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The Impact of Entrepreneurship Education and Family

Environment: On Entrepreneurship Motivation of College Students

Auliya Nurmalasari

and Nuning Kristiani

Department of Management, STIE YKPN Yogyakarta, Indonesia

Department of Management, STIE YKPN Yogyakarta, Jalan Seturan, Yogyakarta, 55281, Indonesia

Keywords: Entrepreneurship Education, Family Environment, Entrepreneurship Motivation.

Abstract: The study investigates the influence of entrepreneurship education and family environment towards the

motivation of students in STIE YKPN Business School. The entrepreneurship motivation was the dependent

variable and the independent variables were entrepreneurship education and family environment. The total

population for this study was 183 people. Considering that there are students who have graduated, not all

population are taken as samples. In order to represent the study population, the Slovin formula is used to

determine the number of samples. Based on the calculation of the Slovin formula, the sample in this study

amounted to 126 respondents. Then, the data was analyzed using multiple regression method. The results of

the study showed that entrepreneurship education and family environment proved to be significantly

positive for entrepreneurial motivation. This study proves that the educational process that has been applied

at YKPN Business School both theoretically and practically has successfully motivated students to become

entrepreneurs. On the other hand, a family environment that contains guidance, support, and direction from

a student's family also has an influence on the motivation to become an entrepreneur.

1 INTRODUCTION

The number of unemployment in Indonesia is

exceedingly high due to the rising level of

demography which was not equalized by the growth

of work opportunities available. There are too many

graduates whose future relies on job providers. They

are not courageous enough to apply what they have

learnt in college and prefer to be job seekers as

subordinate workers.

The infusion of motivation becomes the concern

of YKPN Business School too. Accordingly, the

subject of entrepreneurship is offered with two

essential methods. The first is lecturing of the

foundation of entrepreneurship and building

motivation in class. Second, the students have to do

their business experiment. The business practices of

STIE YKPN students are located in the business

laboratory which is on the 2nd and 3rd floors of the

STIE YKPN building. The business laboratory is a

facility provided by the campus to support student

entrepreneurship activities.

In the Indonesian culture, families have the

important role in character building. Furthermore,

parents are also a determining factor in their child's

career choices. Most parents think that the job of

being an employee in a company is better than being

an entrepreneur. In some cases the family does not

really support the desire of the student to be an

entrepreneur because of the lack of skills and high

risk of lost. However, students will be motivated to

become entrepreneurs if they understand about the

benefits of entrepreneurship, such as creating jobs

for others and having a higher income than an

employee.

1.1 Statement of the Problem

In this study, we will try to address the issue, which

is "The influence of entrepreneurship education and

family environment on entrepreneurial motivation of

STIE YKPN students".

1.2 Objective of the Study

The objective of the study was to identify the factors

that are influencing entrepreneurship education and

family environment on entrepreneurship motivation.

302

Nurmalasari, A. and Kristiani, N.

The Impact of Entrepreneurship Education and Family Environment: On Entrepreneurship Motivation of College Students.

DOI: 10.5220/0008492203020307

In Proceedings of the 7th International Conference on Entrepreneurship and Business Management (ICEBM Untar 2018), pages 302-307

ISBN: 978-989-758-363-6

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2 LITERATURE REVIEW

2.1 Entrepreneurship Motivation

Entrepreneurship motivation is self-encouragement

to actualize the potential an individual has in

thinking creatively and innovatively to create

valuable brand-new unique product or service that is

beneficial to others. There are two main motivation

factors: 1) intrinsic factor which comes from the

inner part of the individual due to some stimulus

such as the need of income, self-prestige, and

happiness, and 2) extrinsic factor is influenced by

the external stimulus like family, society,

opportunity, and education.

It is expected that students who have obtained

entrepreneurship education to exhibit high

motivation. Entrepreneurship education is a process

of instilling, growing, and forming students’

entrepreneurial competence through improving

knowledge obtained from and their experience and

practical engagement in lectures. Knowledge learned

and skills trained and developed during a semester

taking the course is expected to boost students’

motivation and attitude from inside towards

becoming an entrepreneur (Raposo and do Paco,

2011). Practicality of entrepreneurship education is

able to improve students’ entrepreneurial

competencies developed during the course and

provide a positive impact on students’

entrepreneurial motivation (Farhangmehr et al.,

2016).

There are three factors that influence a person to

start a new business, namely: personal factors

(personality), sociological factors (relationships with

family and friends), and environmental factors

(Buchari, 2011). According to Buchari (2011),

family relationships belong to the sociological

category. The closest environment for a child is

family and the second is the community and friends.

Family encouragement especially from parents is

very important in fostering entrepreneurial spirit in

their children.

2.2 Entrepreneurship Education

According to Hamalik (2006), education is "a

combination composed of human elements,

facilities, equipment and procedures that influence

the achievement of education objectives". There are

3 (three) formulas that are considered more

advanced (Hamalik, 2006), namely: 1) Education is

an effort to organize the environment to create

education conditions for students, 2) Education is an

effort to prepare students to become good citizens,

3) Education is a process of helping students deal

with people's daily lives.

Some researchers have conducted research to

find evidence of the influence of entrepreneurial

education on entrepreneurial motivation. Like

research conducted by Oosterbeek et al., (2010)

which shows the results that entrepreneurial

education does not affect entrepreneurial motivation.

Different research results are shown by research

conducted by Yulianti (2013). In this study showed

that there is a significant influence between the

lessons of entrepreneurship and motivation towards

the students' entrepreneurial interest which are

42.70% and 57.30% respectively. This may be as

much as the other influences that are not researched.

2.3 Family Environment

Family is the smallest group of society consisting of

father, mother, children, and other members as the

foundation for the development of the children as

the initial basic aspect to shape the personality.

Related to entrepreneurship motivation, it will be

formed when the family gives positive influence to

the desire to do entrepreneurship. Yusuf (2012) said

that family is the first social group in humankind life

where an individual learns and actualizes himself as

a social creature in interacting with other people in

his group. Slameto (2010) added that family is the

first place for a child to grow up where ideology,

attitude, behavior, and motivation given by parents

influence the child’s development. This statement is

corroborated by several previous studies which show

evidence that there is influence of the family

environment on entrepreneurial motivation (Shittu,

2014) and (Marhaini et al., 2014).

2.4 Research Model

Based on the explanation above the following is the

research model proposed in this study:

Figure 1: Research Model.

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2.5 Hypotheses

: There is a positive and significant impact on

entrepreneurship education towards the

entrepreneurship motivation of YKPN Business

School Yogyakarta.

: There is a positive and significant impact on the

family environment towards the entrepreneurship

motivation of YKPN Business School

Yogyakarta.

: Simultaneously, there is a positive and

significant impact on the entrepreneurship

education and the family environment altogether

towards the entrepreneurship motivation of

YKPN Business School Yogyakarta

3 RESEARCH METHOD

3.1 Research Period

The location of the study was conducted at STIE

YKPN, Yogyakarta. The study was conducted for 5

months, starting from January to June 2018.

3.2 Sample and Data Collection

Techniques

The sampling method used was purposive sampling,

namely the selection of a group of subjects in

purposive sampling based on certain characteristics

that are considered to have a close connection with

the characteristics of the population that has been

known in advance. In other words, the unit of

sample contacted is adjusted to the certain criteria

applied based on research objectives (Margono,

2004). Data collection techniques used a

questionnaire, which is a data collection technique

that researchers use in the form of a series of

questions to be answered by respondents.

3.3 Sampling Design and Sample Size

Entrepreneurship education is taken by students in

the final year of college. While the data collection

period of this research was conducted during the

even semester of 2017/2018 academic year.

Therefore, the actual population in this study are

students who take entrepreneurship education

courses during the first semester and the second

semester of the 2017/2018 academic year. The

following is the data of students who took

entrepreneurship education in the 2017/2018

academic year:

Table 1: Entrepreneurship Education Students 2017 –

2018 Year of Academic.

Amount of Students

Semester 120

Semeste

Total 183

Source: Data Processing (2018)

Based on the data above, the total population for

this study was 183 people. Considering that there are

students who have graduated, not all populations

were taken as samples. In order to represent the

study population, the Slovin formula was used to

determine the number of samples (Ryan, 2013). The

Slovin formula is as follows:

n = N / (1 + Ne

) (1)

Explanation:

n = Number of samples

N = Total population

e = Error tolerance (5%)

By using the Slovin formula, the sample in this

study is

N = 183 / (1+ 183 (0.05)

)

N = 125.55 rounded up to 126

Margono (2004) argued that population of the whole

data is the main concern of a researcher in a specific

time and place, and it is related tightly with the data.

There were 126 respondents in this study which

consisted of 67 male respondents (53%) and 59

female respondents (47%).

3.4 Variable Measurement and

Questionnaire

All variables are measured using a Likert Scale.

According to Djaali (2008), the Likert scale is a

measuring tool to measure the values, attitudes,

interests, and concerns that are arranged in the form

of statements or questions to provide an assessment

by the respondent and the results in the form of a

value range in accordance with the specified criteria.

3.5 Data Validity and Reliability

The data in this study have been through the test of

data instruments namely validation and reliability.

Both tests show that there is no problem regarding

validity and reliability. Reliability testing by looking

at the total correction value of item-item, the result

of all reliability values above the required r table

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value is equal to 0.1750. To ensure the reliability of

the instruments, we used the Cronbach alpha

measure, and the results are the following:

entrepreneurship education: 0.846; family

environment: 0.795, and entrepreneurship

motivation: 0.892. We can conclude that all

instruments meet the recommended values (>.5)

(Widodo, 2006).

Table 2: The following are the questions used in the

questionnaire.

Entrepreneurship Education

1. I understand the contents of the syllabus as a reference

for learning entrepreneurship

2. The material provided is in accordance with the contents

of the syllabus

3. The syllabus content covers the objectives of

entrepreneurial education to be achieved

4. The learning method used is in accordance with the

material to be delivered

5. The method used makes me understand the concept of

entrepreneurship

6. Business practice is a fun method of learning

entrepreneurship

7. The campus provides facilities and infrastructure for the

practice of entrepreneurship

8. The Business Laboratory is the right place for students to

learn entrepreneurship

9. I was enthusiastic when attending entrepreneurship

courses

Family environment

1. My parents always teach to be honest

2. My parents always teach discipline

3. My parents provide support for entrepreneurship

4. My parents directed me to become an entrepreneur

5. My parents released me to entrepreneurship

6. My family educates to always work hard

Entrepreneurial Motivation

1. I am ready for entrepreneurship

2. I have started a new business after completing

entrepreneurship education

3. I can be a successful person with entrepreneurship

4. Being an entrepreneur is more profitable than being an

employee

5. Being an entrepreneur is my goal

6. I am driven to be an entrepreneur for a better future

4 DATA ANALYSIS AND

FINDINGS

4.1 Regression Analysis

The regression equation:

Y = 0.734 + 0.350 X

+ 0.431 X

The meaning of the regression equation is as follows

1. A constant value of 0.734 indicates a positive

value. This means showing the positive influence

of independent variables (entrepreneurship

education and family environment) on the

dependent variable (entrepreneurial motivation).

2. The regression coefficient of entrepreneurial

education is 0.35 and has a positive value. This

means that if the entrepreneurship education

variable increases by one unit, then the

entrepreneurial motivation variable will also

increase by 0.35.

3. The family environment regression coefficient

value is 0.431 and has a positive value. This

means that if the family environment variable

increases by one unit, then the entrepreneurial

motivation variable will also increase by 0.431.

4.2 Hypothesis Testing

The result of the Partial Test was that

Entrepreneurship Education (EL) had t-count 3.238

bigger than t-critical with the significance

0.002>0.05. The conclusion is that Ha was accepted

and Ho was rejected.

While the Family Environment (FE) had t-count

4.921 bigger than t-critical with the significance of

0.000>0.05. The same conclusion is drawn that Ha

was accepted and H0 was rejected.

For the simultaneous testing, the result was that

Entrepreneurship Education (EL) and Family (F)

had F-count 23.827 bigger than F-critical 3.07 with

the significant level 0.000>0.05. Therefore, the

conclusion is that entrepreneurship education and

the family environment are proven to have a

simultaneous effect on entrepreneurial motivation.

Therefore, the conclusion are entrepreneurship

education and family environment has positive and

significant influence towards entrepreneurship

motivation. The results of this study reinforce the

results of previous studies conducted by Yulianti

(2013) which prove that entrepreneurship education

influences entrepreneurial motivation and research

conducted by Shittu (2014) and Marhaini et al.,

(2014) which prove that the family environment

influences entrepreneurial motivation.

4.3 Model Summary

Table 3: Model Summary.

Model R RSquare

AdjustedR

Square

StdErrorof

the

Estimate

1 0.528 0.279 0.268 0.45972

Source: Data Processing (2018)

Adjusted R Square value was 0.268 which means

that 26.8% of the change of dependent variable of

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entrepreneurship motivation (Y) was influenced by

both independent variables, and 73.2% was

influenced by other variables not included in this

study.

5 CONCLUSION AND

SUGGESTIONS

5.1 Conclusion

Based on the data gained in this research, the

conclusion is as follows. First, Entrepreneurship

Education (EL) had t-count 3.238 bigger than t-

critical with the significance 0.002>0.05. The

conclusion is that Ha was accepted and H0 was

rejected. Entrepreneurship education has positive

and significant influence towards entrepreneurship

motivation. In this study which was conducted in

YKPN Business School, it was proven that the

students are motivated to be an entrepreneur because

of the material given during the lecture. The up to

date theory were delivered by adjusting the recent

business world in accordance with the business

experiment. The business experiment was done by

the students of YKPN Business School starting from

planning until evaluating the business. In

conclusion, the entrepreneurship education

influences the motivation of the students of YKPN

Business School to do entrepreneurship. This could

be a good example for other colleges to apply what

YKPN Business School has applied.

Second, the Family Environment (FE) had t-

count 4.921 bigger than t-critical with the

significance 0.000>0.05. The same conclusion is

drawn that Ha was accepted and H0 was rejected.

Family environment positively and significantly

gives impact towards the entrepreneurship

motivation since the family has strong influence to

shape the personality of an individual. The guidance

and encouragement provided by the family give

effect to be an entrepreneur in the future. Since

honesty, discipline, and hard-work are fundamental

in undergoing a business.

Third, the simultaneous testing had F-count

23.827 bigger than F-critical 3.07 with the

significant level 0.000>0.05. Simultaneously,

entrepreneurship education and family altogether

influence the entrepreneurship motivation positively

and significantly. It could happen whenever the

education process is like what has been applied in

YKPN Business School supported by the family

who give guidance and encouragement.

5.2 Limitation

However, there are some limitations should be

addressed. The first limitation concerns the

reliability of the answers given by the respondents in

answering the questionnaire. Second, this study only

involved students from one institution. The findings

and the level of generalizability may not be very

high.

5.3 Recommendations

Therefore, future research could cover more data

from more students of various educational

institutions. It is also suggested that, first, the

improvement of the teaching education process and

the material need to be improved from time to time

due to the tight competition in the future. Second,

support and encouragement from family is

inevitably needed to teach and guide the students to

be an entrepreneur. Therefore, the family has to

realize this matter and needs to give more attention

towards this matter to keep the motivation high.

Third, the government needs to have more

concern

about the matter of entrepreneurship education to

create young entrepreneurs.

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