Chapter 2

Question 1

Traits

Answer 1

psychological dispositions that remain stable across different contexts.

Question 2

trait-based approach

Answer 2

Entrepreneurs such as Bill Gates choose entrepreneurship because it fits in with their personality dispositions.

Question 3

The three main traits

Answer 3

1. A propensity to take risks. 2. Locus of control (how much a person believes they have control over their lives). 3. A need for achievement.

Question 4

Cognitive approaches

Answer 4

how individuals remember, perceive and think about situations – emphasise that the expression of personality is a product of both personality and an individual’s context. So, rather than there being fixed and stable entrepreneurial traits, cognitive approaches point to intentions and actions that vary depending on the situation faced by the entrepreneur.

Question 5

Risk-taking

Answer 5

a greater willingness to pursue uncertain decisions or courses of action even if there is uncertainty about success or failure.

Question 6

Reason to be sceptical about relationship risk and entrepreneur

Answer 6

Risk is measured in different ways. This makes it difficult to compare results. people may don’t give representative answers. it may misrepresent the start-up process because Entrepreneurs do not seek out risks but accepts them and focus on rewards

Question 7

interlocus control/external locus

Answer 7

I am accountable / the result is because of outside forces.

Question 8

why is locus of control not common used anymore to shape entrepreneurial behaviors?

Answer 8

It had a small correlation and the importance of context was introduced

Question 9

Need for achievement

Answer 9

you seek out contexts that provide moderate levels of risk-taking, allow you to take individual responsibility and give you direct feedback on your actions

Question 10

personality traits associated with entrepreneurship (association is not causation!)

Answer 10

stress tolerance, the need for autonomy and a tolerance for ambiguity

Question 11

why is stress tolerance important

Answer 11

if someone can better cope with stress, actively seek out personal responsibilities and can cope with incomplete information

Question 12

the ‘big five’ personality dimensions (asked by agreement statements)

Answer 12

1. Openness. 2. Conscientiousness. 3. Extraversion. 4. Agreeableness. 5. Neuroticism. (Conscientiousness, Openness, and Extraversion are positive related, neuroticism a bit but agreeableness was negatively associated)

Question 13

Ajzen’s theory of planned behaviour

Answer 13

look at people their intentions

Question 14

intention

Answer 14

a person’s readiness to behave in a certain way

Question 15

3 factors that influence intention (Ajzen)

Answer 15

Their attitude to the behaviour, Perceived social norms, Their perceived behavioural control –> form positive intentionalities towards that activity

Question 15

What is the problem of the application of his theory? (Ajzen’s theory)

Answer 15

reliant on cross-sectional data that takes ‘snapshots’ of entrepreneurial intentions →difficult to disentangle causal relationships & focus is also on students, who might say that they want to be an entrepreneur but actually choose employment when they leave university.

Question 16

Bandura’s concept of self-efficacy

Answer 16

the trust in one’s own capabilities.

Question 17

Difference Locus control and self-efficacy

Answer 17

Locus control is a trait & Self-efficacy is situation-dependent.

Question 18

high levels of self-efficacy

Answer 18

You believe that you can master challenges. Consequently, you commit to goals and whether any setbacks

Question 19

Bandura 4 sources of Self-efficacy

Answer 19

Knowledge and feelings gained from direct past experience. Vicarious learning from self and others. Social persuasion. Emotional status.

Question 20

what if we lack passion or entrepreneurial self-efficacy

Answer 20

regardless of our actual capabilities – we are less likely to become entrepreneurs.

Question 21

What is the influence of intention

Answer 21

They are necessary but not sufficient - just because you have strong intentions or passion does not mean that you are necessarily going to succeed in starting up or growing your business

Question 22

What is the problem with the focus on the ‘heroic’ entrepreneur

Answer 22

ignores team start-ups and downplays negative personality factors such as greed, ruthlessness, obsessive control and dishonesty.