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Psychological Capital: Key to Entrepreneurial performance and Growth intentions

Author Affiliations

  • 1Graduate School of Business, University Kebangsaan Malaysia, Bangi, Selangor, MALAYSIA
  • 2 Hailey College of Banking and Finance, University of the Punjab, Lahore, PAKISTAN
  • 3 Faculty of Economics and Management, University Kebangsaan Malaysia, Bangi, Selangor, MALAYSIA

Int. Res. J. Social Sci., Volume 4, Issue (9), Pages 39-45, September,14 (2015)

Abstract

This paper highlights the importance and need of studying psychological capital in entrepreneurial context. It further presents some propositions regarding the influence of psychological capital on entrepreneurial performance and growth intentions. Modern entrepreneurs often operate in dynamic and competitive environment with minimal financial, social and human resources. Scarcity of traditional forms of resources and limited volitional control requires entrepreneurs to heavily rely on personal/psychological resources in their entrepreneurial endeavor. One such resource is psychological capital (PsyCap) which can equip entrepreneurs with believe that they: are more impervious to setbacks (resilience), can create their own success (efficacy and hope), will experience good things happen to them (optimism) and have strong behavioral control (efficacy). Thus, for entrepreneurs, PsyCap may serve as an important resource for performance improvement and future intentions (e.g. growth intention). This paper presents a review and calls for the research on the effects of psychological capital on performance and future growth intentions of entrepreneurs. This study has implications for the current and prospective entrepreneurs as well as government and private bodies working on regulating, developing, encouraging and enhancing entrepreneurship.

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