A Theoretical Analysis of the Role of Characteristics in Entrepreneurial Propensity

Abstract

Research summary:The literature reveals a broad range of inconsistencies in defining entrepreneurship and in identifying personal characteristics that predict and explain the phenomena of entrepreneurship. The purpose of this work is to propose a model for consistency in predicting entrepreneurial propensity. This article acknowledges categories of entrepreneurs such as: business enterprise creating entrepreneurs, social entrepreneurs, student entrepreneurs, academic entrepreneurs, and corporate entrepreneurs. The proposed theory is specifically focused on business enterprise creating entrepreneurs, defined as Type One. These are individuals who risk their personal capital, time, and reputation in the pursuit of business ventures. Existing theories and observations regarding affect and personality as characteristics of entrepreneurs are reviewed and a new three-dimensional taxonomy of personal characteristics for predicting Type One entrepreneurial propensity is introduced. Managerial summary:The academic literature has revealed a wide range of definitions of entrepreneurship and this has resulted in inconsistent conclusions for defining and predicting entrepreneurial propensity. This has likely proven problematic for educational institutions interested in expanding entrepreneurial programs, governmental agencies interested in promoting localized economic activity, and lending institutions that wish to strengthen their confidence in entrepreneurs to whom they lend operating capital. This theory article is designed to propose a path to clarity and offer a model for predicting business enterprise creating entrepreneurs. These individuals are defined as Type One entrepreneurs, represented by those who risk their personal capital, time, and reputation in the pursuit of business ventures. A new three-dimensional taxonomy of personal characteristics of these individuals is proposed. SUMMARYMultidimensional personal characteristics models that include affect, personality, and work ethic may serve to answer many unanswered questions about entrepreneurs. The previous lack of multidimensional models might explain why the literature, beginning in the late 1980s, frequently concluded that there is no consistently predictable relationship between personal characteristics and entrepreneurial propensity (cf.

Contextual Motivations for Undergraduates’ Entrepreneurial Intentions in Emerging Asian Economies

“…Prior studies found that entrepreneurs work longer hours and harder (Bhide, 1996; Blanchflower, 2004; Chay, 1993; Eden, 1973; Hamermesh, 1990; Hofer, 1976; Levesque & Minniti, 2006; Van Ness & Seifert, 2016). Hedonism is defined as pleasure and sensuous gratification for oneself (Schwartz, 2015), which is the opposite of high level of work effort associated with entrepreneurship (Looi, 2017).…”

Human capital and labor: the effect of entrepreneur characteristics on venture success

“…Entrepreneurs are at the center of venture creation and growth, and, so, their characteristics that lead to venture success have been studied thoroughly for over 50 years (Ács and Audretsch, 2003;Barkham, 1994;Brandstätter, 2011;Roper, 1998;Unger et al, 2011;Van Ness and Seifert, 2016;Zhao and Seibert, 2006). Along with the psychological traits of entrepreneurs (Zhao et al, 2010), entrepreneurs' skill sets have been highlighted as critical to their success (Chell, 2013;Crook et al, 2011).…”

Proactive Entrepreneurs: Who Are They and How Are They Different?

“…Entrepreneurs may need to work long hours, sometimes for weeks or years before achieving objectives (Van Ness & Seifert, 2016). The willingness to delay gratification is thought to be reinforced by a passion for one’s work and it is perceived as a core characteristic of entrepreneurs (Baum et al, 2004, p. 590).…”