International Conference on Global Education V

“Global Education, Common Wealth, and Cultural Diversity”

PREPARING EDUCATED AND SKILLED

YOUNG ENTREPRENEURS THROUGH BUSINESS EDUCATION

Angela Ayu Wulan Asri, Rini Astuti, Thesa Alif Ravelby

Sekolah Tinggi Ilmu Ekonomi Perdagangan
Email : thesaalifravelby@yahoo.com

ABSTRACT

The vocational college has an important role to prepare young entrepreneurs

because of student’s tendency to be an employee and the Increasing numbers of
unemployment. The mindset of being employee should be deprived. The role of
vocational college is very important in particular to provide enough knowledge in
terms of skill competence to create educated and skilled young entrepreneurs. The
vocational college will be able to provide real-time business venture experience to the
students as well as forming students’ entrepreneurship spirit and attitude through
business education and its curriculum. Optimizing the experience-based business
education (competency based learning) is the key to achieve an expected competency in
working world and to be a though and reliable young entrepreneurs.

Keywords: young entrepreneurs, vocational college, business education

INTRODUCTION
Entrepreneurship education in the university (Entrepreneurship), vocational
college, is notably applied as an effort to develop young generation entrepreneurship.
The vocational college which has mapped in specific competency skills in its
curriculum is irreplaceable role in creating an entrepreneurial culture in Indonesia. The
first reason is the vocational college produces skillful young graduates which are ready
to enter the job market. The second reason is that vocational college is the best place to
carry out human resource development. The last is that vocational college has a specific
curriculum and group of educators who has commitment in developing the potential of
the young generation.
Entrepreneurial learning which equips students to be young entrepreneurs is
closely related to business education, and the more influential thing in this regard is
vocational education. It is due to the emphasis of student assessment on student attitude
and intellectual skill, no longer to theoretical studies. Knowledge or study of theoretical
excess without balance with its application in the life is futile thing to do.
Business education in college includes worker education, distribution and
marketing and understanding of Economics. All are practiced in a real business venture.
Business education can actually be taught at any level of education ranging from

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primary to higher education. In the field of vocational college, business education will
exceptionally contribute in preparing graduate students to be proficient entrepreneurs
and capable of leading a business.
However, it is a fact that the majority of unemployment in Indonesia are college
graduates due to their failure to become employees of a particular company and the
graduates are less interested to be an entrepreneur or self-employment. It can occur
because the lectures pay less attention to the growth of an entrepreneurial attitude and
behavior of learners. The learning orientation is preparing the graduates becoming
prospective employee rather than independent entrepreneur.

DISCUSSION
Character building and Entrepreneurs
Entrepreneurship is an attitude, spirit, and ability to create something new that is
valuable and useful to themselves and others. Entrepreneurship is the mental attitude
and spirit that is always active or creative, powerful, work and unpretentious and effort
in order to increase revenue in their business activities. Someone who has
entrepreneurial character is never satisfied with their achievement. Entrepreneurs are
People who able to exploit any opportunities in developing business with the objective
to improve their life (The Ministry of National Education, 2010). Entrepreneurs are
people who have capability in measuring and viewing the opportunities in business; to
get the resources needed in taking decision, take advantage and having the character and
attitude, and willingness to bring innovative ideas out into the real world creatively in
order to achieve success or increase revenue. According to Peter F. Drucker in
Wardoyo, (2010) entrepreneurship is defined as an ability to create something new and
different. It means that an entrepreneur is able to create something new and different
from the other or better than its predecessor.
Based on the definition above, there are some characteristics found in
entrepreneur. Some of the characteristic of successful entrepreneur can be shown as
following (Kasmir, 2007).
1. Have a clear vision and purpose. It serves to guess target of the purpose and the
step so that it can be known the step to be done by the entrepreneur.

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2. Initiative and always proactive. This is the fundamental characteristics where the
entrepreneur not only waiting but act first and looking for the opportunities as a
pioneer in a variety of activities.
3. Achievement- oriented. The successful entrepreneur always pursues better
performance than previous. Quality of the products, services provided, as well as
costumer satisfaction is a major concern. Every time all the business activities
carried out are evaluated and should be better than before.
4. Dare taking risks. It is the characteristics that should adhere to an entrepreneur
anytime and anywhere, either in cash or time.
5. Hard working. Entrepreneurs have unlimited working hours, where there is a
chance they come. Sometimes an entrepreneur has difficulty to set the time. His
mind is always thinking about the business growth. New ideas always encourage im
to work hard realizing it. All can be solved.
6. Responsible for all the activities being operated, either now or in the future. An
entrepreneur is not only responsible to material but also moral to all parties.
7. Commitment to the various parties is a characteristic that should be adhered to and
must be kept. Commitment in doing something is an obligation that should be
fulfilled and be realized immediately.
8. Maintain and develop good relations with all parties are related to the business
whether directly or not such as customer, government, supplier, and large
communities.
Thomas W. Zimmer, (2005) has identified some characteristics of being
successful entrepreneurship as following (1) desire for responsibility (2) preference for
moderate risks (3) confidence in their ability to succeed (4) desire for immediate
feedback (5) future orientation (6) high level of energy (7) skill at organizing (8) value
of achievement over money
In the other side, the activists of character building suggested nine pillar of it as
following; (1) responsibility (2). Respect (3). Fairness (4). Coirage (5). Honesty (6).
Citizenship (7). Self-discipline 8. Caring 9. Perseverance (Santoso, 2010)
Suyanto, (2010) said that there are nine pillars of character that come from the
universal great value as following 1. Character of respect in God and all his creations; 2.
Independence and responsibility; 3. Honesty, trust, and diplomatically; 4. Respectful

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and polite; 5. Generous, helpful, and cooperative; 6. Confident and hardworking; 7.

Fairness and leadership; 8. Nice and humble; 9. Tolerance, peacefulness, and unity.
Based on the pillars of character education either by activists of education or
Suyanto and characteristics and nature of successful entrepreneur mentioned above
show that character education support the entrepreneurial spirit. Pillars in character
education that should be implemented is in line with the characteristics and the nature of
successful entrepreneurs. Pillars of character education as stated above are identical and
one spirit with the characteristics of successful entrepreneurs. Some pillars of character
education and characteristics or the nature of successful entrepreneur can be shown
briefly on the table 1.
Some pillars of character education and characteristics or the nature of successful
entrepreneur can be shown briefly on the table 1

Table 1. Some features or characters that can be integrated between character

education and nature of entrepreneur.
The pillars of character education The nature of entrepreneur
1) Responsibility 1) Confident
2) Respect 2. Task- oriented and results
3) Fairness 3. Risk takers
4) Coiurage 4. leadership
5) Honesty 5. originality
6) Citizenship 6. Future oriented
7) Self-dicipline 7. Honest and persevering
8) Caring 8. Responsible
9) Perseverance Initiative and proactive

Based on table 1 above, it shows us when character education is implemented

continuously either through formal, informal, or non-formal education, it will be able to
develop the spirit of entrepreneurship. The success of character development affects
entrepreneurial spirit.
The Role of Universities in Fostering Young Entrepreneurs
Entrepreneurship is the development of entrepreneurial behavior within the scope
of larger organizations’ internal in the form of corporate enterprise.
Entrepreneurship arises because of the company's needs in developing the
Business Strategy Unit (SBU) in order to improve its competitive advantage.
If each SBU managed to increase its competitive advantage, then the corporation
will be able to automatically improve its parenting advantage.

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The role of the university, in this case is a vocational college, in motivating

graduates to become young entrepreneurs is a part of the growth of entrepreneurship
driving factor (Yohnson, 2003).The curriculum that is more based on the skills
improvement along with its application in running a business (business education) will
greatly helped the growth of new entrepreneurs.
What can be done by colleges to support and create entrepreneurs, namely
(Ciputra, 2008):
1. Center of assessment and entrepreneurship curriculum learning
2. Entrepreneurship training center for degree candidate
3. Center of business development and implementation of college research products
4. Micro-credit facilities providers
5. Venture capital business development
There are several important reasons why young generation needs to be promoted,
introduced and educated about entrepreneurship (Ciputra, 2008). First, it's been too
many job seekers and too few job creators. Second, the overall growth of entrepreneurs
will contribute in creating broader public welfare. Third, the fact that the Indonesian
natural resources are very abundant and requires entrepreneurs as human resources
capable to work on it for the sake of people, state, and national welfare.
However, field-finding facts indicate rising unemployment by college graduates
and graduates resistance in creating employment through entrepreneurship. At least
there are three things that hinder the development of college graduates’ interest in
entrepreneurship (Motik, 2007). First is the mindset issue. Many fresh graduates still
intends as job seeker, not job creator. Second is insufficient entrepreneurship curriculum
both in quantity and quality. It is reflected in the very small number of college that
provides entrepreneurship courses. Even if there is, the curriculum has not been well
integrated yet.
Curriculum that has not yet been well integrated, for instance, is shown in the
curriculum that emphasizes on knowledge (cognitive) rather than manner and
entrepreneurial skills (attitude).Such condition leaves graduated college students only
get the understanding about business in theoretical level. The lack of integrated link
between the higher education executives with certain kind of business organizations
makes the growth of entrepreneurship interest and skill more difficult. The result is
graduates’ steady high interest in large enterprises, not as an individual aimed at being

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an entrepreneur. That kind of mindset the managers of education providers’ has is

certainly incompatible with the growth of entrepreneurial spirit.
The third factor hampering the graduates’ interest growth in entrepreneurship is
the lack of local and central government’s seriousness in creating new incubator for new
entrepreneurs from college students (young entrepreneurs).It is seen from the lack of
encouragement to college graduates for entrepreneurship, along with the absence of
capital support and market opportunity for new entrepreneurs to set up small and
medium enterprises. One of the hottest issue about small and medium enterprises
(SMEs) is the government support has not yet been optimal in facilitating bureaucratic
procedures and licensing, simplifying and accelerating financial assistance, and the
creation of a favorable business climate to the business world in general. An example is
bank’s condition of granting credit to SMEs for the new entrepreneur is having a
business for two years as a minimum requirement.
Skilled and Educated Young Entrepreneurs through Business Education.
True entrepreneurs have the creative-innovative power; they are opportunity
seekers of all time, willing to take measurable risks and believe that customer care is the
key to success. If the Indonesian young generations have the mindset, character, and
entrepreneurial competence, then they should not be the job hunters and rely on the
government or others
On the college level, if a lecturer wants an entrepreneurial attitudes growth within
the students, the lecturer should be able to see the talents, desires, values and knowledge
of the students, as well as creating a conducive environment to foster students’
entrepreneurial attitudes.
Classical learning systems which has been carried out until now is not fruitful to
create young student entrepreneurs. An update is required within the education system
and learning model that lead to the application of an entrepreneurial culture. The
Objective of education is the active role of students in the learning process, rather than
on the educators. Therefore, the learning model does not include the classical method
anymore, but individual learning models because every student has different potential,
talents, and interests ((DePorter & Hernacki, 2002).
Creating young entrepreneurs, especially in the vocational college is actually
easier than at the university in general.

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In vocational colleges, the developed curriculum provides competencies to the

students in form of specialist skills along with business education that is ready to be
applied in a real business practices. Business education applied at vocational colleges
can be either learning through experience, production, and selling, through the practice
of certain industry efforts, through teaching factory, which is a form of industrial,
education and government institution cooperation that offer specialized learning
environment for students.
Business education contained in learning will be very effective in providing
positive experience for the students to further explore the world of business (www.smu-
net.com, 2004).Learning by experience is gained by student through the production
process. This approach is based on the concept that the student is relatively easy to
understand, has a stronger memory, and easily made up the balance between the
cognitive, psychomotor, and affective.
A cognitive component is the aspect relating to the individual assessment of the
subject or object. The information perceived by the human brain is going through the
process of assimilation with the existing knowledge in the brain.
Correct and good new values are either provide emotion or individuals affective
component. Meanwhile, the motoric components are when the person has a willingness
to act in accordance with what he/she believed. Together these three components will
foster personal attitude (www.ekofeum.or.id).
Entrepreneurs have certain abilities as outlined in their personal attitudes.
According to Meredith (2000), the greatest treasure to maintain the entrepreneurial
ability is positive attitude. Besides, determination, experience, perseverance, and hard
work is the basic requirement to be a successful entrepreneur. This positive mental
attitude is very important.
Successful entrepreneurs are those who enjoy their work and totally dedicated on
what they do. This is positive mental attitude that transforms a job to be more fun,
exciting and gratifying, thus providing a major contribution in achieving great
accomplishments.
Here are the factors that can develop a positive mental attitude (Meredith, 2000):
1. Using mind and thought productively
2. Stay away from negative thoughts and ideas
3. Selecting positive goals.

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4. Dare to develop the ideas and positive goals

5. Confident about their own abilities and always trying to improve themselves.
6. Removing mental burden and oriented towards positive actions.
According Inkeles and Smith (1974), an entrepreneurial attitude is reflected in
qualified modern human characteristics, such as:
1. Open to new experiences
2. Always analyzing social change
3. More realistic on the facts and opinions
4. Future-oriented
5. Have plans
6. Confident
7. Have aspirations
8. Educated and qualified.
People who are open to new experiences would be better prepared to face all the
opportunities, challenges, and social changes. The broader and dynamic view can thrive
faster in the industrial field, which cannot be separated from education background.
Entrepreneur is an innovator whose role is to find combinations of markets, production
methods, resources, organizations and new productions. The characteristics of this
innovator (Soedjono, 1993):
1. Always maintain investments against risks
2. Independent
3. Creative
4. Looking for opportunities
5. Future oriented
Innovative behavior is influenced by several factors, including risk-taking, a
positive attitude, optimism, courage, self-contained and, lead. A true entrepreneur has a
very large internal capacity so that they can find business opportunities in spite of the
difficulties (Ciputra, 2008).True entrepreneurs have the creative-innovative power, they
are opportunity seekers of all time, willing to take measurable risks and believe that
customer service is the key to success
Learning with business education will together form the cognitive, affective and
motoric components and further materialize the entrepreneurial attitude, because the

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student got his business experience here and be prepared to be a reliable business
entrepreneurs.
This approach of learning through experience is very good to help the student’s
habit of observing, measuring, trying, comparing, tasting, motivating, and giving
different treatments in the same market object. From here students can formulate the
feasibility of a business based on the experience they gained. Production-based learning
model is implemented by following the rules that are commonly used in the working
world, especially in terms of the economic calculations, so the nuances of the working
world was in the student learning system.
Students in groups will gain market-oriented learning experience. Each step is
taken into account economically so as to provide benefits optimally. Students cooperate
with other students to manage a specific business. Managerial skill is performed from
planning, managing, directing and evaluating every stage of production in the business,
which is estimating business opportunities through market analysis and feasibility of
sales of products or services, and organize all the resources necessary to start and run a
business including the calculation of capital requirements, allocation of resources
funding, human resources, and optimization of the target market.
By this learning model, students undertake entrepreneurial activities facilitated by
production unit which emphasized on equipping the professional capabilities of
entrepreneurs. Its implementation is essentially an issue of implementation and
application of CBL (competency based learning) concept focusing on matters that can
be done by the students as a result of learning. Competency-based learning is defined as
a combination of knowledge, skills, and attitudes that are applied by the students in the
implementation of tasks in the workplace. In other words, the implementation of
competence is the discipline in managing the business. Working discipline is the key to
success, because discipline will create a character which is firm in the principle,
determined in trying, persistent in truth, and willing to sacrifice for the sake of religion,
while cannot be easily discouraged. Through this approach, it is projected that student
will be able to master the competencies needed so they would be ready to enter or create
jobs

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CONCLUSION
There are many methods that can be done in the student entrepreneurship
formation process. Student entrepreneurship education will be achieved optimally by
business education. By business education, every student will encounter the real
business world market demands, so this experience will positively establish their
entrepreneurial attitude. Business education will sharpen their entrepreneurial instincts
to become educated and skilled young entrepreneurs, especially in the vocational
colleges that have ready-to-use specialist skill curriculum. The emergence of young
entrepreneurs will indirectly contribute to unemployment reduction, vital problem of the
nation.

REFERENCES

Ciputra, 2008. Semiloka Pendidikan 2008.

DePorter, B dan Hernacki, M, 2002. Quantum Learning. Bandung: Kalfa
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Motik, SS, 2007. Penyebab Kegagalan Pendidikan Kewirausahaan.
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Kementerian Pendidikan Nasional. 2010. Panduan Pelatihan Kewirausahaan. Jakarta:
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Yohnson, 2003. Peranan Universitas Dalam Memotivasi Sarjana Menjadi Young
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http://www.wardoyo.staff.gunadarma.ac.id/Downloads/files/5053/Kewirausah
www.smu-net.com
www.ekofeum.or.id
Kasmir. 2007. Kewirausahaan. Jakarta: PT RajaGrafindo Perkasa.
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Santoso. Pendidikan Karakter Wirausaha dalam Program Pendidikan Nonformal.
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