“Entrepreneurship and Individuals” Exercise: Five factor model of personality Advantages and disadvantages of cognitive and trait-based entrepreneurship models

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SIEN6006 Entrepreneurship
Entrepreneurship and
individuals
Week 4 Workshop
Sergio Pinzon

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Today’s agenda
• “Entrepreneurship and Individuals”
• Exercise: Five factor model of personality
• Advantages and disadvantages of cognitive and trait-
based entrepreneurship models.

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Idea: the right
characteristics
The right
circumstances
The right
behaviours
(and ‘success’)
What’s is the trait-based model?
Entrepreneurship: the psychological perspective

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ACTIVITY: Cognitive theories ‘The Big Five’ factor model of personality
Neuroticism Extraversion Openness to
Experience
Agreeableness Conscientiousness
Zhao & Seibert (2006)

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Definition: ‘The Big Five’ factor model of personality
• Negative emotions: anxiety, hostility, depression, self- consciousness, impulsiveness and vulnerability
• Oppositive to Self- confidence and resilience
Neuroticism
• Assertive, dominant, energetic, active, talkative
Extraversion
• Creative, Innovative, imaginative, reflective, and untraditional
Openness to Experience
• Trusting, forgiving, caring, altruist and gullible
Agreeableness
• Achievement motivation and dependability
• Persistence, hard work, and motivation
• Organized, deliberate and methodological
Conscientiousness
Zhao & Seibert (2006)

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‘The Big Five’ factor model of personality
• Entrepreneurs deal with unstructured environments
• Lack of separation personal and managerial work
• Self- confidence and resilience
Neuroticism
• Entrepreneurs interact with a diverse range of constituents: venture capitalist, partners, employees and customers
Extraversion
• Entrepreneurs needs to explore new ideas and novel managers will follow
Openness to Experience
• Entrepreneurs need to build and maintain relationships with customers, suppliers, and team members
Agreeableness
• Entrepreneurs need to be organized, disciplined, and focused on achieving their goals
• Self-care and work-life balance.
Conscientiousness
Zhao & Seibert (2006)

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Entrepreneurship and person-organisation fit’:
Closer to an
‘entrepreneurial
fit’
Self-
efficacy
Ability
to
recognis
e
opportu
nities
Personal
perseve
rance
Human
and
social
capital
Superior
social
skills
Markman & Baron (2003)

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Managerial mindsets
Gosling & Mintzberg (2003)

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How entrepreneurs can benefit from the following:
a) Self-reflection and a growth mindset
b) Flexibility and effective management approach
c) Delegation
d) Standardization, process improvement, and sustainability

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Homework: Five factor model of personality
You were required to complete the five-factor model of personality test (as detailed on Canvas).
From your own personal results:
• Identify one personality aspect you consider a strength and one personality aspect you consider a weakness.
• Identify examples of how these ‘strong’ and ‘weak’ personality aspects have influenced your ability to interact in
the workplace/university.
• How might these personality aspects influence your behaviour as an entrepreneur?
• Apply the ‘five factor model of personality’ to your chosen entrepreneur for exercise #1. Which traits are they
‘strong’ in, and which traits are they ‘weak’ in? Why do you think this?

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Follow up questions
• Characteristics like 'need for achievement' and 'agreeableness'
innate abilities?
• What does the idea of 'success' entail?
• How does the context influence entrepreneurship?
• What are the implications of assuming that some individuals are
inherently 'better' at entrepreneurship than others?

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Module 5 – Entrepreneurship and Organisations
• We will:
• Discern key contextual factors which influence new venture
formation
• Identify challenges at different stages of new venture development
• Revisit and nuance our basic process model of entrepreneurship.
• Review: Canvas content; required readings
• No lecture (replaced by Canvas content)
• Reflection and preparation for our next Workshop: Detailed on Canvas

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Group formation: Assignment #2
Assignment 2 -- discussion thread created for each workshop.
Identify the top two emerging areas you would like to be assigned
to, in order of preference, along with your full name and student
number (see the relevant Discussion threads for more details).
Please complete this task by Friday 22nd March, 23:59.
Make sure you post in the Discussion thread set up for your
workshop and not in any others.
Students who do not complete this task by the deadline will be
randomly assigned to an emerging area.

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