Essentials of Entrepreneurship: A Practical Approach

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  Psychology of Entrepreneurship

Older View of Entrepreneurs -- Reject and Misfit

  Failures in Traditional Structured Roles:

Collins & Moore at Michigan State University examined 110 entrepreneurs founding manufacturing firms in Michigan during 1945-1958 (Enterprising Man, 1964) and concluded:

“Throughout the preceding analysis, obviously we have been having difficulty deciding whether the entrepreneur is essentially a reject of our organizational society who, instead of becoming a hobo, criminal or professor, makes his adjustment by starting his own business; or whether he is a man who is positively attracted to succeed in it. We have, perhaps without intention, regarded him as a reject.

… entrepreneurs are men who have failed in the traditional and highly structured roles available to them in society. In … entrepreneurs are not unique. What is unique about them is that they found an outlet for their creativity by making out of an undifferentiated mass of circumstances a creation uniquely their own: a business firm.

The men who travel the entrepreneurial way are, taken on balance, not remarkably likable people. This, too is understandable. As any one of them might say in the vernacular of the world of the entrepreneur, ‘Nice guys don’t win.’”

Not Very Nice People

Chester Burger in (Executives Under Fire, 1965) found that entrepreneurs were:
“compulsively driven men whose drive comes from deep inner self doubts. Because many of these men are, not so far beneath the service, intensely insecure, they have fashioned elaborate devices to assert their dominance in the hope that this will make them secure.”

More Recent View -- Simply People Apart

Liles (in The New Enterprise, 1973) found that entrepreneurs were not misfits at all. In fact, "most of the founders had experienced a generally high level of success in their previous employment. Several had established outstanding records of achievement."

The key to more recent findings is to be found in the "needs" or "motivation of the entrepreneur."


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