Development and validation of an individual entrepreneurial potential new measurement scale

Abstract

Purpose As good as existing measurements of entrepreneurial potential (EP) may appear in the literature, they are fragmented, suffer from the lack of theory integration and clarity, are inadequately specified and assessed and the dimensions are unordered by importance. These limitations of EP metrics have hindered entrepreneurial practice and theory advancement. There is a risk of atomistic evolution of the topic among “siloed” scholars and room for repetitions without real progress. The purpose of this paper was to take stock of existing measurements from which the authors developed a new instrument that is brief and inclusive. Design/methodology/approach The authors followed several steps to develop and validate the new instrument, including construct domain name specification, literature review, structured interviews with entrepreneurs, face validation by experts, semantic validation and statistical validation after two waves of data collected on employee and entrepreneur samples. Findings A clear operational definition of EP is proposed and serves as a starting point towards a unified EP theory. The new EP instrument is made up of 34 items classified into seven dimensions, which in order of importance are proactive innovativeness, management skill, calculated risk-taking, social skill, financial literacy, entrepreneurial competencies prone to cognitive and heuristic biases and bricolage. The authors provide evidence for reliability and validity of the new instrument. Research limitations/implications Although a model is not the model, the authors discuss several ways in which the new measurement model can be used by different stakeholders to promote entrepreneurship. Originality/value The authors discuss the domain representativeness of the new scale and argue that the literature can meaningfully benefit from a non-fuzzy approach to what makes the EP of an individual. By developing a new EP instrument, the authors set an important pre-condition for advancing entrepreneurial theory and practice.

I wish I had a paid job or a business: a moderated effect of entrepreneurial potential on career choice regret

“…Intuitively and consistent with its definition, EP is a positive driver of success in entrepreneurship (Ephrem and Murimbika, 2023). EP is also a positive driver of career success in paid employment.…”

“…Similar wording was used for employees, mutatis mutandis. We adopted an EP scale from Ephrem and Murimbika (2023), which was made of thirty-four items, one of them being: “ how often do people commend you on original ideas and tangible outputs ?” Decision justifiability was measured by three items adapted from Inman and Zeelenberg (2002), sample of which for entrepreneurs was: “ I did not have any other option than being an entrepreneur ”. Similar wording was used for employees, mutatis mutandis.…”

“…Data were collected on randomly selected entrepreneurs and employees in the Democratic Republic of the Congo (DRC). There is high reluctance by individuals to pursue entrepreneurship in the DRC, despite remarkable business opportunities coupled with high rates of unemployment and underemployment (Ephrem and Murimbika, 2023). Institutional failures and natural resources' curse in this context potentially harm the entrepreneurial spirit.…”

“…Entrepreneurial potential (EP) dimensions and items Adopted from Ephrem and Murimbika (2023) Corresponding author Akilimali Ndatabaye Ephrem can be contacted at: 2450275@students.wits.ac.za For instructions on how to order reprints of this article, please visit our website: www.emeraldgrouppublishing.com/licensing/reprints.htm Or contact us for further details: permissions@emeraldinsight.com 1. The choice of entrepreneurship instead of the paid employment is one of the biggest mistakes of my professional life 2.…”

“…We examined the effect of entrepreneurial potential (EP) on CCR among employees and entrepreneurs. EP is the extent to which an individual exhibits the competencies, behaviors, and mindsets necessary to successfully start and sustain a business (Ephrem and Murimbika, 2023). Extant literature offers adequate evidence that most of the dimensions of EP are important drivers of career success among entrepreneurs and employees, albeit a few mixed findings (Ephrem and Murimbika, 2023; Spurk et al ., 2019).…”