Gic Students Potential To Become Entrepreneurs Commerce Essay

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The definition of entrepreneurs is a person who undertakes the advantages between customers and suppliers Zwart et al., 2007. This undertakes are below the risks of personal financing of running private business however the profit might be affected directly according to business achievement (Segal et al., 2005). The activities, those of the entrepreneurs' behaviours, which include innovations, advancements, and capabilities to seek opportunities, are called entrepreneurship. In particular, entrepreneurs apply their resources in order to create new efficient business that never had in the commercial world (Shane, 2004). (6) Over a half century, professional psychologists stated that no entrepreneurs are the same, as a result of the different ways individuals are influenced into this career. This literature review will discuss two main categories, which are psychology and non psychology, to define the explicit individual traits of entrepreneur. Parker (2004) indicated that psychological factors as a first factor which consist of need for achievement, risk-taking, core self-evaluation and motivation. Another category is non-psychological factors which consider as age-experience and education. Moreover, it will indicate what aspects of these categories can generally be described the characteristics of successful entrepreneur. (10)

Thompson (1999) surprisingly presented that after studied various group of people by using psychology and non-psychology, the result shown that a growth rate of young entrepreneurs seems to continuously increase more than others over time period. Although Shane (2004) mentioned that everybody cannot be entrepreneurs, hence at the critical stage, individuals engage to entrepreneurial behaviours. Segal et al., (2005) described that this ambiguity are found in most researches, thus it is very difficult to verify an obvious image of entrepreneur as a person. However, most entrepreneurial psychologist such as Shane (2004) revealed that the similarity characteristic of entrepreneurial behaviour could be measured by entrepreneurial theory base on psychology and non-psychology.


Psychologists are now recognized entrepreneurial trait as psychological trail with the foremost characteristic of need for achievement, and then entrepreneurs are prepared to taking a risk, central evaluating self-efficacy in responsibilities, additionally, motivation to pull forward on personal trait in entrepreneurial behaviour.

Need for Achievement

Need for Achievement (NAch) is considerably to be one of the systematic attempt to classify the entrepreneurial characteristics (Parker, 2004). NAch can be described by behaviours such as solving the problems, locating the targets among others and readiness to take risks (Hamilton, 1994). These manners can be found in entrepreneurs rather than others group of people. In addition, the outcome of achievement is also involved with dimensional entrepreneurial behaviour (Shane, 2004). In spite of monetary reward being identified as the priority compensation of entrepreneur, McClelland's (1961) hypothesis is more concern on psychological needs. Moreover, it could be mentioned that a person who need to be self-employment is correlated to NAch. Therefore, Rauch et al. (2005) briefly argued that people with high in NAch is considered to become a successful entrepreneur.


Risk-taking is a counterpart of entrepreneurial behaviour (Shane, 2004). Most psychologists argued that entrepreneur favours to take risks. Despite the fact that taking a high risk will lead to high compensation, Parker (2004) interpreted that entrepreneurial behaviour will always avoid venture when it cannot be predicted and managed. Therefore, entrepreneur will beware of the possible outcome both former and later entering into the business risk. Bolton et al. (2005) argued that the process of thinking of entrepreneurs define risk-taking as an opportunity and challenging their abilities, thus many people prefer to stay away from being in risk situation. In particular, entrepreneurs are ready to risk and invest their money with gambling more than common people (Whittaker et al., 2009). (3)

Core Self-evaluation

Locus of control (LOC) is one of the dimensions of core self-evaluation to synthesis the capability to self-control under the unusual circumstance (Shane, 2004). Generally, it is compose of internal and external factors to influence the outcomes. Although researchers revealed that the consequences of situation cannot be controlled by LOC, Judge et al. (1998) and Scott et al. (2002) claimed that the internal LOC depends unquestionably on individual reinforcement especially response to entrepreneurial opportunities. Moreover, most entrepreneurial activities require high responsibilities, especially, ability to control the situation and mind. For example, decision making, entrepreneurs are able to be calm, patient and analyse circumstance better than others. Therefore, Parker (2004) claimed that LOC is a specific trait which cannot be taught in reality; it could be developed by a level of entrepreneurial skills and experiences throughout time change.(3)


Segal (2005) argues that the entrepreneurial motivation has been investigated along a path which, over 30 years, explains behaviours results from the relationship between the individuals and the circumstances as a dynamic process. Literature of motivation distinguishes the theory between push and pull factors which it was stated by Segal et al,(2005), Zwart et al,(2007) and Pruett, (2009). The push theory is defined as negative external influence pushed people into entrepreneurship, for example, job dissatisfaction, difficulty finding work, inadequate wages or uncomfortable timetable. The pull theory is an attractive influence creates the attraction to entrepreneurial activities in order to find opportunity, self-fulfilment, wealth and other desirable outcomes. (7)

Many psychologists intensely discussed that these three characteristics in psychological trait have positively relation to explain entrepreneurial behaviours. It described that what outstanding features and attitudes of entrepreneurs are differences when comparing with common people. Entrepreneurs seem to have more confident and comfortable on expressing these characteristics in public. Parker (2004) indicated that each entrepreneur perform unique and particular trait toward personal attitude according to internal and external motivation. Consequently, necessary knowledge maybe concludes to fulfil entrepreneur abilities to be successful.(8)


The criteria of non-psychology could be interpreted as innate trait, it described that people grow up and learn differently which also affect to entrepreneurial characteristic and knowledge.

Age and Experience

Shane (2004) argued that age is one of the tendencies which correlate to the exploitation of entrepreneurial opportunities of an entrepreneur. Accordingly to the previous research, the ability of seeking opportunities usually decreases with age. Although Pruett et al. (2008) claimed that young people have potential no less than adult, the average age of the initiators was reported between 35 and 44 (Shane, 2004). Moreover, Parker (2004) also concluded that older people is more likely to have inheritances and accumulative capital. This means they are not just only having abilities to build new businesses, but can also establish adamant businesses. Age and experience are totally different by definition and an entrepreneurial behaviour's description (Pruett et al., 2008). Bolton et al. (2005) claimed that an entrepreneur is more likely to be objectivity sooner than the others. Besides, Whittaker et al. (2009) concluded that everybody can become an entrepreneur by individuals' experiences. For instance, people, who prefer to change their job very often, are predicted with high possibility that will turn to be self-employment (Krueger, 2008). (3)


Shane (2008) suggested that higher education increases the likelihood to start individuals' businesses. On the one hand, education helps increasing knowledge, skills and also entrepreneurial decisions making. Especially, the combination of technology and innovation, which nowadays are the basis of education, is also useful to entrepreneurs (Davidsson et al., 2003). Meanwhile, graduates are more likely to exploit opportunities (Urger et al., 2009). However, once a person graduate a bachelor degree, further education does not necessarily increase a chance of becoming an entrepreneur (Shane, 2008). On the other hand, Ford et al. and Sonnentag (1998) claimed that the abilities to absorb knowledge or skills cannot be measured in reality. Eventually, increasing knowledge along with learning activities lead to successful entrepreneurship, therefore, there is definitely a positive effect of education on identifying successful entrepreneur (Unger et al., 2009).(3)

Entrepreneurs should have these two factors to support the creation of new businesses. Education is a pathway which individuals will gain lifelong knowledge. Similarly, experience is neither less significance nor less role-playing than the education. A combination of both valuable sources is obviously a fundamental knowledge of successful entrepreneur (Krueger, 2002).(1)

It is hoped that this literature review has shown how psychologists describe each factors had related to entrepreneurial behaviours. Psychologists tended to learn entrepreneurial evolution by using science in psychology and non-psychology. It is, now, noticed that individuals who had high need for achievement, favour in risk-taking and good at controlling their emotion and situation which consist of entrepreneurial characteristics. A qualification of entrepreneur is, in fact, complicated to fix in one definition, therefore researchers are continuously studies. The gap of those literatures can found as the group of participants. These research will investigate on specific group of students, GIC students, who are about to continue their master degree in business and management department. (10)