Data quality affects meta-analytic conclusions: a response to Miner and Raju (2004) concerning entrepreneurial risk propensity

J. B. Miner and N. S. Raju (2004) contended that there are additional studies that compare the risk propensity of entrepreneurs and managers, which, when added to the data from W. H. Stewart and P. L. Roth (2001) and meta-analyzed, produce relationships between risk propensity and entrepreneurial status that are substantially weaker than previously believed. This conclusion was evaluated by identifying and examining methodological problems associated with their inclusion of effect sizes (i.e., ds) from studies with variables not relevant to research questions, dependent samples, extraneous variance in outcome variables, and confusion of constructs. When these methodological issues were addressed, a new meta-analysis indicated an overall conclusion consistent with that of Stewart and Roth, but the results varied according to instrumentation, particularly objective instrumentation (observed d = 0.31) versus the Miner Sentence Completion Scale-Form T (observed d = -0.35).     

Risk propensity differences between entrepreneurs and managers: a meta-analytic review

Research examining the relative risk-taking propensities of entrepreneurs and managers has produced conflicting findings and no consensus, posing an impediment to theory development. To overcome the limitations of narrative reviews, the authors used psychometric meta-analysis to mathematically cumulate the literature concerning risk propensity differences between entrepreneurs and managers. Results indicate that the risk propensity of entrepreneurs is greater than that of managers. Moreover, there are larger differences between entrepreneurs whose primary goal is venture growth versus those whose focus is on producing family income. Results also underscore the importance of precise construct definitions and rigorous measurement.     

Entrepreneurship research and practice: a call to action for psychology

Entrepreneurship is a major source of employment, economic growth, and innovation, promoting product and service quality, competition, and economic flexibility. It is also a mechanism by which many people enter the society's economic and social mainstream, aiding culture formation, population integration, and social mobility. This article aims to illuminate research opportunities for psychologists by exposing gaps in the entrepreneurship literature and describing how these gaps can be filled. A "call to action" is issued to psychologists to develop theory and undertake empirical research focusing on five key topic areas: the personality characteristics of entrepreneurs, the psychopathology of entrepreneurs, entrepreneurial cognition, entrepreneurship education, and international entrepreneurship. Methodological issues are discussed and recommendations provided. It is shown that psychologists can help identify the factors that influence new venture creation and success and inform the construction of public policy to facilitate entrepreneurship.     

Counseling would‐be entrepreneurs

The aim of this article is to provide counselors, academic advisers, and career coaches with a basic understanding of entrepreneurial careers. After presenting a brief history of entrepreneurship, the authors discuss various psychological, social, and economic factors associated with selecting, preparing for, and remaining successful in an entrepreneurial career. They also discuss various ways counselors can help aspiring entrepreneurs achieve their goals. An extensive annotated bibliography of online entrepreneurship resources is included.     

A study of factors that influence unemployed persons

The following research analyzes, through a field study, several relevant personality traits, or variables, that may be used to help the unemployed by directing them to entrepreneurship. Three sample groups (unemployed, employed, and entrepreneurs) were compared using several intrinsically motivating variables: knowledge, inclination to entrepreneurship, self‐efficacy, achievement needs, and propensity to act. The results showed that these variables are related and can be used as a medium of intervention to achieve the desired ends.     

Dispositional optimism, pessimism and realism in technological potential entrepreneurs

Optimism has been classically considered a key trait in entrepreneurs' personality but it has been studied from a psychological point of view only in recent years. The main aim of this research is to study the relationship between dispositional optimism, pessimism and realism as a function of the tendency to create technology-based businesses. A sample of undergraduate students (n= 205) filled in an electronic questionnaire containing the Life Orientation Test-Revised after they were classified as potential technological entrepreneurs, potential general entrepreneurs and non-potential entrepreneurs. Our results show that technology-based entrepreneurs are more optimistic than non-potential entrepreneurs, whereas there were no statistical differences in pessimism and realism. The results are interpreted theoretically to define the potential entrepreneur and, from an applied perspective, to design training programmes to support future technological entrepreneurs.     

What Facilitates Cultural Entrepreneurship? – A Study of Indian Cultural Entrepreneurs

The importance of a ‘cultural industry’ to a national economy and the development of a “creative society” has grown increasingly. However, research on cultural entrepreneurship is in its early stages and is yet to catch the attention of mainstream entrepreneurship and creativity scholars. In this article the objective is to enhance our knowledge and understanding of the key aspects that cultural entrepreneurs find facilitating their entrepreneurship. Studying Indian cultural entrepreneurs and applying a qualitative method, this paper identifies seven such aspects: cultural value creation, intrinsic motivation and external recognition, minimized risk, contextual understanding, innovation and learning, perseverance and ethical pursuit of cultural activity, and social networks.     

Innovativeness and initiative as mediators between achievement orientation and venture performance

A central question in entrepreneurship research is how to predict venture performance. In prior research, psychological characteristics of the entrepreneur and entrepreneurial behaviours have been more or less found to be able to distinguish between successful and unsuccessful entrepreneurs. The aim in this study was to extend earlier research and to test a model in which innovativeness and initiative are mediators between achievement orientation (including the psychological characteristics: self-efficacy, higher order need strength, need achievement, and internal locus of control) and venture performance. Data from 201 entrepreneurs were analysed with structural equation modelling to test the mediation model. The results suggest that innovativeness is a mediator between achievement orientation and venture performance, whereas initiative could not be confirmed as a mediator.     

Enterprise trainees' self-construals as entrepreneurs

Although the past decade has seen a resurgence of interest in the economic and political aspects of the entrepreneur, most psychological studies have tended to concentrate on the identification of the “entrepreneurial personality” or the repertoire of traits that identify successful entrepreneurs. Even in career theory, the entrepreneur has received only passing attention, usually as an aberration from a neat stage development model or in the context of a psychodynamic explanation for individual work behavior. This article starts from the premise that the social representation of the entrepreneur, reflecting the past 10 years of public promotion, does not vary significantly among various groups but that aspiring entrepreneurs with realistic levels of aspiration reveal distinct construals of themselves as self and as entrepreneur. Using a range of subjects from a variety of enterprise training courses, all of whom aspired to be entrepreneurs, I used locus-of-control and attitude scales and business performance questionnaires to determine likely business success and strength of self-concept. The first-stage repertory grids, on which this article is based, attempted to reveal each subject's construal of self and ideal self in relation to parents and business roles. The second- and third-stage grids, not reported here, will explore the construal of business problems and business motivation.     

An Empirical Comparison of Entrepreneurs and Employees: Implications for Innovation

Much has been written regarding the organizational changes needed to achieve entrepreneurship in established companies. Many corporate strategists conclude that above all others, a firm's "rank and file" have the intimate knowledge of business operations necessary to discover innovations within a corporation. However, little attention has been devoted to discovering a measure to identify the employees within a corporation who possess entrepreneurial characteristics and are thus likely to produce innovations. This exploratory study used external entrepreneurs as proxies for corporate internal entrepreneurs. The purpose of this study was to examine the effectiveness of two measures: Kirton's Adaption-Innovation Inventory (Kirton, 1976) and an adapted version of Roner' s Locus of Control Scale (Rotter, 1966) in distinguishing entrepreneurs from a population of employees. Participants (54 entrepreneurs and 79 employees) completed the 2 measures. Results indicated some significant differences between entrepreneurs and employees. Implications of the findings for research and practice are discussed.     

Contextualising Risk and Building Resilience: Returnees Versus Local Entrepreneurs in China

Risk is a pivotal concept in entrepreneurship research, as entrepreneurs constantly face uncertainty, ambiguity, setbacks, and stressful situations. Attitudes toward risk vary contingent upon individual risk preferences and cultural influences. Building resilience is critical for entrepreneurs to overcome obstacles, deal with risk, and grow their ventures. By juxtaposing effectuation theory and resilience literature, we compare the perceptions of risk held by Chinese returnees and local entrepreneurs and their coping strategies in building resilience. Our research reveals two types of coping approaches, namely effectual coping and causal coping. This study contributes to the comparative international entrepreneurship literature by contextualising the notion of risk held by entrepreneurs influenced by Eastern and Western cultures. Our study further contributes to the nascent literature on resilience in organisations by specifying the entrepreneurial occupational context and exploring the influence of cultures on resilience, and by identifying distinctive resilience-building coping strategies based upon cultural influences and interpretations of risk. Furthermore, we suggest that resilience can constitute one micro-foundation of effectuation theory in the context of entrepreneurship dealing with risk.     

Risk Propensity,Self-Regulation,and Entrepreneurial Intention: Empirical Evidence from China

Drawing on a self-regulation perspective, we develop and test a theoretical model linking risk propensity to entrepreneurial intention through the mechanisms of entrepreneurial self-efficacy and regulatory focus. Using survey data collected from a sample of 210 employees and managers in China, the results indicated that entrepreneurial self-efficacy and promotion focus (but not prevention focus) are positively associated with entrepreneurial intention. Furthermore, these two self-regulatory mechanisms partially mediate the relationship between risk propensity and entrepreneurial intention. Implications for entrepreneurship research and practice are offered.     

Public Entrepreneurship as Social Creativity

The article begins with an overview of the innovation process and the entrepreneurial process, each treated as separate but interrelated phenomena. The innovation process tracks the evolution of a new idea through time, whereas the entrepreneurial process tracks the activities that entrepreneurs develop to promote and defend the idea against its detractors. The model of innovation and entrepreneurship introduced distinguishes between individual and collective entrepreneurship and identifies two types of collective entrepreneurship: team entrepreneurship and functional entrepreneurship. A Minnesota case study demonstrates the power of both team and functional entrepreneurship. It also illustrates how important the linkages are between the entrepreneurs and their larger community. An innovative idea's development and survival depends on an “ecology of organizations” that provide “venture” capital for analysis and experimentation. The vast networks of contacts and associations represent a form of social capital just as important as the community's economic capital. In this case, both aspects of social creativity—the community resources and the network of social relations—were found to be instrumental in passing and implementing the first public school choice program in the country.     

Be fearless: Positive affect as a mediator between venturesomeness and self-efficacy in future entrepreneurs and managers

Introduction and objectives

Self-efficacy, personality and different affect states in entrepreneurs and managers are important factors for effectiveness and well-being. The aim of the study was to examine in young adults during entrepreneurship-related education, the relationships between venturesomeness and self-efficacy, and the mediating effects of positive affect and positive emotions (joviality, self-assurance, attentiveness) on these relationships.

Entrepreneurship in young adults: Initial findings from the young entrepreneurs study

The scientific study of youth entrepreneurship is truly in its infancy, with research on the development of entrepreneurship constrained by theoretical foundations that rely on static, trait-like approaches that equate entrepreneurship with stable personality characteristics. In this article, we define entrepreneurship as a fluid process that relies on the bidirectional interplay between a developing individual and his or her context. We report initial findings from the Young Entrepreneurs Study that clarify how entrepreneurial intentions and actions manifest in youth. We present quantitative analyses that examined the relations between entrepreneurial strengths and entrepreneurial activities in a sample of 3461 college students, and we describe the results of semi-structured interviews from a 48-person subset of our larger sample that explored how entrepreneurial intentions and actions manifested in our sample. We describe a mixed-method triangulation that integrates these two sets of findings, then discuss implications for future research.     

Immigrants’ Transnational Entrepreneurial Activities: the Case of Ghanaian Immigrants in Canada

Immigrant entrepreneurship comes in two forms: domestic and transnational entrepreneurship. Domestic immigrant entrepreneurs depend on the host society for business success while transnational immigrant entrepreneurs depend on the contacts and partners in their countries of origin and other countries. In recent years, immigrants’ entrepreneurial activity has moved from the domestic to the transnational level because of the simultaneous business activities that such entrepreneurs conduct between their home and host countries. Transnational entrepreneurship has become one of the pathways that immigrants use to settle and integrate into the host society’s labor market, and at the same time contribute to their countries of origin. From this perspective, this paper explores the causes, nature, and practices of transnational entrepreneurial activities of Ghanaian immigrants in Canada. Using in-depth interviews and focus groups, the study finds that transnational entrepreneurship has become an essential strategy among Ghanaian immigrant entrepreneurs due to the large and growing number of immigrant communities and demand for ethnic products and services that are not produced in Canada. The study also finds that transnational entrepreneurship has become an avenue for immigrants to connect and create ties with Ghana and contribute to its economic development.     

Health of entrepreneurs versus employees in a national representative sample

Prior research has found entrepreneurs to experience significantly higher job control and job demands compared with employees. This suggests that entrepreneurs have so‐called active jobs and thus may benefit from positive health consequences. The present research compared entrepreneurs' health with employees' health in a national representative sample with regard to the International Statistical Classification of Diseases and Related Health Problems, 10th revision (ICD‐10) diagnoses of somatic diseases, the Diagnostic and Statistical Manual of Mental Disorders, 4th edition (DSM‐IV) diagnoses of mental disorders, blood pressure, well‐being (life‐satisfaction) as well as behavioural health indicators (sick days, physician visits). Entrepreneurs showed significantly lower overall somatic and mental morbidity, lower blood pressure, lower prevalence rates of hypertension, and somatoform disorders, as well as higher well‐being and more favourable behavioural health indicators. The results are discussed with regard to the active job hypothesis and recommendations for future research are provided.     

Entrepreneurial personality: The role of narcissism

Research has established a number of personality features and behaviours associated with business creation and success. The similarities between these traits and narcissism, a concept with roots in clinical psychology and psychiatry, led the authors to conduct this study, which proposes to measure whether entrepreneurs score higher on a narcissism scale than other vocational groups. The second goal of this study is to measure the role of narcissism on intention to start a business. Student entrepreneurs have been compared with non-entrepreneur students, city workers, and employees and managers from a branch of a large financial institution. Then, students filled out measures of general self-efficacy, locus of control and risk propensity as well as a narcissism scale. Results indicate that student entrepreneurs score significantly higher than all other vocational groups on a measure of narcissism. Results also indicate that narcissism is positively correlated with general self-efficacy, locus of control and risk propensity. Moreover, narcissism plays a significant role in explaining entrepreneurial intentions, even after controlling for self-efficacy, locus of control and risk propensity. Overall, these findings shed new light on the underlying personality traits of entrepreneurs and entrepreneurial intentions and suggest new directions in the study of entrepreneurs’ personality profile.     

Assessing entrepreneurial inclinations: Some approaches and empirical evidence

Interest in entrepreneurship is intense in many parts of the world and this has arisen because of the association between new venture creation and economic development. Entrepreneurship is a process that often leads to the creation of new enterprises but in this article the concept is broadened to include innovative and enterprising behaviour within existing organizations. While it is recognized that entrepreneurs and entrepreneurship are the products of various societal, organizational, and individual factors, this article focuses on the inherent personal traits of individuals that dispose them to engage in entrepreneurial acts. Some approaches to assessing the entrepreneurial personality are examined, but the principal focus is on pencil and paper measures of entrepreneurial attributes. Various instruments that purport to measure key entrepreneurial characteristics such as need for achievement, locus of control, and creative tendencies are considered and relevant empirical evidence is reported. A consideration of the appropriateness of the Durham University Business School's General Enterprising Tendency test as a composite instrument for assessing enterprising or entrepreneurial tendencies follows along with some statistical norms for this test, which should prove useful for practitioners and academics alike. Finally, some problems with trait theories of entrepreneurship are discussed.     

Immigrant entrepreneurship from a social psychological perspective

We examined immigrant entrepreneurship from a social psychological perspective with an emphasis on Social Identity Theory (SIT). Immigrant entrepreneurs from across Canada (N=122) completed a questionnaire about their experiences as Canadian business owners. The results showed that business decisions are, indeed, related to social psychological influences. The use of social capital, the strength of cultural and national identity, acculturation and perceived discrimination were related to decisions made throughout the course of the business, from the initial motivations for pursuing entrepreneurship, to the intention to continue running a business in Canada. Overall, being an immigrant entrepreneur had social psychological implications and, in the future, the influence of identity, acculturation and discrimination among this group deserves further attention.