Risk-taking is one of the chief dimensions of entrepreneurship. Entrepreneurs are found to be more risk takers than the managers and salaried employees, such that, they are willing to put their homes on mortgage, jobless and can work for years without any earning (Burns, 2011; Masters & Meier, 1988). According to (Moore & Gergen, 1985), entrepreneurs always take calculate risk and always analyse the situation. Cognitive Psychology supports that the risk taking ability is just limited to their area of expertise (Sjöberg, 1978, Heath & Tversky, 1991). According to (Heath & Tversky, 1991), entrepreneurs take more risk in the area of their interest and expertise and not in those area, they have little knowledge about. But even then also, they take more risk than general population.
Studies have found that there is a deep link between Entrepreneurship and Need of Achievement. According to Begley and Boyd (1987), those who have founded their own companies had a higher need for achievement than non-founders or owner managers. Also, (Stewart et al., 1998) responded that need for achievement is higher in entrepreneurs than the corporate manager and owner managers. Need for Achievement is usually high in entrepreneurs than the general population. It provides them with motivation to go ahead and achieve their next target easily. Entrepreneurs showing this tendency usually are good planners, sets their goals, always look for information and learning (Miner, 2000). They accept success and failure of their work and this need of achievement help them to overcome failure, obstacles and setbacks.
Another important characteristic it measures is the locus of control. It is an ability by which an individual makes a perception about the underlying main causes of events in his life. If individual believes that he/she has control over the outcomes though their own abilities such as attributes, hard work and decision making then it is known as internal locus of control whereas, In case of external locus of control, individual believes that they don’t have any influence on the outcomes and believes in external forces such as fate and luck (Rotter 1966). According to (Rotter 1966), individual who has higher achievement motivation show more characteristics of internal rather than external locus of control.
Creativity is a key part in the entrepreneurial process. It is the ability to invent something new or change something (Webster, 1976). According to (Cromie, 2000), Creative people show some particular characteristics. They find problems very interesting and are not afraid of obstacles; rather, they try to find out the solution of those problems.
Internal locus of control is how you as a person dictates how their work or personal life is going to go. Meaning the results of something is based on ones behaviors and actions. For example, getting the new job promotion and you knowing that you got the job for your hard work and not because you think, it is out of pure luck.
This given article is based on the current research which identified different factors may affect organizational creativity, including both individual and organizational level, the author generally introduced the factors from individual and organizational levels with the models of creativity. Then the author focuses on discussing the individual factors that may influence creative problem-solving. Next, similarities between cognitive processes and creative problem solving are introduced as to come up with the main theme. Specifically, there are four core processes in cognitive process which share the same process of problem solving. While cognitive process in problem solving is an internal fact from employees. The author uses models of ...
For entrepreneurs whom are willing to accept the risk associated with starting a business, some have made themselves extremely wealthy. Although our economy is focused on capitalism as a means of promo...
Locus of control refers to the extent to which individuals believe that they can control events that affect them. Individuals with a high internal locus of control believe that events result primarily from their own behavior. Those with a high external locus of control believe that powerful others, fate, or chance primarily determine events that affect their lives. People with a high locus of control try to engage more in political behavior.
In this article, researchers look at the assessment of creativity in job candidates. Creativity is essential for businesses to succeed. According to Amabile, Conti, Coon, Lazenby and Herron, (1996), consumer demands for innovation, reduction in product life cycles and fierce competition in the marketplace require job candidates to possess attributes of creativity. Amabile et al. (1996) defines creativity as “novel and useful ideas in any domain” (p. 1155). Examples of creativity are demonstrated by an individual’s ability to handle conflict resolution and utilize problem-solving skills. Furthermore, a creative individual is capable of being self-managed. Experience in working and leading teams is also considered characteristic of creativity (Malakate, Andriopoulos, & Gotsi, 2007).
Having an internal locus of control means that our successes and failures come from the amount of effort we put forth. People who are internals will hard for what they think they need in life. They won't blame their failures on anything else, but their own mistakes and not trying hard enough. Those who have an external locus of control will tend to believe that their success and failures come from luck or fate. They don't think they have to work for what they need in life, because the world will provide for
Creativity arises through the confluence of three major components of creativity. It is expertise, motivation, and creative thinking skills. It is where the expertise is actually knowledge of all the relevant understanding and individual brings to bear on a creative efforts. While the motivation is the key to creative production such having an intrinsic passion and interest in the works and as for creative thinking skills, it relates to how people approach problems and depends on personality and working
In the past few years, there has a lot of attention paid to the concept of entrepreneurship; however, many still struggle to find the exact meaning of what an entrepreneur is and how he is different from other regular business-owners. This query has gotten people to come up with different definitions and studies in the search of a final answer and, even though there is still a debate for a complete designation accepted by all, now there are certain traits that are recognized by everyone as basics for being an entrepreneur.
What is the principle of “locus of control ? Internal People with a high internal locus of control believe in their own ability to control themselves and influence the world around them. They see their future as being in their own hands and that their own choices lead to success or failure. Rotter (1990) describes the internal locus of control as: 'the degree to which persons expect that a reinforcement or an outcome of their behavior is contingent on their own behavior or personal characteristics' Their belief in their ability to change things may well make them more confident and they will hence seek information that will help them influence people and situations.
The locus of control is the main aspect of Julian Rotter’s theory which falls under the social-cognitive perspective. The locus control basically consists in one’s general experiences about whether one’s efforts can accomplish desired results or reinforcements. People that have an internal locus of control believe that they are able to accomplish their goals or reinforcements through their work and effort. Contrarily, people with an external locus of control believe that their accomplishments and failures are governed and controlled by external forces such as luck or fate.
entrepreneurs have the ability to come up with new ideas in various situations of which one might have never imagined. Entrepreneurs have a curiosity that identifies overlooked niches and they are constantly trying to innovate (Robinson, 2014). They imagine another world and have the ability to communicate that vision effectively to investors, customers and staff.
What is it that makes some small businesses fail while others go on to resounding success? It is an unfortunate fact that a lot of businesses do not make it in the long run. What separates those that thrive from those that don’t? The difference is that certain habits and traits are what allow some small business owners to make their own luck and run successful companies. Let’s look at the ten most important:
Organization operates in a strongly competitive environment manning creativity a vital component in business growth. Creativity is what sparks big ideas, challenges workers way of thinking and make way for new business opportunities,
Many people dream of becoming entrepreneurs someday. But it made me realize that there other factors that needs to be taken into consideration. We need to ask ourselves are we ready to take the challenge to the outside world. Not everyone have the vision, innovation and creativity to become an entrepreneur. The individual must have a positive attitude and accept the responsibility, have discipline to meet their goals, and take action when the opportunity presents itself. Many prefer a job security and rely on a weekly paycheck, while entrepreneurs will take risks and doesn 't have that luxury to know the amount of their income.
Entrepreneurship is an important aspect of social, economic and community life. It can be viewed as a critical factor to economic growth as well as a way of addressing unemployment (Nolan, 2003).Entrepreneurs are people who are persistently focused on identifying opportunities, they seek to create something worthwhile while taking into account foreseeable risk and rewards associated with the efforts (Nolan, 2003). Furthermore, entrepreneurs are frequently understood to be individuals who discover market needs and establish new business to meet those identified opportunities. The following assignment will firstly discuss the types of entrepreneurship, secondly it will discuss the reasons people become entrepreneurs, and thirdly it will discuss the importance of entrepreneurship.