Personality Predicts Entrepreneurial Success

Terhi Maczulskij and Jutta Viinikainen

No 122, ETLA Brief from The Research Institute of the Finnish Economy

Abstract: Abstract Personality is related to labor market success, and entrepreneurship differs from paid employment in several ways. In this research, we examine the relationship between six personality traits (neuroticism, extraversion, sociability, hostility, self-confidence, and conscientiousness) and outcomes associated with two different phases of the entrepreneurial process: selection into entrepreneurship and subsequent entrepreneurial success. We utilize register panel data on employment characteristics over a 20-year period. Our results show that self-confidence is associated with entry into entrepreneurship, and this trait is also associated with entrepreneurial success in terms of higher survival probability and 6–20 percent higher entrepreneurial income and the firm’s labor productivity. Self-confidence may not be stable and can change. Therefore, providing support that enhances people’s self-confidence may promote both entrepreneurship and entrepreneurial performance in society. See also Self-confidence Predicts Entrepreneurship and Entrepreneurial Success.

Keywords: Personality; Entrepreneurship; Entrepreneurial success (search for similar items in EconPapers)
JEL-codes: L26 (search for similar items in EconPapers)
Pages: 6 pages
Date: 2023-05-15
New Economics Papers: this item is included in nep-des, nep-ent and nep-sbm
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