Entrepreneurship Stewart et al (1998) investigated the potential of psychological constructs to predict a disposition towards entrepreneurship adopting a research model including the themes: 1. Achievement motivation 2. Risk-taking propensity 3. Preference for innovation Respondents were divided into three groups: 1. Entrepreneurs 2. Small Business Owners 3. Corporate Managers Main aim was to investigate whether there were significant differences in psychological dispositions between small business owner-managers and corporate managers. It was found necessary to distinguish between small business owners and entrepreneurs. An entrepreneur is said to capitalise on innovative combinations of resources using strategic planning. Defined as an achieving, creative risk-taker. Results suggest that entrepreneurs were highest in achievement motivation, risk-taking propensity and a preference for innovation. Small business owners were more comparable to managers than to entrepreneurs, except that small business owners demonstrate a relatively greater propensity to take risks than corporate managers, although less so than entrepreneurs. Small business owners also lack some degree of preference for innovation. Creativity Creativity involves risk which small business owners are less likely to take than entrepreneurs. They appear to lack a coalition of creativity and risk-taking. Entrepreneurs exhibit a psychological profile in line with their goals of growth and profit with systematic planning. With their higher entrepreneurial motivation, creative economic activity and willingness to take risks they are more likely to recognize and capitalise on entrepreneurial activity. The psychological predispositions and actions of small business owners on the other hand are more attuned to personal goals and family income. Thus Stewart et al (ibid) conclude that their results emphasize the importance of entrepreneurial proclivity in the potential for value creation, not just new venture creation. They suggest that 'a willingness to act entrepreneurially' may be a key component, combined with processes and choices as well as goal setting, venture formation, strategic planning and performance. Back to Top Performance Some owners are more growth orientated thus performance should be assessed with regard to their aspirations for a venture. Stewart et al (ibid) suggest owners should be aware of their own personality, including risk preferences, which may be more or less suited to different venture circumstances i.e. high-risk levels. Managerial issues related to the organizational life cycle include displacement of the entrepreneur by a manager more capable of dealing with the organizational stage. Exploring the psychological differences and similarities between intrapreneurs and entrepreneurs is suggested. Back to Top Planning is said to enhance venture performance. In small firms planning is dominated by the owner-manager, the characteristics of whom influence planningEntrepreneurs have goals of profit and growth, tend also to engage more in planning. Awareness of psychological preferences and planning behaviour can potentially improve performance of a venture regardless or aspirations. Venture Teams Venture teaming is said by Stewart et al (ibid) to be becoming more popular among entrepreneurs; with a balanced venture said to improve the chance of entrepreneurial success, citing Timmons (1990). Back to Top