Chapter 2 Flashcards
Traits
psychological dispositions that remain stable across different contexts.
trait-based approach
Entrepreneurs such as Bill Gates choose entrepreneurship because it fits in with their personality dispositions.
The three main traits
- 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.
Cognitive approaches
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.
Risk-taking
a greater willingness to pursue uncertain decisions or courses of action even if there is uncertainty about success or failure.
Reason to be sceptical about relationship risk and entrepreneur
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
interlocus control/external locus
I am accountable / the result is because of outside forces.
why is locus of control not common used anymore to shape entrepreneurial behaviors?
It had a small correlation and the importance of context was introduced
Need for achievement
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
personality traits associated with entrepreneurship (association is not causation!)
stress tolerance, the need for autonomy and a tolerance for ambiguity
why is stress tolerance important
if someone can better cope with stress, actively seek out personal responsibilities and can cope with incomplete information
the ‘big five’ personality dimensions (asked by agreement statements)
- Openness. 2. Conscientiousness. 3. Extraversion. 4. Agreeableness. 5. Neuroticism. (Conscientiousness, Openness, and Extraversion are positive related, neuroticism a bit but agreeableness was negatively associated)
Ajzen’s theory of planned behaviour
look at people their intentions
intention
a person’s readiness to behave in a certain way
3 factors that influence intention (Ajzen)
Their attitude to the behaviour, Perceived social norms, Their perceived behavioural control –> form positive intentionalities towards that activity
What is the problem of the application of his theory? (Ajzen’s theory)
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.
Bandura’s concept of self-efficacy
the trust in one’s own capabilities.
Difference Locus control and self-efficacy
Locus control is a trait & Self-efficacy is situation-dependent.
high levels of self-efficacy
You believe that you can master challenges. Consequently, you commit to goals and whether any setbacks
Bandura 4 sources of Self-efficacy
Knowledge and feelings gained from direct past experience. Vicarious learning from self and others. Social persuasion. Emotional status.
what if we lack passion or entrepreneurial self-efficacy
regardless of our actual capabilities – we are less likely to become entrepreneurs.
What is the influence of intention
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
What is the problem with the focus on the ‘heroic’ entrepreneur
ignores team start-ups and downplays negative personality factors such as greed, ruthlessness, obsessive control and dishonesty.
