2.0 IntroductionThis literature review chapter will be a study on self-employment intention and entrepreneurial risk among undergraduate economics and business students. Furthermore, self-employment intention factor, benefits of entrepreneurship, challenges of entrepreneurship and entrepreneurial behavior will be discussed in this chapter. Furthermore, the attitude, subject norms, perceived behavioral control and risky entrepreneurship that influenced the intention of self-employment will be discussed.2.1 Entrepreneurship or self-employmentEntrepreneurship can be defined as a process of innovation and creation through the four dimensions of individual, organization, environment and process in collaboration with government, education and institution (Kuratko & Hodgetts, 2004). From this statement, it is evident that the individual who becomes an entrepreneur has a process of innovation and business education also influenced the attitude of the individual to choose self-employment as a career. According to Sexton and Landstrom (2000), the entrepreneur is an individual who cares about all aspects of business, including the individual, innovation, business orientation, and business behavior. According to Ahn (2009), individuals who work in their business which provides them with a reward such as profit will be called self-employed..2.1.1 PerceptionPerception desirability According to Shapero and Sokol (1982), perception is the social and cultural factor which express by the individual through the process of formation of individual value. For example, if there is a value of challenge and anticipation, then their professional lifestyle will resemble one that will give them satisfaction on their needs for challenge and anticipation...... middle of paper. ..... viour (Ajzen, 1991) is another model of intention and has been used for its predictive power and applicability in a variety of content areas, including entrepreneurship. This research attempts to explore how behaviors such as beliefs, attitudes, and intention relationships influence a person's intention to become self-employed and face the risk of entrepreneurship. The model shows that attitudes towards behavioral, subjective norms and perceived behavioral control will make the person intend to become self-employed. Intention is affected by the individual's behavior in choosing self-employment as a career option. These relationships are based on a review of the literature which tends to support this conceptual model. In order to clearly explain the theoretical model, the conceptual framework that indicates the associated variable is presented below.: