Origin of Entrepreneurship in Individuals

Question 1

Describe the Traits Theory (Entrepreneurs Are Born )

Answer 1

Professor of Psychology Alan Jacobwitz suggests that entrepreneurial aptitude is static-that is, either people are born with the related characteristics, or they are not.
While the majority of theorists supported this approach at the dawn of entrepreneurial research, some criticize that it has yet to be empirically proven.

Question 2

What are some of personality characteristics of entrepreneurs according to the Trait theory

Answer 2

Restlessness,
Independence,
A tendency to be a loner,
Extreme self confidence.
Innovative,
Action oriented,
High on need for personal control
Highly autonomous

Question 3

Describe the Precipitating Events Theory (Entrepreneurs are made)

Answer 3

Suggests entrepreneurial intention is based on the interaction between personal characteristics (perceptions, values, beliefs, background) and environment (situational context).
This model suggests that entrepreneurial characteristics not only can be learned, but also can vary across individuals and situations.

Question 4

Define entrepreneurship according to the
Precipitating Events Theory

Answer 4

The pursuit of an opportunity irrespective of existing processes

Question 5

Differentiate between the traits model and the Precipitating Events Theory

Answer 5

Unlike the traits models, the Precipitating Events Theory incorporates the influence of environment, and the notion that entrepreneurial behavior is planned and intentional.
This approach is process-focused in that the interactions of several factors are examined in order to predict behavior

Question 6

Describe the process of entrepreneurial
intention according to the Precipitating Events Theory

Answer 6

Environment or events causes an individual to form perceptions, attitudes and assumptions
These perceptions then translate themselves into intentions, or potential
Intentions or potential then are expressed through behavior
Thus, this model suggests that entrepreneurial characteristics not only can be learned, but also can vary across individuals and situations.

Question 7

Describe the venture theory ( Beyond Born and made )

Answer 7

A more dynamic approach to entrepreneurial behavior
that seeks to explore sustained and repeated entrepreneurial behavior (venturing).
In essence, the model moves beyond attempting to explain why individuals initiate ventures to why or how entrepreneurs are motivated to continue with the behavior as a career choice.
They conclude that, like the intention to act entrepreneurially, the decision to continue behavior is influenced by the interaction of various factors.

Question 8

What are some of the factors that influence the decision to continue venturing according to the venture theory

Answer 8

individual characteristics,
individual environment,
business environment,
an individual’s personal goal set,
and the existence of a viable business idea.

Question 9

How do an entrepreneur’s outcomes affect their decision to venture according to the venture theory

Answer 9

The model predicts that when the outcomes meet or exceed perceived outcomes, positive behavior (continued engagement in entrepreneurialism) is reinforced.
It also predicts that the opposite occurs when the perceived outcomes are not met.
This model clearly incorporates psychological, behavioral and situational factors.