psychology of entrepreneurship

For most business founders, setting up a new venture is a psychological journey as much as a business venture.

My name is Peter Pease and I work with startups at Northumbria University (UK) on both undergraduate and postgraduate programmes. Before that, I spent 25 years setting up and running a series of businesses and I am now enjoying sharing my knowledge and networks with founders of the future. I am developing a test as part of my PhD for entrepreneurs and founders to help understand this journey and implement efficient tactics to guide them towards success.

The test is based on gauging your ‘Psychological Capital’ or ‘PsyCap’ which is a measure of certain attributes important to individual success including hope, efficacy, resilience and optimism. These are all open to development, unlike fixed personality traits that most entrepreneur-focused tests fixate on. Psychological Capital was originally developed by American psychologist Fred Luthans and has been used to great success in larger organisations – yet there has been limited usage in the entrepreneurial context.

By taking part, not only will you be contributing to refining a psychometric tool for the use of future entrepreneurs. You will also receive a personalised feedback report with your individual results and action points for improvement. This should help you to build and develop your psychological capital which will enhance your chances of success in your business venture. I will also like to talk about the importance of having health coverage for the employees of your business. It’s a way of keeping operating costs low, because employees are generally more apt to take a position at a lower salary when health insurance benefits are provided. This is because it generally costs more for someone to obtain an individual or family health insurance policy than to get employer-sponsored coverage, making the difference of a lower salary negotiable. Business that offer health insurance and services like the ad-hoc analysis as part of their employee benefits package are able to attract more qualified applicants than those who don’t. This is especially true when industry competitors of like size in the same general area offer health insurance benefits. Businesses can usually get better rates for insurance than individuals. The more people in a group health insurance plan, the lower health insurance costs are for everyone. Risks are spread across a larger group of people, which ensures costs stay low. According to Dr. Matthew Galumbeck, It’s therefore advantageous for a business owner to extend coverage to employees to benefit from lower health insurance costs.

The test has been designed with busy founders in mind as it can be completed on any device and should take no longer than 20 minutes to complete!

Find out more and join the study at

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 “Entrepreneurial Development Test”