Investigating Entrepreneurial Motivation and Intention Among Indonesian Youths: Integrated the Theory of Planned Behavior

Abstract

Indonesia lags behind neighboring countries in entrepreneurial activity despite one-third of its youth aspiring to be entrepreneurs. The government aims to increase the number of aspiring entrepreneurs by one million by 2024. To achieve this, the government and businesses need to implement effective entrepreneurial motivation plans and policies to support the development of new innovative ideas. Entrepreneurship is crucial in driving a country's economic growth, promoting employment opportunities, enhancing income distribution, and ultimately contributing to improving community welfare. This study analyzes the Indonesian youth's entrepreneurial motivation and intention. Data was gathered from 400 respondents through the utilization of convenience sampling. The evaluation of the model, the credibility, and the validity of the data were evaluated using confirmatory factor analysis, while structural equation modeling was employed to test the hypotheses. The findings reveal that ability, subjective norms, perceived behavioral control, and opportunity positively and significantly impact entrepreneurial motivation, which positively and significantly influences entrepreneurial intention. Conversely, attitude has been found to exert a positive but insignificant effect on entrepreneurial motivation. This study provides valuable insights for managers and practitioners to develop effective strategies for fostering innovation within SMEs. It addresses the intentions of student entrepreneurs to continue or withdraw from pursuing entrepreneurship, offering a unique perspective.