Psychological Theory of Entrepreneurship

Self-Efficacy Theory: a person’s beliefs about their ability to complete a task or project are the driving force behind entrepreneurial behaviour.

2. Locus of Control Theory: an individual’s perception of their internal ability to control their outcomes will have a direct effect on their attitude towards entrepreneurial activities.

3. Self-Competition Theory: The urge to be better than before or “self-compete” can be a driving force in entrepreneurial behaviour.

4. Ambiguity Tolerance Theory: those who can better tolerate uncertainty will find greater success in turbulent or unpredictable environments.

5. Passion Theory: the need for an individual to be passionate about a project for it to be completed with success.

6. Impulsivity Theory: Individuals must be willing to take calculated risks and act quickly to have the best chance of success.

7. Disagreeableness Theory: The ability to recognize when there is a divergence in opinion and stand their ground when necessary.

8. Planned Behavior Theory: an individual’s intentions are the most important factor when it comes to understanding and predicting their behaviour, including entrepreneurial behaviour.

9. Attribution Theory: entrepreneurs must be able to accurately attribute their successes and failures to make informed decisions.

10. Alertness Theory: entrepreneurs must be able to identify, assess and take advantage of opportunities quickly to succeed.

11. Hubris Theory: entrepreneurs must be able to identify, assess and take advantage of opportunities quickly to succeed.

12. Achievement Motivation Theory: individuals must have a strong desire to reach their goals to overcome any obstacles they may face.

13. Procedural Justice Theory: entrepreneurs must take into account fairness and equity to ensure their businesses are successful.

14. Regulatory Focus Theory: the promotion focus can help an individual take advantage of opportunities, while the prevention focus can help mitigate risks.

15. Expectancy Theory: individuals must have a strong belief in themselves and their project to feel motivated enough to take the necessary steps.

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