Working Paper: NBER ID: w24097
Authors: Sari Pekkala Kerr; William R. Kerr; Tina Xu
Abstract: We review the extensive literature since 2000 on the personality traits of entrepreneurs. We first consider baseline personality traits like the Big-5 model, self-efficacy and innovativeness, locus of control, and the need for achievement. We then consider risk attitudes and goals and aspirations of entrepreneurs. Within each area, we separate studies by the type of entrepreneurial behavior considered: entry into entrepreneurship, performance outcomes, and exit from entrepreneurship. This literature shows common results and many points of disagreement, reflective of the heterogeneous nature of entrepreneurship. We label studies by the type of entrepreneurial population studied (e.g., Main Street vs. those backed by venture capital) to identify interesting and irreducible parts of this heterogeneity, while also identifying places where we anticipate future large-scale research and the growing depth of the field are likely to clarify matters. There are many areas, like how firm performance connects to entrepreneurial personality, that are woefully understudied and ripe for major advances if the appropriate cross-disciplinary ingredients are assembled.
Keywords: entrepreneurship; personality traits; risk attitudes; self-efficacy; innovation
JEL Codes: D03; D81; D86; L26; M13; O3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| risk tolerance (G11) | probability of entering entrepreneurship (L26) |
| internal locus of control (D91) | entrepreneurial entry (L26) |
| internal locus of control (D91) | entrepreneurial growth (L26) |
| higher self-efficacy (I23) | increased likelihood of entering entrepreneurship (L26) |
| higher self-efficacy (I23) | business success (M14) |
| self-efficacy (D83) | entry and performance (L82) |