Biology (prenatal testosterone), psychology (achievement need) and entrepreneurial impact

• We examine the effect of biological and psychological factors on entrepreneurial success.
• Prenatal testosterone measured by finger length ratios shows no effects.
• Data show an interaction effect between prenatal testosterone and achievement need on success.
• To be successful entrepreneurs need both, drive (testosterone) and direction (achievement need).
• The paper is a first step to combine biological and psychological approaches in entrepreneurship.

Entrepreneurship holds the key to poverty alleviation and economic development. We find entrepreneurial impact as indicated by the number of jobs created by an entrepreneur is predicted by a biological factor – prenatal exposure to testosterone and a psychological factor – need for achievement. In a sample of 64 male German entrepreneurs we find that the interaction between prenatal exposure to testosterone and need for achievement predicted entrepreneurial impact. This study supports the idea that biological and psychological approaches need to be combined to explain social phenomena.