THE ANALYSIS OF ENTREPRENEURIAL INTENTION IN RURAL AREA: A CASE STUDY OF BUKIT PERAMUN GEOSITE IN INDONESIA

Abstract

A geosite inherits geological heritage which brings rural entrepreneurship potentials. This study aims to investigate the relationships between social norms, subjective norms, perceived behavioural control (PBC) and entrepreneurial intention of villagers of Bukit Peramun geosite in Belitong Geopark, Indonesia. Structural Equation Model with Partial Least Square is employed to analyze the questionnaires from 100 local residents surrounding the geosite. The study finds that social norms have positive and significant effect on subjective norms, but no direct effect on PBC. Both PBC and subjective norms have positive and significant effect on entrepreneurial intention. It means that the community’s views directly influence the families’ and close friends’ views about the importance of entrepreneurship spirits and actions. Subsequently, the families’ and friends’ view would affect individuals’ perceptions on their entrepreneurial capabilities, which then influence their entrepreneurial intentions to do businesses and be entrepreneurs. These findings illuminate factors that influence entrepreneurial intention of villagers surrounding a geosite. This research has tested and enhanced the application of the Theory of Planned Behavior on rural entrepreneurship in the context of geopark. Lessons from this research can be replicated to other rural areas with similar characteristics.

Keywords

• entrepreneurial intention
• belitong geopark
• bukit peramun geosite
• indonesia
• theory of planned behavior