TY - ABST

T1 - What do we know about entrepreneurial potential?

AU - Sørensen, Frej

AU - Holten, Ann-Louise

N1 - Conference code: 21

PY - 2023/5/25

Y1 - 2023/5/25

N2 - Research goalsThe current economic crisis and ageing population raise questions of how the entrepreneurialdevelopment in Europe can be strengthened, for example through generational change andcontinued entrepreneurial development.By coining the term entrepreneurial potential (Krueger & Brazeal, 1994), a new scientific field hasrecently manifested itself. The knowledge developed within this field, may further our understandingof the concept and processes of entrepreneurial potential and its potential for solving imminentsocietal challenges. With this purpose, we review the literature on entrepreneurial potential anddevelop a wider theoretical model of entrepreneurial potential.Theoretical backgroundFocusing the review on literature on developmental-competence actualization of human potential,we apply the Aristotelian distinction between potentiality and actuality (Aristotle, 2017) as a guiding,theoretical framework for the review.MethodologyAs the purpose of the review was to identify and understand all the relevant research traditions andapproaches to entrepreneurial potential and to synthesize this into an overall theoretical model, weapplied a semi-systematic review methodology (Wong et al, 2013). The literature search wasperformed in Scopus and Web of Science, resulting in 356 (Scopus) and 303 hits (Web of Science)using the phrase search “entrepreneurial potential”, supported by backward snowballing (Jalali &Wohlin, 2012)ResultsThe literature review reveals that this nascent field studying entrepreneurial potential is not yetclearly outlined and delimitated, neither in terms of theorization, construct definition, noroperationalization.Theorization/ The main theoretical lenses applied in the emerging field are socialisation and/orpersonality theories. Using social learning theory (Bandura, 1977), social cognitive theory (Bandura,1986), and theory of planned behavior (Ajzen, 1991), entrepreneurial potential is theorized todevelop through role modelling, implicit learning, or other intangibles, often studied through a familybusiness background (Chen et al, 1998; Wang et al, 2018; Hahn et al, 2021).Construct/ Most publications do not define the phenomenon of entrepreneurial potential butfrequently use proxy phenomena as indicators of entrepreneurial potential (Chen et al., 1998, Wanget al, 2018). Entrepreneurial potential is most commonly defined as a precursor for and preparednessto engage in entrepreneurial activities (Krueger & Brazeal, 1994; Santos et al, 2013; Veljkovic et al,2019).Operationalization/ Our review finds a great variety of operationalisations and approaches in thefew available empirical studies (Chen et al, 1998; Hahn et al, 2021). Also the operationalisationsapply proxy-measurements, such as entrepreneurial intentions, risk-taking propensities, locus ofcontrol, personality traits, etc. Some studies seek to operationalize entrepreneurial potential as afixed set of specific competencies (Raab et al, 2005; Santos et al, 2013), while others as more generalcharacteristics (Krueger & Brazeal, 1994; Veljkovic et al, 2019)Gender/ The review reveals important gender differences in the development, state, andactualization of entrepreneurial potential. Some empirical studies suggest that women need higherdegrees of self-efficacy than men to engage in entrepreneurial acts (Wilson et al, 2007, 2009).Knowledge in gendered entrepreneurial potential is underrepresented.With the purpose of synthesizing the available knowledge on entrepreneurial potential, we developa theoretical model based on Aristoteles’ broader conception of potentiality. The model will depictentrepreneurial potential as a teleological process, through which entrepreneurial potential develops(becoming/potentiality), is self-efficacious (state of being), and manifests itself (doing/actuality).LimitationsThe scope of the review is limited by the selection of search words and inclusion/exclusion criteriaand is, as a semi-structured review, intended to explore and synthesize, rather than be exhaustive.ConclusionsMapping the literature review onto our theoretical model, we find that research is needed to offer agenerally applicable definition of entrepreneurial potential, to develop and interrelate knowledge onboth the potentiality and actuality, and to further the understanding of enabling and inhibitingconditions. Furthermore, specific knowledge on the development and application of femaleentrepreneurial potential is highly needed.Relevance to Congress ThemeThe paper is relevant to the congress theme, as it highlights important and emerging research onentrepreneurial potential. Entrepreneurial potential is not exclusively relevant for business start-upor take-over, but may also unfold and actualize in a wider world of work, which is defined bycomplexity and diversity.

AB - Research goalsThe current economic crisis and ageing population raise questions of how the entrepreneurialdevelopment in Europe can be strengthened, for example through generational change andcontinued entrepreneurial development.By coining the term entrepreneurial potential (Krueger & Brazeal, 1994), a new scientific field hasrecently manifested itself. The knowledge developed within this field, may further our understandingof the concept and processes of entrepreneurial potential and its potential for solving imminentsocietal challenges. With this purpose, we review the literature on entrepreneurial potential anddevelop a wider theoretical model of entrepreneurial potential.Theoretical backgroundFocusing the review on literature on developmental-competence actualization of human potential,we apply the Aristotelian distinction between potentiality and actuality (Aristotle, 2017) as a guiding,theoretical framework for the review.MethodologyAs the purpose of the review was to identify and understand all the relevant research traditions andapproaches to entrepreneurial potential and to synthesize this into an overall theoretical model, weapplied a semi-systematic review methodology (Wong et al, 2013). The literature search wasperformed in Scopus and Web of Science, resulting in 356 (Scopus) and 303 hits (Web of Science)using the phrase search “entrepreneurial potential”, supported by backward snowballing (Jalali &Wohlin, 2012)ResultsThe literature review reveals that this nascent field studying entrepreneurial potential is not yetclearly outlined and delimitated, neither in terms of theorization, construct definition, noroperationalization.Theorization/ The main theoretical lenses applied in the emerging field are socialisation and/orpersonality theories. Using social learning theory (Bandura, 1977), social cognitive theory (Bandura,1986), and theory of planned behavior (Ajzen, 1991), entrepreneurial potential is theorized todevelop through role modelling, implicit learning, or other intangibles, often studied through a familybusiness background (Chen et al, 1998; Wang et al, 2018; Hahn et al, 2021).Construct/ Most publications do not define the phenomenon of entrepreneurial potential butfrequently use proxy phenomena as indicators of entrepreneurial potential (Chen et al., 1998, Wanget al, 2018). Entrepreneurial potential is most commonly defined as a precursor for and preparednessto engage in entrepreneurial activities (Krueger & Brazeal, 1994; Santos et al, 2013; Veljkovic et al,2019).Operationalization/ Our review finds a great variety of operationalisations and approaches in thefew available empirical studies (Chen et al, 1998; Hahn et al, 2021). Also the operationalisationsapply proxy-measurements, such as entrepreneurial intentions, risk-taking propensities, locus ofcontrol, personality traits, etc. Some studies seek to operationalize entrepreneurial potential as afixed set of specific competencies (Raab et al, 2005; Santos et al, 2013), while others as more generalcharacteristics (Krueger & Brazeal, 1994; Veljkovic et al, 2019)Gender/ The review reveals important gender differences in the development, state, andactualization of entrepreneurial potential. Some empirical studies suggest that women need higherdegrees of self-efficacy than men to engage in entrepreneurial acts (Wilson et al, 2007, 2009).Knowledge in gendered entrepreneurial potential is underrepresented.With the purpose of synthesizing the available knowledge on entrepreneurial potential, we developa theoretical model based on Aristoteles’ broader conception of potentiality. The model will depictentrepreneurial potential as a teleological process, through which entrepreneurial potential develops(becoming/potentiality), is self-efficacious (state of being), and manifests itself (doing/actuality).LimitationsThe scope of the review is limited by the selection of search words and inclusion/exclusion criteriaand is, as a semi-structured review, intended to explore and synthesize, rather than be exhaustive.ConclusionsMapping the literature review onto our theoretical model, we find that research is needed to offer agenerally applicable definition of entrepreneurial potential, to develop and interrelate knowledge onboth the potentiality and actuality, and to further the understanding of enabling and inhibitingconditions. Furthermore, specific knowledge on the development and application of femaleentrepreneurial potential is highly needed.Relevance to Congress ThemeThe paper is relevant to the congress theme, as it highlights important and emerging research onentrepreneurial potential. Entrepreneurial potential is not exclusively relevant for business start-upor take-over, but may also unfold and actualize in a wider world of work, which is defined bycomplexity and diversity.

M3 - Conference abstract for conference

T2 - 21st congress of the European Association of Work and Organisational Psychology

Y2 - 24 May 2023 through 27 May 2023

ER -