CHAPTER 2

REVIEW OF RELATED LITERATURE

This chapter contains an overview of some literature related to the entrepreneurial knowledge and
entrepreneurial intention of Accountancy, Business, and Management (ABM) Students.

Entrepreneurship

Entrepreneurship is defined as the creation of new things from existing values over some period
of time, and financial resources to make a profit and gain self-satisfaction. (Mardia et al., 2021).
Furthermore, it seizes the opportunity to combine new resources that influence the market operated by
entrepreneurs (Abdullah & Azam, 2020). From ancient times to the present, entrepreneurship has been
a vital part of human life, providing a source of livelihood and income. Entrepreneurship and its
relationship with education and specifically higher education is a very interesting research subject
(Gubik & Farkas, 2019). The positive impact of entrepreneurship education on individuals’ intention to
be self-employed was studied in a plethora of studies ( Xanthopoulou & Tsaknis, 2021). These studies to
a large extent reported findings supportive of the hypothesis that entrepreneurship education improved
people's opinions of their abilities to start new enterprises. In general, students who had received
entrepreneurship education exhibited higher intention in starting a new venture or start-up. Puni et al.
(2017) discovered that acquiring entrepreneurship knowledge, and recognizing opportunities, as
elements of entrepreneurship education, had a beneficial impact on entrepreneurial intention and self-
efficacy.

As reported by Bhagat (2021), the main goal of entrepreneurship education is to provide students
with important life skills that will improve their capacity for employment in the real world. Many training
institutes employ entrepreneurship education selectively, focusing on vital topics like sales training,
marketing enterprise and eCommerce. Collaboration and teamwork are encouraged by learning about
entrepreneurship. It encourages a mentality where students collaborate with one another rather than
simply compete with one another in the classroom.

Entrepreneurial Knowledge

Abun, et al. (2019) states that it is undeniable that knowledge entrepreneurship is necessary due to its
crucial economy's importance. The government and many others have noted entrepreneurship, in
response to the increasingly complicated world we live in, which demands that all people for societal
groups to increasingly possess entrepreneurial skills. Additionally, in preparing for entrepreneurial
practice, students will have an interest in entrepreneurship. Interest in entrepreneurship is influenced
by several factors. From these several factors, researchers are interested in entrepreneurial knowledge.
The results of the study indicate that there is a significant effect of entrepreneurial knowledge on
entrepreneurial interest (Setyastanto et al., 2022). Furthermore, according to the study's findings,
entrepreneurial intentions are positively impacted by both environmental support and entrepreneurial
knowledge. Therefore, it can be concluded that student entrepreneurship goals are positively impacted
by the environment's knowledge and encouragement (Miswanto et al., 2020). Moreover, the study's
findings showed that students' opinions toward choosing entrepreneurship over corporate employment
are negatively impacted by entrepreneurial knowledge. Additionally, self-efficacy and social norms,
which influence entrepreneurial intention, are unaffected by entrepreneurial knowledge. Interestingly,
the research likewise found no relationship between students' self-efficacy and entrepreneurial
knowledge (Alkhalaf, et al., 2022).

Entrepreneurial Intention

According to Donaldson (2019), entrepreneurial intentions are a widely used theoretical concept
that is used to explain how a person moves from distal thinking to more proximal entrepreneurial
action. The necessity of fostering initial wants in order to help them evolve into more concrete personal,
societal, and economic worth is now being recognized by a sizable body of diverse and broad literature
in this field. A constant need for structural ordering that can help to both revitalize earlier attempts at
organization and inspire new and creative contributions to improve the subject goes hand in hand with
the increase in research attention. Progress will be more effective if it can be effectively built on a clearly
accepted common goal rather than various contributions. In order to provide a contemporary thematic
overview of entrepreneurial intention research, this article has employed a number of systematic
techniques while also taking into account earlier classification efforts. However, according to Dao et al.
(2021), students studying engineering and business are affected by their academic majors in terms of
their entrepreneurial intentions. By merging the theory of planned behavior, perceived risks, academic
majors, and student personalities, the research model was created as an extension of the theory of
planned behavior (TPB). The main findings showed that the relationship in the theory of planned
behavior model was accepted, except for the effect of subjective norms on entrepreneurial intentions.
Perceived risks have negative effects on perceived behavioral control, and male engineering students
have higher entrepreneurial intentions than female students, but this result was not found in business
students. Engineering students exhibit stronger entrepreneurial intentions than business students.
There are no variations in the entrepreneurial intentions of students from rural and urban areas. The
study also contributes to policy discussions that broaden the present understanding of the significance
of entrepreneurial students to society as well as the part that academic majors students choose at
universities play in the entrepreneurial process.

The Relationship Between Entrepreneurial Knowledge and Entrepreneurial Intention

Entrepreneurial activities are the backbone of economies all over the world and play a significant role in
creating new ventures. Yousaf et al. (2022) discovered that the students' entrepreneurial mindset and
intention were positively impacted by the entrepreneurial education. Moreover, the findings showed
that culture acts as a moderator, making the relationship between entrepreneurial education and
attitude even more important. With the increasing trend of entrepreneurial studies, many new jobs
have been created because an area or nation offers opportunities for the community to develop
entrepreneurial activities, particularly for students in the higher learning educational environment. It
shows that the entrepreneurial ambitions of students at educational institutions are strengthened by
entrepreneurial education, entrepreneurial mindset, and entrepreneurial culture to become
entrepreneurs in the future. Furthermore, a study by Abun et al. (2019) found that the entrepreneurial
knowledge and entrepreneurial intention of the students are high and it is also found that there is a
significant correlation between entrepreneurial knowledge and entrepreneurial intentions of the
students. In addition, a study by Kong et al. (2022) examined the moderating effect of business role
models and fear of failure on the relationship between entrepreneurial intention and behavior. The
experimental instrument included four scales: entrepreneurial intention, entrepreneurial behavior,
failure fear, and business role model. The results showed that: (1) entrepreneurial intention influenced
entrepreneurial behavior positively; (2) fear of failure weakened the relationship between
entrepreneurial intention and action; and (3) the moderating effect of business role models on
entrepreneurial intention and behavior was confirmed.

Synthesis

Entrepreneurship has the ability to transform the way we work and live. If entrepreneurial ventures
succeed, it has the potential to significantly improve our standard of living (Baijal, 2016). The
researchers concluded that there is a significant relationship between entrepreneurial knowledge and
entrepreneurial intention. Similar to the literature of Abun et al. (2019) and Kong et al. (2022), it stated
that there is a significant correlation between entrepreneurial knowledge and entrepreneurial
intentions of the students. The results of other related literature motivated the researchers to conduct
other similar studies using other variables not found in this study.