Risk-taking is one of the chief dimensions of entrepreneurship. Entrepreneurs are found to be more risk takers than the managers and salaried employees, such that, they are willing to put their homes on mortgage, jobless and can work for years without any earning (Burns, 2011; Masters & Meier, 1988). According to (Moore & Gergen, 1985), entrepreneurs always take calculate risk and always analyse the situation. Cognitive Psychology supports that the risk taking ability is just limited to their area of expertise (Sjöberg, 1978, Heath & Tversky, 1991). According to (Heath & Tversky, 1991), entrepreneurs take more risk in the area of their interest and expertise and not in those area, they have little knowledge about. But even then also, they take more risk than general population.
Studies have found that there is a deep link between Entrepreneurship and Need of Achievement. According to Begley and Boyd ...view middle of the document...
They accept success and failure of their work and this need of achievement help them to overcome failure, obstacles and setbacks.
Another important characteristic it measures is the locus of control. It is an ability by which an individual makes a perception about the underlying main causes of events in his life. If individual believes that he/she has control over the outcomes though their own abilities such as attributes, hard work and decision making then it is known as internal locus of control whereas, In case of external locus of control, individual believes that they don’t have any influence on the outcomes and believes in external forces such as fate and luck (Rotter 1966). According to (Rotter 1966), individual who has higher achievement motivation show more characteristics of internal rather than external locus of control.
Creativity is a key part in the entrepreneurial process. It is the ability to invent something new or change something (Webster, 1976). According to (Cromie, 2000), Creative people show some particular characteristics. They find problems very interesting and are not afraid of obstacles; rather, they try to find out the solution of those problems. Moreover, they have the ability to stick to their work and plan, and make little alteration to it. They never change their idea completely.
Need for autonomy is again a crucial characteristic assessed by the test. Autonomy refers to the independence or freedom of an individual in carrying an idea or work from the start to the finish (Lumpkin and Dess, 1996). According to (Henry et al., 2003), individuals with this ability usually put their own efforts in the work and take the responsibility for their work. Entrepreneurs don’t like rules, regulations and social norms and prefers to work alone as an individual (Kirby, 2004). In other words, they are against the bureaucratic structures which follow rules and regulations and they require more freedom to maximise their output (Henry et al., 2003). According to (Burns, 2011), autonomy of freedom of thought means different for different people and once an entrepreneur work in his firm then he/she cannot work for any other company or organization.