Addiction and Entrepreneurship
Could one become addicted to the idea of being an entrepreneur?
Countries vary in terms of how their people view entrepreneurs and entrepreneurship as a career path. In some places, entrepreneurship may be viewed negatively or associated with corruption. However, the prevailing view of the entrepreneur in Western Media is the heroic entrepreneur meme.
These figures are often portrayed as outsiders who manage to disrupt incumbencies and are associated with ideas such as democracy, freedom, and liberty.
The Rise of the "Wantrepreneur"
Perhaps the positive view of the practice has led to entrepreneurship becoming a desirable pursuit for individuals searching for a lifestyle and character to identify with. These types of individuals have been given names over time including:
- The "Wantrepreneur"
- The Veblenian Entrepreneur
- The "Untrepreneur"
These labels refer to individuals who pursue entrepreneurship not with true innovative intentions, a desire to solve a problem, or to satisfy a need—but solely for the look and lifestyle.
The Science of Addiction
Interestingly, a recent study examining the dark side of entrepreneurship (Spivack & McKelvie, 2021) shows that entrepreneurship can become an addiction. The long hours and repeated trials of the entrepreneur can lead to destructive addictive behaviours.
The study highlights several specific symptoms:
- Obsessive thoughts
- Withdrawal/engagement issues
- Self-worth struggles
- Tolerance
- Neglect and negative outcomes
1. Addiction Theory and Achievement Motivation Theory
The Addiction Theory shares a complex border with McClelland’s Achievement Motivation Theory. While McClelland argues entrepreneurs are driven by a healthy "Need for Achievement," Addiction Theory suggests this drive can metastasize into pathology. The "obsessive thoughts" described in Addiction Theory represent the dark side of this motivation; whereas a healthy achiever enjoys the outcome, an addicted entrepreneur becomes dependent on the striving itself, mirroring physiological tolerance.
2. Addiction Theory and Uncertainty-Bearing Theory
Frank Knight’s Uncertainty-Bearing Theory posits that entrepreneurs bear uninsurable risks for profit. The Addiction Theory offers a behavioral explanation for this stress tolerance: a chemical addiction to the "rush" of uncertainty. Similar to a gambler addicted to variance, an entrepreneur may exhibit "tolerance," requiring higher stakes to feel stimulated. This reframes the Knightian entrepreneur from a rational risk-bearer to a dopamine-seeking agent thriving on instability.
3. Addiction Theory and Withdrawal of Status Respect
Hagen’s Withdrawal of Status Respect argues entrepreneurship arises when groups seek to regain lost social standing. This connects with the "Wantrepreneur" concept in Addiction Theory, where individuals are addicted to the "lifestyle" and social signal of disruption. Both theories highlight a deep need for validation; however, while Hagen views this as a sociological driver for innovation, Addiction Theory warns it can lead to a hollow obsession with the image of entrepreneurship rather than the reality.
4. Addiction Theory and Childhood Adversity Theory
Addiction Theory notes that "self-worth issues" often drive founders, creating a link to Childhood Adversity Theory. While Adversity Theory suggests hardship fosters resilience, the connection is double-edged. The same trauma that builds "grit" can create a void that entrepreneurial addiction attempts to fill. For these founders, the business becomes a coping mechanism, explaining why "withdrawal" from the venture can be psychologically devastating.
5. Addiction Theory and Effectuation Theory
A stark contrast exists between the "obsessive thoughts" of Addiction Theory and the flexibility of Sarasvathy’s Effectuation Theory. Effectuation relies on adapting to contingencies using available means. Conversely, the addicted entrepreneur often fixates on a rigid, grandiose vision without supporting action. While the effectual founder pivots, the addicted entrepreneur obsessively clings to a high-risk fantasy despite negative feedback, demonstrating the "engagement issues" central to addiction.
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