Entrepreneurial Intention and Competencies of Vocational and High School Graduates in Indonesia

Unemployment in Indonesia is relatively high at 5.3%, majority of whom are vocational school and senior high school graduates. Vocational school graduates are better prepared to be entrepreneurs but only 1-2% of them are involved in entrepreneurship. This study aims to understand the intention of vocational school graduates to become entrepreneurs and their entrepreneurial competencies. The study involves 374 vocational school graduates, consisting of 156 graduates in Gunung Kidul and 218 graduates in Jakarta. The study uses convenient sampling technique. Three measurement instruments are used in this study; (1), the intention to become entrepreneurs, (2) soft skill competencies adapted, and (3) hard skill competencies. It was found that vocational school graduates have a moderate desire to become entrepreneurs. The perceived feasibility dimension tends to be low, whereas both soft and hard skills entrepreneurial competencies tend to be high. When comparing school locations, graduates in Jakarta indicate significantly higher intention to become entrepreneurs than those in Gunung Kidul. As for the competencies, both soft and hard skills, vocational graduates in Gunung Kidul have significantly higher competencies than in Jakarta.