developing the kind of

creative economy they pursue. The research of

Sandroto, Ramawati, and Syarief (2018) found that

the choice of creative economy sub-sectors for

Jakartans are culinary (39.7%), followed by fashion

(27.8%) and the rest. In Balikpapan, the most popular

sub-sector is also culinary (54.8%), followed by

crafts (16.1%) and the others. This means that there

are still many other creative economic sub-sectors

that can be developed. The level of education also

correlates with income per month (Sandroto,

Ramawati, and Syarief 2018). The education level of

the majority of respondents is senior high school.

Business people should extend their knowledge

because it is proven that a person's level of education

correlates with income derived from the creative

economy.

The number of years of working as an

entrepreneur influences entrepreneurial intention

Entrepreneurial Intention: A Case of Entrepreneurs in Creative Economy

325

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factors (ie perceived desirability and perceived

feasibility), except for the propensity to act that has

no effect. In this case, it turns out that it cannot be

concluded that the longer someone works as an

entrepreneur it can affect the propensity to act.

Entrepreneurial fields in Indonesia gain more

attention from various parties especially the

government. It is important to know the

entrepreneurial intention among entrepreneur in the

creative economy so that the government will

encourage them to success. Although their

entrepreneurship is high, the monthly revenue

generated per month which is relatively low can

indicate that they are necessity entrepreneurs, namely

those who go into the field of entrepreneurship

because they are forced and have no other alternative

work. Moreover, the majority of the respondents'

education level is in senior high school. The

government can encourage entrepreneurs to increase

their level of education. It is important to increase

entrepreneurial competence in the field of

entrepreneurial expertise by way of higher education

because of previous research, the level of education

can improve entrepreneurial competence (Christine,

et al., 2018). Also, it is better for graduates to think of

a job creator rather as a job seeker (Daim, 1994).

Besides that entrepreneurial expertise is also

widely learned from families. The family is the first

closest person who will provide valuable teaching and

experience in determining one's future, especially

determining the intention of entrepreneurship. This

was stated by (Tateh et al., 2014) that there is a

correlation that shows that entrepreneurial intentions

of youth are positively correlated with their

personalities (risk-taking, innovation, and tolerance

for ambiguity), and social learning (family knowledge

and experience).

Entrepreneurship education programs have

influenced student behavior control and anticipated

positive and negative impacts (Zampetakis et al.,

2014). For various regions, both Jakarta and

Balikpapan, we hope the family must continue to

accompany and pay attention and share experiences,

especially in business and take advantage of business

opportunities to face the digital revolution era 4.0 in

the future to support the nation's economy from

various sectors, especially the development of

creative economic industries.

Through the entrepreneur's contribution, new job

opportunities will be created to the society and can

assist the competition, productivity, and create new

industry growth. Therefore, society has to be aware

that without the entrepreneur, the economics of the

nation cannot expand rapidly and move forward

(Alhaj, Yusof & Edama, 2011).

5 CONCLUSION

Entrepreneurial expertise has a positive and

significant effect on (i) perceived desirability, (ii)

perceived feasibility, and (iii) propensity to act.

Perceived Desirability has a positive and significant

effect on entrepreneurial intention. Perceived

feasibility has a positive and significant effect on

entrepreneurial intention, and propensity to act has a

positive and significant effect on entrepreneurial

intention.

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