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Public support and administration barriers towards entrepreneurial intentions of students in Poland

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  • Krakow University of Economics

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The extant literature on entrepreneurial intentions has examined the relationship between human entrepreneurial activity and entrepreneurship policy, especially in terms of institutional environment and institutionalism or the role of supporting policies. The aim of this article is to empirically verify the impact of perceived public support and institutional barriers on students' entrepreneurial intentions. The article uses the quantitative approach typical for social sciences. Based on a literature review, two hypotheses were retrieved, and then empirically verified. The primary tool was a survey conducted on a relatively large sample of 719 students of seven different universities from Krakow (Poland). The multiple regression was applied as a leading tool for hypotheses verification. The results confirmed that positively perceived public support in favour of entrepreneurship strengthens the young generation's entrepreneurial intentions to start their own business, while negatively perceived administration barriers against entrepreneurship blunts the young generation's entrepreneurial intentions to start their own business. Therefore, this article's contribution to extant literature is the replication of research from well-advanced economies in the discussed scope and its transfer to the realities in Poland. Furthermore, the contribution of this article is a verification of the postulated negative perception of institutional barriers, and not just obstacles related to obtaining financial support, as it is the case in various articles.
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ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 36/2021 67
Public support and administration barriers towards
entrepreneurial intentions of students in Poland
Krzysztof WACH
1
, Svitlana BILAN
2
Abstract: The extant literature on entrepreneurial intentions has examined the relationship
between human entrepreneurial activity and entrepreneurship policy, especially in terms of
institutional environment and institutionalism or the role of supporting policies. The aim of
this article is to empirically verify the impact of perceived public support and institutional
barriers on students' entrepreneurial intentions. The article uses the quantitative approach
typical for social sciences. Based on a literature review, two hypotheses were retrieved,
and then empirically verified. The primary tool was a survey conducted on a relatively
large sample of 719 students of seven different universities from Krakow (Poland). The
multiple regression was applied as a leading tool for hypotheses verification. The results
confirmed that positively perceived public support in favour of entrepreneurship
strengthens the young generation's entrepreneurial intentions to start their own business,
while negatively perceived administration barriers against entrepreneurship blunts the
young generation's entrepreneurial intentions to start their own business. Therefore, this
article's contribution to extant literature is the replication of research from well-advanced
economies in the discussed scope and its transfer to the realities in Poland. Furthermore,
the contribution of this article is a verification of the postulated negative perception of
institutional barriers, and not just obstacles related to obtaining financial support, as it is
the case in various articles.
Keywords: public support, administration barriers, institutional barriers, entrepreneurship
education, entrepreneurship, entrepreneurial intentions
JEL: L26, L38, D73
DOI: 10.24818/amp/2021.36-04
Introduction
Although derived from social psychology, intention-based models are
successfully applied in management research, particularly in entrepreneurship
studies. On their basis, we can predict future behaviour, which is essential both to
1
Professor, PhD, Cracow University of Economics, Kraków, Poland, e-mail: wachk
@uek.krakow.pl; University of Social Sciences, Łódź, Poland, e-mail: kwach@san.edu.pl
2
PhD, University of Economics and Innovation, Lublin, Poland, e-mail: s.bilan@csr-
pub.eu
Wach, K., Bilan, S. (2021). Public support and administration barriers towards
entrepreneurial intentions of students in Poland. Administratie si Management Public, 36,
67-80. DOI: 10.24818/amp/2021.36-04
Public support and administration barriers towards entrepreneurial intentions
of students in Poland
68 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 36/2021
managers, economic analysts, and decision-makers responsible for shaping an
appropriate system of support for entrepreneurship, including its important
element, namely entrepreneurship education (Bartha et al., 2018; Wach &
Głodowska, 2019) whose main task is to shape proper entrepreneurial attitudes. An
appropriate education system stimulating entrepreneurship is significant for
economic practice (Gubik & Bartha, 2018), the European Union has recommended
such solutions has recommended such solutions for many years, but also in Poland
the implementation of those recommendations is becoming more and more critical,
not only at economics universities but also in non-economic fields of study
(Płaziak & Rachwał, 2014), especially in the aspect of the internationalization and
Europeanization of Polish universities (Dobbins & Kwiek, 2017). In this context,
Sułkowski et al. (2020) notice the necessity for the adequate transformation of
Polish universities, especially in the context of demographic changes (Sułkowski et
al. 2019). One of university's tasks is to shape entrepreneurial attitudes, inspire to
think creatively and stimulate entrepreneurial intentions among university students
(Kuehn, 2008). As Nowiński et al. (2020) emphasize, in shaping entrepreneurial
attitudes not only education in the area of entrepreneurship is important but also the
perception of public support and barriers. Wannamakok et al. (2020) based on their
empirical study, observed that each dimension of the institutional environment
plays a decisive role in Estonian university 'students' entrepreneurial intentions.
The aim of the article is the empirical verification of the impact of the
perceived public support and administration barriers on entrepreneurial intentions
of students. The primary tool was a survey conducted among students (n = 719) of
a few universities from Krakow (Poland). The survey results were subject to
statistical processing with the use of the Statistica® software.
1. Theoretical background and literature review
In order to understand what mechanisms govern entrepreneurial intentions
of individuals, it is worth using a well-established psychological and sociological
concept dating back to mid-1980s the theory of planned behaviour (TPB),
developed by Ajzen (1991). According to this theory, intentions to perform
behaviour depend on three antecedents (i) what attitude we have towards this
behaviour, (ii) perceived behavioural control, that is feasibility, and (iii) social
norms which shape the perception of this behaviour. The first two factors, namely
the attitude towards given behaviour, or rather results related to that behaviour, and
the perception of social norms towards this behaviour, reflect the purpose and
desire for the occurrence of such behaviour. The third factor reflects the personal
perception of the possibility to control given behaviour and is identical to the sense
of self-efficacy. However, it is worth expanding this model with external factors
inherent to the external environment (Figure 1) and to separate attitude towards risk
from the general attitude towards entrepreneurship, as risk-taking is one of the key
features of entrepreneurial orientation (Głodowska et al., 2019; Kusa, 2020).
Although numerous times applied and tested, but this model is not conclusive all
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ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 36/2021 69
read the globe, and some researchers noted different relations (Zamrudi & Yulianti,
2020; Udayanan, 2019).
Figure 1. The extended theory of planned behaviour by Icek Ajzen
External factors
(independent and control variables)
Attitude towards
entrepreneurship
Subjective
norms
Entrepreneurial
self-efficacy
Entrepreneurial
intentions
Attitude towards
risk
Entrepreneurship Education
Startup as
entrepreneurial
activity
Personal and behavioural factors
(control variables)
(Source: developed from Ajzen, 1991, p. 182)
This general concept of the intention to perform given behaviour was
applied to analyze entrepreneurial intentions which are defined by Thompson
(2009, p. 367) as the realized by oneself conviction about setting up a business
venture and conscious planning to initiate or create this process in the future.
Krueger (1993) defines entrepreneurial intentions similarly, as the propensity and
possessing potential to start one's business activity in the near future. Koçoğlu and
Hassan (2013) emphasize that while entrepreneurial intentions depend on those
three mentioned variables (entrepreneurial attitude, subjective norms, perceived
behaviour control), they also depend on personality traits, mainly on how an
individual perceives his or her conditions and capabilities leading to the desired
state (Azjen, 1991). Byabashaija and Katono (2011), as well as Bae at al. (2014)
stress an essential role of situational factors (such as the ability to employ or the
ability to make sacrifices and commitments) and characterological and personality
traits (purposefulness, feasibility, efficacy) in stimulating entrepreneurial intentions
and their transformation into specific behaviour - the establishment of one's own
business activity (Tamulevičienė & Androniceanu, 2020). It can be confirmed by
results obtained in research of discrimination in employment it is higher for the
young employees and often has form of limited possibilities of successful career
planning and decent remuneration (Bilan et al., 2020). Therefore, in countries with
essential barriers to start own business and narrowed perspectives for successful
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70 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 36/2021
employment growing migrants’ outflows of the youth are observed. Appropriate
institutional support in the receiving countries becomes an essential driver for
youth migration intentions (Mishchuk et al., 2019).
To mitigate the problem of youth human capital effective usage and to
increase the entrepreneurial aspiration of students, entrepreneurship course in the
universities have risen. As it proved by Eyel et al. (2020), the effectiveness of these
courses differs for public university students and foundation university students,
however, the tendency for increase of entrepreneurial incentives and values is
common for all groups engaged in the courses. No doubts, entrepreneurial
aspiration can significantly differ depending on social conditions and family
experience. Kumar et al. (2018) argue that attitudes towards business establishing
have links with income of household, years of schooling and even experience of
unemployment of household heads. While in this research gender differences have
not been found, other researchers stress that male students declared a statistically
higher interest in entrepreneurial activity as compared to female students (Çera et
al., 2018). These findings are important to design study programs in
entrepreneurship more sensitive to gender needs in order to increase
entrepreneurial participation.
Recent empirical evidence also linked leadership with the entrepreneurial
intentions (Fauzi et al., 2021). Psychological profiles and personal traits are
important not only for potential entrepreneurs, but also for nascent entrepreneurs
and mature entrepreneurs (Wach & Głodowska, 2021; Basuki et al. 2021; Reissová
et al., 2020). Wardana et al. (2021) emphasize that entrepreneurial culture, as a part
of widely understood socio-cultural environment in a particular country,
successfully affects students’ intention to start their own business.
The second, equally often quoted theoretical conceptualization of
entrepreneurial intentions is the entrepreneurial event model (EEM), very often
called the SEE concept (Shapero's entrepreneurial event) whose foundations were
created by Shapero (1975), who then developed it with his collaborators (Shapero
& Sokol, 1982), although also Krueger (1993) contributed to its development
introducing external factors, thus it is sometimes called the Shapero-Krueger model
(Krueger et al., 2000). Shapero model assumes that human activity is guided by
inertia until an action disturbing the balance occurs and is most often negative (e.g.
the loss of a job). Such impulses motivate to act (Heuer, 2012). In addition to the
propensity to act, also the credibility of behaviour is important, understood
dychotomically as its desirability and feasibility. The factors shape entrepreneurial
intentions. Entrepreneurial intentions in the model are shaped in a broader context,
since it is necessary to consider a number of personality and behavioural traits
(Elfving et al.,2009).
Schlaegel and Koenig (2013, p. 292) emphasize that "TPB and SEE are
two theories most competing with each other, commonly tested empirically in
order to explain entrepreneurial intentions (EI)", which is also stressed by the
co-creator of the other concept himself (Krueger et al. 2000). Models based on
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ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 36/2021 71
intentions work well not only in social psychology but also in marketing and
management (Krueger et al., 2000, p. 416).
Karyaningsih et al. (2020) proved that entrepreneurship education impacts
entrepreneurial mindsets and entrepreneurial intentions. Based on the recognized
international GUESSS survey Gubik and Bartha (2018) observed that educational
institutions in all four Visegrad countries support analytical skills, but not social
skills for entrepreneurship. Hassan et al. (2021) proved that the empowering
students during their higher education has a positive impact on their entrepreneurial
intentions. Kurczewska et al. (2020) observed that graduates' entrepreneurial
success is influenced not only by the academic knowledge itself but also by
practical skills gained due to cooperation between universities and employers and
entrepreneurs. On the other hand, Wagner and Sternberg (2004) underline the role
of regional policy and regional milieu in shaping entrepreneurial intentions in
Germany (based on REM surveys), while Nowiński et al. (2020) underscore that
the intentions are shaped by universities and widely understood institutional
environment. As there is not a lot of empirical evidence linking the perceived
public support and perceived administration barriers, this is why we would like to
combine entrepreneurial intentions with these institutional issues. Cong Doanh
(2021) observed empirically in Vietnam very interesting dimensional impact of
institutional environment on entrepreneurial intentions, which are rooted in cultural
issues, and what is more, observed different influence of different dimensions of
the environment (regulative, normative and cognitive environment) as well as the
important role of social capital in the environment. Baharuddin and Ab Rahman
(2021) proved similar relations among students in Indonesia.
2. Hypothesis development and research methodology
The existing literature on entrepreneurial intentions has studied the
relationship between an entrepreneurial activity of a human being an and the
entrepreneurship policy, particularly in the institutional approach (Autio & Fu,
2015; Simón-Moya et al., 2014). Some research focuses on showing the role of
policies supporting entrepreneurial intentions (Román et al., 2013; Nowiński et al.,
2020). Van der Zwan et al. (2016) observed that the perception of public support
determined entrepreneurial intentions. Therefore, on that basis, the following
hypothesis should be adopted:
H1: Perceived public support for entrepreneurship strengthens the young
generation's entrepreneurial intentions to start their own business.
Schwarz et al. (2009) postulate that the perceived barriers to
entrepreneurship considerably diminishes the entrepreneurial intentions of people
who consider establishing their own business. The quoted literature of the subject
inclines to adopt the following research hypothesis:
H2: Perceived administration barriers to entrepreneurship blunt entrepreneurial
intentions of the young generation to start their own business.
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The empirical research aimed to implement Ajzen's theory of planned
behaviour in a group of students in the Polish reality. It is one of the most
frequently applied concepts when analysing behavioural intentions (Rantanen et
al., 2015; Wach & Wojciechowski, 2016). For the empirical research the
quantitative approach was used. As the leading research tool a survey among
Polish and foreign students was conducted. The survey questionnaire
(Entrepreneurial Intention Questionnaire, EIQ) was divided into six parts, four of
which concerned independent variables (entrepreneurial attitude, attitude towards
risk, subjective norms, perceived control over behaviour), one dependent variable
(entrepreneurial intentions), whereas the last one included the basic characteristics
of the respondent, which served as control variables. The first six parts included
from 4 to 7 questions evaluated on the 7-point Likert scale, which were then
standardized and given the form of quasi-continuous variables through building
aggregated indices. The survey's individual parts were determined in accordance
with the developed research model (Figure 2) based on Ajzen's theory of planned
behaviour (1991, 2011), extending it with all the control variables and one
explanatory variable.
Figure 2. The research model for the hypotheses verification
External factors
(independent variables)
Perceived
public
support
Perceived
administration
barriers
Entrepreneurial
intentions
Personal and behavioural factors
(control variables)
(Source: own study)
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ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 36/2021 73
The EIQ survey was conducted in seven different universities in Krakow
(out of 21 public and private universities operating in this truly academic city),
including: (i) Cracow University of Economics, (ii) Jagiellonian University, (iii)
Pedagogical University of Cracow, (iv) AGH University of Science and
Technology, (v) Cracow University of Technology, (vi) University of Agriculture
in Krakow, (vii) Jesuit University Ignatianum in Krakow.
Women constituted 66.8%, and men only 33.2% of the research sample.
By age, the research sample was dominated by people aged 20-21 (43.6%) and 22-
23 (58.9%), only 9.7% of students were below 20, and 8% were above 25. The
majority of students were from bigger cities (37.2%), and 26.1% were from smaller
towns, whereas 36.1% were from the country. The surveyed students studied
mostly at the bachelor level (67%), but also at master's level (25.9%), while PhD
students constituted only 7.1% of the respondents.
The results of the survey were subject to statistical processing with the use
of the Statistica® software. In order to verify the assumed hypotheses, multiple
regression was applied, which enables to show relations between a few explanatory
variables and one dependent variable (entrepreneurial intentions), to be more exact,
the impact (force, direction if it is significant) of the selected factors on the
dependent variable.
3. Empirical findings and discussion
For the analysis, we used one dependent variable ("entrepreneurial
intentions") and two explanatory variables (the first one was "perceived public
support", and the other one was "perceived administration barriers"). At the level of
significance α = 0.000, we find that selected determinants together have a
significant impact on the surveyed students' entrepreneurial intentions (Table 1).
The assessment of the b parameter with the "perceived public support" variable
equal to (+) 0.333 means that the positively perceived public support favoured the
entrepreneurial intentions of students. The p-value determined for the t test statistic
indicates that this variable has a statistically significant impact on the chances of
entrepreneurial intentions, which means that the hypotheses H1 was confirmed.
The assessment of the parameter b with the variable "perceived institutional
barriers" equal to (-) 0.163 means that negatively perceived barriers in the
institutional environment were accompanied by reduction of entrepreneurial
intentions of students. The p-value means statistically significant effects, which
means that we can confirm the hypothesis H2. The disadvantage of the calculations
is its estimation, which explains changes in the dependent variable only in 15.1%.
When building Model 2 for estimations we applied three basic variables of
the theory of planned behaviour of Ajzen (subjunctive norms, attitude toward
behaviour and self-efficiency as perceived behavioural control) and extended the
model of two new variables, namely perceived public support and perceived
administration barriers, which allowed to explain changes in the depended variable
in 65.3% when we treat these five variables together.
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Table 1. The summary of the regression of the "entrepreneurial intentions"
dependent variable among the surveyed students
R= 0.388 R^2= 0.151 adjusted R2 = 0.148
F(2.716)=63.526 p<0.0000 Standard error of estimation: 0.332
b*
Std. Err.
b*
b
Std. Err.
b
t(716)
p
3.346
0.315
10.615
0.000
0.332
0.034
0.464
0.048
9.593
0.000
-0.163
0.034
-0.244
0.052
-4.699
0.000
R= 0.808 R^2= 0.653 Adjusted R2= 0.650
F(5,712)=268.18 p<0,0000 Standard error of estimation: 0.853
b*
Std. Err.
b*
b
Std. Err.
b
t(716)
p
-0.355
0.260
-1.366
0.172
0.016
0.024
0.020
0.030
0.681
0.495
0.726
0.025
0.815
0.029
28.046
0.000
0.095
0.026
0.123
0.034
3.615
0.000
0.052
0.024
0.073
0.034
2.124
0.033
-0.038
0.022
-0.056
0.034
-1.669
0.095
(Source: own study)
The positive impact of the positive perception of public support on
students' entrepreneurial intentions is accordant with findings from other countries
of the world (van der Zwan et al., 2016; Román et al., 2013; Nowiński et al.,
2020), but also with research into widely understood institutional environment for
entrepreneurship (Autio & Fu, 2015; Simón-Moya et al., 2014). What Schwarz et
al. (2009) postulate only theoretically has been confirmed in this article, therefore
negative barriers to the development of entrepreneurship significantly diminish
entrepreneurial intentions of people who consider the establishment of their own
business.
Moreover, in our empirical study, a number of control variables were used,
such as the respondent's gender and age, level of studies, place of residence.
Inferring on the significance level 0.01 we can say that any experience in family
business in one's own household contributed to higher entrepreneurial intentions
among the studied students. This is line with the majority of results round the
globe, but there are few exceptions with a contrary confirmation (Moussa &
Kerkeni, 2021).
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ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 36/2021 75
The empirical research was conducted before the coronavirus pandemic.
The Covid-19 disease spreading all over Europe throughout 2020, and now, in
2021, totally changes the situation, and Androniceanu (2020) noticed it also caused
major changes in EU policies. Due to coronavirus pandemic, one's own business
activity is undoubtedly less popular nowadays, thus the studied entrepreneurial
intentions would obtain lower values in the survey.
Tartavulea et al. (2020), based on the research conducted during the first
wave of Covid-19 pandemic in as many as 13 European countries, proved that it
has rather a moderate effect on education. In this context, public aid and support
for e-learning, in technical issues in particular, seem indispensable (Smatkov et al.,
2019), and so is the professionalization of managing universities as public
institutions (Sułkowski et al. 2020) or also mergers and acquisitions in higher
education (Sułkowski et al. 2019), especially in the era of international
entrepreneurship on universities (Sułkowski & Patora-Wysocka, 2020) and
Europeanization of universities (Marques et al., 2020).
4. Conclusions
The statistical results presented in the article allow to adopt the assumed
hypotheses. Positively perceived public support for entrepreneurship strengthens
entrepreneurial intentions of the young generation to start their own business.
Negatively perceived administration barriers to entrepreneurship blunt
entrepreneurial intentions of the young generation to start their own business.
As every empirical research based on perception, also the one discussed in
this article has its own limitations. Firstly, the research sample (n = 719) was
relatively big, although it included only students from the second biggest city in
Poland, Krakow. It would be worth including the whole population of students in a
given country in such research. Secondly, the number of questions in the survey
was limited, however, in the future, it would be a good idea to extend it with other
research strands. Thirdly, inference based on perception, although fully acceptable
by psychologists and management researchers, and what is more, having a lot of
confirmations in reality, still does not allow to absolutize conclusions in research
into entrepreneurship.
Therefore, firstly, this article's contribution to extant literature is the
replication of research within the discussed scope and their transfer to the Polish
reality. Secondly, the contribution of this article consists in the verification of the
postulated negative perception of institutional (administration) barriers, and not
only barriers related to obtaining financial support, as it takes place in different
articles (Nguyen, 2020).
The collected empirical material and most of all the research findings
indicate possibilities to extend research by new research strands, such as positive
and negative motives behind taking the decision about setting up business activity,
or problems of the impact of family entrepreneurship on students' entrepreneurial
intentions. It is also worth conducting a comparative study of students of different
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76 ADMINISTRAȚIE ȘI MANAGEMENT PUBLIC 36/2021
fields of study, although based on a homogenous sample, the statistical inference is
much simpler.
Authors Contributions
The authors listed have made a substantial, direct and intellectual
contribution to the work, and approved it for publication. KW conceptualisation,
methodology, calculations, findings, supervision. SB conceptualisation and
administration.
Conflict of Interest Statement
The authors declare that the research was conducted in the absence of any
commercial or financial relationships that could be construed as a potential conflict
of interest.
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... A characteristic feature of today's so-called Generation Z (Barszcz, 2020) is the desire to earn a decent income, with money treated as a means to achieve various goals (Uniwersytet SWPS, 2024). Among other things, the ability to be competitive is indicated as a characteristic feature of Generation Z representatives (Ławińska and Korombel, 2023), which is also related to attitudes toward competition. ...
... The regression analysis indicated that in the combined model, the attitudes analyzed explained only a small part of the respondents' entrepreneurial intentions (21.84%). However, it should be emphasized that entrepreneurial intention formation is a complicated process and is determined by several factors, not only individual ones (Ziemiański, 2017), but also environmental ones (Nowiński et al., 2020;Wach and Bilan, 2021). ...
... Personality is considered to be the combination of genetic and cultural influences [51], which means that cultural diversity between and within a nation can be an influential factor in business creation. Previous studies [52][53][54] (2021) indicate that the entrepreneurial intention of Polish students is significantly positively influenced by the Polish culture of negative barriers and experiences with a family business in their own household [55]. ...
... Future evaluations should clarify how strong the influence of the different factors are on the chemistry students' intention to start a company. The evaluation via structural equation models as well as other regression models are suitable for the targeted identification of influencing factors [11,[15][16][17][55][56][57][59][60][61][62][63][64]. ...
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Objective: The study attempts to extend the current understanding of entrepreneur-ship education by engaging the entrepreneurial mindset, knowledge, and the intention to be an entrepreneur. The second purpose is to highlight through testing the moderating role of entrepreneurial knowledge on the relationship between entrepreneurial education and students’ intention to be entrepreneurs. Research Design & Methods: The approach utilised in this study was a quantitative research design using a survey model. The participants of this study were recruited from vocational students in Jakarta who enrolled in the entrepreneurial education course. Furthermore, the data were analysed using exploratory factor analysis (EFA), confirm-atory factor analysis (CFA), and structural equation modelling (SEM). Findings: Entrepreneurship education impacts three variables, including entrepreneurial mind-set, knowledge, and intention. Entrepreneurial knowledge influences stu-dents’ intention to be entrepreneurs; however, it has an insignificant impact on entrepreneurial mindset. Implications & Recommendations: Entrepreneurship education in Indonesia should be further developed due to its essential role in education young entrepreneurs, for in-stance, through curriculum revitalisation. Contribution & Value Added: Notwithstanding the relatively limited sample, this work offers valuable insights into the important role of entrepreneurship education and vocational students’ intention to be entrepreneurs in Indonesia.