Factors Influencing Graduates to Starta Business: A Case of Malaysian Public Institution of Higher Learning

The Malaysia government has always encouraged graduates of institutions of higher learning to start a business. Numerous programs and incentives were provided for the development of entrepreneurial graduates with the aim of reducing unemployment and dependency on the job market. Universities are working hand in hand with other government agencies and private sectors in developing entrepreneurial graduates. Despite numerous efforts taken, the number of graduates involve in starting a businessare not very encouraging, and not up to the government aspiration to have more entrepreneurial graduates especially from the public universities. Majority of graduates choose to be employed rather than set up their own business due to the uncertainty and risks of identifying and managing a promising business venture. This paper explores and identifies factors that have influence graduates to start a business, focusing on formal education and non formal education. The data was collected through survey questionnaire because it allowed the identification of important and emerging issues that required further explanation. The useable response rate was 244 and analyzed using Statistical Package for Social Sciences (SPSS) version 20. The results indicate non formal education (business mentoring, experiential learning and programs attended) to be the most contributing factor as compared to formal education (educator involvement) in influencing graduates to start their businesses. This finding offers an important aspect on the impact of formal and non-formal entrepreneurship education in public institutions of higher learning in encouraging graduates to start their own business.