📘 Psychoanalytical Theory of Entrepreneurship | 📅 1900s | 👤 Sigmund Freud

The Psychoanalytical Theory explains entrepreneurial behavior as a result of deep-seated psychological forces and unconscious motives developed during early childhood experiences. It emphasizes personality traits, inner drives, and mental processes over external factors like environment or economics.

One key interpretation is that entrepreneurs are driven by an inner urge to prove themselves, often tied to ego, need for achievement, or even compensating for childhood trauma.

🗝️ Key Elements of the Theory

🧬 Unconscious Motives

Entrepreneurs may be subconsciously driven to succeed due to past experiences
(e.g., lack of recognition, poverty, or failure of parents).

🏆 Need for Power and Achievement

Entrepreneurial actions fulfill deep-seated personal needs like ego satisfaction and achievement.

🌌 Dreams and Imagination

The subconscious mind plays a critical role in creativity and innovation.

⚔️ Crisis or Conflict Resolution

Some individuals become entrepreneurs as a response to internal psychological conflicts or unresolved childhood issues.

👨‍👩‍👦 Parental Influence

Overbearing or absent parents may influence a child to seek independence, control, and self-validation — traits often seen in entrepreneurs.

📘 Example

A child who grew up in poverty may unconsciously develop a strong drive to succeed financially as a means of overcoming early feelings of inadequacy or insecurity.
This internal pressure may push them toward becoming a risk-taking entrepreneur seeking financial success and social validation.