Entrepreneurial Potential and Potential Entrepreneurs

Abstract

Offers a model of entrepreneurial potential based on a social psychology perspective; the approach is a process-based, theory-driven micro-model. The model draws on cognition-based literature on intentions and theory and Albert Shapero's model of the entrepreneurial event, and builds on two previous models. In Ajzen's theory of planned behavior, three key attitudes predict intentions: attitude toward the act, social norms, and perceived behavior control. In Shapero's model, human behavior is governed by inertia until it is interrupted or displaced; the choice of resultant behavior (i.e., entrepreneurial event) depends on credibility of alternatives and some propensity to act (which constitute potential), which exist prior to the displacement. The proposed model has three major components: (1) perceived venture desirability, which comprises "attitude toward the act" and social norms; (2) perceived venture feasibility, which is a person's perceived ability to execute some target behavior; and (3) propensity to act. The first two components create credibility, which when combined with the third create potential. Potential coupled with interruption or displacement creates the intention. Some prescriptions for public policy are offered. Public policies must foster environments congenial to creating potential entrepreneurs; policies must increase the perceived feasibility and desirability for entrepreneurs; and they must support the general perception that entrepreneurial activity is both desirable and feasible. For corporations, individuals must perceive positive outcomes for internal venturing, plus intrinsic rewards and supportive culture; management must show commitment to risk-taking and innovation. In all, creating perceived feasibility is paramount. (TNM)

Keywords: Intention, Social norms, Cognition, Behavior (individual), Self-efficacy, Entrepreneurial environment, Motivation, Public policies, Entrepreneurial orientation, Attitudes, Nascent entrepreneurs, Cognitive models