The Influence of Entrepreneurship Education on Student Entrepreneurial Intentions PDF

Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 THE INFLUENCE OF ENTREPRENEURSHIP EDUCATION, PEER INFLUENCE, AND SELF-EFFICACY ON STUD...

Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 THE INFLUENCE OF ENTREPRENEURSHIP EDUCATION, PEER INFLUENCE, AND SELF-EFFICACY ON STUDENTS' ENTREPRENEURIAL INTENTIONS Dheananda Larasyati Nurjanah1 Universitas Muhammadiyah Surakarta, Surakarta, Indonesia [email protected] Harsono2 Universitas Muhammadiyah Surakarta, Surakarta, Indonesia [email protected] Abstract The intention to engage in entrepreneurship among students needs to be examined starting from now to understand students' careers after graduating from school. This research aims to analyze and identify the influence of entrepreneurship education, peer influence through self-efficacy on students' entrepreneurial intentions. The research method employs a quantitative approach with data collection through distributing questionnaires via Google Forms, measuring four variables: entrepreneurship education, peer influence, self-efficacy, and entrepreneurial intentions. The population in this research consists of students majoring in Financial Accounting at State Vocational High School 1 Surakarta, and the research sample is obtained using purposive sampling with a total of 100 students from class X1 Financial Accounting as respondents. Hypotheses are tested using the Structural Equation Model (SEM) approach based on Partial Least Square (PLS) using SmartPLS 4.0 software. This research yields results indicating that entrepreneurship education, mediated by self- efficacy, significantly influences students' entrepreneurial intentions. However, peer influence does not have a significant effect on students' entrepreneurial intentions. Keywords: Entrepreneurship Education, Peer Influence, Self-Efficacy, Entrepreneurial Intentions The Influence of Entrepreneurship ….. 4476 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 INTRODUCTION Entrepreneurship is crucial for the economic growth of a country and the creation of job opportunities (Tambunan et al., 2024). It's considered a vital element and an engine of the national economy as it contributes to job creation, fosters innovation, and enhances competitiveness in the labor market (Maheshwari et al., 2023). Entrepreneurial activities entail consciously planned behaviors(Soam et al., 2023). Entrepreneurship isn't merely about meeting individual needs but also aids the government in driving development and economic growth (Martins et al., 2023). According to data from the Global Entrepreneurship Monitor in 2022, Indonesia's entrepreneurship rate stands at 5.8 points, on par with Lithuania (Saktiono, 2023), but despite Indonesia's relatively favorable score, it doesn't always translate into positive impacts on factors influencing entrepreneurship, leading to an annual increase in unemployment due to a lack of entrepreneurship knowledge. Based on data from the Central Statistics Agency in 2023, Indonesia's unemployment rate is 5, 32% (Statistik, 2023), a challenge that the government must address to prevent negative impacts on the national economy. The initial step in addressing unemployment is by enhancing entrepreneurship education within institutional settings. Developing entrepreneurship through effective entrepreneurship education offers a positive impact on students' entrepreneurial aspirations (Lestari & Agustini, 2023). The education system strategically focuses on enhancing outcomes for the younger generation to facilitate their employment prospects (Vankov & Vankov, 2023). Students exposed to entrepreneurship in schools are more inclined towards becoming entrepreneurs. The education they receive aids in developing the necessary skills for their adult lives, whether they pursue entrepreneurial careers or not (Iizuka et al., 2022). There's a need for skill development and cultivating entrepreneurial mindsets, such as inquiry, independence, and lateral thinking (Huang, 2023). Students shape their entrepreneurial career development through their own initiatives and planned approaches (Soam et al., 2023). In observing entrepreneurial actions, in-depth research is necessary for precise definitions. Accurate research can identify factors in students' entrepreneurial processes, which may stem from internal or external sources. The Influence of Entrepreneurship ….. 4477 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 Entrepreneurship education is a subject taught to students, especially those in Surakarta Vocational High School 1. This subject instills entrepreneurial spirit early on, teaching students that entrepreneurship isn't just about money but about developing resilience in life. Entrepreneurship education shapes mindsets and perspectives on entrepreneurship. Graduates equipped with both soft and hard skills from vocational schools are expected to become resilient young entrepreneurs (Giatman, 2024). Several studies have examined factors influencing entrepreneurial intentions among students. Research in Pakistan (Martins et al., 2023) showed that self-efficacy, peer support, and entrepreneurship education positively influence entrepreneurial intentions, echoing findings from another study (Shahzad et al., 2021). Similarly, research in Turkey (Kör et al., 2020) found that factors such as self-efficacy, peer influence, and entrepreneurship education positively affect entrepreneurial intentions. In addition to entrepreneurship education shaping students' entrepreneurial intentions, self-belief is essential for personal and societal benefits. Self-efficacy aims to assess individuals' confidence in their abilities to fulfill tasks as entrepreneurs (Setyanti et al., 2021). High self-efficacy can influence task completion, work interest, and problem-solving success (Lahuga et al., 2023). Peer environment within the school plays a crucial role in enhancing students' entrepreneurial intentions. Peer support refers to the support provided to individuals by a group of peers, offering physical and psychological comfort that makes individuals feel loved and valued as part of a social group (Saputro & Sugiarti, 2021). Peer support and collaboration can motivate and inspire students, shaping their desire to become entrepreneurs. Social conditions, norms, and shared experiences within peer groups can motivate students to develop themselves in entrepreneurial activities (Devi Pancasari, 2024) This research aims to test and identify the influence of self-efficacy, peer influence through entrepreneurship education on the entrepreneurial intentions of Surakarta Vocational High School 1 students. The Influence of Entrepreneurship ….. 4478 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 REVIEW OF LITERATURE Entrepreneurship Education Entrepreneurship education is the process of equipping individuals with the ability to recognize business opportunities and insights, knowledge, and skills to act based on their own thinking. Entrepreneurship education serves as a training process for students to confront an uncertain future by providing them with the ability to create ventures. Therefore, it is important to balance entrepreneurship education conceptually with students in terms of curriculum, teaching materials, and methods. The focus of entrepreneurship education is to encourage entrepreneurial attitudes and provide managerial training (Hasan, 2020). Peer group Peers are children who are of the same age and developmental level. The role of peers in social development includes being friends, a source of physical support, a source of ego support, and serving the functions of social comparison and affection. In the process of identity formation, individuals tend to interact with peers of the same age or peer group (Nurul Fadhilah & Mukhlis, 2021). Self-efficacy Self-efficacy is one of the most influential aspects of self-knowledge in human life because it can affect individuals in determining the actions they will take to achieve goals. Self-efficacy is an individual's belief in their ability to successfully complete specific tasks with confidence and skill (Mira Mirawati, 2020). Entrepreneurial intention Entrepreneurial intention is the condition and motivation of an individual to have their own business rather than being employed by others (Wijaya & Hidayah, 2022). Entrepreneurial intention refers to the determination to become an entrepreneur or engage in entrepreneurship. Entrepreneurial intention entails planned actions to engage in entrepreneurial behavior. Before someone starts a business, strong commitment and determination are required (Ekawarna et al., 2022). The Influence of Entrepreneurship ….. 4479 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 RESEARCH METHOD This study employs a quantitative research approach utilizing a survey design. The population consists of students from SMK Negeri 1 Surakarta who have taken entrepreneurship courses. A purposive sampling technique is utilized, where samples are selected based on specific criteria to ensure that the data obtained is adequately representative. The research instrument is a questionnaire distributed to the selected samples. Data collection is conducted through a Google Forms questionnaire. The research questionnaire employs a Likert scale with response options ranging from numbers 1 to 4. The response choices are: Strongly Agree (SA) with a score of 4, Agree (A) with a score of 3, Disagree (D) with a score of 2, and Strongly Disagree (SD) with a score of 1. This scale is utilized to indicate individuals' or groups' attitudes, opinions, and perceptions regarding social phenomena (Sugiyono, 2018). The research variables include Entrepreneurship Education (X1), Peer Influence (X2), Self-Efficacy (Z), and Entrepreneurial Intentions (Y). Hypothesis testing is carried out using the Structural Equation Model (SEM) based on Partial Least Squares (PLS) approach, utilizing SmartPLS 4.0 software. The sample size for the study is 100 respondents, determined through sample calculation, as follows: n= N N (d2) + 1 information: n : number of samples studied N : total study population d : precision value (determined in research at 90% or α = 0.1) then the calculation is: n= 300 300 (0,1)2 + 1 n= 300 300 + 1 n = 99,79 = 100 (numbers are rounded) Therefore, the surveyed respondents consist of 100 students from class XI AKL of SMKN The Influence of Entrepreneurship ….. 4480 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 1 Surakarta. The following is the SEM model to be tested in this study: Figure 1 Model Framework Source: Output SmartPLS 4.0 The hypotheses derived from the framework model can be summarized as follows: H1 = Entrepreneurship education significantly influences self-efficacy H2 = Peer influence significantly influences self-efficacy H3 = Entrepreneurship education significantly influences entrepreneurial intentions H4 = Peer influence significantly influences entrepreneurial intentions H5 = Self-efficacy significantly influences entrepreneurial intentions H6 = Entrepreneurship education indirectly influences entrepreneurial interest through self- efficacy H7 = Peer influence indirectly influences entrepreneurial interest through self-efficacy Analysis of Outer Measurement Model Outer Measurement Model Analysis or Outer Measurement Analysis. The purpose of using this test is to determine the relationship between constructs and their indicators. The factor loading values can demonstrate the relationship between constructs and their The Influence of Entrepreneurship ….. 4481 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 indicators. A low factor loading value indicates that the indicator is not useful in the measurement model. Factor loading values should be greater than 0.7, consisting of validity and reliability tests. Analysis of Inner Measurement Model The inner model is a structural model to estimate the cause-and-effect relationships among constructs. The R2 value in the SmartPLS output is used to evaluate the structural model, and path coefficients are determined from the t-statistic results. The R2 value is used to calculate the amount of variance in the exogenous variable that is related to the endogenous variable. The R2 value ranges from 0 to 1, indicating the extent to which the endogenous variable can be influenced by the exogenous variable. Goodness of fit is calculated by the significance of R-Square for the structural model. An R2 value above 0 indicates that the model has predictive significance, while conversely, if the R2 value is below 0, the model lacks predictive significance. An R2 value approaching 1 indicates that the model is increasingly good. Hypothesis Testing Partial Least Squares (PLS) analysis is used to test hypotheses H1 to H7. PLS analysis employs SmartPLS 4.0 software, comprising statistical testing and path coefficient analysis. Hypothesis testing is conducted to determine the influence of entrepreneurship education, peer influence through self-efficacy on students' entrepreneurial intentions. Path coefficient or path coefficient is a systematic path analysis that matches different paths, whether continuous or discontinuous, on exogenous and endogenous variables. The t-test examines the impact of each exogenous variable on the construct of the endogenous variable. The t-value is greater than the t-table value, and it can be concluded that the exogenous construct on the endogenous construct is significant. The Influence of Entrepreneurship ….. 4482 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 RESULTS AND DISCUSSION Convergent Validity Table 1 Outer Loading Value Variable Entrepreneur Friends of Self-Efficacy Entrepreneu ship the Same Age rial Education Intentions PK1 0,846 PK2 0,828 PK3 0,817 PK4 0,793 PK5 0,807 TS1 0,814 TS2 0,798 TS3 0,715 TS4 0,793 TS5 0,752 ED1 0,757 ED2 0,761 ED3 0,867 ED4 0,819 ED5 0,799 NB1 0,862 NB2 0,867 NB3 0,883 NB4 0,886 NB5 0,860 Source: Output SmartPLS 4.0 Based on Table 1, the overall researched model can be deemed good and meets the criteria for convergent validity, as indicated by loading factors exceeding 0,7 (loading factor > 0,7). The entrepreneurship education variable exhibits the lowest outer loading of 0.793 and the highest of 0,846. The peer influence variable has outer loadings ranging from a low of 0,715 to a high of 0,814. The self-efficacy variable shows outer loadings ranging from a low of 0,757 to a high of 0,867. Lastly, the entrepreneurial intentions variable demonstrates outer loadings ranging from a minimum of 0,862 to a maximum of 0,886. Consequently, all indicators are declared valid, forming the following outer model: The Influence of Entrepreneurship ….. 4483 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 Figure 2 Outer Model Test Results Source: Output SmartPLS 4.0 Discriminant Validity Table 2 Discriminant Validity Variable Entrepreneurship Friends of the Self-Efficacy Entrepreneuri Education Same Age al Intentions PK 0,818 0,801 0,695 TS 0,665 0,775 0,551 0,530 ED 0,624 NB 0,517 0,872 Table 3 Comparison of AVE with root AVE Variabel Akar AVE AVE PK 0,818 0,670 TS 0,775 0,601 ED 0,801 0,642 NB 0,872 0,760 Source: Output SmartPLS 4.0 The Influence of Entrepreneurship ….. 4484 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 Based on the table above, the correlation values for entrepreneurship education (0,818), peer influence (0,775), self-efficacy (0,801), and entrepreneurial intentions (0,872) are all lower than the square root of their respective average variance extracted (AVE) values. Therefore, it can be concluded that the criterion for discriminant validity is fulfilled. Composite Reliability Table 4 Composite Reliability Variable Composite reliability Entrepreneurship Education 0,910 Friends of the Same Age 0,883 Self-Efficacy 0,900 Entrepreneurial Intentions 0,941 Source: Output SmartPLS 4.0 From the table above, the composite reliability values for each variable indicator are all greater than 0,7. Therefore, it can be concluded that the variables are reliable. Table 5 Cronbach’s Alpha Variable Cronbach’s Alpha Entrepreneurship Education 0,877 Friends of the Same Age 0,833 Self-Efficacy 0,860 Entrepreneurial Intentions 0,921 Source: Output SmartPLS 4.0 According to Table 5, all variables have Cronbach's alpha values greater than 0,70. Hence, they can be considered reliable. Goodness of Fit Test The next step is to conduct testing on the inner model to ensure the accuracy of the researched inner model and to examine the relationships between variables using the coefficient of determination (R2) as shown in the table below: Table 6 R-square Variable R-square Self-Efficacy (Z) 0,408 The Influence of Entrepreneurship ….. 4485 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 Entrepreneurial 0,510 Intentions (Y) Source: Output SmartPLS 4.0 The results above indicate an R-square value of 0,408 for the self-efficacy variable. This value explains that 40,8% of the variance in self-efficacy is explained by entrepreneurship education and peer influence. Meanwhile, the R-square value for entrepreneurial intentions is 0,510. This explains that 5,10% of the variance in entrepreneurial intentions is explained by entrepreneurship education, peer influence, and self-efficacy. Path Analysis Table 7 Path Analysis Influence Path t statistic p values Information Coefficient Self-efficacy 0,178 2,020 0,043 Significant Entrepreneurial influence intentions Entrepreneurshi 0,502 4,637 0,000 Significant p education influence Self-efficacy Entrepreneurshi 0,526 4,783 0,000 Significant p education influence Entrepreneurial intentions Friends of the 0,184 1,627 0,104 No significant same age effect Self-efficacy Friends of the 0,088 0,710 0,478 No significant same age effect Entrepreneurial intentions Source: Output SmartPLS 4.0 The Influence of Entrepreneurship ….. 4486 Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No. 3 (2024) e-ISSN: 2621-606X Page: 4476-4491 Indirect Effect Table 8 Indirect Effect Influence Indirect Effect t statistic p values Information Entrepreneurshi 0,089 1,942 0,052 No significant p education effect Self-efficacy Entrepreneurial intentions Teman sebaya 0,033 1,040 0,298 No significant Self-efficacy effect Entrepreneurial intentions Source: Output SmartPLS 4.0 According to Table 8, the indirect effect on the entrepreneurship education variable does not have a direct and significant influence through self-efficacy on entrepreneurial intentions because the t-value is 1,942 < 1,98 and the p-value is 0,052 > 0,05. Similarly, for the peer influence variable, it does not have a significant indirect effect through self-efficacy on entrepreneurial intentions because the t-value is 1,040 < 1,98 and the p-value is 0,298 > 0,005. Hypothesis 1: Entrepreneurship education significantly influences self-efficacy Based on the analysis, Hypothesis 1 is accepted, indicating that entrepreneurship education has a significant impact on self-efficacy. The test yielded a t-value of 4,637 and a p-value of 0,000. This is because the t-value 4,637 > 1,98, and the p-value 1,98, and the p-value