THE INFLUENCE OF ENTREPRENEURIAL EFFECT ON ENTREPRENEURSHIP FROM THE PERSPECTIVE OF EMOTIONAL BEHAVIOR CHANGE
Authors: Long Dan , Yu Wei , Fu Weizhong , Shakeel Muhammad 
Published: July 2022

Background

Entrepreneurial decision-making plays an important role in the development of new enterprises and has become the central topic of entrepreneurship. Entrepreneurial decision logic describes how entrepreneurs make decisions, which refers to the thinking and cognitive process triggered in a specific entrepreneurial situation. Efficiency is one of the main logic of enterprise decision-making. However, the existing studies have not reached a consistent conclusion on the effectiveness of the results. In particular, few studies have explored how efficiency affects the emergence of new enterprises. Based on the theory of cognitive psychology, this paper investigates the impact of entrepreneurial effect on entrepreneurial enterprises and the regulatory effect of entrepreneurial resource scarcity.

Research Objects and Methods

This paper uses hierarchical logistic regression to analyze 202 entrepreneurs in the first two rounds of China Entrepreneurial Dynamics Group Research (CPSED). CPSED adopts large-scale random sampling. The sample was screened using the following criteria: (a) entrepreneurial activity, (b) owning a new business, (c) in the early stages of entrepreneurship, and (d) failure to achieve first-time sales. CPSED contacted 69990 Chinese families by telephone and interviewed 22045 people. Among them, 974 new entrepreneurs were selected. 601 of them completed the first wave of interviews. A year later, 321 entrepreneurs completed the second round of interviews. Before the task, whether the emotional states of the control group, conscious distraction group and unconscious distraction group were the same in the high and low depressed population at baseline Two factor ANOVA of PA index 2 (population: depression, non depression) * 3 (grouping: conscious, unconscious, control group) showed no significant group main effect (f (2112) = 0.58, P = 0.57) and interaction between group * population (f (2112) = 0.11, P = 0.89), indicating that there was no significant difference in the initial PA scores of the three groups for both depressed and non depressed people; In addition, the main effect of the population was significant (f (1112) = 10.41, P &lt; 0.05, η P2 = 0.16), the PA score of depressed people was significantly lower than that of non depressed people The two factor ANOVA of Na index 2 (population: depression and non depression) * 3 (grouping: conscious, unconscious and control group) showed no significant group main effect (f (2112) = 0.01, P = 0.99) and group interaction (f (2112) = 0.23, P = 0.80), indicating that there was no significant difference in the initial Na scores of the three groups for both depressed and non depressed people; In addition, the main effect of the population was significant (f (1112) = 10.23, P &lt; 0.05, η P2 = 0.16), the Na score of depressed people was significantly higher than that of non depressed people The above results show that for depressed and non depressed people, the emotional states of the three groups are the same before the experiment.

Results

This paper divides the impact into four dimensions: means driven logic, partnership logic, tolerable loss logic and leverage contingency logic. The empirical results show that entrepreneurs who follow the means driven logic are unlikely to promote the emergence of new enterprises. Entrepreneurs who follow the logic of partnership are more likely to promote the emergence of new enterprises. The logic of tolerable losses and occasional leverage will not significantly affect the emergence of new enterprises. When entrepreneurial resources are scarce, entrepreneurs who follow the logic of affordable loss are more likely to promote the emergence of new enterprises. The scarcity of entrepreneurial resources has no significant regulatory effect on the relationship between means driven logic, partnership logic, leverage contingency logic and the emergence of new enterprises.

Conclusion

This paper shows that the effectiveness of entrepreneurial decision-making logic affects the emergence of entrepreneurial enterprises, and the scarcity of entrepreneurial resources has a certain regulatory effect. Based on the theory of cognitive psychology, this study breaks through the existing view that effectiveness is regarded as a one-dimensional structure, and discusses how the sub dimensions of effectiveness affect the emergence of new enterprises. Break through the existing research and explore the direct impact of the scarcity of entrepreneurial resources on entrepreneurial performance. This paper helps to clarify the results of effectiveness and inspire scholars to explore the law of decision-making from the perspective of psychology. This has important enlightenment for entrepreneurs to improve the efficiency of entrepreneurial decision-making and rational entrepreneurship. In short, we should actively pay attention to the changes of entrepreneurs' psychology, emotion and behavior, and become builders, managers, coordinators and collaborators of innovation and entrepreneurship. According to the psychological characteristics of these groups, we should actively and flexibly organize rich activities, strive to create a relaxed and harmonious entrepreneurial atmosphere, create friendly and mutually beneficial entrepreneurial relations, encourage and guide these groups to adjust their psychological state to the best state, and promote the healthy development of their good cognition and good life.

Acknowledgements

Supported by the National Natural Science Foundation of China (Grant No.71772055), Humanities and Social Sciences of Ministry of Education Planning Fund of China (Grant No.17YJA630067), and Anhui Philosophical and Social Science Program (Grant No. AHSKY2019D030).