Five Personality Trait Model as one of the factors which influence people to
become an entrepreneur
Affiliation
Abdul Rahim bin Zumrah,
[email protected]
Siti Hawa R. Ehsan,
[email protected]
Norziah Othman,
[email protected]
Muna Sulaiman
[email protected]
Faculty of Management Islamic University College
Bandar Sri Putra 43000 Bangi
Selangor Darul Ehsan
Abstract
There are mushrooming in SME industry especially in Selangor state which focusing on Bumiputra involvement
with guidance and facilitated by government agencies such MARA and Ministry Entrepreneur and Corporate
Development (MECD). The sum of all these government bodies and agencies has helped to put SMEs
entrepreneurs in Selangor as the path of rapid industrialization, in the process creating a higher standard of
living for Selangor state.
Thus, to understand better and have a clearer view about the SME Entrepreneurs, we want to identify the
personality that influence people to become an entrepreneur. The objective of the study is to find out any
significant relationship between these personalities with the SME entrepreneurs’ personality in Selangor state.
The study is carried out using primary data which relate this study with the Five personality Trait Model
developed by L.L. Thurstone, 1933. Furthermore, the data collected is analyzed using descriptive analysis and
comparison of the sample mean using SPSS software. The finding shows that all the big five personalities can
be associated to entrepreneurs’ personality. It is found that agreeableness shows the highest mean score,
followed by extraversion, openness, and conscientiousness consecutively.
Keywords: SME Entrepreneur, Five Personality Trait Model
1.0
Introduction
Entrepreneurship is increasingly understood as one of the main sources for wealth creation and is
credited for technological invention, the rise of corporate empires and directly linked to economic
development around the world. In Malaysia, the development of entrepreneurship has also become one
of the most important economic agendas. A special ministry for entrepreneurship which is the Ministry
of Entrepreneur and Co-operative Development (MECD) has been established to encourage people to
become entrepreneurs and to support entrepreneurial activities. Beside that, there are also private
institutions such as banks, co operations and educational institutions which support the entrepreneurial
activities. However, today in Malaysia, the effort of developing the SMEs (small medium
entrepreneurs) has been given more attention since this may contribute to reduction of poverty.
National SME Development Council has been established. The main focus of the programs held by the
council was on enhancing the capacity and capability of SMEs, in running their businesses.
In the process of educating the potential and existing entrepreneurs and specifically the SMEs, it is
essential to recognize what are factors which encourage person to become entrepreneurs and what are
the barriers. We need to figure out whether it is sufficient to develop the entrepreneurs just through
proper training, learning new knowledge and skills from well structured courses offered in higher
learning institutions or it is only certain people with certain types of personalities who are prone to
become entrepreneurs will become entrepreneurs after undergone proper trainings.
If certain type of personality is closely associated with entrepreneurship, the effort of developing
entrepreneurs in Malaysia may start from the development of personality. And, the education process
may begin; starting from their very young age. For instance, pre-school, primary and secondary school
education should stimulate young people’s awareness of entrepreneurship as options for their future
career and help them to develop their personality; to be more creative as well as self-confident in
whatever they undertake.
This study attempted to find out whether an entrepreneur is associated with certain type of personality.
And, the outcome of this study may contribute some ideas to relevant parties in planning strategies to
encourage entrepreneurial activities in Malaysia.
2.0
Entrepreneurship and the Landscape of SMEs
An Entrepreneur is defined as a person who create a new business in the face of risk and uncertainty for
the purpose of achieving profit and growth by identifying significant opportunities and assembling the
necessary resources to capitalize on them (Zimmeerer and Scarborough 2005). Therefore,
entrepreneurship is about planning and taking calculated risks based upon knowledge of the market, the
available resources and products, and a predetermined measure of the potential for success. Whereas
generally small medium entrepreneurs (SMEs) are categorize into two broad categories:
20.1
Manufacturing, manufacturing-Related services and Agro-based industries
Small and medium enterprises in the manufacturing, manufacturing related services and agrobase industries are enterprises with full time employees not exceeding 150 or with annual sale
turnover not exceeding RM 25 mil
20.2
Services, Primary Agriculture and Information & Communication Technology (ICT)
Small and medium enterprises in the services, primary agriculture and Information &
Communication technology (ICT) sectors are enterprises with full time employees not
exceeding 50 or with annual sales turn over not exceeding RM 5 mil.
As a part of the entrepreneurship acculturation process, a lot of scheme and incentives are offered and
being developed via government body and agency in order to implement the SMEs objective. Through
the development of Natioanal SME Development Council, the Council has implementation and
achievements of Government programmes to support SMEs. A total of 213 key programmes were
implemented, involving a total expenditure of RM7.8 billion. The main focus of the programmes was
on enhancing the capacity and capability of SMEs, particularly in the areas of entrepreneurship
development, marketing and promotion, product development and technology enhancement.
3.0
Various View on Entrepreneur Personality
No single definition of personality is accepted universally. However, one key idea is that personality
represents personal characteristics that lead to consistent patterns of behavior including physical and
mental characteristics that reflect how a person looks, thinks, acts and fells (Hellriegel, 2004).
Psychologists define personality as a dynamic concept describing the growth and development of a
person’s whole psychological system. According to Allport (1937), personality is the dynamic
organization within the individual of those psychological systems that determine his unique
adjustments to his environments.
The early work in the structure of personality revolved around attempts to identify and label enduring
characteristics that describe an individual’s behavior. When the behavior exhibited in a large number of
situations, we called it personality traits. The more consistent the characteristic and the more frequently
it occurs in divers situations, the more important that trait is in describing the individual. Researches
have long believed that these traits could help in employee selection, matching people to jobs, and in
guiding career development decisions. For instance, if certain personality types perform better on
specific jobs, management could use personality tests to screen job candidates and improve employee
job performance.
4.0
Literature Review
What makes someone an entrepreneur is a question that has intrigued many scholars and layman for
many years. Although entrepreneurs are vital to the economy, as they create wealth and jobs, it is
difficult to determine precisely what drives people to become an entrepreneur. Is it the factors which
lead to self employment is simply a socially constructed phenomenon? Chell (2008), in her book, tries
to show that the entrepreneurial personality is, on the one hand, socially constructed, but on the other
hand, presents consistency in behaviors, skills and competencies. While it is hard to generalize about
what it takes for a person to become an entrepreneur, certain personality traits may become one of the
factors which influence or lead certain people to become entrepreneurs.
The role of personality has received substantial attention in entrepreneurship research, particularly over
the past few decades. As researchers have questioned why some people choose entrepreneurial careers,
they have focused empirical attention on various aspects of personality and entrepreneurial choice
(Gray, 2006). The result on the empirical research on the relationship between personality and
entrepreneurship is mixed (Gartner, 1988). Brandstatter (1996) studied the linkage between
entrepreneurship and personality based on 16-Personality-Adjective Scales (16PA) and he concluded
that the observed personality differences are supposed to be rather the causes than the effects of
entrepreneurship. Singh (2003) explored the relationship between early developmental views on selfemployment and personality and found that views on self employment are related to personality,
gender and having self employed relative. Mark, Buchholtz, Riordan, Gatewood and Stokesn(2004)
examines the relationship of the entrepreneur's personality to long-term venture survival based on The
“Big Five” personality and found that the entrepreneur's conscientiousness was positively related to
long-term venture survival. However, they found a negative relationship between the entrepreneur's
openness and long-term venture survival. And, extraversion, emotional stability, and agreeableness
were unrelated to long-term venture survival. A set of studies carried out by McClelland (1987),
Solomon & Winslow (1988), Dunkelberg & Cooper (1982),and Hornaday & Aboud (1971) also
indicate that entrepreneurial behaviors are significantly related to personality
However, some findings from past studies deny the significant relationship between entrepreneurship
and personality (Brockhaus & Horwitz, 1986; Carsrud, Olm & Eddy, 1986). Deamer and Earle (2004)
carried out a research which considers an individuals' leanings towards entrepreneurship. The paper
suggests that looking only for entrepreneurial traits is doomed to fail yet cannot be entirely discounted.
In Malaysia, some of the studies carried out show different results on the relationship between
entrepreneurship and personality. Othman, Ghazali, and Sung (2007) attempted to explore the
relationship of the level of education (graduate and non-graduate) with personality, family background
and company background of entrepreneurs in urban Malaysia. The findings of the study shows that
both graduate and non-graduate entrepreneurs scored high with respect to certain entrepreneurial
personality characteristic such as the Pursuit of Excellence; moderately high on Work Ethics; moderate
on Dominance, Mastery and Internal Attributing and moderately low on Powerful Others and Chance
Attributing dimensions. The study done by Che Rose, Salleh and Kumar (2007) found a significant
relationship between venture growth and entrepreneurs with high personal initiative, focused on
specific competency areas within operations, finance, marketing and human resources. Chong Siong
Choy, Kuppusamy, and Mazuki (2005) revealed that components of Theory of Planned Behavior,
which consists of subjective norm, attitude towards behavior and perceived behavioral control, are
factors that influence entrepreneurial career. The relationship between personality and entrepreneurial
inclination among students at UUM has been tested by Fazilah, Ruzita, Zalinah, and Nur Syakiran
(2007) using questionnaires adapted from the Five- Factor personality inventory and the
Entrepreneurship Attitude Orientation (EAO) scale. And, the analysis revealed that demographic
characteristics do not have a significant impact, but all five personality dimensions positively correlate
with entrepreneurial inclination. All these studies support that personality somehow has a close
relationship with the drive to become entrepreneur or to be successful entrepreneur.
5.0
Five Personality Trait Model
In psychology, the Big five personality traits are five broad factors or dimensions of personality
discovered through empirical research (Goldberg, L. R. (1993). The structure of phenotypic personality
traits. American Psychologist, 48, 26-34.). The five factors are Openness, Conscientiousness,
Extraversion, Agreeableness, and Neuroticism.
Openness is refer to appreciation for art, emotion, adventure, unusual ideas, imagination,
curiosity, and variety of experience. While conscientiousness is a tendency to show self-discipline, act
dutifully, and aim for achievement; planned rather than spontaneous behavior. Extraversion refers to
energy, positive emotions, assurgency, and the tendency to seek stimulation and the company of others.
Agreeableness is a tendency to be compassionate and cooperative rather than suspicious and
antagonistic towards others. and neuroticism is a tendency to experience unpleasant emotions easily,
such as anger, anxiety, depression, or vulnerability; sometimes called emotional instability.
In recent years, an impressive body of research supports that five basic dimensions underlie all others
and encompass most of the significant variation in human personality.
6.0
Methodology
6.1
Scope & Methodology
To accomplish this paper, the study have attempted to discover whether certain type of personality is
one of the factors which drive a person to become an entrepreneur or certain type of personality is
associated with an inclination of a person to become entrepreneur. The study is carried out by using a
questionnaire adapted from the Big Five- Factor personality factors inventory and the questionnaires
are distributed to 43 respondents in Selangor. The significant of the paper compared to the previous
studies is that the respondents in this study have already become entrepreneurs and we are trying to
have a descriptive analysis on every single question asked to the respondent.
Upon gathering the data, the SPSS software (descriptive analysis and comparison of the sample mean)
was used to process the raw data and generate information for analysis.
7.0
Finding
Figure I: Personality Agreeableness
No.
1
2
3
4
5
6
7
8
9
10
Questions
I am interested in people
I feel others’ emotions
I have a soft heart
I make people feel at ease
I sympathize with others feelings
I take time out for others
I am not interested in other
people’s problems
I am not really interested in others
I feel little concern for others
I insult people
Frequency
Agree
41
40
34
39
42
31
6
16
19
3
Disagree
2
3
9
4
1
12
37
27
24
40
Percentage (%)
Agree
95.3
93.0
79.1
90.7
97.7
72.1
14.0
37.2
44.2
7.0
Disagree
4.7
7.0
20.9
9.3
2.3
27.9
86.0
62.8
55.8
93.0
Mean
score
3.51
3.30
2.95
3.09
3.23
2.88
3.23
2.77
2.67
3.77
Based on figure I, it is found that majority (about 94 percent) of the respondents are interested in
people, feels other emotions, make people at ease and sympathize with other feelings. 93 percent of the
respondents disagree that they insult people. The average mean score for this personality type is 2.1.
Figure II: Personality Conscientiousness
No.
1
2
3
4
5
6
7
8
9
12
Questions
I am always prepared
I am exacting in my work
I follow schedule
I get chores done right away
I like order
I pay attention to details
I leave my belonging around
I make a mess of things
I often forget to put things back in
their proper place
I shirk my duties.
Percentage
Agree
90.7
93.1
95.4
81.4
46.0
90.7
20.9
14.0
18.6
2.3
Disagree
9.3
6.9
4.6
18.6
54.0
9.3
79.1
86.0
81.4
97.7
Frequency
Agree
39.0
40.0
41.0
35.0
20.0
39.0
9.0
6.0
8.0
1.0
Disagree
4.0
3.0
2.0
8.0
23.0
4.0
34.0
37.0
35.0
42.0
Mean
score
3.1
3.3
3.4
3.1
2.5
3.1
3.1
3.4
3.3
1.6
Based on figure II, about 90 percent of the respondents give high score to questions related to
conscientiousness which indicate that they agree that they are the type of people who are always
prepared, exacting in their work, follow schedule and normally pay attention to details. However, only
46 percent from the respondents claim that they like order. Therefore, the finding shows that
conscientiousness is a personality trait which is considered closely related entrepreneurs’ personality.
The average mean score of this personality type is 1.42.
Figure III: Personality Extraversion
No.
1
2
3
4
5
6
7
8
9
Questions
I am the life of the party
I don’t mind being the centre of
attention
I feel comfortable around people
I start conversations.
I talk to a lot of different people at
parties.
I am quiet around strangers.
I don’t like to draw attention to
myself.
I do not talk a lot.
I have little to say.
Percentage
Agree
69.8
55.8
Disagree
30.2
44.2
Frequency
Agree
30
24
Disagree
13
19
Mean
score
2.91
2.42
76.7
69.8
86.1
23.3
30.2
13.9
33
30
37
10
13
6
2.95
2.88
3.26
46.5
60.5
53.5
39.5
20
26
23
17
2.56
2.35
53.5
44.1
46.5
55.9
23
19
20
24
2.49
3.44
Based on figure III, there is a quite clear indication that many respondents who involve in
entrepreneurship are people who are extrovert. 86 percent of them answer that they talk to a lot of
different people at parties. 77 percent of the respondents normally feel comfortable around people.
However, only 56 percent of them do not mind being the centre of attention. The mean score given by
respondents for all questions related to extraversion is 2 which indicate that they can be considered
fairly extrovert. The average mean score of this personality type is 1.72.
Figure IV: Personality Neuroticism
No.
1
2
3
4
5
6
7
8
9
10
Questions
I am easily disturbed
I change my mood a lot
I get irritated easily
I get stressed out easily
I get upset easily
I have frequent mood swings
I often feel blue
I worry about things
I am relaxed most of the time
I seldom feel blue
Percentage
Agree
42.9
39.6
27.9
21.0
16.3
27.9
9.3
46.5
37.3
75.5
Disagree
58.2
60.4
72.1
76.8
83.7
72.1
90.7
53.5
72.8
25.0
Frequency
Agree
18
17
12
9
7
12
4
20
16
32
Disagree
25
26
31
33
38
31
39
23
27
11
Mean
score
2.30
2.14
1.98
2.16
1.72
2.02
1.63
2.40
2.26
2.12
Based on figure IV, the finding does not strongly support that most of the respondents have neuroticism
personality. However, Most of them are not often feeling blue, and not getting upset easily. Only about 50
percent of them agree that they are not easily disturbed and are not worry about things. The average mean score
for this type of personality is 1.32.
Figure V: Personality Openness
No.
1
2
3
4
5
6
7
8
9
10
Questions
I am full of ideas
I am quick to understand things
I have a rich vocabulary
I have a vivid imagination
I have excellent ideas
I spend time reflecting on things
I use difficult words
I am not interested in abstract
ideas
I do not have a good imagination
I have difficulty understanding
abstract ideas
Percentage
Agree
72.1
79.1
62.8
72.1
81.4
86.1
48.8
83.7
30.3
34.9
Disagree
28.0
20.9
37.3
27.9
28.6
14.0
51.2
16.3
69.8
65.1
Frequency
Agree
31
34
27
31
35
37
15
36
13
15
Disagree
12
9
16
12
8
6
22
7
30
28
Mean
score
2.88
2.93
2.72
3.07
2.88
3.14
2.42
1.95
2.98
2.40
About 80% of the respondents agree that they spend time reflecting on things, not interested in abstract
ideas, have excellent ideas and easy to understand things. Majority of the respondents (62.8 percent)
have a rich vocabulary while 51.2 percent of them always use simple words in their life.
The average mean score for this type of personality is 1.58.
8.0
Conclusion
Based on the research, all the big five personalities can be associated to entrepreneurs’ personality but
to different extent. It is found that ‘agreeableness’ shows the highest mean score which indicate that
most of the entrepreneurs have the ‘agreeableness’ personality; those who can be described as
considerate, friendly, helpful, willing to compromise their interests with others and etc. ‘Extraversion’
has the second highest mean score followed by ‘Openness’, ‘Conscientiousness’ and ‘Neuroticism’
consecutively. The study shows that ‘Neuroticism’ gives the least association with entrepreneurs’
personality. Therefore, it is concluded that average entrepreneurs are not really easily upset and are less
emotionally reactive. They tend to be calm, emotionally stable and free from persistent negative
feelings.
Overall, the outcome of this study yield positive result which reveals that the Big Five personalities is
an important set of personalities related to entrepreneurship. Although there have been many previous
studies focusing on entrepreneurship and personality traits which yielded mixed results, it is believed
that efforts in this area should not be abandoned. The different outcome may be due to different
constraints such as time, sample size and etc. However, the outcome of this study may become a
platform for further research in this specific area.
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