What is the most effective antecedent for developing entrepreneurial intention among Muslim youth in Indonesia?

Abstract

Objective: The objective of the article is to examine the dominant antecedent (characteristic) for youth in Indonesia to become entrepreneurs, by using the theory of planned behaviour (TPB) model.

Research Design & Methods: This work is a quantitative study with a deductive approach. It was conducted by surveying 727 undergraduate students from universities in Indonesia to measure both indicators for every construct (analysis factors) and correlation effects on other constructs (path analysis). All data obtained were analysed through partial least square structural equation modelling (PLS-SEM).

Findings: Among the three exogenous driver constructs, Subjective Norms has the strongest effect on Intention (0.152), followed by Perceived Behavioural Control (0.040) and Personal Attitude (0.011).

Implications & Recommendations: Knowing the potential character of youth who become entrepreneurs enables policymakers to effectively plan targeted programs and policies. This article suggests several recommendations that focus on support from surrounding people such family, friends, and role models, who could approve young people’s decisions to start own businesses.

Contribution & Value Added: This research supports and strengthens the work of several researchers on the cultural and value factors that influence intentions with the additional element of religious values and virtues.

Keywords

entrepreneurship; intention; youth; Theory of Planned Behaviour

Author Biography

Gunawan Baharuddin

PhD student in Islamic Economics at the University of Malaya (Malaysia). He received Master’s degree in economics (Universiti Kebangsaan Malaysia). So far, he has published in such journals as Advanced Science Letters, International Journal of Business, and Management Tomorrow. His research interests include poverty alleviation, Islamic financial inclusion, and youth empowerment.

Correspondence to: Gunawan Baharuddin, SE., MEc; The Department of Sharia and Economics, Academy of Islamic Studies, University of Malaya. Office: Jalan Universiti, 50603 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia; e-mail: gbaharuddin@gmail.com

Asmak Ab Rahman

Senior Lecturer at the Department of Sharia and Economics, the Academy of Islamic Studies, the University of Malaya (Malaysia). She is a member of Sharia Advisory Boards, including the AmBank Group and SME Bank. Her scientific interests include comparative economic development, takaful, islamic banking, islamic economics, and economics of waqf. She received her Bachelor’s degree and Master’s degree in sharia, while a PhD in islamic economics from the University of Malaya, Malaysia.

Correspondence to: Assoc. Professor. Asmak Ab. Rahman; The Department of Sharia and Economics, Academy of Islamic Studies, University of Malaya. Office: Jalan Universiti, 50603 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia; e-mail: asmak@um.edu.my