Entrepreneurial behavior and business performance

Abstract

This study focuses on the impact of individual differences in intellectual ability and motivation on venture performance. The proposed model takes into account the interaction between the environment and the entrepreneur's motivation and ability. The model also differentiates between entrepreneurial and business performance. Business performance was measured as business efficiency (risk buffer) and previous growth, entrepreneurial performance as growth motivation. Both multiple regression and structural equation modeling were used to test the model. Analyses of the data provided weak support for the business performance models, but strong support for the entrepreneurial performance model. Findings suggested an important interaction between self-determination, job interests and ability. Furthermore, these characteristics had an indirect effect on growth motivation. It was concluded that motivation, and not ability, is the most important determinant of individual differences in performance.

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