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PROFESSOR DR FARIDAH HJ HASSAN DIRECTOR  INSTITUTE OF BUSINESS EXCELLENCE UNIVERSITI TEKNOLOGI MARA   [email protected] 012 2644079 Mobile  ADJUNCT PROFESSOR SERI ES, UNITEN,  2 9 T H  JUL Y 2011 Graduate Tendency of Becoming Entrepreneur

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T h i s s t u d y w a s c a r r i e d o u t t o e v a l u a t e t h e a b i l i t i e s , s k i l l s a n d e x p e r t i s e o f  u n d e r g r a d u a t e s w h o p a r t i c i p a t e d i n t h e t u n a s m e k a r p r o g r a m a n d t h e i rp r o s p e c t i v e o f p u r s u i n g c a r e e r i n e n t r e p r e n e u r s h i p a f t e r g r a d u a t i o n . A  c r o s s e c t i o n a l s t u d y w a s c a r r i e d o u t v i a e - m a i l a n d b y h a n d a p p r o a c hi n v o l v i n g a s a m p l e o f t u n a s m e k a r s t u d e n t s o f 2 0 0 9 a n d 2 0 1 0 . F i n d i n g s s h o w st h a t f i v e s i g n i f i c a n t s k i l l s a c q u i r e d b y t u n a s m e k a r p a r t i c i p a n t s a f t e rc o m p l e t i o n o f t h e p r o g r a m . H o w e v e r t h e r e n o s i g n i f i c a n t r e l a t i o n s h i p b et w e e n t un a s m ek ar a nd f a c to r s t ha t d r i v es s tu de nt t o b e c om e e n tr e p r e n e u r .D a t a a r e c o l l e c t e d f o r m a s a m p l e o f o n l y 3 9 r e s p o n d e n t s . T h i s m i g h t g i v e al o p s i d e d p i c tu r e o f t h e p o p u l a t i o n a n d n o t v e r y a cc u r a t e f o r g e n e r a l i z a b i l i t y .R e s u l t s s u g g e s t t h a t h i g h e r l e a r n i n g e d u c a t i o n s y s t e m t o i m p r o v e a n de n c o u r a g e i n n o v a t i v e a n d c r e a t i v i t y c u l t u r e a m o n g s t u d e n t s t o e n c o u r a g ee n t re p r en e u ri a l c h a r a ct e r i s t i c .

K e y w o r d s : g r a d u a t e s , t u n a s m e k a r , e n t r e pr e n e u r , m a l a y s i a

 Abstract

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T h e N i n t h M a l a y s i a P l a n ( R M K 9 ) p u t a gr e a t e m p h a s i z e s o nn u r t u r i n g a s w e l l a s de v e l o p i n g h u m a n c a p i t a l t h a t w i l l b e a b l et o c o n t r i b u t e t o w a r d s t h e n a t i o n s a n d t h e c o u n t r y i n g e n e r a l .T h e h u m a n c a p i t a l s a r e r e g a r d a s t h e s o u r c e o f s t r e n g t h a n da s s e t s o f t h e c o u n t ry i n d r i v i n g Ma l a y s i a t o w a r d s a f u l l y  d e v e l o p e d c o u n t r y b y 2 0 2 0 . T h e h i g h c o m m i t m e n t b y t h eg o v e r n m e n t o f M a l a y s i a o v e r t h e h u m a n c a p i t a l i s s u e s i sr e f l e c t e d i n t h e t r e n d s o f b u d g e t a l l o c a t i o n s i n t h e y e a r l y  

 b u d g e t a n n o u n c e m e n t . R e p o r t s h a v e s h o wn t h a t g o v e r n m e n tc a l l a t t e n t i o n t o h u ma n c a p i t a l b y a n i n c r e a s i n g p a t t e r n i n t h e b u d g e t a l l o c a t i o n pe r t a i n i n g t o i s s u e s r e l a t e d t o h u m a nc a p i t a l .

INTRODUCTION

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I n U n i t e d K i n g d o m , t h e B r i t i s h g o v e r n m e n t h a s c o m e o u t w i t hp r o g r a m t h a t h a v e d r a m a t i c a l l y e x p a n d e d t h e s i z e o f h i g h e re d u c a t i o n ( H E ) s y s t e m i n U K ( J o h n s o n , 2 0 0 2 ) a s c i t e d b y W e s t h e a da n d M a t l a y ( 2 0 0 5 ). T h r o u g h i t s l i fe l o n g l e a r n i ng a g e n d a , t h e l a b o u r

g o v e r n m e n t o f U K i s p r o m o t i n g s k i l l s i n i t i a t i v e s t o e n h a n c e t h ec o m p e ti t i v en es s o f S ME s

T h e s a m e s c e n a r i o a p p l i e s i n M a l a y s i a . O v e r t h e p a s t 1 0 y e a r s , t h eM a l a y s i a n g o v e r n m e n t h a s i n t r o d u c e d s e v e r a l i n i t i a t i v e s t h a t h a v e

e x p a n d e d t h e s i z e o f h i g h e r l e a r n i n g e d u c a t i o n ( H L E ) s y s t e m i nM a l a y s i a . T h e m i n i s t r i e s w h i c h w a s o n c e c a t e r f o r t h e w h o l ee d u c a t i o n s y s t e m i n M a l a y s i a h a v e b e e n s e p a r a t e d i n t o t w o m i n i s t r y  t h a t f o c u s e s o n t w o l e v e l , t h e p r i m a r y a n d s e c o n d a r y l e v e l a s w e l l a st e r t i ar y e d u c a t i o n . T h i s i s t o e n s u r e t h e e f fe c t i v e n e s s a n d e f f i c i en c y  o f t h e e d u c a t i o n s y s t e m i n M a l a y s i a a n d a s a r e s u l t o f t h i s a c t i o n ,t h e r e i s m o r e h i g he r e d u c a t i on i ns t i t u t i on a s c o m p a r e d w i th t h e p a s t

1 0 y e a r s . T h i s e x p a n s i o n n o t o n l y c o n c e n t r a t e d o n t h e p u b l i c h i g h e rl e a r n i n g i n s t i t u t i o n b u t a l s o c o v e r s t h e p r i v a t e i n s t i t u t i o n a s w e l l .T h i s c l e a r l y s h o w s t h e i m p o r t a n c e o f h u m a n c a p i t a l a n d i t sc o n tr i b ut i on t ow ar ds d ev e l op i n g t h e c o u nt ry .

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 As great focus has been given to humancapital, the government of Malaysia is also

trying to promote the entrepreneurshipculture among Malaysian especially theBumiputeras. Ariff and Aishah (2003), conferthat the Malaysian government has been and

continuously to be, supportive of  entrepreneurship programs. It has taken

 various steps to promote the development of  entrepreneur in general, including providing

a conducive economic environment, variousfinancing and funding scheme, tax incentiveand as well as business advisory centres .

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M any i nst i tut i ons have bee n se t up to tac kl e thi s i ssueo ver and abo ve the tr a i n i ng and dev e lo pme nt a ct i v i t ie sr un by g over nme nt bod i es and a gen ci es i n p rom oti nge ntre pre neu rshi p i n th i s co un try . Am ong the g over nment bo dy and age ncie s that add ress tha t ha s bee n se t up toa dd ress i ssues on e ntre pre neu rshi p are m aj l i s am anahr akyat ( MAR A) , ma lays i an e ntrep reneu r deve lopmen tc e ntre (MEDE C) , TEK UN an d et ce te ra . In f a ct bef ore the

r eshuf f l i ng of c abi ne t mem ber s i n e ar l y 2009, the re w asthe m ini stry of e ntrep reneu r and co ope rat i ve deve lopme nt( MEC D) whi c h w as re spons i b le f or the deve lopme nt of  e nt re pr en eu rs hi p a ct iv it ie s i n t he c ou nt ry .

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T h e s e i n i t i a t i v e s a n d a c t i v i t i e s a r e i n l i n e w i t h g o v e r n m e n t ¶ sa s p i ra t i on s t o w a r d s p r o d u c i ng a n u m b e r o f 7 0 % n o n b u m i pu t e r a a n d3 0 % q u o t a s o f b u m i p u t e r a e n t r e p r e n e u r b y 2 0 2 0 . D u e t o t h i s r e a s o nm a n y a c t i v i t i e s h a s b e e n p l a n t o e n c o u r a g e g r a d u a t e s t o p u r s u e i ne n t r e p r e n e u r s h i p a s t h e i r c a r e e r o f c h o i c e a f t e r t h e y g r a d u a t e d .C ou r se s o n e nt re p re n e ur s h ip h av e b e e n i nt ro du c e d i n u n i ve rs i t i e s i no r d e r t o p r o d u c e g r a d u a t e s w i t h e n t r e p r e n e u r i a l t h i n k i n g a n d w i l l b e a b l e t o s e t u p t h e i r o w n b u s i n e s s a f t e r g r a d u a t i o n . A l t h o u g hm a n y e f f o r t s h a v e b e e n c a r r i e d o u t b y s e v e r a l u n i v e r s i t i e s i nn ur tu r i n g e nt re pr en eu rs h i p a mo ng s tu de nt s, m an y g ra du a te s c ho os et o b e e m p l o y e d a n d s o m e a r e s t i l l g r a p p l i n g w i t h u n e m p l o y m e n t

i s s u e . T h i s i s s u p p o r t e d b y a n u m b e r o f u n e m p l o y e d g r a d u a t e s i n t h e j o b m a r k e t a s r e p o r t e d b y t h e h u m a n r e s o u r c e d e p a r t m e n t o f  m a l a y s i a .

D e s p i t e m a n y a t t e m p t s a n d e f f o r t s c a r r i e d o u t b y u n i v e r s i t i e s i ni n c r e a s i n g t h e p r o g r a m s t h a t w i l l e n c o u r a g e s t u d e n t s i n v o l v e i ne n t r e p r e n e u r s h i p , y e t t h e r e a r e n u m b e r s o f u n e m p l o y e d g r a d u a t e .

T h i s s h o w s t h a t t h e r e e x i s t a g a p b e t w e e n t h e p r o g r a m a n d e f f o r t s b y u n i v e r s i t i e s w i t h t h e r e a l e n t r e p r e n e u r s h i p e n v i r o n m e n t i n t h er e a l w o r l d . W e s t h e a d a n d m a t l a y ( 2 0 0 5 ) a l s o s t a t e d t h a t t h e r e i ss c a n t e v i d e n c e w i t h r e g a r d t o t h e p r o f i l e s o f s t u d e n t s c o n s i d e r i n gc ar ee rs i n e nt r e pr en eu rs hi p .

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T U NA S ME K AR P R OG R AM

I n m e i 2 0 0 5 , t h e f o r m e r p r i m e m i n i s t e r o f m a l a y s i a t h e h o n o r a b l e t u n

a b d u l l a h h j . A h m a d b a d a w i a n n o u n c e d t h e i d e a t o e n c o u r a g e t h e w e a l t hc r e a t i o n t h r o u g h a p r o g r a m c a l l e d t u n a s m e k a r . A s u m o f R M s e v e nm i l l i o n w a s a l l o c a t e d t o u n i t p e n y e l a r a s a n p e r l a k s a n a a n ( I C U ) , p r i m em i n i s t e r d e p a r t m e n t t h r o u g h t h e s e c o n d e c o n o m i c s t i m u l u s p a c k a g e( P R E ) . T h e g e n e r a l a s p i r a t i o n o v e r t h i s p r o g r a m i s t o c r e a t e m o r ee n t r e p r e n e u r s i n t h e s m a l l a n d m e d i u m e n t e r p r i s e s ( s m e s ) t h a t a r er e s i l i e n t a n d c o m p e t i t i v e . O n t o p o f t h a t t h i s p r o g r a m s e r v e s t o a c h i e v et w o f o r k o b j e c t i v e s . F i r s t i s t o r e d u c e t h e r a t e o f u n e m p l o y m e n t .S e c o n d l y t u n a s m e k a r a i m e d a t i n c r e a s i n g j o b o p p o r t u n i t i e s c r e a t e dt h r o u g h n e w b u s i n e s s e s t h a t h a v e b e e n s e t u p ( I C U , 2 0 0 9 ) . A t p r e s e n t ,t h i s p r o g r a m h a s b e e n c a r r i e d o u t i n s i x s t a t e s n a m e l y p u l a u p i n a n g ,t e r e n g g a n u , k e d a h , j o h o r , k e l a n t a n a n d m e l a k a . T h e i d e a b e h i n d i st h r o u g h t h e c o n c e p t o f s m a r t s h a r i n g a n d f o u n d a t i o n b e h i n d i t i s t h em e n t o r - me n t e e s ys t e m b e t w e e n t he g ra d u a t es a n d s m e s . I n t h i s p r o g r a m ,g r a d u a t e s w i l l b e p l a c e d a t t h e s m e s c o m p a n y t h a t s u i t t h e s e c t o r t h a tt h e y h a v e i d e n t i f i e d e a r l i e r f o r a p e r i o d o f m i n i m u m 6 m o n t h s . T h i sp l a c e m e n t i s h o p e d i m p r o v e t h e s m e s t h r o u g h f r e s h i d e a s a n d k n o w l e d g e

t h a t t h e g r a d u a t e s e n c o m p a s s . I n r e t u r n t h e g r a d u a t e s w i l l b e a b l e t ol e a rn p r a c t i ca l b us i n es s a p pl ic at io n i n m an ag in g b u s i ne ss a nd e xp e r ie n cet h e r e a l t r a i n i n g g r o u n d t h r o u g h t a s k o r i e n t e d a s s i g n m e n t s b e s i d e sa p p l y i n g t h e c l a s s r o o m - b a s e d l e a r n i n g s o l u t i o n s t o r e a l l i f e w o r k p l a c ep r o b l e m s . T h i s s e r v e s a s a w i n - w i n s i t u a t i o n f o r t h e s m e s o w n e r s a s w e l la s g r a du at e s t he g r a du at e s .

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The partic ipants of this program are graduatesfrom local universi t ies. Graduates are placed at

the smes between 6 -12 months in the smes.General ly , a maximum number of two graduates

 wi l l be attached under one smes company thatsigned up for the program. Students are givenal lowances during the whole program funded by  the government. Throughout the program,students are supervised by counselors that areappointed among university lecturers that providea ss is ta nc e a nd m on it or in g s tu de nt s.

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T H E O R E T I C A L I N S I G H T

 A c c o r d i n g t o b e c k e r ( 1 9 7 5 ) a s c i t e d b y w e s t h e a d a n d m a t l a y ( 2 0 0 5 ) ,h u m a n c a p i t a l t h e o r i e s s u g g e s t t h a t i n d i v i d u a l s w i t h p o o l s o f h u m a n

c a p i t a l r e s o u r c e s c o n s i s t i n g o f a c h i e v e d a t t r i b u t e s a r e a s s o c i a t e d w i t hi n c r e a s e d l e v e l o f p r o d u c t i v i t y. B e c k e r ( 1 9 9 3 ) a l s o f u r t h e r e x p l a i n e d t h a th u m a n c a p i t a l h a s b r o ad e n e d t o i n c l u d e c o g n it i v e c h a r a c t er i s t ic s a s w e l la s a c c u m u l a t e d w o r k a n d h a b i t s t h a t m a y h a v e p o s i t i v e o r n e g a t i v ei mp l i ca t io ns t ow a r ds p ro d uc t iv it y . C o o pe r e t a l .( 19 94 ) s ta t ed t ha t h u ma nc a p i t a l a r e d i v i d e d i n t o t w o n a m e l y g e n e r i c a n d s p e c i f i c . G e n e r a l h u m a nc a p i t a l r e l a t e s t o a l l t y p e s o f e c o n o m i c a c t i v i t y a n d c o m p r i s e o f  e d u c a t i o n , a g e , g e n d e r . O n t h e o t h e r h a n d t h e s p e c i f i c h u m a n c a p i t a l

t r a i t s c o m m u n i c a t e a b o u t t h e e x p e r i e n c e , s k i l l s a n d a t t i t u d e s s h a p e d b y   w o r k a n d b u s in e s s o w n er s h i p e x p e r i e n ce ( co o pe r e t . A l . , 1 9 9 4 ) a s c i t e d b y   w e s t he a d a n d m a t l a y ( 2 00 5 ) .

 A l t ho u g h t h e h u m a n c a p i t al c h a r a c t er i s t ic p l a y s a n i m p o r t a n t r o l e i n t h et e n d e n c y f o r g r a d u a t e t o b e s e l f e m p l o y e d , t h e j o b a n d w o r k p l a c e m e n tf u n c t i o n c a n a l s o a l l o w i n d i v i d u a l t o u s e t h e i r e x i s t i n g s k i l l s a n d d e v e l o pn e w o n e s ( w a r r , 1 9 8 7 ) a s c i t e d b y w e s t h e a d a n d m a t l a y ( 2 0 0 5 ) . A r n o l d

( 1 9 9 4 ) s u p p o r t e d t h i s a n d m e n t i o n e d t h a t i n d i v i d u a l s w h o o b t a i ne m p l o y m e n t p o s it i o n s w i t h h i g h e r s k i l l s r e q u i r e m e n t s w i l l b e m o re l i k e l y  t o u t i l i z e t h e i r e x i s t i n g s k i l l s a n d d e v e l o p n e w s k i l l s . T h e r e f o r e i t i sp o s s i b l e t h a t l e v e r a g e t h a t f r o m t h e i n d i v i d u a l h u m a n c h a r a c t e r i s t i c s a s

 w e l l a s t h e e x p e r i e n c e g a i n e d f r o m w o r k p l a c e m e n t a n d t r a i n i n g m i g h te na b le g r a d ua t es t o b e b us in es s o w n er .

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F o r t h e p u r p o s e o f t h i s s t u d y , t h e o r e t i c a l f r a m e w o r k w a s d e s i g n e d b a s e do n p r e v i o u s s t u d i e s . T h e f r a m e w o r k c o n s i s t s o f g r a d u a t e t e n d e n c y o f  

 b e c o m i n g a n e n t r e p r e n e u r a s t h e d e p e n d e n t v a r i a b l e . C o n v e r s e l y t h e r ea r e t w o i n d e p e n d e n t v ar i a b l e s i n t h e f r a m e w o r k w h i c h a r e g en er a l h u m a n

c a p i t a l a n d s p e c i f i c h u m a n c a p i t a l . F o r m a l t r a i n i n g r e c e i v e d b y  r e s p o n d e n t s i s p l a c e d a s t h e m o d e r a t i n g v a r i a b l e i n t h i s s t u d y . T h eg e n e r al h u ma n c ap it al c ha r ac t er is t i c m e a su re s s ix c ha r ac te r i st ic s ( ta b l e1 ) . T h e s p e c i f i c h u m a n c a p i t a l c h a r a c t e r i s t i c s o n t h e o t h e r h a n dm e a s u r e s 1 3 i t em s a n d t r a i n in g v a r i a b l e c o n s is t s o f t w o i t em s .

T ab l e 1 : v a r i a b l e s a n d r e l a t e d i t e m s

  V a r i a b l e

I t em s m e a s u r e d

G e n e r al h um an c ap i t a l

G e n d e r , a g e , a r e a o f s t ud i e s , a c t i v i t i e s w h e t he r t he y a r e e m p l o y e d o r v i c e v e r s a , p a re n t ¶s o c c u p at i o n

S p e c i f i c h u m a n c a p i t a l

 A b i l i t y t o w o r k i n d e p e n d e n t l y , m o t i v a t i o n , c o m m u n i c a t i o n , c o m p u t e rl i t er ac y, d ec is iv e a tt i t u d e , i ma gi na t i o n a nd c r e at iv it y , n eg ot ia t i o n s ki l l s ,

t ec hn ic al k n o w le d ge , t im e m an ag em e nt , b u s in es s s ki ll s , s e l f c on fi de nc e,p r o j ec t m a n a g e m e n t , b u s i ne s s s e n s e

T r a i n i n g

T un as m ek ar p ro g r am o r o th e r f or ma l s tr uc tu re w or ki ng e xp er ie n c e

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T h e t h e o r e t i c a l f r a m e w o r k f o r t h i s s t u d y i s i l l u s t r a t e d i n f i g u r e 1 .T h e d e p e n d e n t , i nd e p e n d e n t a n d m o d e r a t i n g v a r i ab l e s t o g et h e r w i thr e l a t i o n s h i p b e t w e e n v a r i a b l e s a r e a l s o d e m o n s t r a t e d i n t h e f i g u r e .O n t o p o f t h a t , t h i s s t u d y a l s o a s s e s s t h e b e n e f i t s r e c e i v e d b y  r es p o nd en ts t ha t u n d er go t un a s m ek ar p ro gr a m

F i g u r e 1 : t h e o r e t i c a l f r a m e w o r k f o r g r a d u a t e t e n d e n c y o f b e c o m i n ge n t r e p r e n e u rG en er al h um an c ap it al( C o o p e r e t a l , 1 9 9 4 )S pe ci f i c h um an c ap it al( C o o p e r e t a l . , 1 9 9 4 )G r ad ua t e b ec o mi n g e n tr e pr e ne urT r a i n i n g( We s t he ad & s t or ey , 1 99 7)D e pe nd e nt v ar i ab le sM o de r at i ng v a ri a bl e sI nd e pe n de nt v ar i ab le s

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RESEARCH METHODOLOGY 

This research is a descriptive study which has explored the graduate tendency in setting upself owned business or becoming an entrepreneur after graduation. The study was carriedout on Tunas Mekar and non Tunas Mekar respondents via e-mail and by hand. A total of 268 questionnaires were distributed to the respondents. 238 were distributed via e-mail and30 were distributed by hand. A number of 57 e-mail questionnaires failed to reach thetargeted respondents making the number of questionnaires disseminated through e-mail is181. This makes total distributed questionnaires that reached respondents is 211 units. The

total number of questionnaires returned is 39 units. This makes the response rate for thisstudy 18.4%.

For the Tunas Mekar student, a list of names with their electronic mail address (e-mail) wasobtained from the Tunas Mekar Department. A number of 238 questionnaires weredistributed to all Tunas Mekar students with the reference or e-mail address from the listsreceived from the department by means of e-mail. The recipients were given to weeks to

complete and returned the questionnaires through e-mail. From 181 questionnaires that were successfully sent, 15 questionnaires were returned. Questionnaires were also given by hand to graduate SMEs business owners using purposive sampling methods whereby questionnaires were given to graduates that have self owned business. 30 questionnaires were disseminated and 24 were returned. The respondents were given option either fill upthe questionnaires on the spot or return the questionnaires after 4 days.

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The instrument for this study is a set of questionnaire which comprise of three sections which identify and measure the respondent¶s demographic profile, skills attained from Tunas Mekar and factors thatdrives respondents to become an entrepreneur. Section I was measured using nominal measurement where as items in Section II and III was measured using interval measurement scale which is LikertScale. The scale is measuring five points from 1 to 5 which stated 1 for Strongly Disagree to 5representing Strongly Agree.

This instrument was tested using Reliability Test and Cronbach Alpha¶s of 0.829 was received for 36items tested in the questionnaire. This indicated that the instrument is reliable statistically proven tohave internal consistency designed for the sample in this study. The result of reliability test for section II

and III are as indicated as in Table 2.

Table 2: Reliability test and Cronbach¶s Alpha resultsSectionCronbach¶s AlphaNumber of itemsII0.791

13III0.84315Overall instrument0.82936

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F I N D I N G S A N D A N A L Y S E S

D e m o g r a p h i c p r o f i l e

F r e q u e n c y a n al y s i s w a s p e r f o r m e d t o s t u d y t h e d e m o g r a p h i c p r o f i l eo f r e s p o n d e n t s i n t h i s s t u d y ( t a b l e 3 ) . B a s e f r o m t h e f i n d i n g s , i t i sn o t e d t h a t t h e r e a r e n o t m u c h d i f f e r e n c e i n g e n d e r a l t h o u g h m a l er e s p o n d e n t s a r e s l i g h t l y h i g h e r . T h e a g e g r o u p s r e p o r t e d i n t h i ss t u d y m a j o r i t y c o m e f r o m t h o s e a t t h e a g e d o f 2 4 y e a r s o l d a n da b o v e . 3 5 . 9 % o f t h e r e s p o n d e n t s a r e f r o m b u s i n e ss b a c k g r o u n d .H o w e v e r a n u m b e r o f 3 5 . 9 % a l s o r e p o r t e d t o c o m e f r o m v a r i o u s

f i e l d s s u c h a s m u s i c a n d e n g i n e e r i n g . M o r e t h a n h a l f o f t h e m w h i c hi s 5 9 % o w n e d a b u s i n e s s. I n t e r m s o f p a r e n t ¶ s o c c u p a t i o n , 4 6 . 2 %r e p o r t e d f o r o t h e r s w h i c h r e f e r t o r e t i r e e a n d g o v e r n m e n t s e r v a n t s. A n u m b e r o f 5 3 . 8 % r e p o r t e d t h a t t h e y d i d n o t h a v e f o r m a l s t r u c t u r e w o r k i n g e x p e r i e n c e . 6 1 . 5 % o r t h e r e s p o n d e n t a t t e n d e d t u n a s m e k a rp r o g r a m b y u i t m

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Table 3: Frequency analysis for demographic characteristicsSection A Number of respondentsPercent (%)Gender

MaleFemale

2019

52.348.7

 AgeBelow 20 years old20-23 years old24 years old and above

1830

2.6

20.576.9

97.42.60

 Areas of study Business AdministrationSocial ScienceHuman Law Others

147414

35.91710.335.9

 Activities/ EmploymentGovernmentMultinational Company Self Owned BusinessUnemployed

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Others

912333

23.12.6597.77.7Parent¶s Occupation

EntrepreneurProfessional/ ManagerOthers

9

1218

23.130.846.2Formal Structure Working Experience

 YesNo

1821

46.2

53.8 Attended Tunas Mekar YesNo

2415

61.538.5

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Descriptive AnalysisBased on the results from analyses carried out on data acquired from therespondents, several findings have been table out. The results are

classified into three main headings. In detail the discussion over findingsof this study is table out as below:

 Activities of Tunas Mekar and Non-Tunas MekarResult from this study shows that majority of the Tunas Mekar or non-Tunas Mekar graduates embark in their own business with the

percentage of 59% or 23 respondents in total (Table 4). Tunas Mekargraduates are reported to have higher number of graduates becoming anentrepreneur compared to non-Tunas Mekar. However there are stillsmall amount 7.7% Tunas Mekar graduate that are unemployed. Therespondents that attended the program have a scattered distribution of 

activities compared to non-Tunas Mekar graduate that either openedtheir own business or work with the government. There are few respondents stated others (7.7%) when asked about activities. Theserespondents are furthering their studies or working in a family businessinstead of their own

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Factors that drives graduate to be anentrepreneur

Crosstabs analysis was done in order to thefactors that drive graduates towards setting upof their own business. The analysis tested 13items was tested to see the relationship of TunasMekar against becoming an entrepreneur. From

the findings in Table 5 it can be seen that non of the items are statistically proven thesignificance between Tunas Mekar and factorsthat drive graduates towards self employment.

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Skills and benefits acquired by the Tunas Mekar

graduates after completion of the program

This study was carried out with the intention to see the benefits that students obtained by engaging in TunasMekar program. Result show that out of 13 benefits that

are received from the program (appendix 1), five itemsare has statistically significant relationship between theTunas Mekar program and benefits obtained for it(Table 6). Graduate who attended Tunas Mekar

program are reported to acquire knowledge pertainingto business industry, improved their time management,increase in motivation, increase knowledge on other

 business functions and able to work independently.

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Table 6: Relationship between Attending Tunas Mekar and Skills AcquiredNo.

ItemsPearson Correlation (r)

1.Increase knowledge in business industries

0.629**

2.Improved time management

0.581**3.

More motivated0.488*

4.Increase knowledge on other business functions

0.472*5.

 Ability to work independently 0.401*

* Significance level of 0.05** Significance level of 0.01

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Further regression analysis was conducted and the result shows that only two items are significant at the significance levelof 95% towards the dependent variable (Table 7). From the regression table it can be concluded that only two items are

statistically proven to be significant when graduates attended Tunas Mekar namely encourage creativity and

innovativeness, and knowledge in setting up business.Table 7: Regression Analysis

ModelUnstandardized Coefficients

Standardized Coefficientst

sigB

Std. ErrorBeta

Constant1.3150.588

2.2380.052

Creative and innovative-0.2110.073-0.907

-2.8200.018

Setting up Business-0.1110.75

-0.690

-2.3550.043

 Significance level of 0.05 

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Comparative Analysis between STEPH and Non-STEPH students andTunas Mekar and Non-Tunas Mekar Students

Comparative study was carried out to see the similarity and differences in previousresearch carried out by Westhead and Matlay (2005) and current findings based onthis study. The two studies are compared in three dimensions specifically theactivities skills, cited by students and ability to employement.

 Activities of graduates Activities by both studies are compared in table 8 and table 9. It can be seen that

 both studies have similar patterns whereby the students reported to be in a state of employment or becoming self employed. A high percentage of above 80 % are alsoreported. However in the STEPH program, the STEPH students are reported to haveslightly higher percentage over non-STEPH students. Contrary to Tunas Mekar, thenon-Tunas Mekar graduates tend to have higher employment rate. Both studies alsoreported a few students that are unemployed or not seeking full employment.

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Skills Cited by Students

Next the skills cited by the student that have helped them to obtain full employment arecompared Table 10 and 11. In the study done by Westhead and Matlay (2005), it is identified theskills that were cited by students of STEP and non-STEP were project managements skills,practical business skills and business sense. These attributes were found to be significant for thegraduate to seek for employment with the significance of 0.05.

Table 10: Skills cited by STEPH and Non-STEPH studentsFactors/skills that helped student obtain full time positionChi Square StatisticSignificance levelProject Management Skills9.570.0020

Practical Business Skills8.500.0036Business Sense7.870.0050

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H o w e v e r t h e p r e s e n t s t u d y f o u n d o u t t h a t t h e r e a r e n o s i g n i f i c a n t

a t t r i b u te s t o w ar d s Tu n a s M e ka r o r N on - Tu n a s M ek a r g r ad u a te d i n

 b e c o m i n g a n e n t r e p r e n e u r . T h e c l o s e s t v a r i a b l e s a r e s e l f c o n f i d e n c e ,

 b u s i n e s s s e n s e a n d p r o j e c t m a n a g e m e n t s k i l l s . H o w e v e r t h e r e a r e n o

s t a t i s t i c a l l y s i g n i f i c a n t r e l a t i o n s h i p s b e t w e e n t h e s e a t t r i b u t e s t o w a r d s  b e c o m i n g e n t r e p r e n e u r .

Ta b l e 11 : Fa c t o r s c i t ed b y T u n a s M e k a r a n d n on Tu n a s Me k a r s t u d e n t s

Factors/skills that helped

student be entrepreneur

Chi Square

Statistic

Significance

level

High Self Confidence 1.961 0.37

Business Sense 2.571 0.463

Project Management Skills 2.489 0.47

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 Ability to employment/ becoming entrepreneur

Comparison was done between STEPH and Tunas Mekar student sin their ability foremployment or becoming entrepreneur. Result shows that STEPH and Tunas Mekar havecompletely diverse situation. STEPH was reported to have significant relationship between

parent¶s with managerial job, increased confidence and social science degree with ability foremployment. Conversely, Tunas Mekar respondents have no significant relationship between thethree attributes.

Table 12 : Comparison between STEPH and Tunas Mekar students with their ability foremployment/ become entrepreneur

 Attributes

STEPHTunas MekarRespondent with managerial parents are likely to obtain jobs/ become entrepreneur YesNo(positive relationship but not significant at sig. level =0.112)

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Recommendations

Based on the findings of this study, several areas have beenidentified for potential improvement. Among the suggestion thatare tabled out are as follows:

Emphasizes on Training ProgramHigher Learning Institution should put emphasize on developing

program that include nurturing the attitude, imagination andcreativity and business sense among students of students towardsentrepreneurship. Program should not be too technical that focuson classroom approach alone.

Diverse techniques and methodology Learning and teaching should not limit to traditional methods.Diverse methodology in training students should be employed toencourage creativity and innovativeness among students.

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Limitations and Future Research

 A. LimitationsThis study has certain limitations due to several factors. These limitationsare listed as follows:

Generalizability  Although the numbers of Tunas Mekar students are more than 200, the

respondents received for this study is only 24 respondents. This will beinappropriate for generalizability of findings from this study as it does notrepresent the whole population. Therefore a bigger number of respondentsare needed to get more reliable findings and represent the wholepopulation.

Sampling MethodsThis study was carried out using simple random and purposive sampling.It is recommended that future research to pursue with one particular to bemore standardized.

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Future Research

1) Study on other factorsFor the purpose of future research, it is recommended that the researcher focus on

other factors that drive graduates to pursue their career in entrepreneurship. This is because result from this study shows relationship over variables, however there are

no relationship proven statistically.

Longitudinal Study  A longitudinal study that takes place from 2006 to 2010 might provide an insightabout the program and pattern that will explain further the characteristic of TunasMekar graduates and its characteristics. This will provide in-depth understanding

about the program.

CONCLUSION Although Tunas Mekar is still considered as at an infant stage, the program has help

students to obtain skills needed to be an entrepreneur. This is seen as a greatpotential in developing graduates to pursue in entrepreneurship after graduating.However the program need to been refine and enhance to fully serve as a ground to

prepare graduate in becoming an entrepreneur.

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THANK YOU

Q & A SESSION«««.