Childhood trauma and entrepreneurs’ individual entrepreneurial orientation

Abstract

Experiencing childhood trauma (that is, neglect/abuse) threatens the cognition, behavior, and well-being of individuals. In this paper, we examine whether and how childhood traumatic experiences, which go along with being an underdog entrepreneur, influence entrepreneurs’ individual entrepreneurial orientation (Ind.EO). Examining two samples of small-business entrepreneurs in the UK, we find that (i) traumatic childhood experiences boost entrepreneurs’ Ind.EO; (ii) this positive effect is the net result of an increase in promotion (relative to prevention) regulatory focus and an increase in self-dehumanization. Moreover, the positive impact of traumatic childhood experiences on entrepreneurs’ Ind.EO is stronger for rule-breaking entrepreneurs.