The Role of Competencies and Education in Increasing Entrepreneurial Intention in Creative Economy
The Role of Competencies and Education in Increasing Entrepreneurial Intention in Creative Economy
The Role of Competencies and Education in Increasing Entrepreneurial Intention in Creative Economy
Sandroto, Yussi Ramawati, Syarief Darmoyo / The Role of Competencies and Education in Increasing Entrepreneurial Intention in Creative Economy / 31-
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Vol. 11 | No. 1
ARTICLEINFO ABSTRACT
Keywords: entrepreneurial The creative economy is being increasingly encouraged by the Indonesian
competencies, education level, government, the existing entrepreneurs are mostly engaged in the culinary
creative economy,
entrepreneurial intention industry. This study aims to describe the role of competencies and
education in increasing entrepreneurial intention in the creative economy.
Three hundred and five questionnaires were distributed to creative
Kata Kunci: entrepreneurs, consisting of 162 respondents in Jakarta and 143 in
kompetensi wirausaha,
tingkat pendidikan, Balikpapan using convenience sampling. Research findings show that there
ekonomi kreatif, intensi is no difference between the mean scores of entrepreneurial competencies
wirausaha in Jakarta and Balikpapan. Furthermore, the level of education has a
positive effect on (i) entrepreneurial intention, (ii) entrepreneurial
professional attraction, and (iii) entrepreneurial networking support. There
is a positive relationship between education level and monthly revenue, as
well as between entrepreneurial competencies and monthly revenue. The
findings of this research would suggest government and education
institution to further develop entrepreneurship education and train them
with various methods and to cultivate interests in other creative sub-sectors.
SARIPATI
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Christine W. Sandroto, Yussi Ramawati, Syarief Darmoyo / The Role of Competencies and Education in Increasing Entrepreneurial Intention in Creative Economy / 31-
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Block & Sandner, 2009; Verheul et al., 2010). Fashion; 7. The Movie, Animation, and
Nevertheless, these necessity entrepreneurs Video; 8. Photography; 9. Craft; 10. Culinary;
may end up successful if they receive 11. Music; 12. Publishing; 13. Advertising;
adequate training and education to improve 14. Performing Arts; 15. Art; and 16. Television
their competence, along with government and Radio. Indonesia expects every province to
support that includes the introduction of develop several creative sub-sectors in order to
policies that promote creative economy. increase the economic growth in their respective
regions.
Based on the given introduction, this research
would examine the competence of creative Entrepreneurship
entrepreneurs, identify the creative industries Entrepreneurship is defined as «the occupational
that are of interest, and assess how the level choice to work for one’s account and risk»
of education influences entrepreneurial (Stephan and Uhlaner, 2010). An entrepreneur is
intention and new venture creation. somebody who creates a new business in the face
of risk and uncertainty for the purpose of achieving
LITERATURE profit and growth by identifying significant
REVIEW Creative opportunities and assembling the necessary
Economy resources to capitalize on them (Scarboroug and
According to Tian & Gao (2011), a creative Cornwall, 2016). Starting part-time business is a
economy is a form of advanced economic popular gateway to entrepreneurship. Part-time
development that relies on fewer natural entrepreneurs have the best of both worlds: they
resources. Its main driver is not purely can ease into business for themselves without
technology or information, but human sacrificing the security of a steady paycheck and
creativity, creative and unique products that benefits. The Internet (and particularly e-bay) and
combine culture, spirit, and habit. The mobile communication devices make establishing
creative industry is a human-oriented and running a part-time business very easy; many
industry. Protection of intellectual property parttime entrepreneurs run online businesses from
serves to preserve the vital energy of the a spare bedroom in their homes or from wherever
creative industry. Companies gain benefit they are (Scarboroug and Cornwall, 2016).
from symbiotic mutualisms and access to
high industry value chains. According to According to Reynolds et al., (2001), there are two
Wang & Peng (2009), creative industry is types of entrepreneurs: necessity entrepreneurs
different from the consumer goods industry, and opportunity entrepreneurs. The difference
where production depends on machines or between these two types of entrepreneurs lies in
labor. The creative industry generates output their underlying motives for starting a business.
from intellectual capital, marked with Necessity entrepreneurs are those who are driven
originality. into the entrepreneurial world as needbased (Block
and Wagner, 2010). They become entrepreneurs by
The Creative Economy default because they do not have an alternative
Board (or known in Indonesia as (Verheul et al., 2010), i.e. a non-voluntary decision
Bekraf) is a non-ministerial government (Reynolds et al., 2001). Moreover, this kind of
institution responsible for the sixteen sub- constraint usually does not satisfy one’s self.
sectors of the creative economy: 1. (Bhola et al., 2006).
Application and Game Development; 2.
Architecture; 3. Interior design; 4. Visual Opportunity entrepreneurs are those who establish
communication design; 5. Design Products; 6. a business to pursue an opportunity (Block and
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International Research Journal of Business Studies | vol. XI no. 01 (2018)
Wagner, 2010). They mobilize efforts to take accounting affair competence, (vi) management
advantage of business opportunities based on competence, (vii) globalization competence, (viii)
personal interests (Verheul et al., 2010); thus, business law competence, (ix) enterprise resource
enabling them to enter the entrepreneurial world by planning competence, and (x) information
choice. Oftentimes, entrepreneurs who are driven technology competence.
by necessity are more to experience failure
compared to opportunity (Bhola et al., 2006; Block Entrepreneurial Intention
and Wagner, 2010; Block and Sandner, 2009; Soutaris et al. (2007) (as referenced in
Verheul et al., 2010). Additionally, necessity Mohammad et al., 2015) define
entrepreneurs do not normally have the formidable entrepreneurial intention as one’s desire to
educational background. However, these begin an entrepreneurial activity. Shapero &
entrepreneurs might achieve success if they receive Sokol (1982) argue that intention of becoming
adequate training and education to improve their an entrepreneur depends on the following
competence, along with government support that three dimensions: perceived desirability,
includes the introduction of policies that promote perceived feasibility, and propensity to act.
creative economy. Shapero & Sokol (1982) adapted the Planned
Behavior theory that was proposed by
Entrepreneurial Fishbein & Ajzen (1975) and specifically
Competency applied it to the field of entrepreneurship.
Competency is defined as an underlying
characteristic of an individual that is causally Ajzen (1991) furtherly developed the theory of
related to criterion-referenced effective and/or Planned Behavior. This theory comprises
superior performance in a job or situation. There several variables: (i) background factors; (ii)
are five characteristics of competence: motives, behavioral belief; (iii) normative beliefs; (iv)
traits, self-concept, knowledge, and skills (Spencer subjective norm; (v) control beliefs; and (vi)
and Spencer, 1993). Knowledge and skills are perceived behavioral control perception.
usually associated with hard skill competencies, According to the theory of Planned Behavior,
while personality is usually associated with soft a person can be determined to act in a certain
skill competencies (Shermon, 2004). way only if he or she has control over his or
her behavior. This theory not only emphasizes
Spencer and Spencer (1993) state that the rationality of human behavior but also the
entrepreneurial competencies include both hard belief that the target behavior is under the
and soft skills: (i) achievement, (ii) thinking and control of the individual’s consciousness; or a
problem-solving, (iii) personal maturity, (iv) behavior depends not only on the intentions of
influence, (v) directing and controlling, (vi) the individual but also on other factors that are
orientation to others, and (vii) additional not under the control of the individual such as
competencies. Based on the duties and scope of the availability of resources and opportunities
responsibilities, experts develop entrepreneurial to perform such behavior. Theory of Planned
competence. Entrepreneurial hard skill Behavior dictates the intention is a function of
competencies, according to Chou, Shen, and Chen, three determinants, they are: being personal,
and Hsiao (as referenced in Riyanti, Sandroto, and reflecting social influences and relating to
Warmiyati, 2016), consisting of ten competencies control problems (Ajzen and Fishbein, 2005).
among business students: (i). entrepreneurial spirit
and entrepreneurial competencies, (ii) marketing Education Level and Entrepreneurial
competence, (iii) business and economics intention Previous studies have found that the
competence, (iv) financial competence, (v) creation of new ventures had been planned
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(Bird, 1988; Autio et al., 1997; Tkachev and (3) a better understanding of entrepreneurship
Kolvereid, 1999 in Mushtaq et al., 2011 and not only by entrepreneurs, but within a wider
Shapero and Sokol, 1982). The difficult and section of society including local and regional
challenging nature of entrepreneurship causes authorities, development agencies, financing
many freshlyestablished businesses to fail. institutions and the organisations of the civil
Entrepreneurship requires enhanced sector (Konczol, 2004). The rising demand
management capabilities to grow businesses for entrepreneurship learning reveals the
and fight off competitions. Several studies requirement to depart university prepared
have given the evidence of the importance of with the understanding and expertise essential
university education to anticipate and clarify to carry on in modern day’s competitive set.
individual behaviors related to new venture After gaining the required entrepreneurial
creation (Kolvlereid, 1996; Krueger 1993 in skills and abilities, the attitude has changed
Mushtaq et al., 2011). Entrepreneurship and they were more attracted toward
education and training have an immediate entrepreneurship. The importance of know-
impact on students and their behavioral how and learning has broadly drawn
intention (Kolvereid and Moen, 1997). This attention, specifically to the enhanced
indicates that there is a difference between information the education is providing
those who take entrepreneurial and non- (Mushtaq et al, 2011)
entrepreneurial education. Education,
therefore, plays an important role in Studies about the role of the entrepreneurial
improving entrepreneurship and number or network reveal that the network is related to
entrepreneurs. In new venture creations, businesses being started (Gartner & Carter, 2003).
entrepreneurs usually rely on network support, Prior studies have found that past entrepreneurial
social norms, the perception of feasibility, and experience tends to expand a set of heterogeneous
entrepreneurial experience. After possessing social networks that are beneficial for the
the aforementioned entrepreneurial skills and development of start-up businesses (Mosey &
abilities, the attitude of the graduate change; Wright, 2007). Networking behavior is defined as
they are more interested in entrepreneurship. individuals’ attempt to develop and maintain
The rise in interest is triggered by the learning relationships with others who have the potential to
process, considering that education provides assist them in their work or career. Networking is a
the information needed (Cooper, 1985). type of proactive behavior. It is also noted as an
important source of sales prospect (Macintosh &
The transformation of thought to become an Krush, 2017).
entrepreneur is well thought out and
deliberate, and this is influenced by education Self-reliance is needed in relation to the level of
(Krueger, Reilly, and Carsrud, 2000). As a creativity and modernity of a person in choosing
result of the adjustments and improvements the latest methods and knowledge to apply to local
in the formal education system and the conditions (Acho-Chi, 1998). Self-reliance is
vocational and other professional training defined as a mindset that observes individual
programmes, some important objectives minds and physical resources, as the basic reserve
could be achieved, they are: (1) a better to describe on the search of one’s aims and goals
transferability of the different programmes- and discovers sentimental accomplishment not
through the credit system; (2) a more only in attaining the objectives but encompassing
transparent system of qualificationthrough the them by means of personal resources (Rahman,
professional qualification of training 1993).
programmes and training organisations; and
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Based on the phenomena that have been 9. There is an effect of level of education on
mentioned, this study would assess entrepreneurial professional attraction.
competencies, the respondents’ preferred sub- 10. There is an effect of level of education on
sectors of the creative economy, and how networking support.
educational attainment influence entrepreneurial 11. There is an effect of level of education on
intention and new venture creation (professional selfreliance.
attraction, networking support, and self-reliance). 12. There is a correlation between education level
The findings of the study are expected to determine and monthly revenue.
the development of entrepreneurial spirit in the
nation’s creative economy. 13. There is a correlation between
entrepreneurship competencies and monthly
Research Question revenue.
To measure entrepreneurial competencies and to
measure how the effect of educational level toward Population and Sampling
entrepreneurial intention, professional attraction, The population of this research included all
networking support, and self-reliance in creative creative entrepreneurs, both full time and part
economy in Jakarta and Balikpapan. time in Jakarta and Balikpapan. These cities
were chosen due to the similarities on
METHODS potential and existing differences on industry
This descriptive study employs the management. Convenience sampling was
causalcomparative technique. Questionnaires were performed: questionnaires were distributed to
distributed to the respondents to measure five 305 entrepreneurs—162 in Jakarta and 143 in
variables: entrepreneurial intention, professional Balikpapan. The sampling method used in this
attraction, networking support, self-reliance, and study is non-probability sampling, ie not all
level of education. subjects have equal opportunity to be a
research sample (Kerlinger & Lee, 2000).
Conceptual Hypothesis
1. There is a difference in achievement Data and Measurement
competency between Jakarta and Balikpapan. In measuring the research variables, this study
2. There is a difference in thinking and adapted the scales that had been formerly
problemsolving competency between Jakarta developed. Entrepreneurial competencies
andBalikpapan. (EC) were measured using Spencer and
3. There is a difference in personal maturity Spencer scale (1993) containing 23 items of
competency between Jakarta and Balikpapan. questions for achievement dimensions (ACH),
4. There is a difference in influence competency 6 questions for thinking and problem-solving
between Jakarta and Balikpapan. dimensions (TPS), 13 questions for personal
5. There is a difference in directing and maturity (PM) dimensions, 11 questions for
controlling competency between Jakarta and influence dimension (INF), 6 questions for
Balikpapan. directing and controlling dimension (DC), and
6. There is a difference in orientation to others 14 questions for orientation to others (OTO)
competency between Jakarta and Balikpapan. dimension.
7. There is a difference in entrepreneur
competencies between Jakarta and Respondents were asked to indicate their level
Balikpapan. of approval of question items on a 7-point
8. There is an effect of level of education on Likert scale, ranging from strong
entrepreneurial intention. disagreement (1) to strong agreement (7).
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Validity and reliability test results show the 0.837 - 0.897 and significant at 0.01;
scale to be valid and reliable (correlation Cronbach ‘alpha coefficient PA = 0.931,
coefficient EC ranged from 0.595 - 0.872; p Cronbach’ alpha coefficient NS = 0.946, and
<0.01, ACH ranged from 0.696 - 0.837; p Cronbach ‘alpha coefficient SR = 0.882).
<0.01, TPS ranged from 0.859 - 0.913; p
<0.01, PM ranged from 0.675 - 0.848; p Education level is defined as (i) the last
<0.01, INF ranged from 0.768 - 0.858; p formal education diploma received by the
<0.01, DC rangesd from 0.796 - 0.898; p respondent, and (ii) the duration of formal
<0.01 OTO ranged from 0.844 - 0.931; p education pursuit in terms of years.
<0.01 Cronbach ‘alpha coefficient EC =
0.990, Cronbach ‘alpha coefficient ACH = Data Analysis
0.970, Cronbach’ alpha coefficient TPS = Data were analyzed descriptively and
0.945, Cronbach ‘alpha coefficient PM = inductively. Descriptive statistics were used
0.951, to describe the research variables and the
Cronbach’ alpha coefficient INF = 0.951, demography of the respondents, as well as the
Cronbach ‘alpha coefficient DC = 0.915, and perceptions of entrepreneurial competencies
Cronbach’ alpha coefficient OTO = 0.979). with crosstabs and mean score. Inductive
statistics were performed to test the
Entrepreneurial Intention (EI) was measured hypotheses using linear regression and
through a scale developed by Alhaj, Yusof, independent samples t-test, and Spearman’s
and Edama (2011). This scale consisted of 7 rank correlation.
question items. Respondents were asked to
indicate their level of approval of the item Description of Respondents
questions on a 7-point Likert scale, ranging Three hundred and five entrepreneurs participated
from strong disagreement (1) to strong in this research: 162 respondents in Jakarta and
agreement (7). The validity and reliability test 143 in Balikpapan. Some questionnaires were
results show that this scale was valid and returned incompletely, i.e. some questions left
reliable (correlation coefficient EI ranged unanswered; this caused inequality in the number
from 0.825 - 0.941 and significant at 0.01; of respondents for some questions. Outliers were
Cronbach’ alpha coefficient EI = 0.806). also eliminated prior to analysis.
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International Research Journal of Business Studies | vol. XI no. 01 (2018)
school, junior high school, and diploma. Both Overall entrepreneurial competencies in both
cities show that most respondents are fulltime Jakarta and Balikpapan are high, In Jakarta, the
entrepreneurs. They are all mostly full-time highest dimension is the orientation to others,
entrepreneurs. Finally, when it comes to monthly whereas achievement, thinking and
revenue, there are those who earn more than 500 problemsolving, personal maturity, influence, and
million Rupiah in Jakarta, but most entrepreneurs directing and controlling are moderate to high. In
in both cities earn less than 10 million Rupiah Balikpapan the highest dimension is an
every month. achievement, thinking and problem solving, and
orientation to others
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
Marital status (n=152) (n=136)
Married 57.2 86.8
Not married 39.5 12.5
Widow/widower 3.3 .7
Number of years working as entrepreneur (n=144) (n=69)
< 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)
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International Research Journal of Business Studies | vol. XI no. 01 (2018)
Independent-Sample t Test
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Table 4 shows that the preferred creative economy competencies of entrepreneurs in Jakarta
sub-sectors for Jakartans are culinary (39.7%), and Balikpapan are high. The high
followed by fashion (27.8%) and the rest. In dimension of entrepreneurial
Balikpapan, the most popular sub-sector is also competencies in Jakarta is the orientation
culinary (54.8%), followed by crafts (16.1%) and to others dimension, while in Balikpapan
the others. it is an achievement, thinking and
problem-solving, and orientation to
Hypothesis Testing others. Furthermore, there is a positive
Inductive Statistics and significant correlation between
Based on the results displayed in Table 5, it can be entrepreneurial competencies and
concluded that education level has a positive and monthly revenue. This indicates that
significant effect on (i) entrepreneurial intention, higher entrepreneurial competencies
(ii) entrepreneurial profession attraction, and (iii) would lead to higher monthly revenue;
entrepreneurial networking support. However, hence, entrepreneurs should gradually
education level does not influence self-reliance. improve their competencies in order to
earn more revenue. They should also
Additionally, as shown in Table 6; there is a consider being trained by professional
positive and significant correlation between teachers, who have professional
education level and monthly revenue, as well as competencies and knowledge-based
between entrepreneurial competencies and competencies comprising pedagogical
monthly revenue. knowledge (Moynihan et al., 2015).
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International Research Journal of Business Studies | vol. XI no. 01 (2018)
The preferred sub-sectors of creative economy in Level of education has a positive and
Jakarta is culinary, followed by fashion and the significant effect on (i) entrepreneurial
intention, (ii) entrepreneurial profession
Table 5. Simple Regression Analysis
R R² Adj. R² F-value t-value
Modelᵃ Unstd. β
1. Entrepreneurial Intention (EI) .111 .012 .09 3.457d 34.570 12.141b
.411 1.859d
EI = EL + ɛ
2. Professional Attraction (PA) .137 .019 .015 5.356c 19.385 13.200b
.264 2.314c
PA = EL + ɛ
3.. Networking Support (NS) .131 .017 .013 4.623c 15.618 18.060b
.145 2.150c
NS = EL + ɛ
4. Self-Reliance (SR) .016 .000 -.003 .075 22.431 16.622b
-.029 -.273
SR = EL+ ɛ
Note: ᵃ EI = Entrepreneurial Intention; PA= Professional Attraction; EC= Entrepreneurial Capability; SI= Self Independence;
SR= Self Reliance; EL= Education Level; b p < 0.01; c p < 0.05; d p < 0.1
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