Entrepreneurs vs. employees: Whose intelligence matters more?
Mojca Svetek | 29 November 2023
Intelligence has a major impact on the economic and social outcomes of individuals. While people like to believe that personality and traits such as emotional or social intelligence matter more than IQ, a matter-of-fact is that intelligence predicts attained occupational level and performance better than any other ability, trait, or disposition and better than job experience.
In this episode we are exploring:
- What is intelligence?
- Are more intelligent individuals more likely to become entrepreneurs?
- Is intelligence more important for entrepreneurs than for employees?
- At what IQ level does entrepreneurship pay off?
Research articles:
- Åstebro, T., & Chen, J. (2014). The entrepreneurial earnings puzzle: Mismeasurement or real? Journal of Business Venturing, 29(1), 88-105.
- Hartog, J., Van Praag, M., & Van Der Sluis, J. (2010). If you are so smart, why aren’t you an entrepreneur? Returns to cognitive and social ability: Entrepreneurs versus employees. Journal of Economics & Management Strategy, 19(4), 947-989.
- Hegde, D., & Tumlinson, J. (2021). Information frictions and entrepreneurship. Strategic Management Journal, 42(3), 491-528.
- Schmidt, F. L., & Hunter, J. (2004). General mental ability in the world of work: Occupational attainment and job performance. Journal of Personality and Social Psychology, 86(1), 162.
- Strenze, T. (2007). Intelligence and socioeconomic success: A meta-analytic review of longitudinal research. Intelligence, 35(5), 401-426.