European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.6, No.17, 2014 240 Self-Efficacy, Tolerance for Ambiguity and Need for Achievement as Predictors of Entrepreneurial Orientation among Entrepreneurs in Ekiti State, Nigeria Ogunleye, Adedeji J. Faculty of the Social Sciences, Department of Psychology, Ekiti State University, Ado Ekiti; Nigeria. E-mail: dr.ajogunleye@gmail.com Osagu, Judith C. Faculty of Humanities and Social Sciences, Department of Psychology, Federal University, Oye Ekiti; Nigeria. E-mail: juddydear@yahoo.com ABSTRACT This study assessed some behavioural traits that may predict entrepreneurial orientation among selected small scale entrepreneurs in Ekiti State, Nigeria. The research covered some districts in Ado Ekiti and Iworoko Ekiti. Two hundred and thirty eight small scale entrepreneurs were the participant in the study. One twenty eight of them were males while the remaining one hundred and ten were females. Four scales were used in the research. The New General Self Efficacy Scale developed by Chen, Gully and Eden (2001), Tolerance for Ambiguity Scale developed by Budner (1962), Entrepreneurial Orientation Scale by Kreiser, Marino and Weaver (2002) and the Achievement Motive Scale by Lang and Fries (2006). Five hypotheses were tested using Independent t-test. Results from this study revealed that self- efficacy, achievement motivation, age and sex (gender) does not significantly predict entrepreneurial orientation; however, insolubility, a sub scale of tolerance for ambiguity was found to significantly predict entrepreneurial orientation. Findings were discussed in the light of previous literature on self efficacy, tolerance for ambiguity, need for achievement and entrepreneurial orientation. Based on the findings recommendations were therefore made. Keywords: Self efficacy, tolerance for ambiguity, achievement motivation, entrepreneurial orientation, Ekiti State, Nigeria. INTRODUCTION The importance of entrepreneurial activities cannot be overemphasis as it is a veritable tool for economic growth and wealth creation of a country. So many researches have been conducted linking different personality traits with entrepreneurial orientation or entrepreneur (Beugelsdijk, 2007; Jaarfar & Abdul-Aziz, 2005; Wickham, 2004). Findings from these studies have, however, varied across cultures. The term entrepreneur is a French word that is used to describe an individual who organises and operates a business or businesses, taking on financial risks to do so. An entrepreneur is an economic agent who unites all means of production (lands of one, the labour of another and the capital of yet another) and thus produces a product. Schumpeter (1934) defined an entrepreneur as an innovator who uses a process of shattering the status quo of the existing products and services, to set up new products, and new services. McClelland (1961) noted an entrepreneur to be a person with high need for achievement (N-Ach). To Drucker (1985), an entrepreneur is one who searches for changes, responds to it, and exploits opportunities. The entrepreneur’s central activity is that of business creation, which can be studied at an individual and, or, group level, analysing psychological aspects and social variables of education, family or background, either at an environmental level, using variables that enable business development, or by analysing aspects of the economic, social and cultural environments. The study of entrepreneurs as individuals analyses the variables that explain their appearance, such as personal characteristics, the psychological profile (the need for achievement, tolerance for ambiguity and a tendency to take risks) or non-psychological variables (education, experience, networks, the family, etc.). Entrepreneurship is often discussed under the title of the entrepreneurial factor, the entrepreneurial function, entrepreneurial initiative, and entrepreneurial behaviour. The entrepreneurial factor is understood to be a new factor in production that is different to the classic ideas of earth, work and capital, which must be explained via remuneration through income for the entrepreneur along with the shortage of people with entrepreneurial capabilities. Its consideration as an entrepreneurial function refers to the discovery and exploitation of opportunities or to the creation of enterprise. Entrepreneurial behaviour, on the other hand, is seen as behaviour that manages to combine innovation, risk taking and proactiveness (Miller, 1983). While reference to entrepreneurial initiative, covers the concepts of creation, risk taking, renewal or innovation inside or outside an existing organisation.