The entrepreneurial character

What makes or breaks an entrepreneur? Are there special traits or genetic preconditions that differentiate entrepreneurs from other humans? Morris, Kuratko, & Schindehutte (2011) take up the analogy between entrepre-neurs and mountaineers which demonstrates shared characteristics such as goal setting, resource constraints and risk-taking (Valliere & O’Reilly, 2007). Morris et al. (2011) reinforce this comparison by asserting that both mountain-climbing and entrepreneurship are individualistic ences. They state “The entrepreneur is an active player in the experi-ence—not simply a passenger on a journey across time. He or she is a participant in the formation of reality. It is through the lens of his or her

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experience that the entrepreneur interprets life events and constructs a sense of self” (Morris et al., 2011, p. 18).

These citations are only the peak of a wide range of research into certain characteristics of entrepreneurs and the impact they have on their envi-ronment. To provide an overview of the interdisciplinary and multi-coloured research not only trait theory but also cognitive development theory has to be taken into account. Over the last 40 years manifold re-search into personality traits of entrepreneurs yielded substantial results.

However, the research is criticized for focussing on different kind of en-trepreneurs (nascent vs. already started vs. successful enen-trepreneurs) as well as using a variety of inconsistent methods to measure personality traits and attempts to link either only a single or a number of traits to en-trepreneurship (Burns, 2016, p.68). Hence, there is still much discussion about to which amount personality traits actually influence entrepreneur-ship. Burns (2016) summarizes six traits (see figure 2) he harvested from the many research studies and argues that each of them is necessary but not sufficient and a combination of all of these traits is needed.

Figure 2: Character traits of entrepreneurs Source: Burns (2016, p. 62)

Entrepreneurial character traits

Drive &

determination Need

for achievement

Need for independence

Acceptance of measured risk & uncertainty

Internal locus of control

Creativity, innovation

& opportunism

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These (and all other) personality traits can be measured and categorized, but only at one point in time. Some of them may be deeply rooted and hard to change, however, character can change over time and due to dif-ferent situational effects. Here we enter the field of cognitive theory that aims to provide insights into the development of personality traits. Atten-tion shifts from the individual differences to situaAtten-tional circumstances.

Chen, Greene, & Crick (1998) put forward that entrepreneurial self-efficacy (belief in own capabilities) leads to high objectivity and analyt-icity but also to a tendency to attribute any failure to external factors. In the authors’ opinion, self-efficacy results from a person’s previous expe-riences and the entrepreneur uses their mental model as basis for decision-making, also if it is based upon only limited experiences. Chen et al.

(1998) are among many scholars who argue that people who report on high self-efficacy are more likely to become entrepreneurs (Burns, 2016, p. 66). Entrepreneurial self-efficacy has emerged as a key psychological construct in entrepreneurship research as it has an effect on entrepreneuri-al motivation, intention, behaviour and performance (Newman, Obschonka, Schwarz, Cohen, & Nielsen, 2018).

Delmar & Davidsson (2000) outline two more research findings that are based on cognitive theory and focussed on entrepreneurship: First, intrin-sic motivated entrepreneurs perform better than those triggered by exter-nal factors; pull factors here outweigh push factors. Second, entrepreneurs with high intentionality are more likely to take action. This is based on the entrepreneurial trait “internal locus of control” that leads to drive and determination.

Morris et al. (2011) describe entrepreneurship as a temporal experience that is largely unpredictable and uncontrollable. In addition, venture

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tion is a pulsating, rhythmical experience. Schindehutte, Morris, & Allen (2006) conclude that the intensity of entrepreneurship is created by the personal experience. They state: “The process of transforming a mental construct into a functioning enterprise represents a unique type of human experience. The entrepreneurial experience includes the multiplicity of events to which the individual is exposed as he/she moves through the stages of the entrepreneurial process” (Schindehutte et al., 2006, p. 351).

Cognitive development theory highlights the influences our life experi-ences have on our character and aims to figure out the impact of personal background, culture and situations and phases of life in regards to entre-preneurship. Figure 3 illustrates the influences of these concepts:

Figure 3: Influences on character traits Source: Burns (2016, p. 68)

Why to stress out the psychological aspects of entrepreneurship and not just to focus on organisational aspects of the enterprise that will enable innovation and creative thinking? The soil will be prepared, the earth will be tilled, the seed will be sown at the time of a decision to start a venture.

That decision as well as further decisions how to develop the venture, how to grow it and how to manage it will depend on the entrepreneur, their personality traits, their personal situation and life experience.

Situational Cultures &

subcultures

Personal character traits

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Whether they can reap the fruits of their labour tomorrow, becoming suc-cessful and satisfied, perhaps wealthy and famous, or may fail with their venture, much depends on the combination of these factors. These psy-chological aspects will also influence the type of entrepreneurship chosen by the founder and their ability and likelihood for growth and entrepre-neurial management.