Personality Predicts Entrepreneurial Success

Maczulskij TerhiViinikainen Jutta

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.

Publication info

Series
ETLA Muistio - ETLA Brief 122
Date
15.05.2023
Keywords
Personality, Entrepreneurship, Entrepreneurial success
ISSN
2323-2463
JEL
L26
Pages
6
Language
Finnish