We propose that the ability to create a successful new venture requires determination and
strong self-belief. While past research shows that self-efficacy is fundamental in most work
functioning, this study extends our understanding of individual differences in the context of
entrepreneurship by looking at perceived perseverance. Specifically, we focus on adversity
quotient (AQ), which provides a measure of one’s perceived capacity to prevail in the face of
adversity. Results showed that patent inventors who started new ventures scored significantly
higher not only on self-efficacy, but also on two distinct aspects of AQ – perceived control over
adversity and perceived ownership regarding outcome of adversity – than did inventors who
work as employees for established organizations. Post hoc analysis also revealed that the higher
the AQ score of patent inventors the higher their annual earnings.