A central question in entrepreneurship research is how to predict venture performance. In prior research, psychological characteristics of the entrepreneur and entrepreneurial behaviours have been more or less found to be able to distinguish between successful and unsuccessful entrepreneurs. The aim in this study was to extend earlier research and to test a model in which innovativeness and initiative are mediators between achievement orientation (including the psychological characteristics: self-efficacy, higher order need strength, need achievement, and internal locus of control) and venture performance. Data from 201 entrepreneurs were analysed with structural equation modelling to test the mediation model. The results suggest that innovativeness is a mediator between achievement orientation and venture performance, whereas initiative could not be confirmed as a mediator. [ABSTRACT FROM AUTHOR]