Cognitive Theories
What are the cognitive theories of entrepreneurship?
The entrepreneurial mindset is distinct. Cognitive theories explore how entrepreneurs process information, make decisions, and view the world differently than non-entrepreneurs.
Addiction Theory
Can one get addicted to entrepreneurship?
Yes. This theory suggests that the thrill of venturing can trigger physiological and psychological responses similar to behavioral addictions. High highs and low lows can create a cycle of obsession where the business becomes the entrepreneur's primary source of dopamine.
Cognitive Evaluation Theory
Entrepreneurs are always comparing themselves to others.
This framework looks at the difference between intrinsic motivation (doing it for the love of the game) versus extrinsic motivation (money or fame). It explains how external rewards can sometimes undermine the internal drive necessary to sustain a startup.
Experiential Learning
What if entrepreneurship is really about learning from experience?
Entrepreneurs rarely follow a textbook. This theory posits that knowledge is created through the transformation of experience—specifically through "learning by doing," failing, and pivoting.
Information Processing Theory
Humans are limited information processors.
Entrepreneurs are bombarded with data. This theory focuses on how they organize, store, and retrieve information. Successful entrepreneurs often use "heuristics" (mental shortcuts) to make quick decisions in uncertain environments without getting paralyzed by analysis.
Impulsivity Theory
How can an impulsive mind help with entrepreneurship?
While often seen as a negative trait, functional impulsivity allows entrepreneurs to seize opportunities rapidly before competitors do. It frames impulsivity not as recklessness, but as a bias toward action.
Neurodiverse Entrepreneurs
How do neurodiverse individuals deal with entrepreneurship?
Neurodiversity (including ADHD, Autism, and Dyslexia) is highly prevalent in the startup world. This emerging field of study suggests that neurodivergent traits—such as hyperfocus or non-linear thinking—can provide a distinct competitive advantage in innovation.
Prospect Theory
Risk-aversion and decision framing.
This behavioral economic theory posits that individuals value gains and losses differently. When entrepreneurs think they are winning, they may become risk-averse to protect gains; when they are losing, they may become risk-seeking to recover losses.
Self-Efficacy
What if it's about what you think of yourself?
Rooted in Bandura’s psychology, this implies that a person’s belief in their ability to succeed is a self-fulfilling prophecy. High entrepreneurial self-efficacy helps founders persist through the inevitable rejections of early-stage business.
