The Association between Personality Traits and Entrepreneurial Intention: The Role of Risk Propensity and Optimism

The population of students forms the base of future entrepreneurs. The present research focuses on the effect of personality traits on entrepreneurial intention (EI) and entrepreneurial orientation (EO). The model based on the Big Five personality traits is augmented by including risk propensity and optimism. Risk propensity is included to examine whether this personality aspect can be viewed as the sixth personality trait of the five-factor model (FFM). Further, by adding interaction terms of optimism and the Big Five personality traits, the present research examines changes in the effect of the Big Five personality traits on EI and EO, for individuals with different levels of optimism. Since literature suggested that positive emotional states stimulate entrepreneurial intentions, optimism is expected to positively moderate the effects of the Big Five personality traits. Results indicate a positive effect of risk propensity on EI and EO, although this personality trait cannot be viewed as a sixth personality trait within the FFM. No evidence was found for a moderating effect of optimism. The results can be used by career counsellors and policy makers in order to determine and stimulate entrepreneurial intention.