Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Research Article: 2020 Vol: 26 Issue: 3

Determinants of Entrepreneurial Intention Empirical Study of Student Entrepreneurs

Muhammad Rakib, Universitas Negeri Makasssar

Amiruddin Tawe, Universitas Negeri Makasssar

Muhammad Azis, Universitas Negeri Makasssar

Agus Syam, Universitas Negeri Makasssar

Dian Anugrah Sanusi, Universitas Satya Wiyata Mandala

Abstract

This study aims to determine the effect of entrepreneurial creativity and self-efficacy on student entrepreneurial Intention. This study uses a quantitative research approach to the type of associational research. The population in this study was 360 students of Universitas Negeri Makassar who already had a business in 2019 and sample of 144 students. The determination of the sample uses random sampling and proportional techniques. Data collection techniques was carried out using questionnaire techniques. Data analysis techniques were used using descriptive and inferential statistical analysis. The results showed that entrepreneurial creativity and self-efficacy both partially and simultaneously had an influence on student entrepreneurial intention. Therefore, it is recommended that higher education curriculum be oriented towards entrepreneurship to increase students' creativity and self-efficacy so that they have the ability to create jobs rather than find work.

Keywords

Entrepreneurial Creativity, Self-Efficacy, Entrepreneurial Intention.

Introduction

The results of a Global Entrepreneurship Monitor (GEM) study, states that in the American continent are the most advanced countries in entrepreneurship and can simultaneously overcome the problem of unemployment, while in Asia are the countries with the lowest entrepreneurial levels (Zimmerer & Scarborough, 2018).

The Indonesian government's strategic policy to reduce unemployment and the poor is to increase the number of new entrepreneurs (Purwana et al., 2018). Entrepreneurship is one of the most important fields in the economy (Ruyat, et al., 2001). The existence of entrepreneurship is expected to increase economic development and prepare a generation capable of creating entrepreneurship (Liñán, 2004).

Potential higher education institutions should be able to create new entrepreneurs and the phenomenon of changing the mindset of college graduates from job seekers to job creators. Actually not a new problem, but has become a problem that continues to be sought and developed a solution. The government has sought solutions to these problems thr ough Student Creativity Program, Entrepreneurial Student Program, and Indonesian Student Entrepreneurship Competition. The University has organized entrepreneurship education to spark student entrepreneurship interst. This is supported by the results of research there is significant influence either partially or simultaneously entrepreneurship education seen from the level of knowledge, attitudes, and entrepreneurial skills to the intention of economic entrepreneurship education students (Rakib, 2015b).

One of the factors driving the growth of entrepreneurship in a country lies in the role of universities through the implementation of entrepreneurship education (Zimmerer & Scarborough, 2018). Within academic institutions a culture of entrepreneurship is the most important factor in generating economic gains from university entrepreneurial activities (Osiri, et al., 2013). Universitas Negeri Makassar as one of the state universities in Indonesia that strongly promotes entrepreneurship programs in accordance with its vision as a center for education, research and development of education, science, technology, and arts with educational and entrepreneurial insights. In 2019, there are 450 students who have participated in these government programs. The number is very small or 1.6 percent when compared to the total number of students as many as 28,937 people. Furthermore, from 450 students, 360 students (80.00%) are involved in their business. This condition indicates that the low number of students participating in the government program also indicates that students' Intention in entrepreneurship is also low.

The low expectations faced by employers among students are unfortunate because the number of jobs available is not enough for all Indonesian workers who graduate from tertiary institutions every year. One important factor in creating entrepreneurship is intention. Entrepreneurial intention is the sincerity of someone to conduct business activities. The greater one's entrepreneurial intentions, the greater the opportunity to start a business. A person's entrepreneurial intentions which are balanced with creativity in entrepreneurship and self-efficacy have a good effect on the birth of new entrepreneurs so as to create opportunities or jobs.

This phenomenon, generally applies to students in Indonesia, many students become entrepreneurs because they are forced to, have not found a promising job in accordance with their expectations. Student entrepreneurial Intention is strongly influenced by factors of creativity and self-efficacy of students (Zampetakis et al., 2011).

The main capital of an entrepreneur is not merely money but also creativity which is priceless. Filipczak (1997) emphasizes that the importance for a firm to be made-up by both adaptive and innovative creative individuals. Creativity in the context of entrepreneurship is one's ability to give birth to new ideas or new discoveries in seeing business problems and opportunities (Zimmerer and Scarborough, 2018). The results from a survey of 180 under-graduate business school students show that the more creative young people consider themselves to be, the higher are their entrepreneurial interventions (Zampetakis et al., 2011).

Furthermore, the second factor influencing Intention in etrepreneurship is self efficacy. The results of research concluded that self-efficacy proved to be a significant determinant of entrepreneurship intention. People who have strong belief that they are able to start and run entrepreneurship tend to have strong intention to start and run the business (Giles and Rea, 1999). Other research results have proven that self-efficacy contributes to college-students' Intention in entrepreneurship, confidence in business management and firm belief in the ability to start business and driven by need for achievement that can also encourage decision-making ability and entrepreneur inclinations to take risk (Baidi and Suyatno, 2018).

Based on this description, researchers feel the need for efforts to foster Intention in student entrepreneurship given the increasingly limited number of jobs offered in the labor market. However, Intention in entrepreneurship will not grow properly if not trained or fostered early on. Therefore, researchers will examine the factors that influence student entrepreneurial Intention, namely entrepreneurial creativity and self-efficacy.

Literature Review

Entrepreneurial Creativity

Creativity is defined as the ability to develop ideas and find new ways of solving problems and facing opportunities (Zimmerer & Scarborough, 2018). Entrepreneurial creativity can be interpreted as the ability of entrepreneurs to combine things so that they can create new products or services (Dayan, et al., 2013). According to Baron (2000), entrepreneurs must be better able to create something, even if it is just new ideas.

Furthermore, entrepreneurs must find new opportunities to create new products or services that are acceptable to the market. Creativity enables entrepreneurs to take advantage of opportunities by generating competitive advantages for their businesses (Fillis & Rentschler, 2010). Creativity as the cognitive process of discovering new patterns or combinations from familiar ideas, routines, and mental models is thus the engine that drives entrepreneurial discovery (Phan, et al., 2010). The individual's psychological ability to recognize valuable opportunities under uncertainty and implement them as innovations in the market which prospectively creates entrepreneurial profits (Kirzner, 1999). Entrepreneurial creativity is the ability to create and capture opportunities and create, recombine and / or use company resources in new and different ways (Della Corte & Del Gaudio, 2017). From several explanations related to entrepreneurial creativity above, it can be stated that entrepreneurial creativity is the ability to create, modify things, and combine existing works.

Self-Efficacy

According to Bandura & Locke (2003) the notion of self-efficacy is an individual's belief about his ability to carry out a task or carry out an action that is needed to achieve a certain outcome. Self-efficacy can encourage someone's performance in various fields including entrepreneurial Intention (Luthans, 2012). Therefore, opening a business requires self-confidence (self-efficacy) of its ability so that its business can be successful. Self-efficacy is also a self-confidence describing will be able to solve problems and confidence in the ability of self to succeed (Reivich & Shatté, 2002). Entrepreneurial self-efficacy is seen as having the ability to change one's beliefs to complete a given task, successfully start and build a new business (Bandura, 1986).

Based on the explanation that has been presented above, it can be concluded that self-efficacy is one's self-confidence in the ability to achieve certain goals. Based on some of these opinions, it can be stated that Self-Efficacy has the characteristics of the level of difficulty, strength, and individual potential.

Entrepreneurial Intention

Entrepreneurial Intention is one's choice because they feel Intentioned, happy and willing to be entrepreneurs and dare to take risks to achieve success. Entrepreneurial Intention is the desire, motivation and encouragement to interact and do everything with a feeling of pleasure to achieve goals and beliefs without feeling afraid to take risks, as well as learning bias from failure (Rakib, 2015a). Entrepreneurial intention refers to a conscious state of mind that directs a person's attention to fulfilling the goal of venture creation (Bird, 1988). Intentions have been highlighted as a predictor of entrepreneurship (Krueger, et al., 2000) Intention is also related to the style of motion that encourages a person to deal with or deal with people, objects, activities, experiences that are stimulated by the activity itself (Crow & Allen, 1994). In addition, Intention is a rather settled tendency in subjects to feel attracted to a particular field or thing or feel happy to be involved in that field (Izquierdo & Buelens, 2011). Furthermore, researchers in China define entrepreneurial Intentions as mental orientations such as desires and expectations that can influence one's entrepreneurial choices (Peng, et al., 2012).

Based on some of the opinions above, it can be concluded that the Intention in entrepreneurship is to choose someone because they feel Intentioned, happy and willing to be entrepreneurs and dare to take risks to achieve success. Thus, the characteristics of Intention in entrepreneurship are desire, Intention, willingness to work hard or strong-willed, trying to meet their needs without feeling afraid of the risks that will occur, and always learning from failures that have been experienced.

Factors Affecting Entrepreneurial Intention

The results of previous studies have proven that entrepreneurship intension is influenced by factors of creativity and self efficacy. As research by Roza et al., (2019), has proven that entrepreneurship education, creativity, and self-efficacy have an influence on entrepreneurship intension in Vocational Students. Furthermore, the same study results show that entrepreneurial creativity and attitudes towards entrepreneurship positively mediate the relationship between entrepreneurship and entrepreneurial self-efficacy (Shahab et al., 2019). Furthermore, entrepreneurship education and self-efficacy are key in developing students' entrepreneurial intentions (Oyugi, 2015). The results of these studies, it can be stated that individuals can develop entrepreneurial creativity in increasing the Intention of entrepreneurs to achieve success.

Based on the description above, the following research hypotheses can be found.

H1: Entrepreneurial creativity has a significant influence on student entrepreneurial intention.

H2: Self-efficacy has a significant influence on student entrepreneurial Intention.

H3: Entrepreneurial creativity and self-efficacy have a simultaneous influence on student entrepreneurial Intention.

Methodology

This research is included in the type of explanatory research, which is non-experimental in nature and aims to analyze the influence of entrepreneurial creativity and self-efficacy on student entrepreneurial Intention in Universitas Negeri Makassar, using a quantitative approach through parameter testing in answering hypotheses. To get data in accordance with the study design, the closed-ended question type was used in the form of a questionnaire instrument. Entrepreneurial creativity with dimensions of the ability to create, modify, and combine new ideas, the measuring scale used is ordinal. Self-efficacy with dimensions, namely students already have confidence in facing magnitude, strength, and generality, the measurement scale used is ordinal. On the other hand, student entrepreneurial intention variables with dimensions, namely the existence of intention, willingness, and efforts to run a business with an ordinal measurement scale.

The population in this study was 360 students of Universitas Negeri Makassar who already had a business in 2019 and sample of 144 students. The determination of the sample uses random sampling and proportional techniques. For more details can be seen in the following Table 1.

Table 1: The Number Of Universitas Neeri Makassar Students Who Have Businesses And Take Part In The Entrepreneurship Student Creativity Program In 2019
No, Faculty Name Population Sample
1. Faculty of Engineering 148 59
2. Faculty of Math and Science 59 24
3. Faculty of Educational Science 47 19
4. Faculty of Economics 41 16
5. Faculty of Psychology 43 17
6. Faculty of Language and Literature 8 3
7. Faculty of Social Science 8 3
8. Faculty of Sport Science 1 1
9. Faculty of Art and Design 5 2
  Total 360 144

Data collection technique was carried out using a questionnaire. But previously distributed to a number of respondents, a validation test was conducted on 30 students who had the same characteristics as the research respondents. Data analysis techniques are used by using descriptive and inferential statistical analysis.

Results and Discussion

Results

The results of the instrument validity test indicate that all indicators in the research variable meet the data validity requirements. For more details can be seen in Table 2.

Tabel 2: Validity Test
Variabel Dimension Indikator r Information
Entrepreneurial Creativity (X1) Ability to create (X1.1) X1.1.1 0,376 Valid
X1.1.2 0,365 Valid
X1.1.3 0,372 Valid
X1.1.4 0,519 Valid
X1.1.5 0,583 Valid
Ability to Modify (X1.2) X1.2.1 0,510 Valid
X1.2.2 0,356 Valid
X1.2.3 0,448 Valid
X1.2.4 0,505 Valid
X1.2.5 0,340 Valid
X1.2.6 0,360 Valid
X1.2.7 0,360 Valid
Ability to Combine new ideas (X1.3) X1.3.1 0,759 Valid
X1.3.2 0,749 Valid
X1.3.3 0,720 Valid
Self-Efficacy (X2)   X2.1.1 0,437 Valid
X2.1.2 0,732 Valid
Confidence in facing magnitude (X2.1) X2.1.3 0,618 Valid
  X2.1.4 0,499 Valid
Strength(X2.2) X2.2.1 0,456 Valid
  X2.2.2 0,498 Valid
X2.2.3 0,540 Valid
Generality (X2.3) X2.3.1 0,469 Valid
  X2.3.2 0,448 Valid
X2.3.3 0,789 Valid
Entrepreneurial Intention (Y) existence of intention (X3.1) X3.1.1 0,440 Valid
    X3.1.2 0,445 Valid
  X3.1.3 0,490 Valid
  X3.1.4 0,569 Valid
  X3.1.5 0,410 Valid
  X3.1.6 0,513 Valid
  Willingness (X3.2) X3.2.1 0,437 Valid
  X3.2.2 0,385 Valid
  X3.2.3 0,511 Valid
  X3.2.4 0,384 Valid
  Efforts to run a business (X3.3) X3.3.1 0,601 Valid
X3.3.2 0,670 Valid
    X3.3.3 0,623 Valid
    X3.3.4 0,752 Valid
  X3.3.5 0,612 Valid
  X3.3.6 0,745 Valid
  X3.3.7 0,332 Valid
  X3.3.8 0,244 Valid
  X3.3.9 0,322 Valid
  X3.3.10 0,445 Valid

The results of the validity test in Table 2 show that all indicators in entrepreneurial creativity variabels, self-efficacy, and student entrepreneurial intention have a pearson correlation (correlation coefficient) that is greater than 0.30, so that all of these indicators have met the data validity requirements. After the validity test is done, then the instrument reliability test is carried out as shown in Table 3.

Tabel 3: Reliability Test
Variabel Cronbach Alpha r-critical Information
Entrepreneurship Creativity 0,790 0,600 Reliable
Self-Efficacy 0,746 0,600 Reliable
Entrepreneurial Intention 0,856 0,600 Reliable

Table 3, it can be seen that all items claimed to represent variables, both the dependent variable and the independent variable are all determined by the Cronbach Alpha value greater than the critical r value of 0.600

Descriptive of Entrepreneurial Creativity, Self-Efficacy, and Entrepreneurial Intention

Descriptive statistical analysis result using IBM SPSS Statistics 23 can be seen in the following Table 4.

Tabel 4: Descriptive Statistics Of Etrepreneurial Creativity, Self-Efficacy, And Entrepeneurial Intention
No. Variables N number of question items Minimum Maximum Mean Std. Deviation Category
1 Entrepreneurial Creativity 144 15 28 55 42.72 5.199 Medium
2 Self-Efficacy 144 10 24 40 32.26 3.476 Moderate
3 Entrepreneurial Intention 144 20 30 76 54.40 9.948 Moderate

Table 4 shows that the level of student entrepreneurial creativity is in the medium category. This is reinforced by the results of the acquisition of a mean value of 42.72 and a standard deviation of 5.199. This means that students have the ability to create, modify, and combine new ideas, even if they are not optimal. The ability to create students in the form of making something of use value, making daily necessities, making food that is not provided/sold in the market, making services services that do not yet exist, and create new businesses. Students also have the ability to modify in the form of finding other functions of the usefulness of an item, conducting experiments to make other functions of objects owned, making an object to be multi-functional, modifying shoes and bags, four-wheeled motorcycles for tuna, and changing the shape of drinks and culinary food that is unique. In addition, students also have the ability to combine ideas or ideas such as adding accessories to their objects so that it is more intentioning and combines traditional and modern food. Entrepreneurial creativity is very important to create competitive advantage, and business survival. an entrepreneur always acts creatively, seeks out and creates market opportunities and increases productivity and produces results for himself and others.

Furthermore, student self-efficacy is in the moderate category. Strengthened by obtaining a mean value of 32.26 and a standard deviation of 3.476. This gives an indication that students already have confidence in facing magnitude, strength, and generality. They have the ability to complete tasks that have different levels of difficulty, face different challenges in achieving success, try to do things according to their abilities, and avoid doing things outside their ability. However, the student's self-efficacy still needs to be improved, especially regarding beliefs about being able to overcome difficulties in starting a new business and overcoming obstacles or risks in doing business, having major capital in the form of high motivation, many relationships, and provision of adequate knowledge and skills.

Descriptive statistical analysis also illustrates that most students' intention in entrepreneurship is in the moderate category. Strengthened by the acquisition of a mean value of 54.40 and a standard deviation of 9.948. This means that students already have an Intention in entrepreneurship indicated by the existence of Intention, willingness, and efforts to run a business. Nevertheless, the Intention of these students still needs to be increased by participating in various activities such as: (1) seminars, training, workshops on entrepreneurship both conducted by educational institutions, governments, and non-governmental institutions, (2) exhibition of production results, (3) following government programs in developing small businesses, (4) fond of reading magazines, books, or entrepreneurial-related media, and reading stories of successful entrepreneurs, and (5) doing business by marketing their own products and products of others both through the media internet and directly to prospective customers.

The Effect of Entrepreneurial Creativity and Self-Efficacy on Entrepreneurial Intention

Simultaneously significant test basically shows whether all independent variables used have a joint effect on the dependent variable. In this study simultaneous hypothesis testing is intended to measure the magnitude of the effect of entrepreneurial creativity and self-efficacy on the variable student entrepreneurial Intention shows in Table 5.

Table 5: The Influence Of Entrepreneurial Creativity And Self-Efficacy On Student Entrepreneurial
Simultaneous Influence
Model Coefficient Corelation F/t Prob. Information
Entrepreneurial Creativity equationEntrepreneurial Intention
Self-Efficacy
0.418 14.882 0.000 Positive, significant
Partial Influence
Entrepreneurial Creativity  equation Entrepreneurial Intention 0.556 3.696 0.000 Positive, significant
Self-Efficacy    equation Entrepreneurial Intention 0.686 3.045 0.003 Positive, significant
Regression equation Y = 8.515 = 0.556X1 + 0.686X2

In Table 5, an F value of 14,882 was obtained with a significance value of 0,000. The significance value is smaller than the significance level of 0.05. This shows that H0 is rejected and H1 is accepted. So, it can be concluded that entrepreneurial creativity and self-efficacy have a simultaneous influence on student entrepreneurial intention.

Furthermore, partial hypothesis testing is intended to measure the magnitude of the effect of entrepreneurial creativity and partial self-efficacy on student entrepreneurial Intention. Based on the results of data processing presented in Table 5, the value of t variable X1 = 3.696 with a significance of 0.000 is obtained. Where the significance value obtained is smaller than the significance level of 0.05, then the null hypothesis (H0) is rejected and the alternative hypothesis (Ha) is accepted. Thus it can be concluded that entrepreneurial creativity has a significant influence on student entrepreneurial intention.

Table 5 also shows that the t value for the self-efficacy variable is 3.045 with a significance of 0.003. This means that the significance value obtained is smaller than the significance level of 0.5, this means that the null hypothesis (H0) is rejected and the alternative hypothesis (Ha) is accepted. Based on these results it can be concluded that self-efficacy has a significant influence on student entrepreneurial Intention.

Based on the results of the data processing, the regression equation Y= 8.515 + 0.556X1 + 0.686X2 is obtained. The equation can be seen from the positive influence shown by the entrepreneurial creativity and self-efficacy variables which indicate that the higher the entrepreneurial creativity and self-efficacy the higher the Intention in student entrepreneurship.

Discussion

This research contributes to an understanding of entrepreneurial Intention in students and helps explain further the relationship between creativity, self-efficacy, and their Intention in starting a new business. The conceptual framework that we propose highlights the role of universities in creating entrepreneurship, as well as student entrepreneurial Intention and influencing factors namely entrepreneurial creativity and self-efficacy in students who have taken part in student entrepreneurship program activities.

Hypothesis 1 test results show that the higher the creativity of students, the higher their Intention in entrepreneurship. An entrepreneur is required to have creativity that is trying to create something new, unique, and different from the existing ones and have added value. This provides further support for conceptualization in the cognitive entrepreneurship literature which underscores the rather neglected relationship between individual creativity and entrepreneurial Intention (Hmieleski & Corbett, 2006). In line with the results of the study (Yar, et al., 2008) showed that high creativity has a strong positive effect on Intention in entrepreneurship. Furthermore, it was stated that individual creativity must be included in the model of entrepreneurial Intention. Furthermore, entrepreneurial Intention as a trigger for entrepreneurial Intention (Gorman et al., 1997; Feldman & Bolino, 2000) and a construction related to creativity with a variety of values have contributed to entrepreneurial Intention (Hmieleski & Corbett, 2006).

The results of this study were also reinforced by Zampetakis et al. (2011) that creativity has long been identified as a major component of entrepreneurship. Therefore it is not surprising if creativity is a determinant of entrepreneurial Intention. Similar opinion that creativity seems to be closely related to entrepreneurial intentions. Creative individuals are more likely to be involved in entrepreneurship, therefore creativity has been indicated as a trigger for entrepreneurial Intention (Yar, et al., 2008). An entrepreneur must have the ability to create, modify, and combine creative ideas or services. resulting in something unique and different.

Hypothesis 2 test results show that the higher the student's self-efficacy, the higher their entrepreneurial Intention. An entrepreneur must be sure to be able to apply his creative ideas in real (innovative) activities and dare to take calculated risks, so that he has the mentality not to give up easily in the face of failure and a positive attitude towards himself and the environment. Relevant research results that self-efficacy has a significant impact on entrepreneurial Intention among female accounting students (Kaneez Fatima Sadriwala and Khan, 2018). Other research results also reveal a positive correlation between self-efficacy and entrepreneurial Intention in students who program introductory entrepreneurship courses (Rachmawan, et al., 2015). Furthermore, some research results in Chinese support that self-efficacy influences student entrepreneurship (Hung et al., 2016; He et al., 2017; Hu et al., 2017). Tthe perceived Subjective Norm and the perceived behavioural control positively influence the Entrepreneurial intent of students (Naushad, et al., 2018). Other studies also prove that sustaibability orientation is a predictor of sustainable entrepreneurial intentions of university students (Fatoki, 2019), and Self-Confidence (SC) positively affects the Entrepreneurial Intentions (EIs) of Saudi students (Naushad, 2018).

This gives an indication that self-efficacy is one factor that can increase student entrepreneurial Intention. Self-efficacy of entrepreneurship can be influenced by the ability to complete tasks that have different levels of difficulty, strong confidence and perseverance in the business to be achieved despite difficulties and obstacles, and feel confident in their abilities. To improve self-efficacy students need to be equipped with adequate knowledge and skills so that they have the ability to manage businesses, leadership of human resources, mental maturity in business, and the ability to start a business.

Hypothesis 3 test results show that entrepreneurial creativity and self-efficacy have a simultaneous influence on student entrepreneurial Intention. Where, self-efficacy can make different behaviors with the same ability among individuals, because self-efficacy affects choices, goals, problem solving and persistence in trying (Judge, 2002). Self-efficacy also greatly influences entrepreneurial behavior and perceived worthiness of an action, so self-efficacy is considered important to encourage increased Intention in entrepreneurship (Yar, et al., 2008). The results of this study are reinforced by Theory of Planned Behavior (TPB) that Intention is determined by three determinants namely attitudes toward behavior, subjective norms, and control of behavior (Ajzen, 1991). Entrepreneurial intentions could be defined as planned behaviour influenced by perceived self-efficacy, personal values, normative beliefs and specific desirabilities (Krueger, et al., 2000). In this study, behavioral control has the same meaning as self-efficacy while creativity is a determinant of attitude towards behavior.

Acknowledgement

The research was supported by the Directorate of Higher Education and Ministry of Research, Technology and Higher Education, the Republic of Indonesia through DIPA UNM (No. SP DIPA - 042.01: 2.400964).

Conclusion

Based on the results of research and data analysis that has been done, the following conclusions can be drawn:

1. Student entrepreneurship creativity in the form of the ability to create, modify, and combine ideas or new ideas greatly influences his intention in entrepreneurship.
2. The belief that students have of the ability to complete tasks that have different levels of difficulty, face different challenges in achieving success, try to do something according to their abilities, and avoid doing anything beyond their ability strongly supports student entrepreneurial intention.
3. Entrepreneurial creativity and self-efficacy simultaneously have a significant effect on student entrepreneurial Intention, but self-efficacy is more influential on entrepreneurial intention compared to entrepreneurial creativity.

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