Talented enough to be a business leader? An alternative approach to entrepreneurs’ traits

Abstract

Objective: The objective of the article is to identify character strengths that contribute to one’s success at various stages of the development of an entrepreneurial venture: opportunity recognition, the refinement of business concept, resource acquisition, survival, and growth.

Research Design & Methods: The article is conceptual in nature. We propose a framework of character strengths and stages of development of the entrepreneurial venture, which is based on an exhaustive literature review.

Findings: The article proposes that different character strengths contribute to one’s success at various stages of venture development: curiosity, creativity, open-mindedness, and hope at the stage of opportunity recognition; bravery, integrity, love of learning, social intelligence, and kindness at the stage of refinement of business concept and resource acquisition; persistence, self-regulation, zest, humour, leadership, teamwork, and fairness at the stage of survival and growth. Moreover, We propose that perspective allows entrepreneurs to accumulate experience and recognize and exploit further opportunities.

Implications & Recommendations: The study has implications mainly for entrepreneurs (recommendation for higher self-awareness) and investors (investment in entrepreneur’s strength bundled with investment in the business).

Contribution & Value Added: This study adds to the understanding of mechanisms through which personal differences influence entrepreneurial actions and their outcomes. It adds to our understanding of specific entrepreneurship phenomena like entrepreneurial alertness or business planning. Thirdly, it contributes to the understanding not only of market entry but also of pre-entry and post-entry phenomena.

Keywords

entrepreneurial process, talents, character strengths, leaderships, traits, Big Five, entrepreneurial venture, entrepreneurs behaviors, business leader

Author Biography

Przemysław Zbierowski

Associate professor at the University of Economics in Katowice, head of Department of Human Resource Management. His research interests include positive psychology and its implication in management, entrepreneurship with the special scope psychology of entrepreneurship and mental health and well-being of entrepreneurs, and leadership, especially the use of positive approach to investigate the outcomes of leaders’ style and behaviors.

Milena Gojny-Zbierowska

Assistant Professor at the University of Economics in Katowice, at the Department of Entrepreneurship. Her research interests include psychology of business and entrepreneurship with the special focus on positive leadership, perceived organizational support, psychological capital and psychological safety.

References

1. Aldrich H.E. (1999). Organizations Evolving. London: Sage.
2. Bakker, A.B., Hetland, J., Olsen, O.K., & Espevik, R. (2019). Daily strengths use and employee well-being: The moderating role of personality. Journal of Occupational and Organizational Psychology, 92, 144-168. https://doi.org/10.1111/joop.12243
3. Baron, M.A. (2006). Opportunity recognition as pattern recognition: How entrepreneurs “connect the dots” to identify new business opportunities. Academy of Management Perspectives, 20, 104-119. https://doi.org/10.5465/amp.2006.19873412
4. Baron, M.A., & Ensley, M.D. (2006). Opportunity recognition as the detection of meaningful patterns: Evi-dence from comparisons of novice and experienced entrepreneurs. Management Science, 52, 1331-1344. https://doi.org/10.1287/mnsc.1060.0538
5. Bilan, Y., Mishchuk, H., Samoliuk, N., & Mishchuk, V. (2020). Gender discrimination and its links with com-pensations and benefits practices in enterprises. Entrepreneurial Business and Economics Review, 8(3), 189-204. https://doi.org/10.15678/EBER.2020.080311
6. Biswas-Diener, R. (2006). From the equator to the north pole: A study of character strengths. Journal of Hap-piness Studies: An Interdisciplinary Forum on Subjective Well-Being, 7(3), 293-310. https://doi.org/10.1007/s10902-005-3646-8
7. Buckingham, M., & Clifton, D.O. (2001). Now, discover your strengths. New York, NY: Free Press.
8. Cable, D., Lee, J.J., Gino, F., & Staats, B.R. (2015). How Best-self Activation Influences Emotions, Physiology and Employment Relationships. (Harvard Business School NOM Unit Working Paper, 16-29).
9. Castellanos1, J. D., & George2, B. (2020). Boardroom leadership: The board of directors as a source of stra-tegic leadership. Economics and Business Review, 20(1), 103-119 DOI: 10.18559/ebr.2020.1.5
10. Dissanayake, K. (2020). Perception of strengths from the voice of women micro entrepreneurs: A study in Sri Lanka. Studies in Indian Place Names, 40(6), 27-38.
11. Coppola, A., Ianuario, S., Chinnici, G., Di Vita, G., Pappalardo, G., & D’Amico, D. (2018). Endogenous and Exogenous Determinants of Agricultural Productivity: What Is the Most Relevant for the Competitive-ness of the Italian Agricultural Systems?. AGRIS on-line Papers in Economics and Informatics, 10(2), 33-47. https://doi.org/10.7160/aol.2018.100204.
12. Dankiewicz, R., Ostrowska-Dankiewicz, A., & Bulut, C. (2020). The attitudes of entrepreneurs of the small and medium-sized enterprises sector in Poland to key business risks. Equilibrium. Quarterly Journal of Eco-nomics and Economic Policy, 15(3), 511-536. https://doi.org/10.24136/eq.2020.023.
13. Dubreuil, P., Forest, J., & Courcy, F. (2014). From strengths use to work performance: The role of harmonious passion, subjective vitality, and concentration. The Journal of Positive Psychology, 9(4), 335-349.
14. Dubreuil, P., Forest, J., Gillet, N., Fernet, C., Thibault-Landry, A., Crevier-Braud, L., & Girouard, S. (2016). Facilitating well-being and performance through the development of strengths at work: Results from an intervention program. International Journal of Applied Positive Psychology, 1(1), 1-19. https://doi.org/10.1080/17439760.2014.898318
15. Duckworth, A., Peterson, C., Matthews, M., & Kelly, D. (2007). Grit: Perseverance and passion for long-term goals. Journal of Personality and Social Psychology, 92(6), 1087-1101. https://doi.org/10.1037/0022-3514.92.6.1087
16. Ebert, T., Götz, F.M., Obschonka, M., Zmigrod, L., & Rentfrow, P.J. (2019). Regional variation in courage and entrepreneurship: The contrasting role of courage for the emergence and survival of start‐ups in the United States. Journal of Personality, 87(5), 1039-1055. https://doi.org/10.1111/jopy.12454
17. Fernández Puente, A. C., & Sánchez-Sánchez, N. (2021). Understanding executive women´s perspectives on job satisfaction and their different domains. Economics and Sociology, 14(1), 159-177. doi:10.14254/2071-789X.2021/14-1/11
18. Forest, J., Mageau, G.A., Crevier-Braud, L., Bergeron, É., Dubreuil, P., & Lavigne, G.L. (2012). Harmonious passion as an explanation of the relation between signature strengths’ use and well-being at work: Test of an intervention program. Human Relations, 65(9), 1233-1252. https://doi.org/10.1177/0018726711433134
19. Fredrickson, B.L. (2001). The role of positive emotions in positive psychology: The broaden-and-build theory of positive emotions. American Psychologist, 56(3), 218. https://doi.org/10.1037/0003-066X.56.3.218
20. Frese, M., & Gielnik, M.M. (2014). The psychology of entrepreneurship. Annual Review of Organizational Psychology and Organizational Behavior, 1(1), 413-438. https://doi.org/10.1146/annurev-orgpsych-031413-091326
21. Frese, M., Van Gelderen, M., & Ombach, M. (2000). How to plan as a small scale business owner: psychologi-cal process characteristics of action strategies and success. Journal of Small Business Management, 38(2), 1-18.
22. Ganacarczyk, M., & Ujwary-Gil, A. (2021). Entrepreneurial cognition or judgment: Management and econom-ics approaches to the entrepreneur’s choices. Journal of Entrepreneurship, Management and Innovation, 17(1), 7-23. https://doi.org/10.7341/20211710
23. Ganzin, M., Islam, G., & Suddaby, R. (2020). Spirituality and entrepreneurship: The role of magical thinking in future-oriented sensemaking. Organization Studies, 41(1), 77-102. https://doi.org/10.1177/0170840618819035
24. Gartner, W.B. (1988). “Who is an entrepreneur?” is the wrong question. American Journal of Small Business, 12(4), 11-32. https://doi.org/10.1177/104225878801200401
25. Ghielen, S.T.S., van Woerkom, M., & Christina Meyers, M. (2017). Promoting positive outcomes through strengths interventions: A literature review. Journal of Positive Psychology, 13(6), 573-585. https://doi.org/10.1080/17439760.2017.1365164
26. Harris T. (2019). Start-up A Practical Guide to Starting and Running a New Business. Cham: Springer.
27. Harzer, C., & Ruch, W. (2013). The application of signature character strengths and positive experiences at work. Journal of Happiness Studies, 14(3), 965-983. https://doi.org/10.1007/s10902-012-9364-0
28. Heintz, S., & Ruch, W. (2020). Character strengths and job satisfaction: differential relationships across oc-cupational groups and adulthood. Applied Research in Quality of Life, 15(2), 503-527. https://doi.org/10.1007/s11482-018-9691-3
29. Heslin P.A., Latham G.P., & Vandewalle D. (2005). The effect of implicit person theory on performance ap-praisals. Journal of Applied Psychology, 90(5), 842-856. https://doi.org/10.1037/0021-9010.90.5.842
30. Hmieleski, K. (2008). Sex differences in entrepreneur signature strengths (summary). Frontiers of Entrepre-neurship Research, 28(4), 1.
31. Hmieleski, K.M., & Sheppard, L.D. (2019). The Yin and Yang of entrepreneurship: Gender differences in the importance of communal and agentic characteristics for entrepreneurs’ subjective well-being and per-formance. Journal of Business Venturing, 34(4), 709-730. https://doi.org/10.1016/j.jbusvent.2018.06.006
32. Hofstede, G., & McCrae, R.R. (2004). Personality and culture revisited: Linking traits and dimensions of cul-ture. Cross-Cultural Research, 38(1), 52-88. https://doi.org/10.1177/1069397103259443
33. Jeraj, M., & Antoncic, B. (2013). A conceptualization of entrepreneurial curiosity and construct development: A multi-country empirical validation. Creativity Research Journal, 25(4), 426-435. https://doi.org/10.1080/10400419.2013.843350
34. Kaasa, A. (2019). Determinants of individual-level social capital: Culture and personal values. Journal of In-ternational Studies, 12(1), 9-32. doi:10.14254/2071- 8330.2019/12-1/1
35. Koellinger, P., Minniti, M., & Schade, C. (2007). “I think I can, I think I can”: Overconfidence and entrepre-neurial behavior. Journal of Economic Psychology, 28(4), 502-527. https://doi.org/10.1016/j.joep.2006.11.002
36. Lavy, S., & Littman-Ovadia, H. (2017). My better self using strengths at work and work productivity, organiza-tional citizenship behavior, and satisfaction. Journal of Career Development, 44(2), 95-109.
37. Lee, J.J., Gino, F., Cable, D., & Staats, B.R. (2016). Preparing the self for team entry: How relational affirma-tion improves team performance. Harvard Business School NOM Unit Working Paper, (16-111).
38. Levie, J., & Autio, E. (2011). Regulatory burden, rule of law, and entry of strategic entrepreneurs: An interna-tional panel study. Journal of Management Studies, 48(6), 1392-1419. https://doi.org/10.1111/j.1467-6486.2010.01006.x
39. Lin, S., Li, J., & Han, R. (2018). Coping humor of entrepreneurs: Interaction between social culture and en-trepreneurial experience. Frontiers in Psychology, 9, article 1449. https://doi.org/10.3389/fpsyg.2018.01449
40. Linley, P.A. (2008). Average to A+. Coventry: CAPP Press.
41. Littman-Ovadia, H., & Steger, M. (2010). Character strengths and well-being among volunteers and employ-ees: Toward an integrative model. Journal of Positive Psychology, 5(6), 419-430. https://doi.org/10.1080/17439760.2010.516765
42. Littman-Ovadia, H., Lavy, S., & Boiman-Meshita, M. (2017). When theory and research collide: Examining correlates of signature strengths use at work. Journal of Happiness Studies, 18(2), 527-548. https://doi.org/10.1007/s10902-016-9739-8
43. Magnusson, D., & Endler, N.S. (1977). Interactional psychology: Present status and future prospects. In D. Magnusson & N.S. Endler (Eds.), Personality at the crossroads: Current issues in interactional psychology, (pp. 3-36). Hillsdale, NJ: Lawrence Erlbaum Associates.
44. Meyer, N., & Krüger, N. (2021). South African female entrepreneurs’ motivational factors: Differences be-tween young and established businesses owners. Forum Scientiae Oeconomia, 9(1), 75-90. https://doi.org/10.23762/FSO_VOL9_NO1_5
45. McGrath, R.E. (2014). Character strengths in 75 nations: An update. Journal of Positive Psychology, 10(1), 41-52. https://doi.org/10.1080/17439760.2014.888580
46. McMullen, J.S., & Shepherd, D.A. (2006). Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur. Academy of Management Review, 31(1), 132-152. https://doi.org/10.5465/amr.2006.19379628
47. Meyers, M.C., & Van Woerkom, M. (2017). Effects of a strengths intervention on general and work-related well-being: The mediating role of positive affect. Journal of Happiness Studies, 18(3), 671-689. https://doi.org/10.1007/s10902-016-9745-x
48. Miglianico, M., Dubreuil, P., Miquelon, P., Bakker, A.B., & Martin-Krumm, C. (2020). Strength use in the workplace: A literature review. Journal of Happiness Studies, 21(2), 737-764. https://doi.org/10.1007/s10902-019-00095-w
49. Mischel, W., & Shoda, Y. (1998). Reconciling processing dynamics and personality dispositions. Annual Re-view of Psychology, 49(1), 229-258. https://doi.org/10.1146/annurev.psych.49.1.229
50. Moayedfar, R., & Madani Chafi, M. (2019). A Theoretical Expansion of Talent Allocation Model: Evidence from Selected Developing Countries from 2014-2018. Entrepreneurial Business and Economics Review, 7(4), 57-72. https://doi.org/10.15678/EBER.2019.070404
51. Novák, J., Benda, P., Šilerová, E., Vaněk, J., & Kánská, E. (2021). Sentiment Analysis in Agriculture. AGRIS on-line Papers in Economics and Informatics, 13(1), 121-130. https://doi.org/10.7160/aol.2021.130109.
52. Nieto, M., & González-Álvarez, N. (2016). Social capital effects on the discovery and exploitation of entre-preneurial opportunities. International Entrepreneurship and Management Journal, 12(2), 507-530. https://doi.org/10.1007/s11365-014-0353-0
53. Nijs, S., Gallardo-Gallardo, E., Dries, N., & Sels, L. (2014). A multidisciplinary review into the definition, oper-ationalization, and measurement of talent. Journal of World Business, 49(2), 180-191. https://doi.org/10.1016/j.jwb.2013.11.002
54. Novák, J., Benda, P., Šilerová, E., Vaněk, J., & Kánská, E. (2021). Sentiment Analysis in Agriculture. AGRIS on-line Papers in Economics and Informatics, 13(1), 121-130. https://doi.org/10.7160/aol.2021.130109.
55. Oliinyk, O., Bilan, Y., Mishchuk, H., Akimov, O. & Vasa, L. (2021). The Impact of Migration of Highly Skilled Workers on The Country’s Competitiveness and Economic Growth. Montenegrin Journal of Economics, 17(3), 7-19.
56. Palich, L.E., & Bagby, D.R. (1995). Using cognitive theory to explain entrepreneurial risk-taking: Challenging conventional wisdom. Journal of Business Venturing, 10(6), 425-438. https://doi.org/10.1016/0883-9026(95)00082-J
57. Pauli, U., & Pocztowski, A. (2019). Talent Management in SMEs: An Exploratory Study of Polish Companies. Entrepreneurial Business and Economics Review, 7(4), 199-218. https://doi.org/10.15678/EBER.2019.070412
58. Park, N., & Peterson, C. (2010). Does it matter where we live? The urban psychology of character strengths. American Psychologist, 65(6), 535-547. https://doi.org/10.1037/a0019621
59. Park, N., Peterson, C., & Seligman, M.E. (2006). Character strengths in fifty-four nations and the fifty US states. Journal of Positive Psychology, 1(3), 118-129. https://doi.org/10.1080/17439760600619567
60. Peterson, C. (2006). A primer in positive psychology. Oxford, UK: Oxford University Press.
61. Peterson, C., & Seligman, M.E.P. (2004). Character strengths and virtues: A handbook and classification. New York: Oxford University Press.
62. Pfeffer J., & Sutton R.I. (2006). Hard Facts, Dangerous Half-Truths, and Total Nonsense: Profiting from Evi-dence-Based Management. Boston: Harvard Business School Press.
63. Quinlan, D., Swain, N., & Vella-Brodrick, D.A. (2012). Character strengths interventions: Building on what we know for improved outcomes. Journal of Happiness Studies, 13(6), 1145-1163. https://doi.org/10.1007/s10902-011-9311-5
64. Rauch, A., & Frese, M. (2000). Psychological approaches to entrepreneurial success: A general model and an overview of findings. International Review of Industrial and Organizational Psychology, 15, 101-142.
65. Rauch, A., & Frese, M. (2007). Born to be an entrepreneur? Revisiting the personality approach to entrepre-neurship. In J.R. Baum, M. Frese, & R.A. Baron (Eds.), The organizational frontiers. The psychology of en-trepreneurship, (pp. 41-65). Mahwah, NJ, US: Lawrence Erlbaum Associates Publishers.
66. Rodríguez-Castro, D.Y., & Aparicio, J. (2021). Introducing a functional framework for integrating the empirical evidence about higher education institutions’ functions and capabilities: A literature review. Journal of En-trepreneurship, Management and Innovation, 17(1), 231-267. https://doi.org/10.7341/20211718
67. Ryan, R.M., & Deci, E.L. (2001). On happiness and human potentials: A review of research on hedonic and eudaimonic well-being. Annual Review of Psychology, 52(1), 141-166. https://doi.org/10.1146/annurev.psych.52.1.141
68. Sarasvathy S.D., Dew, N., Velamuri, S.R., & Venkataraman, S. (2003). Three views of entrepreneurial oppor-tunity. In Z.J. Acs, & D.B. Audretsch (Eds.), Handbook of entrepreneurship research. An interdisciplinary survey and introduction (pp. 141-160). Boston: Kluver Academic Publishers.
69. Seligman, M.E.P., & Csikszentmihalyi, M. (2000). Positive psychology: An introduction. American Psychologist, 55, 5-14. https://doi.org/10.1037/0003-066X.55.1.5
70. Shane S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 17-26. https://doi.org/10.5465/amr.2000.2791611
71. Solesvik, M.Z. (2019). Entrepreneurial competencies and intentions: The role of higher education. Forum Scien-tiae Oeconomia, 7(1), 9-23. https://doi.org/10.23762/FSO_VOL7_NO1_1
72. Stander, F.W., Mostert, K., & de Beer, L.T. (2014). Organisational and individual strengths use as predictors of engagement and productivity. Journal of Psychology in Africa, 24(5), 403-409. https://doi.org/10.1080/14330237.2014.997007
73. Tang, J., Kacmar, K.M.M., & Busenitz, L. (2012). Entrepreneurial alertness in the pursuit of new opportuni-ties. Journal of Business Venturing, 27(1), 77-94. https://doi.org/10.1016/j.jbusvent.2010.07.001
74. Tshikovhi, N., Dziike, F., & Moyo, S. (2021). Restarting for the thrill: Behavioural addiction to entrepreneur-ship. International Entrepreneurship Review, 7(3), 37-46. https://doi.org/10.15678/IER.2021.0703.03
75. Van Woerkom, M., Bakker, A.B., & Nishii, L.H. (2016). Accumulative job demands and support for strength use: Fine-tuning the JD-R model using COR theory. Journal of Applied Psychology, 101(1), 141-150. https://doi.org/10.5465/ambpp.2015.321
76. Wach, K., & Głodowska, A (2021). How do demographics and basic traits of an entrepreneur impact the internationalization of firms?. Oeconomia Copernicana, 12(2), 399-424. https://doi.org/10.24136/oc.2021.014
77. Wach, K., Głodowska, A., & Maciejewski, M. (2022 – In Press). Entrepreneurial orientation and opportunities recognition on foreign markets: Empirical evidence from Central Europe. European Journal of Interna-tional Management – Ahead-of-Print (available online).