Melissa S. Cardon

THE NATURE AND EXPERIENCE OF ENTREPRENEURIAL PASSION

Entrepreneurial passion plays an important role in entrepreneurship, but theoretical understanding of what it is and what it does is lacking. We build on fragmented and disparate extant work to conceptualize the nature of entrepreneurial passion associated with salient entrepreneurial role identities. We also theorize the mechanisms of the experience of entrepreneurial passion that provide coherence to goal-directed cognitions and behaviors during the pursuit of entrepreneurial effectiveness.

Exploring the Heart: Entrepreneurial Emotion is a Hot Topic

Entrepreneurial emotion refers to the affect, emotions, moods, and/or feelings—of individuals or a collective—that are antecedent to, concurrent with, and/or a consequence of, the entrepreneurial process, meaning the recognition/creation, evaluation, reformulation, and/or the exploitation of a possible opportunity. In this paper, we explore this working definition of entrepreneurial emotion, what it means, and some important advances the field has made in this area of research. We also highlight fundamental avenues for future research that are sorely in need of study. Finally, we introduce the seven papers in this special issue on the Heart of Entrepreneurship and how they move the conversation on entrepreneurial emotion forward.

Pathways of Passion Identity Centrality, Passion, and Behavior Among Entrepreneurs

This study examines the role of passion among entrepreneurs. In particular, the authors integrate identity theory with the literature surrounding passion to investigate the possible pathways through which entrepreneurial identities might influence passion, as well as the relationship between entrepreneurs’ passion and behavior. Structural equation modeling of responses from 221 entrepreneurs suggests that passion rises and falls in connection with entrepreneurial identity centrality and, furthermore, that passion is associated with individual entrepreneurial behavior and entrepreneurial self-efficacy. This research provides a starting point for investigating the factors that may impact the development of entrepreneurs’ passion as well as the specific mechanisms through which passion energizes entrepreneurial action.

Entrepreneurial self‐efficacy and business start‐up: developing a multi‐dimensional definition

Purpose – The aims of this paper are to: critically review and identify gaps in current literature on entrepreneurial self‐efficacy, provide a definition of entrepreneurial self‐efficacy that addresses some of those gaps, and explore the role of entrepreneurial self‐efficacy during the phases of a business start‐up process. The research seeks to define entrepreneurial self‐efficacy using three sources of dimensionality. The first includes the particular aspect of entrepreneurship to which self‐efficacy is applied, whether to business start‐up or business growth activities. The second sources of dimensionality refers to the content of self‐efficacy beliefs (task or outcome goal beliefs), and the third source to the valence of entrepreneurial self‐efficacy beliefs (positive or negative control beliefs).Design/methodology/approach – The authors build from the origins and mechanisms of the self‐efficacy construct in social cognitive theory and a synthesis of that work with prior use of self‐efficacy in entrep...

Entrepreneurial Passion as Mediator of the Self‐Efficacy to Persistence Relationship

What makes some entrepreneurs persist in their venture efforts while others quit? Self�?efficacy has robustly been found to drive persistence, yet recent work suggests that affect, in particular entrepreneurial passion, may also enhance persistence. We empirically examine the possibility that the long�?standing relationship between self�?efficacy and persistence might be mediated by entrepreneurial passion. Using data from 129 entrepreneurs, we find that the self�?efficacy to persistence relationship is mediated by passion for inventing and for founding but not by passion for developing firms. The passion of entrepreneurs appears to help explain the relationship between entrepreneurial self�?efficacy and sustained entrepreneurial action.

Collective Passion in Entrepreneurial Teams

Affective processes of individuals and teams at work are increasingly becoming acknowledged as important drivers of business decision-making processes and organizational behaviors. In particular, there has been an increasing interest in the notion of passion and its role in entrepreneurship. Business practitioners reckon that to stand even a chance of winning in a cutthroat environment dominated by larger, richer competitors, an entrepreneur needs to have “passion1” – the “fire of desire” that enables an entrepreneur to surmount even the most difficult obstacles. As reflected in the words of Jack Welch2: “If there’s one characteristic all winners share, it’s that they care more than anyone else. No detail is too small to sweat or too large to dream. It doesn’t mean loud or flamboyant. It’s something that comes from deep within.” He is referring to the notion of passion. Martha Stewart says it even more clearly: “Without passion, work is just work. Passion is the first and most essential ingredient for planning and beginning a business.” Academics are also beginning to focus on how affective processes play an important role in facilitating entrepreneurial success. In general, affect is noted to have a profound influence on cognitive processes, motivation, and individual well-being in entrepreneurship. For example, Baron (2007, 2008) examines how both positive and negative affect biases cognitions, helps or hurts in social network development and resource acquisition, and enhances or reduces stress tolerance. Foo et al. (2008) look at how feelings as a particular affective process influence the effort entrepreneurs exhibit toward current or future venture-related tasks. Shepherd (2003) argues that even negative emotions are important to the entrepreneurial process and, in the case of grief, can inhibit learning from entrepreneurial failures.

Entrepreneurial Exit Strategies: The Impact of Human Capital

Although researchers in such diverse fields as economics and organizational sociology have explored firm exit, little research has explored entrepreneurial exit - the decision by the majority - owner founders of privately-held firms to harvest their profits and remove themselves from the primary ownership and decision-making structure of the firm. Yet, all entrepreneurs in one way or another will leave the firm they created. Using theories of goal-setting and human capital we explore two specific questions: (1) why do some entrepreneurs consider an exit strategy while others do not, and (2) under what conditions are entrepreneurs most likely to utilize a specific strategy.

SEGMENTING THE POPULATION OF ENTREPRENEURS: A CLUSTER ANALYSIS STUDY

This paper contributes to our understanding of minority entrepreneurs in the US by showing that ethnicity alone should not be used to describe or categorize small business owners. We examine a sample of 508 entrepreneurs from three minority groups (African, Mexican, and Korean Americans) and a white group using cluster analysis to explore a categorization pattern that best describes the differences among these entrepreneurs. Our findings suggest that minority entrepreneurs are in fact a very heterogeneous group on a multitude of dimensions such as motivations for entry, satisfaction with the business, nature of problems experienced, and demographics of the business such as its size and gross income. Based on our findings, we recommend that educational and support programs targeting minority entrepreneurs should consider other variables rather than focusing on ethnicity alone.

IMMIGRANT AND US-BORN MEXICAN-OWNED BUSINESSES: MOTIVATIONS AND MANAGEMENT

In this study, we seek to understand the key differences between the entrepreneurial experience for Mexican immigrant and US-born Mexican entrepreneurs. We focus on differences in motivation for start-up, reliance on ethnic enclaves and business management practices. Using data from the 2005 National Minority Business Owner Survey, our sample consisted of 156 Mexican American entrepreneurs (55 immigrants and 101 US-born). Results suggest that even within a particular minority group, there are key distinctions between immigrant and US-born entrepreneurs. For example, US-born Mexican entrepreneurs are more motivated by the individualistic financial benefits of being an entrepreneur, while Mexican immigrant entrepreneurs are more motivated by serving society and their co-ethnic community. Implications are discussed.

Motivational Cues and Angel Investing: Interactions Among Enthusiasm, Preparedness, and Commitment

Angel investors often make investment decisions based on motivational cues communicated during pitches—including enthusiasm, preparedness, and commitment—to evaluate potentially important qualities of entrepreneurs. We tested the independent and interaction effects of these cues by having 72 angels complete 1,995 evaluations of 133 live pitches. We found a positive effect of preparedness on angel evaluations, an effect enhanced by one form of commitment. The relationship between enthusiasm and evaluations of funding potential varies depending on the type of commitment considered. Our findings suggest that enthusiasm, preparedness, and commitment should be treated as conceptually and empirically distinct.