Can beneficial antecedents to self-employment be detrimental to entrepreneurial performance?

We hypothesize that risk aversion, plasticity, stability, and locus of control have different effects on a person's decision to enter entrepreneurship and the person's entrepreneurial performance. Empirical results reveal that plasticity and risk tolerance have positive effects on selection but negative effects on income derived in entrepreneurship. Stability, on the other hand, deters entry but has an inversely u‐shaped relation with income. Locus of control has a positive impact on the decision but an insignificant effect on entrepreneurial income. These new insights may guide policy makers on how to help aspiring entrepreneurs overcome the negative effects of their personality traits.