balance between the demand and supply in the market.

The second definition is by

Schumpeter (1934) and it is about making new combinations and innovations, such as

new products, production methods, new markets and forms of organization. In the study

of some researchers like Casson (1982), Kirzner (1973,1979), Leibenstein (1966,1979),

Shane and Venkataraman (2000), the definitions of each of them pertains to only one

meaning which is exploring opportunities. This is the third definition. The fourth

definition is about the act of emerging and creation of firms, which is a combination of

definitions by many researchers like Pinchot (1986), Gartner (1988), Amit et. al. (1993).

Johannisson (1983) and Johannisson & Nilsson (1989) presents the fifth definition on

community and social entrepreneurship (p. 5).

Entrepreneurs

According to Cervantes, Dancel, Pagoso, and Rillo (2010), an entrepreneur take

the risks that are necessary in finding business opportunities. Also, an entrepreneur

present new products and technological innovations. Making decisions regarding what

to produce, how much to produce, and what method of production to incorporate are

some of the things that entrepreneurs do. An entrepreneur must await demand and

accept the possible risks associating change in demand that may occur during the

interval between marketing and production. In addition, Stephen et. al., as cited in

Adeyemo (2009), pointed out that an entrepreneur can also be defined as the one who

organizes, manages and assumes the risk of a business enterprise (p. 58). He also

added that an entrepreneur is a person who have decided to take control his/her future

and becomes self-employed whether by creating his own unique business or working as

6
a member of a team at a multi-level vocation. He also stated that an entrepreneur has

possession of an enterprise or venture and assumes significant accountability for the

inherent risks and the outcome. He/she is the one who combines land, labor, and capital

to create and market new goods or services.

Entrepreneurial Education

According to Fitriati and Hermiati (2010), entrepreneurial education in the last

decade has rapidly evolved and remains to accelerate vigorously. Garavan and

O’Cinneide, as cited in Fitriati and Hermiati (2010), defined entrepreneurial education as

activities intended to develop people who want to try or become entrepreneurs and

boost the understanding and knowledge about entrepreneurship and business (p. 262).

Moreover, Jack and Anderson, as cited in Fitriati and Hermiati (2010), stated that

entrepreneurial education is driven by an attachment to the idea that all levels of

education can contribute to the growth of entrepreneurial culture in society (p. 262). In

fact, most world entrepreneurial experts suggest the idea that education and

entrepreneurship have a significant role in economic development. The increasing

number of education seminars and training conducted by practitioners and

universities, as well as a variety of newly created academic literature and

entrepreneurship articles proved that there has been an active interest in the study of

entrepreneurship (Gartner and Vesper; Henry et al.; Katz; Klofsten; and Solomon et. al.,

as cited in Fitriati and Hermiati, 2010, p. 262).

However, there's still a matter of debate in different circles about the scope to

which entrepreneurial education affect the students (Fiet and Hynes, as cited in Fitriati

7
and Hermiati, 2010, p. 262). Another issue is whether an entrepreneurship is taught-

able and/or an entrepreneur can be born or created at all (Fiet, Garavan and

O’Cinneide, Henry et al., Kuratko, Matlay, and Timmons, as cited in Fitriati and

Hermiati, 2010). Meanwhile, Miller, as cited in Fitriati and Hermiati (2010), stated that

some aspects of entrepreneurship cannot be taught. This also has an impact to

entrepreneurship education.

The next step after understanding the significance of entrepreneurship and the

confidence to teach students to become entrepreneurs is to determine open

opportunities and attainable objectives through applicable education (Gorman et. al. as

cited in Fitriati and Hermiati, 2010, p. 262-263). According to Hytti & O'Gorman, and

Klofsten, as cited in Fitriati and Hermiati (2010), the three goals in teaching

entrepreneurship education are to learn entrepreneurship, learn to become an

entrepreneur, and learn to become a businessman (p. 263). Meanwhile, in the study of

Edward and Muir, as cited in Fitriati and Hermiati (2010), Rae determined active, social

and formal learning as the three sources of entrepreneurial education (see Figure 1

below). In accordance, Heinonen and Poikkijoki (as cited in Fitriati and Hermiati, 2010)

said that entrepreneurial learning is based on the theoretical aspects and practical

knowledge. This will challenge students to have an active role in the entrepreneurial

learning process. To become relevant to the entrepreneurial learning process, the

connection between entrepreneurship and education should be stronger according to

Kryp, as cited in Fitriati and Hermiati (2010).

According to Gibb, as cited in Fitriati and Hermiati, (2010), the process of

entrepreneurship involves behaviors, skills and attributes belonging to a person in

8
entrepreneurial education. His study indicates that an individual needs a process that

includes the identification of traits related with entrepreneurship in developing

entrepreneurship behavior, either in the form of skills and attributes that are integral in

entrepreneurship (see Figure 2 below).

In addition, researchers presented the three skill-set as the key requirements in

entrepreneurship. These skill-sets can be classified into three groups: entrepreneurship

skills, technical skills and management skills (see Figure 3 below). To develop each of

these skills, the level of education and training needed will be dependent upon the

levels of human capital that individuals might already have before establishing a

business. Definitely, it has been argued that enhancing these skill-sets will generate

enterprising persons, who should be prepared to meet their potential and create their

own futures, whether or not as entrepreneurs (NESTA, as cited in Cooney, 2012, p. 7).

Meanwhile, Kutzhanova et. al. (2009) also studied about entrepreneurial skill.

He examined the Entrepreneurial Development System in the Appalachian region of

USA. In his study, he identified four main dimensions of skill: technical skills,

managerial skills, entrepreneurial skills, and personal maturity skills. Technical skills are

those skills that are required for the production of the business’ product or service. Next

is managerial skills which are important to day-to-day management and managing of

the company. Another one is entrepreneurial skills. In this skill, it involves recognizing

economic opportunities and acting effectively on them. Lastly, personal maturity skills

which includes being accountable, having self-awareness, being creative, and having

emotional skills.

9
 Figure 1. Sources of Entrepreneurial Learning

Source: Rae (1999), in Edward and Muir (2005), as cited in Fitriati and Hermiati

(2010), p. 263.

Figure 1 presents the sources of entrepreneurial learning namely active, formal

and social. Active is defined as ‘practical learning’, social refers to ‘learning from others’,

and lastly, ‘theoretical learning’ is formal.

10
 Figure 2. The Process of Entrepreneurship: Behaviors, Skills, and Attributes

Source: Gibb (1993) and Shook et. al. (2003), in Heinonen and Poikkijoki (2006), as

cited in Fitriati and Hermiati (2010), p. 263.

Figure 2 presents the process of entrepreneurship that involves behaviors, skills

and attributes. It shows what should an entrepreneurial individual must have. Skills and

attributes are related to the process of entrepreneurship and behaviors of an

entrepreneur.

11
 Figure 3 – Entrepreneurship Skill-Sets

Source: NESTA as cited in Cooney, 2012, p. 7

Figure 3 shows the three skill-sets an individual must have to become an

entrepreneur. These three skill-sets namely entrepreneurship skills, technical skills, and

management skills are essential to handle a business.

12
Entrepreneurial Skills and Characteristics

Hisrich and Peters, as cited in Adeyemo, (2009) defined entrepreneurial skills as

the ability to create something new with value by devoting the necessary time and effort,

assuming the accompanying financial, psychic and social risks, and receiving the

resulting rewards of monetary and personal satisfaction and independence (p. 59). It

means that it must be develop through training, practice and experience. A person must

work to gain the necessary skill like this because it doesn’t depend only on a person’s

fundamental or innate capacities (Adeyemo, 2009).

But until now, there is no clear answer whether entrepreneurs are born or made.

The reason behind this is because for most people, there are natural ‘born’

entrepreneurs. However, there are also researchers who believed that entrepreneurship

is a skill that can be learned. Drucker, as cited in Cooney (2012), stated that

entrepreneurship is a practice and that “most of what you hear about entrepreneurship

is all wrong. It’s not magic; it’s not mysterious; and it has nothing to do with genes. It’s a

discipline and, like any discipline, it can be learned” (p.6). This indicates that education

and training can play a significant key role in economic development. Based on the

traditional understanding, it was argued that the skills needed to obtain this outcome

could be developed through training since entrepreneurship was strongly associated

with the creation of a business. Now, there are more recently perspective about

entrepreneurship. One of these is it is being viewed as a way of thinking and behaving

that is necessary to all parts of society and the economy. Now, it requires a different

approach to training. Various methods are essential to this era because it will help to

develop an individual’s mindset, behavior, skills and capabilities. Researchers named

13
Lichtenstein and Lyons, as cited in Cooney (2012), argued that it is important for service

providers to understand that entrepreneurs come to entrepreneurship with different

levels of skills. Therefore, each entrepreneur needs a different strategy for developing

one’s skills.

Aside from skills, an entrepreneur must also have entrepreneurial characteristics

for handling a business. Willingness to innovate is one of the characteristic of

successful entrepreneurs. They bring new products or processes to the market and are

not afraid to take risk in establishing new products and processes. Meanwhile, an

entrepreneur, according to Kuratko and Hodgetts (as cited in Fitriati and Hermiati,

2010), have common characteristics (attributes) that are often innate in an

entrepreneur, such as commitment, being decisive and having perseverance, initiative

and responsibility, endurance for failure, need for achievement, persistent problem

solving, seeking feedback, internal locus control, tolerance for ambiguity, risk taking

propensity, opportunity orientation, integrity and reliability, high energy level, creativity

and innovativeness, seeking feedback, vision, self-confidence and optimism,

independence, and team building. In accordance with Kuratko and Hodgetts (2001),

Gürol and Atsan, as cited in Fitriati and Hermiati (2010), also presented six

characteristics of entrepreneurship in their study that involves needs for achievement,

control, risk taking, tolerance for ambiguity, innovativeness, and self-confidence.

Moreover, an entrepreneur should have sense of responsibility, prefer medium-risk,

believe in his ability to succeed, desire to get immediate feedback, possess high level

energy, be future oriented, have organizing skills, value achievements higher than

14
money, possess high commitment, and display tolerance for ambiguity, flexibility, and

tenacity. (Zimmerer et al., as cited in Fitriati and Hermiati, 2010) (p. 263-264)

Other successful entrepreneurs also cite some characteristics that are essential

as an entrepreneur. Fores (2010) noted that an entrepreneur must be hands-on and

obsessive about every detail. Meanwhile, Hortaleza (2010) added that an entrepreneur

must " be a keen observer ". Furthermore, Cruz (2010) also stated that originality is not

the same as authenticity but the market will decide on which is more important.

According to Gloria (2010), money is one of the most important resources but being

passionate is more significant. Gapuz (2010) added that self-discovery that leads to

self-mastery is essential to entrepreneurial minds. In addition, Gokongwei (2010) stated

that an entrepreneur should " transform each challenge into an opportunity ". Pineda

(2010) added that applying creativity to meet market needs is a trait of an entrepreneur.

Finally, Ramos (2010) explained that an entrepreneur must understand the system first,

then innovate.

Customer Satisfaction

Customer satisfaction is defined by Jamal and Naser (2002) as a feeling or

judgement by customers towards products or services after using them. In marketing, it

is being reflected and practiced that’s why it is being long perceived as a central notion

and it is also considered as an important goal of all business activities. (Anderson,

Fornell, and Lehmann, 1994).

There are different conceptualizations of customer satisfaction. Two of these are

transaction-specific and cumulative. Transaction- specific satisfaction gives concrete

15
diagnostic information about a certain product or service (Lam et.al., 2004). The other

one is cumulative customer satisfaction. According to Anderson, Fornell, and Lehmann

(1994), it is a general evaluation based on the overall purchase and consumption

experiences with a product or service overtime. Moreover, it is more basic and

applicable than transaction – specific consumer satisfaction in predicting a consumer’s

behavior and the performance of the firm. (Wang and Lo, 2002).

Rampersad (2001) pointed out that it is very evident that customer satisfaction is

important for survival. But according to Dick and Basu (1994), “customers who are

retained may not always be satisfied and satisfied customers may not always be

retained.” This will create a test for the company or a business to conserve high levels

of service, responsiveness of customer expectations and innovations in services and

product (Pizam and Ellis, 1991). Despite of that, Rahman (2004) said that the

customers who are satisfied serves as an asset of an organization who guarantee a

regular cash flow for the business. Furthermore, it is claimed that customers who are

satisfied with a particular product or service offering after consuming them, are possible

to become an avid buyer of a certain product. High customer satisfaction will become

an advantage to the firm because it will surge loyalty for suppliers, will result to reduced

price elasticities, lesser costs of impending transactions, and it will lift reputation for the

firm (Anderson, Fornell, and Lehmann 1994). Also, it is conceived that customer

satisfaction is a good pointer of a firm’s future profits (Chan et al. 2003).

16
Conceptual Framework

Entrepreneurial education is intended to develop people to become entrepreneur

and is designed to increase the knowledge level of a person about business and

entrepreneurship (Garavan and O'Cinneide as cited in Fitriati and Hermiati, 2010). One

of the important process that an entrepreneur need to know in entrepreneurial

education are sources of entrepreneurial learning. Kryp (as cited in Fitriati and Hermiati,

2010) stated that the relationship between entrepreneurship and education should be

stronger to become applicable to the entrepreneurial learning process.

Entrepreneurial Skills
 Technical
 Entrepreneurship
 Management

Sources of
Entrepreneurial
Learning

Customers’ Satisfaction
 Needs
 Wants

Figure 1. Conceptual Framework

17
 Figure 1 shows that the sources of entrepreneurial learning has an effect to

entrepreneurial skills and to the customer's satisfaction. This process will help an

entrepreneur to achieve the necessary information and to practice the set of

entrepreneurial skills (technical, entrepreneurship, and management). These set of

entrepreneurial skills, when executed properly, will help an entrepreneur to satisfy the

customer's satisfaction. In addition, customer's satisfaction includes their needs and

wants. The reason behind this is very obvious since people have to buy their

necessities to survive. If the customers will become satisfied, this will serve as an

advantage to an entrepreneur for his/her to have earn more and it will become a starting

point to become successful.

Definition of Terms

Active - is a source of entrepreneurial learning that refers to “practical learning”

(Edward and Muir, as cited in Fitriati and Hermiati, 2010).

Attributes - also known as characteristics, is related to the process of entrepreneurship

and behaviors of entrepreneurs as well as the skills.

Cumulative customer satisfaction - is an overall evaluation based on the total

purchase and consumption experiences with a product or service overtime (Anderson,

Fornell, and Lehmann 1994),

18
Customer Satisfaction - is generally defined as a feeling or judgement by customers

towards products or services after they have used them (Jamal and Naser, 2002).

Entrepreneur - a person who take risks that are needed in finding business

opportunities and the one who come out with new innovations and new products

(Cervantes, Dancel, Pagoso, and Rillo, 2010, p. 113).

Entrepreneurial Education - refers to activities intended to develop people who want

to try or become entrepreneurs and enhance the understanding and knowledge about

entrepreneurship and business (Garavan and O’Cinneide, as cited in Fitriati and

Hermiati, 2010, p. 262).

Entrepreneurial Skills - the ability to create something new with value by devoting the

necessary time and effort, assuming the accompanying financial, psychic and social

risks, and receiving the resulting rewards of monetary and personal satisfaction and

independence (Hisrich and Peters, as cited in Adeyemo, 2009, p. 59).

Entrepreneurship - is the process of creating a new enterprise (Low and MacMillan, as

cited in Davidsson and Wiklund, 2000, p. 245).

Formal - is a source of entrepreneurial learning that pertains to “theoritical learning”

(Edward and Muir, as cited in Fitriati and Hermiati, 2010).

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Social - is a source of entrepreneurial learning that implies to “learning from others”.

(Edward and Muir, as cited in Fitriati and Hermiati, 2010).

Transaction-specific satisfaction - provides specific diagnostic information about a

particular product or service encounter (Lam et al. 2004).

20