A Critical Review and Future Directions for Research: Personality and Social Entrepreneurial Success

Abstract

Probably millions of people across the world dream of starting their own business, a fraction of them may gather the courage and resources to pursue their ambitions, and still, even a smaller fraction of those may persevere through the challenges and inevitable disappointments, entrepreneurial process may present. FInally, a very small number of entrepreneurs succeed in achieving their objectives. What determines the difference in behaviours and attitudes of these individuals? Why some never seek available opportunities, while other dig out hidden potential in coal and convert it to gold? Why would some entrepreneurs give up half way in between; while others would overcome every obstacle, they may find in the way of achieving success. In addition to personality, which remains the largest area of psychological research in social entrepreneurship; recent research has also cited the significance of a personality attribute, matched to the specific tasks, each stage of an entrepreneurship might require, as a significant predictor of performance. In the current paper, we argue that just the trait approach to understanding underpinning personality dimensions to entrepreneurship is not sufficient. An understanding of the dynamic psychological functions and attitudes, as delineated by Jung will facilitate understanding of the strengths and weaknesses a potential entrepreneur may exhibit in any given situation. [4], as over 3.5 million new businesses are initiated each year in the United States; while Fortune 500 was reported to lose over 500 million jobs [5]. Conceptual and empirical predilections have been applied by academics as well as management experts [6] through hundreds of research studies, in an attempt to disentangle the complex, multi-dimensional process of entrepreneurship [7]. This is only a recent development as until 1980s, entrepreneurship was a peripheral perusal of individuals seeking their own source of income [8]; and the term ‘social entrepreneur’ was not coined until the year 1984 [9]. Despite numerous attempts over past two decades, there still exists a degree of scepticism in outlining the rudimentary elements for the concept of social entrepreneurship [10-13]. The number of self-employed enterprises is constantly rising, and they are at the peak of their success, recognition and glory than ever before in the human history. It has been widely acknowledged that only certain individuals with distinctive personality types may initiate and succeed in entrepreneurship initiatives [14]. Being able to predict the likelihood of someone succeeding in an entrepreneurship venture is of high significance to funding agencies as they receive millions of applications every year from potential entrepreneurs. They must ensure that their limited funding goes into the right hands and that they get some returns on their investment. Personality screening is thus of high relevance to the field of entrepreneurship. The key Review ARticle