Influence of Motivation and Self-Efficacy on Entrepreneurial Intention to Run a Business

Abstract

Nowadays, amid increasingly tight competition in the business environment and the difficulties students are experiencing in getting new jobs, being an entrepreneur is increasingly in high demand among college graduates. The advancement of information technology has enabled many jobs to be carried out efficiently. Moreover, the dissemination of knowledge takes place quickly and widely, so that one's interest to start up a business by utilizing information technology is also increasing. The purpose of this research is to a test research model that proposes that self-efficacy and motivation will affect students’ intentions to become entrepreneurs. In general, self-efficacy is a condition in which individuals believe that a behavior is easy or difficult to achieve, including experiences and obstacles that individuals consider; while motivation leads to entrepreneurial activities that can be interpreted as a stimulus that can encourage someone to run a business. The research design is represented by the survey technique, which implied using a questionnaire provided to a number of students, selected with purposive sampling technique. By using a multiple regression analysis, the results showed that self-efficacy and motivation variables proved to be positively significant to entrepreneurial intention. However, parents’ profession did not moderate the relationship between self-efficacy and motivation to entrepreneurial intention.

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