Self-efficacy is perhaps one of the best predictors of an entrepreneurs success and is one of the factors through which goal-directed

behaviour is achieved. This is because it relates to having a specific confidence in a particular task. This differs to general confidence, as one might not have confidence in financial or managerial activities, but be confident otherwise. A confident person who lacks self-efficacy in these tasks may subject themselves to failure whereas a person who is has selfefficacy in these tasks has a greater chance of success. A second factor is cognitive motivation, and a high need for cognition will equate to more time, focus, research and reflection to be done when thinking about an opportunity. In contrast, a low need for thinking will mean that the entrepreneur will rely on their experience, assumptions and the element of luck. The final factor to goal-directed behaviour, and which is encompassed by entrepreneurial motivation, is tolerance for ambiguity. This feature is where an entrepreneur sees a particular situation as more desirable than threatening, and is a vital characteristic for an entrepreneur due to the dynamic nature of markets and the competition within them.

Unlike the traditional manager, entrepreneurs generally take what can be perceived as risks in fields which they have an interest or passion in, and they do this because they expect a positive outcome, not to fail. When they do this, they tend to work with incomplete data so that they do not miss their opportunity, and this is not something a typical manager would do, instead they would gather all the resources they can first. Moreover, an entrepreneur will most likely have to make decisions more quickly and cheaply than a typical manager can, and this again relates to missing chances and limited financial resources.