The why and the how: A nexus on how opportunity, risk and personality affect entrepreneurial intention

Abstract

Opportunity-recognition, risk-taking and personality traits are central person-oriented characteristics for entrepreneurial intention. Despite the fact that various explanations have been proposed on how they affect entrepreneurial intention, it is still unclear which explanation is the most forceful one. This study compares three explanatory mechanisms and reveals that a newly derived trait−opportunity−risk nexus explains best why individuals intend to become entrepreneurs. The nexus was tested with 412 employees who provided information on their Big Five traits, opportunity-recognition skills, risk-taking, and entrepreneurial intention. Findings of a serial mediation model indicate that the interdependencies between traits, opportunity-recognition skills, and risk-taking have to be considered sequentially to understand how these person-oriented characteristics affect entrepreneurial intention. In essence, more open, conscientious, extraverted and stable individuals recognize business opportunities more easily. The regret of missing out on profitable opportunities most likely pushes them to take risks, which then enhances their entrepreneurial intention.

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