The Effect of Motivation, Creativity, Innovation on Entrepreneural

Interests and Students’ Income in Madura

Ach. Zuhri

, Yuni Putri Utami

, Fajar Budiyono

, Rudy Haryanto

Management Study Program, Bahaudin Mudhary Madura university,Indonesia

Accounting Study Program, BahaudinMudhary Madura, Indonesia

Primary School Teacher Education Study Program, STKIP PGRI Sumenep,Indonesia

Faculty of Economics and Islamic Business, Madura State Institute of Islamic Religion, Indonesia

Rudy@iainmadura.ac.id

Keywords: Motivation, Creativity, Innovation, Entrepreneurial Interest, Income.

Abstract: Entrepreneurship is increasingly becoming an important concern in facing the challenges of globalization,

called the global economic competition. This was involved creativity and innovation, also driven by high

motivation, as entrepreneurial interest can later increase one's income. This study aimed to analyse the direct

and indirect effects of motivation, creativity, and innovation on student interest and student income. The

results of this study wereinvestigate into four as follows: 1) the variables of creativity and motivation which

have a direct effect on entrepreneurial interest, 2) motivation and entrepreneurial interest have a direct effect

on income, 3) creativity has an indirect effect on income through entrepreneurial interest, 4) and motivation

has an indirect effect on income through entrepreneurial interest.

1 INTRODUCTION

Entrepreneurship has become an important concern

in developing a country's socioeconomic growth. In

this case, it cannot be denied that entrepreneurship

provided so many job opportunities, various

consumer needs, services, and foster the welfare and

level of competition of a country. In line with the

development of globalization, entrepreneurship is

also increasingly becoming an important concern in

facing the challenges of globalization, namely global

economic competition in terms of creativity and

innovation. This is because organizations that are

always innovating, succeed in generating new ideas,

will gain a competitive advantage and will not be

left behind in the world market which is constantly

changing rapidly. (Aidha, 2016).

One common factor faced by a developing

country was the total number of entrepreneurs in the

country only 2% of the population. As a developing

country, Indonesia only has 1.5% entrepreneurs out

of around 252 million people, thus Indonesia still

needs around 1.7 million entrepreneurs to reach 2%.

The average population in Indonesia chooses to

become employees rather than become entrepreneurs

(Primandaru, 2017).

In regard to the impact of entrepreneurship skill,

it is necessary to have an understanding on how to

succeed and strengthen the emergence of potential

young entrepreneurs while they are in school.

Several former studies stated that the learnersneed to

entrepreneurship triggered the birth of future

entrepreneurs (Indarti and Rostiani,

2008).Entrepreneurial interest is something that is

really needed for every student in this era. The

interest in entrepreneurship that various factors wish

to manifest, such as Entrepreneurship Education,

Independence, and Income Expectations. Because

with the interest in entrepreneurship, it will be able

to reduce the impact of social inequality in society

and reduce poverty(Yusuf & Efendi, 2019).

This phenomenon occurred due to the lack of

motivation and interest of the Indonesian people. If

they didn’t changed the way they think, Indonesia

will have many problems, one of which is the

narrowing of job opportunities, the number of job

opportunities with people looking for work, more

people looking for work, so that many people do not

get work which results in the number of

unemployed, especially intellectual unemployment

is getting bigger and has an impact on economic

conditions in Indonesia.

146

Zuhri, A., Utami, Y., Budiyono, F. and Haryanto, R.

The Effect of Motivation, Creativity, Innovation on Entrepreneural Interests and Students’ Income in Madura.

DOI: 10.5220/0010305300003051

In Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies (CESIT 2020), pages 146-150

ISBN: 978-989-758-501-2

It is undeniable that Indonesia is facing the

problem of limited job opportunities for university

graduates with the increasing number of intellectual

unemployed recently. Including Madura, an island

area where the number of unemployed is increasing

and has a view to looking for work even though it

does not have to go to college and become a

graduate.

According to data from the Central Statistics

Agency (BPS), the Open Unemployment Rate (TPT)

has decreased from 2015 to 2019. In August 2019,

TPT fell to 5.28 per cent compared to last year's 5.34

per cent. In line with the increase in the number of

the workforce, the Labor Force Participation Rate

(TPAK) has also increased. The TPAK for August

2019 was 67.49 percent, an increase of 0.23

percentage points compared to last year. The

increase in TPAK provides an indication of the

economic potential in terms of increasing supply of

labor. Judging from the trend of employment during

August 2018 - August 2019, employment

experienced an increase in percentage, especially in

the provision of accommodation and food and drink

(0.50 percentage points), processing industry (0.24

percentage points), and trade (0.20 percent points).

Meanwhile, the decline in employment was mainly

in Agriculture (1.46 percentage points), Financial

Services (0.06 percentage points) and Mining (0.04

percentage points). The total numbers of formal

workers, those who try to be assisted by permanent

workers and who become laborers / employee /

employees, reached 56.02 million people (44.28

percent). Meanwhile, there are 70.49 million people

who work in informal activities (including self-

employed, doing business assisted by temporary

laborers, casual workers and unpaid workers) (55.72

percent). (BPS, 2019).

Figure 1: Research Conceptual Framework.

Information:

Variable Indicato

X1:

X1.1 = ph

sical requirements

Motivation

X1.2 = Need for Security and

Comfort

X1.3 = Social Needs

X1.4 = Need for Appreciation

X1.5 = Need for Self

Manifestation (Andjarwati,

2015)

X2 =

Creativity

X2.1 = Fluency

X2.2 = Flexibility

X2.3 = Novelty (Jagom, 2015)

X3 =

Innovation

X3.1 = Product Innovation

X3.2 = Process Innovation

X3.3 = Market Innovation

(Chandra & Haryadi, 2016)

Z =

Entreprene

urial

Interest

Z1 = Individual

Z2 = Work atmosphere

Z3 = level of education

Z4 = Personality (personality

Z5 = educational achievement

Z6 = Family Encouragement

Z7 = Environment and

Association

Z8 = Self-Esteem

Z9 = compulsion (Sennang,

2017)

Y =

Income

Y1 = Very high > Rp.

3,500,000.00

Y2 = High Rp. 2,500,000.00 to

Rp. 3,500,000.00

Y3 = moderate Rp. 1,500,000 to

Rp. 2,500,000.00

Y4 = Low < Rp. 1,500,000.00

(Indrianawati & Soesatyo,

2015)

2 RESEARCH METHODOLOGY

This research method uses quantitative research

methods with explanatory research type

(explanatory), namely a study to find and explain the

causal relationship between variables through

hypothesis testing (Hidayat, 2009). The analysis of

this research used Structural Equetion Model (SEM)

analysis with Smart PLS software. The population in

this study were all students studying in Indonesia,

while the population technique used in this study

was probability sampling with systematic random

sampling technique. In this technique, every student

has the same opportunity to be selected as a research

sample. The sample of this study was 111 who were

selected through a random or random system

inwhich the selection of sample members after

starting with random selection for the first and

subsequent respondents.

The Effect of Motivation, Creativity, Innovation on Entrepreneural Interests and Students’ Income in Madura

147

3 RESULT AND DISCUSSION

The data were tested using the Structural Equation

Modeling (SEM) and analysed usingSmartPLS

software. The following is an image of the

SmartPLS output model:

Figure 2: image of the SmartPLS output model.

The SmartPLS output results in outer loading

which is then used to test the validity, which is as

follows:

Table 1: Validity test results.

Variable Indicator Outer

Motivation X1 X1.1 0.880

X1.2 0.903

X1.3 0.933

X1.4 0.923

X1.5 0.847

Creativity X2 X2.1 0.804

X2.2 0.775

X2.3 0.672

Innovation X3 X3.1 0.641

X3.2 0.832

X3.3 0.765

Entrepreneurial Z1 0.510

interest Z Z2

0.513

0.504

0.561

0.592

0.608

0.798

0.794

0.782

Income Y Y1

0.588

0.936

0.947

0.526

Based on the outer loading, it shows that all

indicators are above 0.5, so it can be said that all

indicators are valid.

After the validity test is carried out, then the

reliability test is carried out which is shown based on

the following results:

Table 2: Reliability test results.

Variable Cronbach’s

Alpha

Composite

Reliability

AVE

Creativit

0.739 0.796 0.566

Entrepre

neurial

Interest

0.820 0.858 0.510

Income 0.757 0.848 0.599

Innovati

0.705 0.792 0.562

Motivati

0.940 0.954 0.806

The results of the reliability testindicated that the

variable was reliable because it meets the reliability

criteria, including the value of Cronbach's Alpha is

higher than 0.60, the Composite Reliability value is

above 0.70, and the Average Variance Extracted

(AVE) value is above 0.50.

The results of the validity and reliability tests

show that the variables creativity, motivation,

innovation, entrepreneurial interest, and income are

said to be valid and reliable so that a causality test

can be done.

CESIT 2020 - International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies

148

Table 3: The results of the direct effect test.

Variable

rigina

ample

Sample

Mean

Standar

Deviation

T-

Statistics

P-

Value

Creativity→Entrepreneurial

Interest

0.352 0.36

0.109 3.217 0.001

creativity→Income 0.115 0.10

0.139 0.830 0.407

Entrepreneurial

Interest→Income

0.930 0.94

0.074 12.625 0.000

Inovation→Entrepreneural

Interest

0.132 0.12

0.091 1.448 0.148

Inovation→Income 0.122 0.12

0.093 1.316 0.189

Motivation→Entrepreneural

Interest

0.379 0.37

0.098 3.853 0.000

Motivation→Income 0.309 0.30

0.129 2.391 0.017

Meanwhile, the results of the direct effect,

revealed that 1) the variable of creativity has a direct

effect on entrepreneurial interest. It implied that the

better the student's creativity, the higher the

entrepreneurial interest for students. 2) the creativity

variable has an indirect effect on income, meaning

that the level of student creativity has no significant

effect on student income. 3) the entrepreneurial

interest variable has a direct effect on income,

meaning that the higher the student's interest in

entrepreneurship, the higher the student's income

will be. 4) the innovation variable has an indirect

effect on entrepreneurial interest, meaning that the

level of innovation has no significant effect on

student interest. 5) the innovation variable has an

indirect effect on income, meaning that the level of

innovation also has no significant effect on student

income. 6) the motivation variable has a direct effect

on entrepreneurial interest, meaning that the higher

the student's motivation, the higher the student's

entrepreneurial interest. 7) and the motivation

variable has a direct effect on income, meaning that

the higher the student's motivation, the greater the

student's income.

In line tothe previous studies, the research result

conducted by (Setyaji, Yanto and Prihandono, 2020)

showing that entrepreneurial interest does not grow

by itself, but it was influenced by several factors,

involving the variable creativity. These results are

also similar to the results of research conducted by

Tanoira which revealed the most important factor

that should be considered to increase creativity,

innovation and entrepreneurship was intrinsic

motivation (Tanoira, 2017).

Table 4: Indirect effect test results.

Variable Original

Sample

Mean

Standar

Deviation

T-

Statistics

P-

Value

creativity→Income 0.327 0.345 0.110 2.987 0.003

Inovation→Income 0.123 0.117 0.086 1.432 0.153

Motivation→Income 0.352 0.351 0.097 1.627 0.000

In addition, the results analysis of the indirect

effect, suggested that 1) the variable of creativity has

an indirect effect on income, meaning that the higher

the level of student creativity followed by

entrepreneurial interest, the greater the student's

income. 2) the innovation variable does not have an

indirect effect on income, meaning that the

innovation variable, even though it is followed by

entrepreneurial interest, does not directly affect

student income. 3) the motivation variable has an

indirect effect on income, meaning that the higher

the level of student motivation followed by

entrepreneurial interest, the greater the student's

income.

4 CONCLUSIONS

The results of the direct effect show that 1) the

variable creativity has a direct effect on

entrepreneurial interest.it meant that the better the

student's creativity, the higher the entrepreneurial

interest for students. 2) the creativity variable has an

indirect effect on income, meaning that the level of

student creativity has no significant effect on student

income. 3) the entrepreneurial interest variable has a

direct effect on income, meaning that the higher the

student's interest in entrepreneurship, the higher the

student's income will be. 4) the innovation variable

has an indirect effect on entrepreneurial interest,

meaning that the level of innovation has no

significant effect on student interest. 5) the

innovation variable has an indirect effect on income,

meaning that the level of innovation also has no

significant effect on student income. 6) the

motivation variable has a direct effect on

entrepreneurial interest, meaning that the higher the

student's motivation, the higher the student's

entrepreneurial interest. 7) and the motivation

variable has a direct effect on income, meaning that

the higher the student's motivation, the greater the

student's income.

The results of the analysis of the indirect effect

indicate that 1) the variable of creativity has an

indirect effect on income, meaning that the higher

the level of student creativity followed by

entrepreneurial interest, the greater the student's

The Effect of Motivation, Creativity, Innovation on Entrepreneural Interests and Students’ Income in Madura

149

income. 2) the innovation variable does not have an

indirect effect on income, meaning that the

innovation variable, even though it is followed by

entrepreneurial interest, does not directly affect

student income. 3) the motivation variable has an

indirect effect on income, meaning that the higher

the level of student motivation followed by

entrepreneurial interest, the greater the student's

income.

REFERENCES

Aidha, Z., 2016. ‘The Influence of Motivation on Student

Entrepreneurial Interest in the Faculty of Public

Health, State Islamic University of North Sumatra’,

JUMANTIK, 1(1).

Andjarwati, T., 2015. Motivasi dari Sudut Pandang Teori

Hirarki Kebutuhan Maslow, Teori Dua Faktor

Herzberg, Teori X Y Mc Gregor, dan Teori Motivasi

Prestasi Mc Clelland. Jurnal Ilmu Ekonomi &

Manajemen, 1(1).

BPS (2019) Indonesian Labor Situation August 2019,

Badan Pusat Statistik. Available at:

https://www.bps.go.id/pressrelease/2019/11/05/1565/a

gustus-2019--tingkat-pengangguran-terbuka--tpt--

sebesar-5-28-persen.html (Accessed: 25 March 2020).

Chandra, G. C., & Haryadi, B., 2016. Proses Inovasi

Produk pada PT Mekar Usaha Nasional. AGORA,

4(2).

Hidayat, R., 2009. ‘Effect of Service Quality, Product

Quality and Customer Value on Customer Satisfaction

and Loyalty of Bank Mandiri’, Jurnal Manajemen dan

Kewirausahaan, 11(1). doi:

https://doi.org/10.9744/jmk.11.1.pp.%2059-72.

Indarti, N. and Rostiani, R., 2008. ‘Intention of Student

Entrepreneurship: Comparative Study between

Indonesia, Japan and Norway’, Jurnal Ekonomi dan

Bisnis Indonesia, 23(4). doi:

https://doi.org/10.22146/jieb.6316.

Indrianawati, E., & Soesatyo, Y., 2015. Pengaruh Tingkat

Pendapatan dan Pengetahuan Ekonomi terhadap

Tingkat Konsumsi Mahasiswa Program Pascasarjana

Universitas Negeri Surabaya. Jurnal Ekonomi

Pendidikan Dan Kewirausahaan, 3(1).

Jagom, Y. O., 2015. Kreativitas Siswa SMP dalam

Menyelesaikan Masalah Geometri berdasarkan Gaya

Belajar Visual-Spatial dan Auditory-Sequential. Math

Didactic: Jurnal Pendidikan Matematika, 1(3).

Primandaru, N., 2017. ‘Analysis of Factors Influencing

Student Entrepreneurial Interest’, Jurnal Economia,

13(1).

Sennang, I., 2017. Pengaruh Dukungan Sosial dan Efikasi

Diri terhadap Minat Berwirausaha Siswa SMK (Studi

Kasus Pada Siswa SMK Negeri 3 Samarinda).

PSIKOBORNEO, 5(3).

Setyaji, B., Yanto, H. and Prihandono, D., 2020. ‘the role

of personality, adversity intelligence and creativity in

increasing entrepreneurial enterest trough student

involvement in entrepreneurship lectires’, Journal Of

Economic Education, 9(1).

Tanoira, F. G. B., 2017. ‘motivation for increasing

creativity, innovation and entrepreneurship. an

experience from the classroom to business firms’,

Journal of Innovation Management, 5(3).

Yusuf, E., & Efendi, R., 2019. Student Entrepreneurial

Interests that are influenced by Income Expectations,

Entrepreneurship Education, and Self Efficacy.

International Journal of Multiculturaland

Multireligious Understanding, 6(6).

CESIT 2020 - International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies

150