Contextualizing Entrepreneurial Intentions: Psychological, Traits and Behavioral Theory

Abstract

Entrepreneurs shape each nation’s economic development, which drives the creation of small and medium size (SMEs) companies. The willingness of an individual to engage in the creation of a commercial venture, linking ‘ideas to action’ is known as entrepreneurial intentions. This is the commencement of an entrepreneurship journey and a firm antecedent of entrepreneurial traits which underpin succeeding actions. From a psychological perspective, there is a need to better understand an entrepreneur’s mindset and traits, in contrast, to that of the economic perception which emphasises the person’s ability to be innovative. Psychologists’ point of view explains the importance of understanding individual personality and behaviour in recognizing opportunities, and this is what entrepreneurial impetus is all about. The mindset of an entrepreneur plays a role in the thinking process of business formation. Trait theory approaches the concept of entrepreneurs from the view that they have a set of inherent characteristics. It is established in this review that the mindset of entrepreneurs (values, beliefs, and behaviors), what they do, having the ability to (identify opportunities), with creative and innovative capabilities to take an inherent risk and start a new venture.