Psycho-Social Determinants of Entrepreneurial Success Among Young Entrepreneurs

Abstract

This study aimed to establish a link between need for achievement, entrepreneurial socialization, ambiguity tolerance, perceived family support and entrepreneurial success. Moreover, a mediating role of ambiguity tolerance was examined between need for achievement, entrepreneurial socialization and entrepreneurial success. In addition to this, the moderating role of perceived familial support in the association between predictors and entrepreneurial success was also determined. Research was carried out in three phases. First phase of the study aimed at developing the Entrepreneurial Socialization Scale followed by try-outs. The second phase was pilot study followed by a third phase, which was the main study. Participants for pilot study consisted of 210 entrepreneurs (M =33.8, SD = 8.43). Participants for main study were 490 young start up owners, (M = 32.5 years, SD= 10.29). Achievement Motivation Scale (Smith, 2015), Entrepreneurial Socialization Scale, Perceived Family Support Scale (Feldman, 2002), Ambiguity Tolerance Scale (Xu & Tracy, 2011) and Subjective Entrepreneurial Success Scale (Wach et al., 2018) were used in the study. Results showed that achievement motivation and socialization correlated positively with entrepreneurial success. The results of regression analysis suggested that need for achievement, socialization, ambiguity tolerance and perceived family support are all significant predictors of business success. Findings of the current study also suggest that perceived family support moderates the relationship between ambiguity tolerance and entrepreneurial success. Findings of the present research can help incubation centers and policy makers to develop platforms for young entrepreneurs to foster socialization, learning and collaborative for a thriving network of business owners in our culture.