The university students enterprises development: Lesson from Indonesia

Abstract

Promoting new entrepreneurs face challenges and the government has responded to this issue by stimulating students’ entrepreneurial intention as it directly affects the economy of a nation. The study aims at examining what factors affecting the enterprise development of students in Indonesia. The focus in Indonesia is unique as it experienced a high unemployment rate from university graduates. The data of this research were collected from several state universities in Indonesia through an online survey and was computed undergoing Structural Equation Modelling Partial Least Squares (SEM-PLS). The results of the study indicate that students’ entrepreneurial self-efficacy and entrepreneurial intention can be determined by subjective norms, risk perception, social factors, entrepreneurial education, motivation to a start-up business, and national norms. Additionally, the study confirms that entrepreneurial intention has a robust correlation with self-efficacy as well as students’ preparation for entrepreneurship.

Keywords

• enterprises development
• entrepreneurial intention
• enterprises development
• subjective norms
• self-efficacy
• risks perception
• university students