The central question of this paper is, “What determines an entrepreneur's effort on different tasks?” The paper aims to address this question.
Propositions about the impact cognitive processes have on entrepreneurial effort across different tasks are developed. These propositions draw on self‐regulatory theory, in particular our understanding of regulatory focus and self‐efficacy.
It is argued that a promotion orientation motivates effort on explorative tasks, and a prevention orientation motivates effort on exploitative tasks. Further, it is proposed that high self‐efficacy motivates effort on action tasks, but high self‐efficacy reduces effort on judgment tasks.
One implication of these propositions for entrepreneurs is to understand self‐regulatory processes and to consciously decide how much effort to put into different tasks, rather than relying on (hidden) preferences. Another implication is for those involved in selecting and developing entrepreneurs. That implication is that entrepreneurs' self‐regulatory processes can inhibit effective effort. These processes can be managed to increase effectiveness.
By introducing task type into the discussion of self‐regulation and entrepreneurial effort, a more fine‐grained understanding of cognitive processes in actual entrepreneurial activities is developed.
