Does adaptability, rurality and previous business ownership matter for entrepreneurial identity?

This study explores the role of both trait-like (i.e. adaptability) and situational (previous small business ownership and rurality) variables, on entrepreneurial identity (EI) through a social identity theory lens.

Path analysis was used on 376 individuals from across the United States who met various criteria and were recruited using Prolific.

Adaptability and previous small business ownership were found to be predictors of EI. Findings also highlight the moderating role of adaptability on the previous small business ownership-EI and rurality-EI links. Notably, highly adaptable individuals who have previously owned businesses tend to hold more of an EI, and those who are less adaptable and live in rural locations also tend to hold less of an EI.

Understanding the conditions under which individuals are likely to hold more of an EI may provide several benefits to organizations and individuals within society, including information that can be used to develop more fine-tuned career counseling and training, risk management strategies, and a more calculated allocation of finite resources.

Despite both personal trait-like (i.e. focus/adaptability) and situational (i.e. rurality and previous small business ownership experience) factors likely playing a crucial role in the formation of individuals' perceptions, previous work has largely ignored their interaction in the development of EI. The authors test a model encompassing trait-like (i.e. focus/adaptability) and situational (rurality, previous small business ownership experience) predictors of EI, along with their interactive effects, and illuminate a more holistic picture of EI's antecedents.