A Theoretical Analysis of the Role of Characteristics in Entrepreneurial Propensity

Abstract

Research summaryThe literature reveals a broad range of inconsistencies in defining entrepreneurship and in identifying personal characteristics that predict and explain the phenomena of entrepreneurship. The purpose of this work is to propose a model for consistency in predicting entrepreneurial propensity. This article acknowledges categories of entrepreneurs such as: business enterprise creating entrepreneurs, social entrepreneurs, student entrepreneurs, academic entrepreneurs, and corporate entrepreneurs. The proposed theory is specifically focused on business enterprise creating entrepreneurs, defined as Type One. These are individuals who risk their personal capital, time, and reputation in the pursuit of business ventures. Existing theories and observations regarding affect and personality as characteristics of entrepreneurs are reviewed and a new three‐dimensional taxonomy of personal characteristics for predicting Type One entrepreneurial propensity is introduced.Managerial summaryThe academic literature has revealed a wide range of definitions of entrepreneurship and this has resulted in inconsistent conclusions for defining and predicting entrepreneurial propensity. This has likely proven problematic for educational institutions interested in expanding entrepreneurial programs, governmental agencies interested in promoting localized economic activity, and lending institutions that wish to strengthen their confidence in entrepreneurs to whom they lend operating capital. This theory article is designed to propose a path to clarity and offer a model for predicting business enterprise creating entrepreneurs. These individuals are defined as Type One entrepreneurs, represented by those who risk their personal capital, time, and reputation in the pursuit of business ventures. A new three‐dimensional taxonomy of personal characteristics of these individuals is proposed.