Research goals
The current economic crisis and ageing population raise questions of how the entrepreneurial
development in Europe can be strengthened, for example through generational change and
continued entrepreneurial development.
By coining the term entrepreneurial potential (Krueger & Brazeal, 1994), a new scientific field has
recently manifested itself. The knowledge developed within this field, may further our understanding
of the concept and processes of entrepreneurial potential and its potential for solving imminent
societal challenges. With this purpose, we review the literature on entrepreneurial potential and
develop a wider theoretical model of entrepreneurial potential.
Theoretical background
Focusing 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.
Methodology
As the purpose of the review was to identify and understand all the relevant research traditions and
approaches to entrepreneurial potential and to synthesize this into an overall theoretical model, we
applied a semi-systematic review methodology (Wong et al, 2013). The literature search was
performed 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)
Results
The literature review reveals that this nascent field studying entrepreneurial potential is not yet
clearly outlined and delimitated, neither in terms of theorization, construct definition, nor
operationalization.
Theorization/ The main theoretical lenses applied in the emerging field are socialisation and/or
personality theories. Using social learning theory (Bandura, 1977), social cognitive theory (Bandura,
1986), and theory of planned behavior (Ajzen, 1991), entrepreneurial potential is theorized to
develop through role modelling, implicit learning, or other intangibles, often studied through a family
business background (Chen et al, 1998; Wang et al, 2018; Hahn et al, 2021).
Construct/ Most publications do not define the phenomenon of entrepreneurial potential but
frequently use proxy phenomena as indicators of entrepreneurial potential (Chen et al., 1998, Wang
et al, 2018). Entrepreneurial potential is most commonly defined as a precursor for and preparedness
to 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 the
few available empirical studies (Chen et al, 1998; Hahn et al, 2021). Also the operationalisationsapply proxy-measurements, such as entrepreneurial intentions, risk-taking propensities, locus of
control, personality traits, etc. Some studies seek to operationalize entrepreneurial potential as a
fixed set of specific competencies (Raab et al, 2005; Santos et al, 2013), while others as more general
characteristics (Krueger & Brazeal, 1994; Veljkovic et al, 2019)
Gender/ The review reveals important gender differences in the development, state, and
actualization of entrepreneurial potential. Some empirical studies suggest that women need higher
degrees 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 develop
a theoretical model based on Aristoteles’ broader conception of potentiality. The model will depict
entrepreneurial potential as a teleological process, through which entrepreneurial potential develops
(becoming/potentiality), is self-efficacious (state of being), and manifests itself (doing/actuality).
Limitations
The scope of the review is limited by the selection of search words and inclusion/exclusion criteria
and is, as a semi-structured review, intended to explore and synthesize, rather than be exhaustive.
Conclusions
Mapping the literature review onto our theoretical model, we find that research is needed to offer a
generally applicable definition of entrepreneurial potential, to develop and interrelate knowledge on
both the potentiality and actuality, and to further the understanding of enabling and inhibiting
conditions. Furthermore, specific knowledge on the development and application of female
entrepreneurial potential is highly needed.
Relevance to Congress Theme
The paper is relevant to the congress theme, as it highlights important and emerging research on
entrepreneurial potential. Entrepreneurial potential is not exclusively relevant for business start-up
or take-over, but may also unfold and actualize in a wider world of work, which is defined by
complexity and diversity.