The Impact of Personal Characteristics of an Entrepreneur on Investment Decisions

Abstract

The main purpose of the research is to test the investment decisions taken by the entrepreneurs based on the psychological characteristics of the entrepreneurs. Furthermore, this research tried to examine whether entrepreneurs make rational decision in the presence of their personal traits. A sample of 530 entrepreneurs was taken. Data were collected through a questionnaire and analyzed by the regression analysis to measure the impact of entrepreneurial personal characteristics on their investment decisions. The results demonstrated a positive relationship between the investment decisions and personal characteristics of the entrepreneurs such as perceiving opportunities, information gathering, internal locus of control and need for achievement. The data were collected from the entrepreneurs who are aged up to 40. Further research may be extended on the entrepreneurs who are above 40. Moreover, there is a lack of knowledge about entrepreneurial investment decisions based on their traits. The present study proposed that personal characteristics play a significant role in the investment decisions of the entrepreneurs.