Individual entrepreneurial orientation (IEO) is a three-dimensional construct described as a tendency to be simultaneously proactive, risk-taking and innovative. This study contributes to the understanding of the antecedents that contribute to IEO. In addition, the study investigates the influence of internal locus of control (LOC) on IEO moderated by self-efficacy (SE). The article examined the relationship between self-concept-based traits, that is, LOC, SE and IEO subdimensions using confirmatory factor analysis (CFA) on the survey data of 200 small business owners from India. The study found that SE moderates the association between LOC and sub-dimensions of IEO. Furthermore, it indicated that SE has a higher effect on innovativeness than proactiveness and risk-taking. Therefore, a small entrepreneur with an internal orientation (LOC) needs to be matched with SE to feel a realistic circle of influence to experience more entrepreneurial growth. A small entrepreneur with an internal LOC and a higher level of SE will strive to become a leader in its circle of influence with more inclination to pursue innovative strategies.
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