Entrepreneurial Catastrophe - A Behavioural Model

This paper presents a generic model of entrepreneurial behaviour utilising the Catastrophe Theory. The properties of the Cusp Catastrophe are adopted to illustrate the discontinuous nature of entrepreneurial behaviour. The model integrates an entrepreneurial characteristic or value set with an individual's environment on a three-dimensional behavioural surface. This paper establishes an initial hypothesis that human beings acquire and develop entrepreneurial characteristics through their life experiences and consequentially have the potential to behave entrepreneurially.To test this hypothesis, a survey was conducted in the West of Scotland (n = 10,000) using a set identified by Timmons as committment and determination, opportunity obsession, tolerance of risk and uncertainty, self-motivation, creativity and innovation, self-leadership. The results from this survey support the initial hypothesis.The environmental factor was derived from a theoretical construct of four dimensions: family, social, spiritual, work. These in combination will influence an individual's disposition to behave in a particular way through the formation of neural networks otherwise known as human values. This paper discusses value formation and its influence on behaviour.The Cusp catastrophe, depicting the three-dimensional entrepreneurial behavioural surface, adopts the set of entrepreneurial characteristics as the splitting factor and the environmental dimension as the normal factor. The model can then be constructed for any individual and, hence, their propensity to behave entrepreneurially can be determined.