The Analysis of the Correlation between Academic Success and The Entrepreneurial Success in Telkom University
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1 The Analysis of the Correlation between Academic Success and The Entrepreneurial Success in Telkom University Shielda Fahreisa Ranie 1, Grisna Anggadwita 2 1,2 Under Graduate of International ICT Business, Faculty of Economics and Business, Telkom University 1 shieldafr@gmail.com 2 grisnamailbox@yahoo.co.id Abstract The objective of the study is to test whether there is a positive and significance correlation between academic success and entrepreneurial success or not. Population of the study is two hundred and the sampling used in this study is non-probability purposive sampling which resulted to 127 samples. This research is a quantitative with causal study. Likert scale used to measure each items in the questionnaire. Multiple regression and descriptive-quantitative method will be used later to explain the result of the questionnaire.. Keywords Entrepreneurship; Academic Success; Entrepreneurial Success; Studentpreneur; Success Factor. 1 Introduction Unemployment and a low productivity has been one of today's global most serious problems. And for years, entrepreneurship has been named as one of the best possible solutions to that. Entrepreneurial activity contributes to the economy of a country, and can create jobs. Each country is trying to increase the number of entrepreneurs with a variety of programs, including in Indonesia. Entrepreneurship education is one way to provide insight to students the importance of entrepreneurship. Thus, it is necessary to identify associated with entrepreneurship program that can be done by educational institutions in supporting entrepreneurial education. Indonesia is one country that focused in increasing the number of entrepreneurs. Based on data from BPS (2015), Indonesia's population reached 255,993,674people. Indonesia has a great potential to develop entrepreneurship, one of them by providing entrepreneurial education program. That large population of Indonesia does result to the large workforce; in February 2015 Indonesia is recorded to have million workforces, or increasing by 2.7 million from February The problem is that as the workforce is increasing, the unemployment rate is also increasing from 5.70% to 5.81% from February For years, unemployment has become one the most serious problems in Indonesia. Based on Sakernas (Survei Angkatan Kerja Nasional) data released by BPS, National Open Unemployment Rate until February 2015 reach 7.45 million people or equal to 5.81% ( accessed on September 11, 2015). Surprisingly, people from the higher education or university graduate who are expected to have more skills and knowledge to be contributed to the workforce do contribute a quite big portion to the unemployment rate. The university graduates are expected to be the part of the unemployment solution and not become the part of the problem. Many parties have attempted to contribute stimulating the birth of entrepreneurs by various programs. This attempt is done from many parties starting from the government organizations and companies, private institutions to educational institution. The forms of the programs 1
2 International Journal of Basic and Applied Science, Ranie and Anggadwita are also varying from National Entrepreneurship competition, Business Plan competition, Business mentoring, to the establishment of business communities. Those existences of programs that promote entrepreneurship reflect the seriousness from the society to solve the problem of unemployment together by stimulating and increasing the entrepreneurship spirit and eventually increase the economic growth and Indonesian welfare as a whole. [1]. Starting from June 2014, Telkom University under the Telkom Foundation decides to take part in creating the new entrepreneurs and solve the unemployment problem. Telkom University has seven faculties, and are very different in fields, the Directorate of Student Affairs especially the entrepreneurship unit facing a lot of challenges designing the right programs to facilitate all of the studentpreneurs as one. Reviewed from the above statement about the university graduate that contribute to the unemployment, that fact actually make everyone questioned about the quality of a university graduate and eventually questioned the quality of the education. The academic success as a measurement on how successful a student is in school and as an output of education, is also questioned on how it can contribute to the success of the student in being a studentpreneur. In accordance with the background of the study, the questions that can be made are: Is there any correlation between academic success and entrepreneurial success both partially and simultaneously in Telkom University students. This study has the objectives to determine whether there is any correlation between academic success and the entrepreneurial success in Telkom University students. Therefore the research title is The Analysis of The Correlation between Academic Success and Entrepreneurial Success in Telkom University. 2 Theoretical Review 2.1 Entrepreneurship Entrepreneurship is a science of values, skills and one s behavior to face life challenges and a way to gain opportunity with the risk that might possibly in the way [2]. Entrepreneurship is a one sole science discipline, which has a systematic process and is able to be applied to creative and innovative action. Entrepreneurship is the result of disciplined, systematic process of applying creativity and innovations to needs and opportunities in the marketplace [3]. 2.2 Micro Small Medium Enterprise (MSME) Micro small and medium enterprises (SMEs) In accordance with [3] on Micro Small and Medium Enterprises (SMEs): a. Micro is a productive enterprise belonging to individuals and or entities that meet the criteria of individual businesses Micro as stipulated in this Law. b. Small business is the economic business productive stand-alone, carried out by an individual or business entity that is not a subsidiary or not branches of companies owned, controlled, or be a part either directly or indirectly from medium or large businesses that meet the criteria of business Small as defined in this Act. c. Medium is a productive economic activities that stand alone, carried out by individuals or entities that are not subsidiaries or branches of companies owned, controlled, or be a part either directly or indirectly with the Small Business or large enterprise with total net assets or The annual sales revenue as stipulated in this Law. 2 Insan Akademika Publications
3 Ranie and Anggadwita International Journal of Basic and Applied Science, Entrepreneurs Entrepreneurs perceive potentially valuable opportunities and initiate actions to meet market need more efficiently [4] in [5]. Entrepreneurship is the person who created the work to others by way of establishing, developing, and institutionalizing the company of his own willing to take personal risk in trying to find opportunities and creative use of the potential of the product itself torecognize, manage and determine the mode of production, arrange for product procurement operations, and capital market operation [6] Studentpreneur The term studentpreneur is used to describe someone who starts a business while they are still in education either full or part time. Usually, it is students of a higher level of education, such as university. Often, the entrepreneurial endeavors of studentpreneurs are on a smaller scale than other types of preneurs. Studentpreneurs are often connected with minipreneurs, as their attention and efforts are split between their education and business venture. This also means that studentpreneurs are also considered fauxpreneurs, as they are unable to fully commit everything to the business [7] Charateristics of Entrepreneurial Success Entrepreneurial success has been defined in different ways. The easiest definition is through tangible elements such as revenue or a firm s growth, personal wealth creation, profitability, sustainability and turnover [8]. Therefore measured success by employing three (self-developed) items, namely; percentage change in sales, profit and customers Academic Success Academic success is the result which is obtained in the form of impressions that result in changes in the individual as an end result of the learning activities [9]. The initial framework of academic success is comprised of the acquisition of knowledge, skills, and competencies; attainment of learning outcomes and, persistence and retention. It is included that academic success as a form of outcome that captures the quality of students academic work such as coursegrades or GPA (Choi, 2005) in [8]. a. Persistence The term persistence in the model refers to degree of completion, which could occur at multiple institutions. Persistence reflects or corresponds to student s continued progression in an academic degree despite institutional transfers or stopping out [8] b. Skill and Competencies The acquisition of skills and competencies is a variable under the academic success. It measures three things which are Critical thinking, Academic Skills, and Affective outcomes. The accomplishment of learning objectives and the acquisition of skills and competencies can be measure at the course, program, and institutional level [8] c. GPA The term GPA refer to traditional measure of academic student success. It is in a form of outcome that captures the quality of students academic work [8] 3 Theoretical Framework and Hypothesis The research is conducted to examine which factor in academic success correlate positively to the entrepreneurial success. Many institutions have been busy creating programs to stimulate the growth of entrepreneur to fulfill the Indonesian target of having at least 2% entrepreneur from its total 3
4 International Journal of Basic and Applied Science, Ranie and Anggadwita population. Entrepreneur has been predicted and believed as one of the best way to increase unemployment and eventually increase the overall productivity of national workforce [10]. The goal of this research is to know and understand the correlation between academic success and entrepreneurial success. Academic success influenced by three parts, and they are Skill and Competencies, Learning Outcomes, and Persistence. While Entrepreneurial success measured by the growth of the business as the form of entrepreneurial activity. Fig.1: Research Framework Source: [8] Modified The research framework is the framework that has already been simplified from the original framework by [8]. The branches of the sub-variable of academic success which consists of 10 subvariables are eliminated to simplify the model. The hypothesis in this study is: 1. Persistence, Skill and competencies, and GPA have a significant influence simultaneously on the Entrepreneurial success of Telkom University students. 2. Persistence has a significant influence partially on the Entrepreneurial success of Telkom University students. 3. Skill and competencies has a significant influence partially on the Entrepreneurialsuccess of Telkom University students. 4. GPA has a significant influence partially on the Entrepreneurial success of Telkom University students. 4 Results and Discussions 4.1 Descriptive of Analysis From total 127 respondents, 59% were male and 41% were female. Most of the respondents are in the age of years ( %), besides there are the respondents aged years ( %), and 1 respondent is on the age years (0.7874%). From the total 127 respondents, 28 respondents ( %) has been in the business for 1-3 months, 23 respondents ( %) has been in the business for 4-6 months, 33 respondents ( %) has been in the business for 6 months - 1 year and 43 respondents ( %) has been in business for> 1 year. The highest total score per variable is occupied by variable Skills and Competencies with total score and is 74.58% from the total possible maximum score 508 which is gained from the number of respondents (127 respondents) times four as the maximum possible answer and is standing for Strongly agree. The second highest total score is variable Entrepreneurial Success as dependent 4 Insan Akademika Publications
5 Ranie and Anggadwita International Journal of Basic and Applied Science, variable with score or equal to percent. Followed by variable Persistence with total score or equal to 69.13%, and variable GPA with total score 331 and is equal to 65.15%. 4.2 Model Testing Multiple Regression Anlaysis 1 Classical Assumption Test a. Normality Test P value = or bigger than 0.05, then H0 is accepted. So the conclusion is the residual follows distribution normal function. b. Heteroscedasticity Test The decision making criteria of this hypothesis is when the probability value is bigger than 0.05 (p>0.05), then H0 is accepted. If probability value is smaller than 0.05 (p<0.05), then H0 is rejected. The result of correlation testing can resulted to unstandardized residual of X1=0.728, X2=0.458, X3= All value of p is greater than 0.05, then H0 is accepted, so it can be taken a conclusion that the data residual is homoscedasticity. c. Multicollinearity Test Coefficients a Model 1 (Constant) Collinearity Statistics Tolerance VIF Total_X Total_X Total_X a. Dependent Variable: Total_Y From the table it can be seen that the VIF value is smaller than 10 and the value of tolerance is greater than 0.1 so it can be concluded that there is no multicollinearity or a high correlation between the independent variables. d. Durbin-Watson AutoCorrelation Test Retrieved from Durbin-Watson table at alpha = 5% for k = 3 and T = 127, dl = and du = , which means that the value du <dw <4 - du or <1.841 < means there is no autocorrelation 2 Hypothesis Testing Y = β 0 +β 1 Χ 1 +β 2 Χ 2 +β 3 Χ 3 +е (1) Where: Y : entrepreneurial success β0 : constant number of entrepreneurial success β1 : regression coefficient from Persistence β2 : regression coefficient from Skill and Competencies β3 : regression coefficient from GPA X1 : Persistence X2 : Skill and Competencies X3 : GPA e : prediction error (residual) 5
6 International Journal of Basic and Applied Science, Ranie and Anggadwita a. R-square From the table it can be seen that the value of R Square is 0.436, so it can be concluded that 43.6% of variables entrepreneurial success can be explained by the variable Persistence, Skills and Competencies and GPA. Whilst the remaining 56.9% of the influence is explained by other variables. b. F Test ANOVA b Model Sum of Squares df Mean Square F Sig. 1 Regression a Residual Total a. Predictors: (Constant), Total_X3, Total_X2, Total_X1 b. Dependent Variable: Total_Y F table for all 3 independent variable and α = 0.05 level is From the table 4. it can be seen the value of F count is greater than the F table In accordance with the testing criteria, it can be concluded that H0 is rejected. So there is a statistically significant effect of the variable Persistence, Skills and Competencies and GPA to variable entrepreneurial success simultaneously. c. T Test Model Unstandardized Coefficients B Std. Error Standardized Coefficients Beta 1 (Constant) Total_X Total_X Total_X The multiple regression equation that can be made based on Table 4.41 is as follows: Y = 28, ,506X 1 +0,356X 2 0,657X 3 + e (2) Variable Persistence (X1) has a probability value (p-value) > α = therefore Ho is rejected, or it can be concluded that there is a partial influence of variable Persistence to variable entrepreneurial success where the coefficient value of and is positive, which means if variable Persistence increase by 1% (assuming other variables constant), the Entrepreneurial success will increase by 0.506%. Variable Skills and Competencies (X2) has a probability value (p-value) >α = therefore Ho is accepted, or it can be concluded that there is no partial influence of variable Skill and Competencies to variable entrepreneurial success. Variable Skills and Competencies (X2) has a probability value (p-value) <α = therefore Ho is rejected, or it can be concluded that there is a partial influence of variable GPA to variable entrepreneurial success where the coefficient value of and is negative, which t Sig. 6 Insan Akademika Publications
7 Ranie and Anggadwita International Journal of Basic and Applied Science, means if variable GPA increase by 1% (assuming other variables constant), the Entrepreneurial success will decrase by 0.657%. 5 Conclusions Based on the analysis and discussions that have been done in the previous chapter, the conclusions of this research are: 1. There is a partial correlation of Persistence (X1) to the Entrepreneurial Success variable (Y). Persistence turns out to be one of the most important part of academic success that contributed significantly to the entrepreneurial success. It is seen that persistence is one essential skill that contributing to success if applied in every realms.the study were conducted in 3 different faculties and all of them have been showing positive correlation of persistence to entrepeneurial success. Therefore it can be seen that this may be a general or universal factor of entrepreneurial success. This is also implied that students who are persist in their studies will also persist in their business and will lead to success. 2. There is no partial correlation between skill and competencies (X2) to the entrepreneurial success (Y). One possible reason why there might not be any partial influence is because the presence of varying faculty involved in the research and the faculties are very different in fields. Skills and competencies variable were explained differently in every items and relies heavily on what are they studying in each major of studies in Tekom University. 3. There is a partial negative and significant correlation between GPA (X3) to the Entrepreneurial Success(Y) variable. This implied that there is a need of sacrifices from the students to make to make their business grow and make their business successful. 4. There is a statistically significant effect of the variable Persistence, Skills and Competencies and GPA to variable entrepreneurial success simultaneously. Hypothesis There is a partial correlation between Persistence and Entrepreneurial Success There is a partial correlation between Skills and Competencies and Entrepreneurial Success There is a partial correlation between GPA and Entrepreneurial Success There is a simultaneous correlation between Persistence, Skills and Competencies, and GPA to Entrepreneurial Success Result Accepted Rejected Accepted Accepted 6 Suggestions 6.1 Theoretical Aspect For further research, it will be better to do similar research with bigger number of samples and more variables. Compelementary sources, observations, and interview will be highly needed to get into a better and deeper analysis and more comprehensive result. 6.2 Practical Aspect The Entrepreneurship unit as the body that manages all entrepreneurship activities in Telkom University could be able to utilize the room for improvement. Based on this study, the lack of persistence in Telkom University students reflects that there is a need for training, particularly to increase the persistence attitude of the students. 7
8 International Journal of Basic and Applied Science, Ranie and Anggadwita Persistence is one attitude that is difficult to be taught and should come within volition from oneself. Notwithstanding, persistence is a state of mind that can be cultivated. The Entrepreneurship unit can hold a seminar examining the urge of persistence. The other form of substantive program that could be done is a mentoring and collaboration program that should better be conducted gradually. A continuing program will train the students how to be persevere. The other possible training is skills and competencies which are in line with entrepreneurial goals. Skills and competencies that need to be possibly taught are managerial skills, critical thinking skills and other essential business skills and technical skills. Training should be addressed to all studentpreneurs in Telkom University, facilitating all students especially those who do not learn the business skills in their classes (students from faculty of Engineering and Creative Industry). References [1] [Online] Available at: ( accessed on September 11, 2015) [Accessed 11September, 2015) Handoyo (2015, July 27). Kompas.com: Bisnis dan Keuangan. Retrieved September 11, 2015, from Kompas Website: [2] Suryana, (2013). Kewirausahaan Kiat dan Proses Menuju Sukses.Edisi 4. Jakarta: Salemba Empat [3] Indonesian Law No.20 of 2008 on Micro Small and Medium Enterprises [4] Kirzner in Foss and Klein (2010) [5] Foss Nicolai J. & Klein, Peter G. (2010). Alertness, Action, and the Antecedents of Entrepreneurship. The Journal of Private Enterprise 25(2). [6] Riyanti. (2003). Kewirausahaan Dari Sudut Pandang Psikologi Kepribadian. In Riyanti, Kewirausahaan Dari Sudut Pandang Psikologi Kepribadian (p. 21). Jakarta: Grasindo. [7] [Onine] Available at ( retrieved September 17, [8] York, Travis T. et al (2015. Defining and Measuring Academic Success. Practical Assessment, Research and Evaluation, Vol 20, no.5. [9[ Djamarah. (2002). Teori Motivasi, edisi 2 (ed-2), Jakarta : PT. Bumi Aksara [10] Soepardi, H.S. (2015). Seriu orang ikuti gerakan kewirausahaan di Makassar [online] (retrieved on September 11, 2015). 8 Insan Akademika Publications
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