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Can beneficial antecedents to self†employment be detrimental to entrepreneurial performance?

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  • Christian Hopp
  • Johannes Martin

Abstract

We hypothesize that risk aversion, plasticity, stability, and locus of control have different effects on a person's decision to enter entrepreneurship and the person's entrepreneurial performance. Empirical results reveal that plasticity and risk tolerance have positive effects on selection but negative effects on income derived in entrepreneurship. Stability, on the other hand, deters entry but has an inversely u†shaped relation with income. Locus of control has a positive impact on the decision but an insignificant effect on entrepreneurial income. These new insights may guide policy makers on how to help aspiring entrepreneurs overcome the negative effects of their personality traits.

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  • Christian Hopp & Johannes Martin, 2018. "Can beneficial antecedents to self†employment be detrimental to entrepreneurial performance?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 39(5), pages 563-576, July.
    • Handle: RePEc:wly:mgtdec:v:39:y:2018:i:5:p:563-576
    DOI: 10.1002/mde.2927
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    Cited by:

    1. Bahadur Ali Soomro & Ghulam Rasool Lakhan & Naimatullah Shah, 2021. "COVID‐19 impediments and business start‐ups in Pakistan: Evidence from the second wave of the pandemic," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1909-1918, October.

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