Psychological

Theory
Psychological Theory of
Entrepreneurship
A concept that seeks to explain the dynamics
behind successful entrepreneurship and the
entrepreneurial process.
It focuses on understanding the entrepreneurial
personality , and how to relates to economic
theory, business and ownership ethic,
entrepreneurship education, and entrepreneurial
practice.
Types of Psychological
Theories of
Entrepreneurship
1. Self- Efficacy Theory
This theory closely examines how
individuals mindset affects their ability to
achieve a goal and goes further in
exploring the information of this attitude.
2. Locus of Control Theory
 This hypothesis evaluates a person’s awareness
of their circumstances and implies that those
with an internal sense of control are correlated
with entrepreneurial objectives.
3. Self-Competition Theory
 This concept indicates that individuals have
an intrinsic urge to better themselves and
surpass their prior versions.
4. Ambiguity Tolerance Theory
 This theory suggests that those who can better
tolerate uncertainly will find greater success in
turbulent or unpredictable environments.
5.Passion Theory
This theory illuminates the various sources of
enthusiasm and drives that motivate
entrepreneurs.
6.Impulsivity Theory
As an entrepreneur, there will be times when
you must act with impulsivity due to the
uncertainty and immediacy of market
conditions.
7.Disagreeableness Theory
Disagreeableness theory has always been a
source of contention, as it paints the image of
an entrepreneur as someone who in obstinate
and deliberately uncooperative.
8. Planned Behavior Theory
According to this theory, the strongest
influencing force of a persons action is the
intentions behind them.
9. Attribution Theory
The motion of this theory is that people
would be inspired to look for reasons behind
their triumphs and defeats, as well as the
actions of other individuals.
10. Alertness Theory
Many authors rely on this theory when
discussing the economic role of entrepreneurs
in their works.