What Are Entrepreneur Personality Traits? Who Succeeds?

What exactly is the personality of an entrepreneur?

Entrepreneurs are said to have unique personality traits.

For example, characteristics such as “not fearing risk,” “challenging new things,” and “acting with foresight.”

These personality traits are thought to have a significant impact on success as an entrepreneur.

However, scientifically studying the personality of entrepreneurs is not simple.

This is because personality is something invisible.

Therefore, a “scale” is needed to measure the personality of entrepreneurs.

So, some researchers developed a new scale.

That scale is called “HEXACO-IEO.”

HEXACO-IEO was created based on items from the widely used personality test “HEXACO-100.”

This research was published under the title “Using the HEXACO-100 to measure Individual Entrepreneurial Orientation: Introducing the HEXACO-IEO.”

The development of HEXACO-IEO provides a new option for entrepreneurial personality research.

It will be an important step toward a deeper understanding of entrepreneurial personality.

Once again, personality researcher and author of Villain Encyclopedia, Tokiwa (@etokiwa999), will provide the explanation.
※We have developed the HEXACO-JP Personality Assessment! It has more scientific basis than MBTI. Tap below for details.

The Importance of Understanding Entrepreneurial Personality

The Relationship Between Entrepreneurial Outcomes and Entrepreneurial Personality

Entrepreneurial personality is closely related to one’s entrepreneurial outcomes.
Many studies have shown significant relationships between specific personality traits and entrepreneurial outcomes.
For example, the following personality traits have attracted attention:

• Need for achievement
• Locus of control
• Independence

It has been found that people with high levels of these personality traits are more likely to succeed as entrepreneurs.
However, conventional research approaches also have limitations.
Focusing only on individual personality traits makes it difficult to comprehensively understand entrepreneurial personality.
Therefore, new research approaches have attracted attention in recent years.
That is the multidimensional conceptualization of higher-order personality traits.
This research approach aims to capture entrepreneurial personality more comprehensively.

富裕層の性格とは？努力した人と相続した人の違いを解説

Conventional “Entrepreneurial Personality” Research Approaches and Their Limitations

Conventional research has examined the relationship between individual personality traits and entrepreneurial outcomes.
For example, the following personality traits have been addressed:

• Need for achievement
• Locus of control
• Independence

It has been shown that people with high levels of these personality traits are more likely to succeed as entrepreneurs.
However, this research approach also has limitations.
Focusing only on individual personality traits makes it difficult to comprehensively understand entrepreneurial personality.
This is because personality traits related to entrepreneurial outcomes are diverse.
Also, interactions between personality traits cannot be ignored.
The current situation is that these points are not sufficiently considered in conventional research approaches.
Therefore, it has been difficult to capture the overall picture of entrepreneurial personality.
To overcome this limitation, new research approaches are needed.

スタートアップを成功させたいなら性格診断！論文解説

Entrepreneurial Personality: What is Individual Entrepreneurial Orientation (IEO)

Three Dimensions of Entrepreneurial Personality

Individual Entrepreneurial Orientation (IEO) consists of three dimensions: risk-taking, innovativeness, and proactiveness.
These dimensions are considered important personality traits related to entrepreneurial outcomes.
First, risk-taking has the following characteristics:

• Willing to make decisions under uncertain situations
• Acting without fear of failure
• Taking on challenges seeking high returns

Next, innovativeness has the following characteristics:

• Generating new ideas
• Not being constrained by existing frameworks
• Pursuing creative problem-solving

Finally, proactiveness has the following characteristics:

• Quickly seizing opportunities
• Acting with foresight
• Leading change

People with high levels in these dimensions can be said to possess the qualities of an entrepreneur.

リスクマネジメントを冷静に行う性格とは？科学的に解説

Why IEO Predicts Entrepreneurial Intentions and Success

People with high IEO are more likely to have entrepreneurial intentions and have a higher probability of success when they actually start a business.
The reasons for this can be summarized in the following three points.

1. Risk-taking: Having the courage to step into highly uncertain entrepreneurship
2. Innovativeness: Having the creativity to generate new business ideas
3. Proactiveness: Having the initiative to quickly seize business opportunities and take action

These characteristics are considered essential elements for entrepreneurs.
People with high IEO possess entrepreneurial qualities, which increases their motivation for entrepreneurship.
Even when they actually start a business, their success probability increases by leveraging these characteristics.
For example, high risk-taking leads to decisiveness in difficult situations.
Innovativeness helps in developing differentiated products and services.
Proactiveness becomes the driving force for pioneering markets ahead of competitors.
In this way, IEO is an important indicator for predicting entrepreneurial intentions and success.

The Current State of Relatively New Conceptualization and Operationalization of IEO

The conceptualization and operationalization of IEO is a relatively new research theme.
This concept itself began to attract attention in the late 2000s.
However, there is still no unified view on its definition and measurement methods.
The current situation is that researchers differ in their approaches to IEO and scale development methods.
For example, differences can be seen in the following points.

• The number and content of IEO’s constituent dimensions
• The strength of relationships between dimensions
• Methods of expressing scale items

As such, challenges remain in the conceptualization and operationalization of IEO.
In particular, the development of IEO measurement scales is one of the important research themes.
Creating scales with high reliability and validity is required.
For this purpose, it is necessary to clarify the conceptual definition of IEO and scrutinize scale items based on it.
Applicability in different cultural spheres must also be examined.
The conceptualization and operationalization of IEO is still a developing research field.

Research on “Entrepreneur Personality” Using Existing Personality Tests

Utilizing Widely Used Personality Tests

In advancing IEO research, it is effective to utilize widely used personality tests.
Personality tests are standardized scales for measuring individual personality traits.
They have been used in many studies and their reliability and validity have been confirmed.
For example, there are personality tests such as the following.

• Big Five
• HEXACO
• MMPI

By using these personality tests, IEO research can be advanced efficiently.
This is because new insights may be gained by reanalyzing existing data.
For example, suppose there is data collected in past research using personality tests.
By reanalyzing that data from an IEO perspective, the relationship between IEO and other personality traits might be clarified.
Furthermore, using personality tests also helps in developing IEO measurement scales.
Items related to IEO can be selected from among the items in existing personality tests.
In this way, widely used personality tests are expected to contribute to the development of IEO research.

Characteristics and Advantages of the HEXACO-100 Personality Test

The HEXACO-100 personality test is one of the promising personality tests that can be utilized in IEO research.
This personality test is a comprehensive personality assessment consisting of 6 major dimensions and 25 sub-dimensions.
The six major dimensions are as follows.

1. Honesty-Humility
2. Emotionality
3. Extraversion
4. Agreeableness
5. Conscientiousness
6. Openness to Experience

Each dimension is further divided into four sub-dimensions.
HEXACO-100 has the advantage of being freely available for non-commercial academic purposes.
Therefore, it is used by many researchers and large-scale data has been accumulated.
By utilizing this data, new insights about IEO may be obtained.
Furthermore, one characteristic of HEXACO-100 is its high cultural universality.
It has been translated into many languages and is suitable for cross-cultural comparative studies.

What is HEXACO? Overview, Genetics, Diagnosis & MBTI Relations

Research Focusing on the Relationship Between HEXACO-100 and IEO

Research focusing on the relationship between HEXACO-100 and IEO has been conducted, yielding new insights.
This research revealed the following points.

• There are correlations between specific dimensions of HEXACO-100 and IEO dimensions
• Among HEXACO-100 items, some can measure IEO
• Using HEXACO-100 may deepen understanding of IEO

Specifically, it has been shown that the emotional stability, extraversion, openness, and conscientiousness dimensions of HEXACO-100 are related to the dimensions of IEO.
For example, emotional stability and extraversion are related to risk-taking, openness is related to innovativeness, and conscientiousness is related to proactiveness.
It was also found that some items in HEXACO-100 can directly measure IEO.
By combining these items, there is potential to develop a new measurement scale for IEO.
Research focusing on the relationship between HEXACO-100 and IEO suggests new directions for IEO research.
By exploring the relationship between the two, it is expected that our understanding of IEO will deepen.

What is Openness? Big Five, MBTI N vs S Connections

What is Conscientiousness? Big Five, MBTI J vs P Relations

What is Extraversion? Big Five, MBTI E vs I Connection

What is Emotionality? HEXACO & MBTI Connections Explained

Entrepreneur Personality: Development of HEXACO-IEO

Correlation Analysis between HEXACO-100 and “Entrepreneur Personality”

Through correlation analysis between HEXACO-100 and the IEO scale, the relationship between the two has been clarified.
This analysis followed the following procedures:

1. Calculate correlation coefficients between each item of HEXACO-100 and the subscales of the IEO scale
2. Select items with high correlation coefficients
3. Conduct factor analysis of the selected items

As a result, it was found that specific items of HEXACO-100 are strongly related to the subscales of IEO.
Specifically, the following relationships were observed:

• Emotional stability and extraversion items: Related to risk-taking
• Openness items: Related to innovativeness
• Conscientiousness items: Related to proactiveness

These items are considered to reflect the characteristics of each dimension of IEO.
For example, emotional stability and extraversion items are related to dealing with uncertainty and sociability.
Openness items are related to creativity and pursuit of novelty.
Conscientiousness items are related to motivation for goal achievement and planning.
The correlation analysis between HEXACO-100 and the IEO scale shows the conceptual overlap between the two.
This finding is expected to be useful for the development of IEO measurement scales.

17 Items from HEXACO-100 That Can Measure “Entrepreneur Personality”

As a result of the correlation analysis between HEXACO-100 and the IEO scale, 17 items that can appropriately measure IEO have been identified.
These items are classified as follows:

• Risk-taking: 6 items
• Innovativeness: 6 items
• Proactiveness: 5 items

The risk-taking items include the following content:

• Acting even in uncertain situations
• Taking socially bold actions
• Taking on challenges seeking high returns

The innovativeness items include the following content:

• Generating creative ideas
• Thinking unconventionally
• Pursuing new things

The proactiveness items include the following content:

• Acting in a planned manner
• Making efforts toward goal achievement
• Acting with foresight

These items match the conceptual definition of IEO and are considered to have high content validity.
Additionally, the number of items is appropriate, which has the advantage of reducing the burden on respondents.
The 17 items identified from HEXACO-100 have the potential to be utilized as a new measurement scale for IEO.
By conducting comparative studies with existing IEO scales, their usefulness is expected to be confirmed.

Entrepreneur Personality: Risk-taking, Innovativeness, Proactiveness

The 17 items identified from HEXACO-100 consist of three subscales: risk-taking, innovativeness, and proactiveness.
This new scale has been named HEXACO-IEO.
The characteristics of each subscale are as follows:

1. Risk-taking (6 items): Items related to dealing with uncertainty and challenging behavior
2. Innovativeness (6 items): Items related to creativity and pursuit of novelty
3. Proactiveness (5 items): Items related to motivation for goal achievement and planning

These subscales are constructed based on the conceptual definition of IEO.
Furthermore, the number of items in each subscale is well-balanced, and it is considered that the reliability and validity of the entire scale are ensured.
HEXACO-IEO has the following advantages.

• It is a scale derived from HEXACO-100, a widely used personality test
• It has a small number of items, reducing the burden on respondents
• It consists of items with content that matches the conceptual definition of IEO

HEXACO-IEO is expected as a new option for IEO research.
Its usefulness needs to be confirmed through comparative studies with existing IEO scales.
Verification of applicability in different cultural spheres is also required.
The development of HEXACO-IEO is considered to contribute to the advancement of IEO research.

Entrepreneur Personality: Validity of HEXACO-IEO

Convergent Validity with Existing “Entrepreneur Personality” Measurements

High convergent validity was confirmed between HEXACO-IEO and existing IEO scales.
Convergent validity means that high correlations are observed between scales that are considered to measure the same concept.
To examine the relationship between HEXACO-IEO and existing IEO scales, the following analyses were conducted.

• Correlation analysis
• Confirmatory factor analysis

As a result, strong positive correlations were observed between the subscales of HEXACO-IEO and the subscales of existing IEO scales.
Specifically, the following correlation coefficients were obtained.

• Risk-taking: 0.78
• Innovativeness: 0.84
• Proactiveness: 0.90

Additionally, a very high positive correlation (0.97) was observed between the total score of HEXACO-IEO and the total score of existing IEO scales.
These results indicate that HEXACO-IEO measures similar concepts to existing IEO scales.
In other words, HEXACO-IEO can be said to have high validity as a measurement scale for IEO.
The confirmation of convergent validity serves as important evidence supporting the usefulness of HEXACO-IEO.
In the future, it is expected that the validity of HEXACO-IEO will be further confirmed by examining relationships with other validity indicators.

Entrepreneur Personality: Relationship with Attitudes and Intentions

HEXACO-IEO showed positive relationships with entrepreneurial attitudes and intentions.
This result suggests that HEXACO-IEO appropriately captures entrepreneurial personality.
Specifically, the following relationships were observed.

• Weak positive correlation (0.20) between HEXACO-IEO total score and entrepreneurial attitudes
• Weak positive correlation (0.24) between HEXACO-IEO total score and entrepreneurial intentions

These correlation coefficients were similar to those of existing IEO scales.
In other words, HEXACO-IEO can predict entrepreneurial attitudes and intentions similarly to existing IEO scales.
Looking at the HEXACO-IEO subscales separately, the following results were obtained.

• Innovativeness was most strongly related to entrepreneurial attitudes (0.27)
• Risk-taking was most strongly related to entrepreneurial intentions (0.25)

These results suggest that each dimension of IEO has different effects on entrepreneurial attitudes and intentions.

Entrepreneur Personality: Confirmation of Criterion-Related Validity of HEXACO-IEO

HEXACO-IEO showed criterion-related validity in its relationship with entrepreneurial experience.
Criterion-related validity is an indicator showing the strength of the relationship between scale scores and external criteria.
In this study, the presence or absence of entrepreneurial experience was used as an external criterion.
Specifically, the following relationships were observed.

• Moderate positive correlation (0.31) between HEXACO-IEO total score and entrepreneurial experience (whether one has ever started a business)
• Weak positive correlation (0.25) between HEXACO-IEO total score and entrepreneurial experience (whether one is currently an entrepreneur)

These correlation coefficients were similar to those of existing IEO scales.
In other words, HEXACO-IEO can discriminate the presence or absence of entrepreneurial experience similarly to existing IEO scales.
Looking at the HEXACO-IEO subscales separately, the following results were obtained.

• Innovativeness was most strongly related to entrepreneurial experience (past) (0.32)
• Risk-taking and innovativeness were similarly related to entrepreneurial experience (current) (0.20-0.21)

These results suggest that each dimension of IEO has different effects on entrepreneurial experience.
The strong relationship between innovativeness and entrepreneurial experience is particularly noteworthy.
HEXACO-IEO is considered to have criterion-related validity equivalent to existing IEO scales in its relationship with entrepreneurial experience.
This result can be said to support the practical usefulness of HEXACO-IEO.

Entrepreneur Personality: Application of HEXACO-IEO

Advancing “Entrepreneur Personality” Research Using Past HEXACO-100 Data

The development of HEXACO-IEO has made IEO research using past HEXACO-100 data possible.
The accumulated HEXACO-100 data can be reanalyzed from the perspective of IEO.
For example, the following types of research are conceivable:

• Examination of relationships between IEO and other personality traits
• Examination of age and gender differences in IEO
• Examination of relationships between IEO and career choice

Through these studies, new insights regarding IEO are expected to be obtained.
Particularly, using large-scale data should yield robust results.
Additionally, utilizing past data can reduce research costs.
Effectively utilizing existing data leads to improved research efficiency.
HEXACO-IEO serves to promote research utilizing past HEXACO-100 data.
In the future, it is expected that HEXACO-IEO will be utilized in various research fields, deepening understanding of IEO.
Reanalysis of past data is expected to greatly contribute to the development of IEO research.

Providing New Options for Entrepreneur Personality Research

HEXACO-IEO provides new options for entrepreneur personality research.
Previous IEO research often used dedicated scales.
However, the development of HEXACO-IEO has made it possible to capture IEO within the framework of widely used personality assessments.
This brings the following advantages:

• Increased generalizability of research results
• Easier examination of relationships with other personality traits
• Research utilizing existing data becomes possible

Using HEXACO-IEO is expected to make entrepreneur personality research more comprehensive.
HEXACO-IEO also enhances comparability with other personality assessments.
It becomes possible to connect previously accumulated personality assessment data with IEO data.
This is expected to greatly contribute to the development of entrepreneur personality research.
HEXACO-IEO brings new perspectives to entrepreneur personality research.
In the future, it is expected that active research using HEXACO-IEO will deepen understanding of entrepreneur personality.

Positioning Entrepreneur Personality within a Comprehensive Framework of Personality Research

The development of HEXACO-IEO has positioned IEO within a comprehensive framework of personality.
HEXACO-IEO is composed of items from HEXACO-100, a widely used personality assessment.
This suggests that IEO is part of a comprehensive framework of personality.
Specifically, the following points have been clarified:

• IEO is related to specific dimensions of HEXACO-100
• IEO is part of the basic components of personality
• IEO is one of the factors explaining individual differences in personality

These findings demonstrate the importance of understanding IEO within a comprehensive framework of personality.
IEO is thought to function within the overall personality rather than existing in isolation.
Using HEXACO-IEO allows for systematic examination of relationships between IEO and other personality traits.
This leads to clearer positioning of IEO.
Additionally, understanding IEO within a comprehensive framework of personality is expected to yield new theoretical insights.
Positioning IEO within a comprehensive framework of personality is considered to greatly contribute to the development of IEO research.

Entrepreneur Personality: Improving Internal Consistency of the Risk-Taking Dimension

The internal consistency of the risk-taking dimension of HEXACO-IEO was somewhat lower compared to other dimensions.
This result suggests that improvement of the risk-taking dimension items is necessary.
Specifically, the following points are conceivable:

• Reconsider the conceptual definition of risk-taking
• Review the content of risk-taking items
• Increase the number of risk-taking items

Through these improvement measures, the internal consistency of the risk-taking dimension is expected to increase.
As internal consistency improves, the reliability of the risk-taking dimension will improve and measurement accuracy will increase.
Additionally, reconsidering the conceptual definition of risk-taking is expected to improve conceptual validity.
Improving the internal consistency of the risk-taking dimension leads to improved reliability and validity of HEXACO-IEO.
Research aimed at improving the risk-taking dimension is desired in the future.
Improving the internal consistency of the risk-taking dimension of HEXACO-IEO is expected to contribute to the development of IEO research.

Entrepreneur Personality: Verifying Generalizability to Other Cultural Contexts

It is necessary to verify the generalizability of HEXACO-IEO to other cultural contexts.
The sample used in this study consisted mainly of American university students.
However, IEO may be influenced by cultural factors.
Therefore, it is necessary to confirm whether HEXACO-IEO is applicable in other cultural contexts.
Specifically, the following points are raised as issues for consideration:

• Verification of reliability and validity of HEXACO-IEO in other cultural contexts
• Verification of factor structure of HEXACO-IEO in other cultural contexts
• Verification of score distribution of HEXACO-IEO in other cultural contexts

Through these examinations, the cultural universality of HEXACO-IEO is expected to be confirmed.
When cultural specificities are observed, it is also important to explore their factors.
Clarifying the influence of cultural factors on IEO is expected to deepen understanding of IEO.
Verifying the generalizability of HEXACO-IEO to other cultural contexts contributes to international development of IEO research.
In the future, research using HEXACO-IEO in various cultural contexts is expected.
Verifying generalizability to other cultural contexts can be said to be an essential task for enhancing the practicality of HEXACO-IEO.

Entrepreneur Personality: Future Challenges and Prospects

Toward Further Development of Entrepreneur Personality Research

The development of HEXACO-IEO represents an important step toward the further advancement of entrepreneurial personality research.
HEXACO-IEO not only provides new options for measuring IEO, but also expands the possibilities for various research.
In the future, developments in the following research are expected.

• Clarification of the relationship between IEO and other personality traits
• Exploration of factors that form IEO
• Examination of the relationship between IEO and entrepreneurial outcomes

Through these studies, it is believed that understanding of entrepreneurial personality will advance significantly.
In particular, clarifying the relationship between IEO and other personality traits holds important significance in grasping the overall picture of entrepreneurial personality.
Additionally, by exploring the factors that form IEO, insights into the nature of entrepreneurship education can be obtained.
Examining the relationship between IEO and entrepreneurial outcomes will lead to clarifying the practical significance of IEO.
Research using HEXACO-IEO can be said to greatly expand the possibilities of entrepreneurial personality research.
In the future, it is expected that HEXACO-IEO will be utilized in various research fields, and knowledge about entrepreneurial personality will be accumulated.
The development of HEXACO-IEO will serve as an important foundation for the further development of entrepreneurial personality research.

Finally, a Summary of Entrepreneurial Personality

In summary, the development of HEXACO-IEO can be said to bring new possibilities to entrepreneurial personality research.

Until now, several scales existed to measure entrepreneurial personality, but there was room for improvement in these.

HEXACO-IEO overcomes the problems of such existing scales and enables measurement with higher reliability and validity.

The major feature of HEXACO-IEO is that it makes it possible to measure IEO within the framework of the existing personality test “HEXACO-100”.

This makes it possible to reanalyze past research data using HEXACO-100 from the perspective of IEO.

Entrepreneurial personality is also an important theme when considering entrepreneurship education.

By clarifying the personality traits necessary for entrepreneurs, it becomes possible to explore more effective approaches to entrepreneurship education.