Critically Evaluate the Role Psychological Theories Play in Our Understanding of Entrepreneurship
Critically evaluate the role psychological theories play in our understanding of entrepreneurial study:
Psychological theory has been used to better understand an individual’s willingness and ability to become a successful entrepreneur in society. It is widely recognised that entrepreneurs are a major source of economic growth and financial benefit for society; as such it is useful to understand the psychological traits and drivers behind a successful entrepreneur to encourage more people to become entrepreneurs for the benefit of society. There are two major psychological theories that are useful and also criticised in the understanding of entrepreneurship; these are the trait approach and the cognitive approach.
The trait approach focuses on personality attributes, which are consistent patterns in the way people think, act and feel. It is widely agreed that these traits are the building blocks of personality. This psychological research is useful to understand the motivational characteristics that encourage people to become entrepreneurs and also it helps to understand entrepreneur’s behaviour. The trait approach can answer fundamental questions including: “who are most likely to succeed as entrepreneurs”. Whilst Trait is useful, it has been criticised for the lack of consensus among researchers; surrounding a fixed set of clear cut differences in personality traits between entrepreneurs and non-entrepreneurs. For this reason the validity of the trait approach has been questioned; despite criticisms, research into the correlation between entrepreneurs and personality traits are continuously being researched.
A particular trait that has been explored to better understand entrepreneurship has been extensively studied by David McClelland; this trait has been termed ‘Achievement Motivation’. This term has been singled out as the most prevalent theory of entrepreneurship; it roughly translates as an individual’s desire to do well for the sake of personal
Psychological theory has been used to better understand an individual’s willingness and ability to become a successful entrepreneur in society. It is widely recognised that entrepreneurs are a major source of economic growth and financial benefit for society; as such it is useful to understand the psychological traits and drivers behind a successful entrepreneur to encourage more people to become entrepreneurs for the benefit of society. There are two major psychological theories that are useful and also criticised in the understanding of entrepreneurship; these are the trait approach and the cognitive approach.
The trait approach focuses on personality attributes, which are consistent patterns in the way people think, act and feel. It is widely agreed that these traits are the building blocks of personality. This psychological research is useful to understand the motivational characteristics that encourage people to become entrepreneurs and also it helps to understand entrepreneur’s behaviour. The trait approach can answer fundamental questions including: “who are most likely to succeed as entrepreneurs”. Whilst Trait is useful, it has been criticised for the lack of consensus among researchers; surrounding a fixed set of clear cut differences in personality traits between entrepreneurs and non-entrepreneurs. For this reason the validity of the trait approach has been questioned; despite criticisms, research into the correlation between entrepreneurs and personality traits are continuously being researched.
A particular trait that has been explored to better understand entrepreneurship has been extensively studied by David McClelland; this trait has been termed ‘Achievement Motivation’. This term has been singled out as the most prevalent theory of entrepreneurship; it roughly translates as an individual’s desire to do well for the sake of personal