THE EFFECT OF ENTREPRENEURSHIP EDUCATION ON ENTREPRENEURIAL INTENTION IN INDONESIA

This research studied the relationship between entrepreneurship education and entrepreneurial intention of university students. Following original research by Zhang, Duysters, Cloodt (2014), Ajzen's theory of planned behavior and Shapero's entrepreneurial event model would be incorporated to identify the effect of exogenous variables such as entrepreneurship education, prior entrepreneurial exposure, perceived desirability and feasibility towards entrepreneurial intention in university students. Furthermore, this study aimed to investigate the selection hypothesis of entrepreneurship education for entrepreneurial intentions. Lastly, this study was also proposing to investigate the moderating effect of the teachers and instructors' enthusiasm (Frenzel et al., 2009), pre-educational entrepreneurship intention (Bae et al., 2014), gender (Verheul et al., 2012), as well as the moderating effect of peers in the classroom (Falck et al., 2012). The data would be collected from one of the private and reputable universities in Indonesia in multiple departments with a form of entrepreneurship education. In this study we found that entrepreneurship education does shape entrepreneurial intention. Students with pre-educational entrepreneurial intention would be more likely to have higher entrepreneurial intention. We also learned that there’s a strong relationship between social influence of classmates and entrepreneurial intention. In addition, we found that male and female students have a different perspective about entrepreneurship education that affected their entrepreneurial intention.

Joko Widodo, president of Indonesia, optimistically said that the role of entrepreneurs could increase the national economic welfare if they are given the opportunity to develop themselves and their businesses.In 2015, the number of entrepreneurs in Indonesia is only about 1.65 percent of the population (Republika Online, 2016).Based on the research conducted by The Global

Entrepreneurship and Development
Institute to measure the entrepreneurial ecosystem health, Indonesia was ranked 103th out of 132 countries in the world (Ács, Szerb, & Autio, 2016).This is a positive sign since in the previous year Indonesia was only ranked 120th out of 130 countries (Ács, Szerb, & Autio, 2015).Although there was a big gain in ranks for Indonesia, the global entrepreneurship index's score was only increase by 1.72.This means that the development of entrepreneurship in Indonesia is sill limited.Therefore, the promotion of entrepreneurship is important and it has been the main attention of governments.Some studies show that entrepreneurship education is one of the factors that affect entrepreneurial intention (Fayolle & Gailly, 2013;Peterman & Kennedy, 2003;Zhang et al., 2013).

Besides entrepreneurship education,
other studies also found that perceived feasibility, perceived desirability, and prior entrepreneurial exposure are positively related to entrepreneurial intention (Fitzsimmons & Douglas, 2011;Guerrero et al., 2008;Krueger, Reilly, & Carsrud, 2000).This study is going to test all the variables mentioned above and see  (Wu et al., 2008).
The most popular studies that explain the models of entrepreneurial intentions were theory of planned behavior proposed by Ajzen (1991) and Shapero's model of entrepreneurial event (Fitzsimmons & Douglas, 2011;Lee et al., 2011;Zhang et al., 2013).The Entrepreneurial Event intentions (Krueger et al., 2000).
People gain knowledge, develop abilities, and have more opportunities to improve their quality of life through education.In developed countries like Indonesia, creating and managing a business requires skills that are acquired through formal education and training.
That is why education plays a vital role in teaching and developing entrepreneurial skills (Ács et al., 2016).Previous studies have also shown that entrepreneurship education has a positive effect towards entrepreneurial intentions (Bae, Qian, Miao, & Fiet, 2014;Fayolle & Gailly, 2013;Zhang et al., 2013).

Perceived Feasibility
Shapero defined perceived desirability as the personal attractiveness of starting a business, including both intrapersonal and extra personal impacts.
While perceived feasibility is the degree to which one feels personally capable of starting a business (Krueger et al., 2000;Lee et al., 2011;Solesvik et al., 2014).Segal et al.(2005) found that not all people saw themselves as successful and seeing self-employment as a way to obtain desirable outcomes.People must be willing to bear the calculated risk of becoming an entrepreneur to act on their perceived feasibility and desirability.
Those with a sense of entrepreneurial selfefficacy (desirability) may be drawn to self-employment's more than working for others.In an entrepreneurial situational opportunity, people must as well decide whether they believe that they own the necessary skills and abilities required to be successful or not (feasibility) (Fitzsimmons & Douglas, 2011) (Krueger, 1993).Previous studies have shown that individuals with entrepreneurial family background will be more exposed to entrepreneurship or self-employment.
Parents as business owners can influence and motivate their children's entrepreneurial intention by serving as role models (Bae et al., 2014;Fayolle & Gailly, 2013;Verheul et al., 2012).
Children who were raised up in a family business environment are spontaneously exposed to entrepreneurial atmosphere by seeing, listening, feeling, knowing, and understanding real entrepreneurial events because parents often teach their children relevant skills, values and confidence that is needed to establish their own business (Carr & Sequeira, 2007).Zhang et al. pleasant achievement emotions (Frenzel, et al., 2009).In his article, Filion (1994) pointed out that the main concern about Hence, even if we assume that students are not consciously aware of which profession would ideally complement their skills and thus earn the highest future returns, they are undergoing a process that forms the identities that will make them tend toward certain ideas about the ideal job (Falck, Heblich, & Luedemann, 2012).Most students and their peers think that it would be "awesome" to be your own boss, run your own business, not have to take orders from others, and to have high financial reward without fully realize that being an entrepreneur requires a whole lot more than that, including research and risk calculation.However, between adolescence and adulthood there is a significant decline in both risk taking and risky decision making.Relative to adults, adolescents are more susceptible to the influence of their peers.In some situations, they may take more risks, evaluate risky behavior more positively, and make more risky decisions when they are with their peers than when they are by themselves (Gardner & Steinberg, 2005).
In addition, Falck, Heblich, & Luedemann (2012) also found that peers with entrepreneurial intentions will increase the likelihood that an individual will also have entrepreneurial intentions.
Therefore, this study propose the following hypothesis:  Verheul et al., 2012).Even women may feel as capable to perform entrepreneurial tasks as men do, women may perceive the environment as more difficult and less rewarding (Zhang et al., 2013).This may lead to lower self-employment preferences and activity rates for women.
Nevertheless, based on the report presented by the Global Entrepreneurship and Development Institute, there has been a 7% increase in the percent of female entrepreneurs who intend to grow their business by 50% and employ 10 people within 5 years.This growth aligned with the incremental percentage of female entrepreneurs who participated in some form of higher education (Terjesen & Lloyd, 2015).Therefore, Bae et al. (2014) inferred that it is possible that entrepreneurship education will be more helpful for women to strengthen their skills and increase their entrepreneurial intentions relative to men.Furthermore, the literature is not conclusive on the impact of gender on the association between entrepreneurship education and the willingness to engage in starting a new venture.Thus, the following hypothesis is proposed:  All of the students were undergraduate students.Among the respondents, 56% were male and 44% were female, with age ranging from 19-21.The respondents were at their last year in the university.Prior entrepreneurial exposure (PE) is measured using a 5-item scale adopted from Krueger (1993).( 1) Have you ever started your own business before?(2) Have you ever worked for a startup business?(3) Did your parents have their own business while you were growing up?
(4) Have your parents ever started their own business?(5) Do you have relatives that started their own business?To include both the quantity (breadth) and quality (positiveness) of experience of the exposures, the respondents were asked to answer questions related to their previous exposures to entrepreneurial activities (yes-no questions) as well as the positiveness of the experience.Previous exposure were coded "1" while no exposure were coded "0", positive experience were coded "1" while negative were coded "0", each item were weighted 0.20 which sum to 1 for all the items.The

Results and Discussions
Table 1 shows the result of confirmatory factor analysis.All constructs have satisfying Cronbach's alpha.PF1 was removed due to low loading score.Table 2 shows the descriptive statistics of the variables and interactions.
Table 3 shows the result of multiple regressions on entrepreneurial intention.
Six models were generated on different independent variables and interactions.
Based on the results, Hypothesis 1 is significantly supported for all models, showing that perceived desirability is positively related to student's entrepreneurial intention.This conforms to previous researches such as Zhang et al. (2013), Guerrero et al. (2008) and Veciana et al. (2005).Perceived feasibility was found to be insignificant for all models thus Hypothesis 2 is not supported, which conforms to previous researches such as Krueger (1993), Guerrero et al. (2008)   Model 2 shows that the coefficient for student-perceived lecturer's enthusiasm is negative, suggesting a negative relationship towards entrepreneurial intention.The interaction with entrepreneurship education is not significant.Both Hypotheses 5a and 5b were not supported.intention where social influence is low.
When social influence is high, this relationship ceases to exist, but entrepreneurial intention is already high enough.Both hypotheses 6a and 6b were supported.Entrepreneurship education is found to be insignificant.

Conclusion
Entrepreneurship is very important, especially in developing country such as Indonesia where entrepreneurs are expected to have a greater likelihood for upward mobility (Quadrini, 1999) There is a strong relationship between social influence of classmates and entrepreneurial intentions.Students who are exposed to stronger influence will have more likelihood to have the intention to start their own business.From the interaction, we also learn that the effect is dampened for high social influence, where it is likely that students with already high entrepreneurial intention would mingle with those who have high social influence.We suggest for policy makers and educators to put into considerations the effect of classmates in entrepreneurship education programs.
One way is to make the classes more homogenous by mixing those who have high entrepreneurial intention with those who do not.
We also learn that students who have entrepreneurial intention even before they enter the education will be more likely to have higher entrepreneurial intention after the education.This Model views the intention to start a new venture depends on three things, namely the perceptions of desirability, feasibility, and the propensity to act.In contrast, the Theory of Planned Behavior outlines that the attitude towards the act, social norms, and perceived behavioral control are the three key factors that influence an individual's intention to perform a given behavior.Both of these models have been tested and shown to have a significant effect in predicting entrepreneurial total of human capital assets required to discover and/or create new business opportunities, which promote the outcome of an intention to become an entrepreneur.Individuals with higher human capital (i.e., higher and better education, stronger abilities) are more likely to create innovative, highgrowth ventures than individuals with low human capital and if these high potential individuals choose not to pursue such opportunities, the entrepreneurial dynamic will suffer (Ács et al., 2016).The above arguments lead to the following hypothesis: in the facilitation of learning to support the entrepreneurial process.The rookie entrepreneur needs not only knowledge (science), but also new ways of thinking, new kinds of skills and new modes of behavior (arts).The teaching of entrepreneurship in the university context is based on theoretical and practical knowledge.This suggests the need for a shift from teaching to learning in an environment as close to real life as possible.Consequently, the active role of the student in the learning process is very much important (Heinonen & Poikkijoki, 2006).During formal education, students not only acquire knowledge and cognitive skills but also develop pleasant and unpleasant emotions related to learning and achievement.This implies that pleasant emotions are crucial in today's knowledge-based society, which requires life-long learning.Thus, a desirable goal of teaching is to enhance students' women have a lower preference for selfemployment compared to men because women are less risk seeking than men(Díaz-García & Jiménez-Moreno, 2010; Figure 1 is the conceptual framework for this paper.

Figure
Figure 1.Conceptual Framework prior entrepreneurial exposure was then calculated as a sum product of the weight, exposure, and experience.Entrepreneurship education (EE) is measured by looking at the number of entrepreneurial courses the students have taken during their study in the university.Student-perceived lecturers' enthusiasm (PLE) is measured on a 7point Likert scale (disagree-agree) by using a modified version of the four-item scale used in Frenzel et.al. PLE4) Our lecturers encourage us to start our own business.Social influence of classmates (SIC) is measured with a 3-item Likert scale: (SIC1) Looking at my classmates who have their own business encourages me to start my own business.(SIC2) My classmates actively encourage me to start my own business.(SIC3) My classmates had asked me to help them in their own business.
that perceived feasibility does not have a positive impact on student's entrepreneurial intention.Hypothesis 3 is significantly supported for all models, showing that prior entrepreneurial exposure is positively related to student's entrepreneurial intention.This result is in line with the previous body of works such as Shapero and Sokol (1982), Krueger (1993), and Zhang et al. (2013).Hypothesis 4 is significantly supported.This shows that entrepreneurship education does have a role in shaping student's entrepreneurial intention, where students who took entrepreneurial classes are more likely have intention to start their own business.

Figure 2 .
Figure 2. Interaction Between SIC and EE toward EI

For
those with pre-educational entrepreneurial intention, perceived desirability ceased to be significant.Student-perceived lecturers' enthusiasmand social influence of classmates were only significant at p<0.1.Interestingly, suggests that students who want to start their own business are more likely to enroll themselves to entrepreneurial classes or program.In practice, this can be quite distressing, especially when entrepreneurship education is intended to foster new entrepreneurship, to make those who are not interested to become interested in becoming entrepreneur.Those with prior intention would enroll to study more on how to be start, run, or manage the business.The practical implication for policy makers and educators is that they should pay more attention to motivate students to be entrepreneurs, to make them interested in becoming entrepreneurs, especially in introductory entrepreneurship classes.When we split the data based on gender, we found that entrepreneurship education is not a statistically significant predictor for entrepreneurial intention for male students.It is however, significant for female.This suggests that female students to start their own business.This is in line with our previous suggestion to empower more women to be entrepreneurs.Male students however, may not need entrepreneurship education to have the intention to start their own business.This study has its limitations.First, we only look at entrepreneurial intention and not action.We recommend that more complete research be conducted in order to assess the actual impact of entrepreneurship education to entrepreneurial action.Second, the students were from one private university in Indonesia.We suggest future researchers to include more universities in order to have larger dataset.Third, we used survey to measure several variables such as pre-educational entrepreneurship intention.Self-reporting from memory may cause bias in the result.We suggest that researchers conduct longitudinal study across different points in time to see before and after entrepreneurship education.

Table 4
Multiple Regressions Results on Entrepreneurial Intention

Table 5 .
Multi-Group Multiple Regressions Results on Entrepreneurial Intention