Are Entrepreneurs Born or Made? A Systematic Review of Theoretical Perspectives and Empirical Evidence

Abstract

The debate over whether entrepreneurs are born or made is central to understanding economic development worldwide. Entrepreneurs play a crucial role in creating organizations that generate jobs, enhance trade, and foster innovation, driving economic growth. Historically, the term entrepreneur originated from the French language, referring to individuals who take risks in uncertain business ventures (Cantillon, 1755). Over time, the definition evolved to emphasize innovation and creativity, distinguishing entrepreneurs from traditional business operators (Schumpeter, 1936). Entrepreneurship involves more than just having an idea; it requires risk-taking, creativity, and the ability to implement strategies effectively. The argument that entrepreneurs are made is supported by theories suggesting that entrepreneurial traits develop through environmental factors, education, and experience. Behaviorist theories, such as those proposed by Watson (1924) and Skinner (1953), argue that individual characteristics are shaped by environment and learning processes. Bandura’s (1977) concept of self-efficacy highlights that individuals can cultivate entrepreneurial skills through confidence-building and learning from experiences. Contemporary research supports the perspective that entrepreneurial skills are acquired through education, mentorship, and experiential learning. Moreover, recent studies highlight how industry experience and networks enhance entrepreneurial success, especially among older entrepreneurs, reinforcing the notion that entrepreneurship is cultivated over time. In conclusion, while certain personality traits may offer advantages, entrepreneurship is predominantly shaped by learning, experience, and environmental influences. The overwhelming body of literature supports the assertion that entrepreneurs are in most cases made than born. The ability to innovate, take risks, and lead effectively is developed through deliberate practice and continuous learning, supporting the argument that entrepreneurs are made, not born.