Small but innovative: Unveiling the impact of micro-entrepreneurs' personality traits on a spectrum of innovations

Abstract

This article investigates whether a micro-entrepreneur's personality influences their innovativeness. Using the Big Five theory and a broad definition of innovation from the 4th version of the Oslo Manual (two types and nine categories of innovations in total), the study analyses data from 1,848 Polish micro-entrepreneurs. Since innovativeness is a complex process with several interdependencies, and previous research shows that introducing one type of innovation is not independent of introducing other types, Multivariate Probit (MVP) regression was used to estimate the models. The results allow two conclusions to be drawn. Firstly, in the case of product innovations implemented by micro-entrepreneurs, three personality traits have a positive impact. These are Openness to experience, Conscientiousness and Extroversion. Secondly, in the case of business process innovations, all 7 types are positively influenced by two personality traits, namely Openness to experience and Extroversion.

Keywords

• D91
• L26
• M19
• O15
• O31