Resources and Capabilities 55
- Communicated vision is related by +.22.
- Goal setting is related by +.26.
- Self-efficacy (the ability to produce the desired effect) is related by +.34.
It is true that traits help to explain behavior, but it is behavior that is related to the ven-
ture growth variable.
Our resource-based theory suggests that actions and competencies (what one can do;
skills) are much more important than psychological traits. To understand entrepreneur-
ship, we must look for capabilities and circumstances that produce differences, not sim-
ilarities. To do so, we turn to a sociological framework that emphasizes personal histo-
ry and the uniqueness of an individual’s path to new venture creation.
A SOCIOLOGICAL APPROACH
How else are entrepreneurs unique? Each has a unique background, history, and biogra-
phy. The sociological approach tries to explain the social conditions from which entre-
preneurs emerge and the social factors that influence their decisions to start new ven-
tures. A sociological model is presented in Figure 2.2.^57 It depicts the decision to become
an entrepreneur as a function of two factors: the impetus factor and the situational fac-
tor. It is a supply model of entrepreneurship because it indicates the sources of entrepre-
neurial spirit and activity. The model is multiplicative: A zero on either of the causes
means a failure to produce the entrepreneurial event.
Impetus for Entrepreneurship
What propels entrepreneurs toward self-employment? There are four factors: negative
displacement, being between things, positive push, and positive pull. A recent study pro-
posed that pull entrepreneurs may perform better than push entrepreneurs, and those
that can be classified as both push and pull may be the most motivated of all.^58
Negative Displacement
Figure 2.2 begins with the notion that people who find themselves displaced in some
negative way may become entrepreneurs. Negative displacement is the alienation of
individuals or groups of individuals from the core of society. These individuals or groups
may be seen as “not fitting in” to the main flow of social and economic life.
Some recent survey analysis supports the negative displacement factor (see also
below, “between things”). In a 2004 study by the “Global Entrepreneurship Monitor,”
researchers collected data on U.S. entrepreneurs and their level of education. This infor-
mation appears in Figure 2.3.
The figure illustrates that being between things (not finishing a complete degree) or
having negative displacement (being a high school dropout) are significant factors for
many entrepreneurs. Indeed, college dropouts are better represented among entrepre-
neurs than college graduates. But there is often a difference in the types of businesses
founded. High school dropouts engage in “necessity-based” entrepreneurship (3.6%).
They start a business because they have limited opportunities for employment; they have
to be self-employed. The group with the highest educational level has the least necessi-
ty-based entrepreneurship (6%).
