Impulsivity Theory of Entrepreneurship
What is the Impulsivity Theory of Entrepreneurship?
Impulsiveness refers to taking action without thinking about it first and without considering all available data before deciding.
In the context of business, Wiklund, Patzelt and Dimov (2016) state that:
"Acting without thinking is characterized by rapid decision making in situations that would seem to require extensive analysis and deliberation."
They explain that individuals need to act impulsively in some entrepreneurial conditions because deep analysis is often impossible due to uncertainty, ambiguity, and urgency. Rather than succumbing to analysis paralysis, impulsive entrepreneurs take leaps of faith that others are not willing to take.
The Link Between ADHD and Entrepreneurship
Attention-Deficit/Hyperactivity Disorder (ADHD) is usually considered a problem that needs to be treated. For instance, many parents medicate their children to combat the negative effects of the disorder.
However, ADHD has been positively associated with entrepreneurial behaviors. The disorder increases the impulsiveness of the individual, which appears to be a useful trait for taking action under uncertainty.
Defining the Clinical Trait
According to the National Institute of Mental Health:
"Impulsivity means a person makes hasty actions that occur in the moment without first thinking about them and that may have high potential for harm; or a desire for immediate rewards or inability to delay gratification."
While this can be socially intrusive (e.g., interrupting others), in a business context, it can translate to rapid market entry.
Research and Evidence
Verheul et al. (2015) studied a very large sample of higher education students. They found that students with more ADHD symptoms had higher entrepreneurial intentions.
There are two prevailing theories for why this occurs:
- Lifestyle Fit: The dynamic, unstructured lifestyle of an entrepreneur is attractive to impulsive students.
- The Misfit Theory: Impulsiveness may lead to failures in traditional structures (like employment or homework), pushing the individual toward the Misfit Theory of Entrepreneurship.
Future Directions
Future research must distinguish whether impulsiveness is linked merely to entry (starting a business), or if it actually aids performance (long-term success). Perhaps impulsive people are more likely to start, but do they survive the long run?
It is also important to assess how impulsiveness interacts with other known characteristics, such as:
Sources & Further Reading
Wiklund, J., Patzelt, H., and Dimov, D. (2016). Entrepreneurship and psychological disorders: How ADHD can be productively harnessed. Journal of Business Venturing Insights, 6, 14-20.
Verheul, I., Block, J., Burmeister-Lamp, K., Thurik, R., Tiemeier, H., and Turturea, R. (2015). ADHD-like behavior and entrepreneurial intentions. Small Business Economics, 45(1), 85-101.
Fast Company Story on ADHD & Entrepreneurship
