Entrepreneurship and Education: Creating Business Awareness for Students in East Java Indonesia

Entrepreneurship and Education: Creating Business Awareness for Students in East Java Indonesia

Available online at www.sciencedirect.com ScienceDirect Procedia - Social and Behavioral Sciences 177 (2015) 459 – 463 Global Conference on Contempo...

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Available online at www.sciencedirect.com

ScienceDirect Procedia - Social and Behavioral Sciences 177 (2015) 459 – 463

Global Conference on Contemporary Issues in Education, GLOBE-EDU 2014, 12-14 July 2014, Las Vegas, USA

Entrepreneurship and Education: Creating Business Awareness for Students in East Java Indonesia Cholichul Hadia, Ismail Suardi Wekkeb*, Andi Cahayac a University of Airlangga, Jl. Darmawangsa Dalam Selatan, Surabaya 60286, Indonesia Islamic College (STAIN) of Sorong, Jl. Klamono-Sorong, KM. 17 Klablim, Sorong 98417, Indonesia c College of Adminsitration Studies (STIA) of Puangrimaggalatung, Jl. Jend. Urip Sumoharjo, KM. 1,5, Watampone 92713, Indonesia b

Abstract For long time in educational system of Indonesia, it tends to create education is only to transfer of knowledge. Students only have dynamics in teaching and learning. In addition, they didn’t take any opportunity to construct business orientation. Therefore, this paper will explore activities were created to raise students’ awareness in business. The research was conducted in Surabaya, East Java, Indonesia. There are 9 chapters as a handbook for students that discussed on the training. Those papers stimulate discussion and understanding in high school to accelerate their potentials in commerce behaviour. This study was implemented during 2011 to 2013 academic year. In depth interview and participant observation were employed in collecting data. Grounded theory method was applied during investigation. Moreover, qualitative approach was carried in completing this study. This research findings show that programs elaborate students’ need in participating in business and commerce. It can create opportunities to enhance students’ interest. During the program, students tried to collect data and read information as much as possible in extending the conversation. They have chance to perform their abilities and show it on the course after completing assignment. After series meetings students show their attention in entrepreneurship not only in the classroom but also in internship actions. Finally, students need educational program include syllabus and curriculum that integrate entrepreneurships on those classes. ©2015 2014The TheAuthors. Authors. Published Elsevier © Published by by Elsevier Ltd.Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the Scientific Committee of GLOBE-EDU 2014. Peer-review under responsibility of the Scientific Committee of GLOBE-EDU 2014. Keywords: Entrepreneurship, high school, education, business awareness.

1. Introduction Human resource (HR) is the driving force of a nation’s development and is an important factor in facing the era of globalization. An increase in HR quality means an increase in a nation’s competitive edge, which in turn will

* Ismail Suardi Wekke. Tel.: 62-951-322-133 E-mail address: [email protected]

1877-0428 © 2015 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the Scientific Committee of GLOBE-EDU 2014. doi:10.1016/j.sbspro.2015.02.396

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bring about the betterment of various strategic values such as politics, economy, social and culture in the international arena (Tan and Ng, 2006). The quality (HR) is very much needed in driving the development of a district or region (Wekke and Hamid, 2013). A nation’s HR quality can be measured internationally by the Human Development Index (HDI). The United Nation Development Program assesses three aspects of human resource in determining the HDI value, namely average life expectancy as health index, literacy rate and education as education index, and family income as economy index (Jones and Iredale, 2009). The national development in term of education faces all sorts of problems that include: (1) the lack of equal chances of obtaining education; (2) low quality and relevance of education in the job industries; and (3) poor management of education implementation, apart from the fact that there has yet to be a sense of self-sufficience and excellence of knowledge and technology among the academicians (Jones, 2010). Therefore, this research will explore the education and training in enhancing entrepreneur program in East Java. 2. Theoretical Framework Potential is the basic ability to do something that is still hidden, which is waiting to be developed and become an apparent strength. In addition, individual potential in human is the basic strength or ability of a person that is intrinsic, waiting to be realized and become a strength and obvious benefit in human life on earth, thus fitting the purpose of human creation (Li and Liu, 2011). The term skill in Skill Learning is taken from the term skilful, which includes the ability to perform and complete a task efficiently, quickly and accurately. The word efficient covers the perception of a problem faced from various angles such as the character, form, system and behaviour of the object being perceived. In it lies the element of creativity and tenacity to change failure and adversity into triumph, as well as the ability to overcome a problem comprehensively (Chung, 2010). The Potency and Entrepreneurship Program (PEP), with its animation design, is a learning media developed in development world as an application in the form a Tutorial CD. The PEP is an alternative learning media that aims to provide a more interesting lesson in entrepreneurship (Gordon and Jack, 2012). Indeed, with PEP, it is hoped that the process of learning entrepreneurship is not limited to the classroom but can also be done outside of class, whenever and wherever. The PEP requires a supporting device, namely a computer. The computer has various functions in education and training. It acts as the manager in the learning process known as Computer Managed Instructions (CMI). CMI is used as an aid to educators in performing the ever increasing number of administrative tasks such as summarization of students’ performance data, book database/e-library, school administrative activities such as payment records, receipts etc. (Lubis and Wekke, 2009). In addition, the computer also acts as a supplementary aid in learning known as Computer Assisted Instructions. It involves the direct use of computers by students to learn the contents of a lesson, to do exercises and test to keep track of their progress. Animated design of learning is one of the developments of software that profited from computer based media. The forms of interaction that can be applied are drill and practice, tutorials, games, simulations, discovery and problem solving. For this particular animation design, the applied interaction is drill and practice, tutorial and simulation. In relation to children and their scope of learning according to constructivism, Fayolle (2013) presented the following characteristics: (1) learners are not to be perceived as something that is passive but with a purpose instead, (2) learn to consider as much as possible the involvement of learners, (3) knowledge is not something that comes from outside but it is constructed personally, (4) learning is not a transmission of knowledge but it involves the organization of situations in class, (5) the curriculum is not just for learning but it comes together in a set of learning, materials and resource. The view of children among the constructivist is more expressively developed from Piaget cognitive learning theory, whereby it cites that knowledge is developed in the minds of children through assimilation and accommodation fitting the schematics they possess. Learning is an active process to expand the schematics until all related knowledge is liken to a spider’s web and not just organized in a hierarchy (Rizo, Iñesta and Lemström, 2011). Discoveries in learning are more easily obtained in one’s sociocultural context (Mosey, Noke and Binks, 2012). In another discussion, Paço and Palinhas (2011) mentioned that the content of constructivism is that the interaction between internal and external aspects is emphasized on the social environment of learning. Implications of the constructivist learning theory in children’s education (Grüner and Neuberger, 2006) are as the following: (1) the purpose of education according to constructivism is to produce individuals or children that possess the ability to

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solve every problem presented, (2) the curriculum is planned so that it can produce a situation that makes it possible for knowledge and skill to be constructed by those involved in learning. 3. Research Setting These are the challenges in education that has to be overcome by the government, which obviously affects the nation’s workforce. The current limited job opportunities have caused the unemployment rate to hit the roof. Based on data provided by Central Bureau of Statistics in 2008, the open unemployment rate has reached a straggering number of 11.1 million. In the meantime, unemployment that involved graduate and non-graduate of elementary school (SD) were at 3.5 million, junior high school (SMP) consisted of 2.9 million, senior high school (SMA) at 4 million, academy/diploma level at 297 thousand and university level at 376 The poor ability to adapt of formal school graduates in satisfying the job market demands is increasingly coming into question in the effort to overcome unemployment. Furthermore, out of 220 million of the Indonesian population, only about 450 thousand or 0.2% are entrepreneurs. The biggest concern is that the highest percentage of the unemployed belongs to the category of SMA graduates. We are well aware that SMA students are not provided with special skills to survive or be self-sufficient in entrepreneurship. Moreover, MA and private SMA students have no clear direction of their future. Even more troubling is that the SMK students are not produced well enough to be creators of jobs but they are job seekers instead. Is it not ironic? These are today’s challenges that we need to overcome and solve. From one perspective, there has yet to be equality in education, while from another, the rise of unemployment instigated by questionable quality of school graduates. Additionally, it has been cited that the minimum percentage of entrepreneurs in a country should be 2% of the entire population. As for Indonesia, the percentage barely reaches 0.08%, which means that Indonesia still requires more than 4 million entrepreneurs, compared to Singapore with a percentage of 7% from its 4 million population (Jones and Matlay, 2011). Furthermore, challenges related to unemployment and entrepreneurial skill improvement (creating job disciplines), the author would like to propose an alternative solution by developing an applicative program that is easy to learn by the name of Potency and Entrepreneurship Program (PEP). The PEP application includes several levels, namely planning, organization, implementation and evaluation. The Potency and Entrepreneurship Program is a program to identify the potential of SMA students in entrepreneurship, which starts from initial mapping of entrepreneurial potential, entrepreneurship training, continuous development of students that is geared toward entrepreneuring activities with a creative and innovative learning pattern, and suitable with local potentials, in the form of practical Tutorial CD so that it can serve as an easy guide for students to benefit from. 4. Findings and Discussion Indonesia is among the developing countries with a relatively large population. Every year there is an increase in the workforce by new graduates from educational institutions such as SMA, SMK and even Colleges. These graduates ‘await’ job vacancies suitable with their skills. However, a problem arises that is the staggering number of unemployment due to the majority of these graduates failing to secure a job. Ironically, just when SMA graduates are at a productive age, they have no idea what they are capable of doing with the potential that they possess. They will, in turn, feel insecure and unappreciated that even after passing SMA, they just follow their peers without even knowing their direction in life. Another worrying matter is the role of parents in laying expectations for their children after SMA – expecting them to do this and that, to become that and this. There have just been too many cases where parents’ expectations are not the same with their children’s expectations. The child may know him/herself best but their parents surely wants the best for them, even if they do not share the same interest or aware of their child’s ability. In addition to the cluelessness of SMA students of what they can do with the potential they possess because of having followed the government’s education program and ideals set by parents, a SMA student may just ‘surrender’ and just be going through the motions that it is truly rare to find an extraordinary SMA graduate, who is fully aware of his/her potential and develops it, and later becoming a true entrepreneur. Even rarer is to find a student still in SMA being aware of their potentials and developing it to the point they will become an independent, self-sufficient student.

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All this while, some of us may feel that by attending formal education, we will undoubtedly obtain better jobs (compared to no jobs). The reality, however, is different. The younger generation between the age of 15 and 24 years represents the largest group of unemployed workforce in Indonesia. In Addition, we attempt to come up with an alternative solution as an effort to lessen the percentage of unemployment. The solution is the Potency and Entrepreneurship Program (PEP), which provides training to develop entrepreneurial potential among SMA students. The program comes in a practical Tutorial CD that includes comprehensive explanation and method of PEP application. It is the author’s hope that the Potency and Entrepreneurship Program (PEP) can be realized and implemented in SMA students’ learning, which will become catalytic in generating outstanding skills based on entrepreneurship will ultimately improve the quality of SMA graduates and give an added value to SMA itself, whereby it is not merely theory-oriented but lessons learnt at SMA are practical. With that, society will no longer look down upon graduates of the school. No less important is that SMA graduates will no longer be just aiming to further their studies in college but to find a job upon graduating. With the application of PEP at this school, questions regarding the effectiveness and competency of Indonesian education will be answered, and also the possibility to produce more new entrepreneurs and lessen the unemployment rate will be wide opened. 5. Theoritical Construction In the working world, training is an activity that is planned by the company or institution to facilitate the learning process of their employees, in order to achieve their job competency (Ismail, and Ahmad, 2013). Competency includes knowledge, skills and behavior deemed important to achieve high job performance. The purpose of training is so that employees can master the knowledge, skills and behavior provided in the training program, so much so that it can be applied in their daily work activities. This means that training is, in actual fact, a learning process (Kabir, 2012). According to Cornwall, and Dennis Jr, (2012), the training philosophy covers: (1) Strategic approach to training. The training strategy is a long term perspective related to skills, knowledge and level of employee’s competency required by the company/organization. (2) Integrated. Training programs planned should be integrated with all departments of the organization. As such, the effectiveness of training can be used to not only support one department or between departments but also all departments in the organization. (3) Relevant. Training should be relevant to the problems identified and to the organization’s requirements, as well as those involved. (4) Problem based. Training should be based on the effort to solve a problem within the organization (Johansen, 2013). In other words, it is an effort to fill in the gap between what an employee can do and what they can do in the future. A problem can be in a negative form such as a weakness that needs to be improved or it can be in a positive form such as a requirement to expand new skills or knowledge to fulfill future demands (Wekke, and Lubis, 2008). (5) Actionoriented. Ideally, training should emphasize on programs that encourage people to take action. Skills obtained from training should be feasible in everyday task. (6) Performance-related. (7) The philosophy on performance-related training includes the relevance of training in specific performance demands. (8) Continuous (Marques, Ferreira, Gomes, and Rodrigues, 2012). The philosophy on continuity states hat training is not only aimed at occasional points in the career of an employee. Training is a continuous process, with an emphasis that an employee should always be required to learn. 6. Conclusion What can be concluded here is that: (1).The quality of Senior High School (SMA) students, especially those that do not further their studies, came into question and ultimately, is looked down upon by society and affects equality in job opportunity. (2). The application of Potency and Entrepreneurship Program (PEP) consisted of several levels including planning, organization, implementation and evaluation. The PEP is a program to identify SMA students’ entrepreneurial potential, which comprises of mapping entrepreneurship potential, entrepreneurship training, continuous student development geared toward entrepreneurial activities with a creative and innovative learning pattern, and suitable with local potentials, presented in the form of a practical Tutorial CD.

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