This research explores the cognitive constructions of productive, unproductive, and destructive entrepreneurs and their characteristics. The study utilizes Kelly’s Personal Construct Theory and the Repertory Grid Technique to understand the perspectives of Iranian entrepreneurs. Through interviews, the researchers elicited the personal constructs of entrepreneurs regarding these different types of entrepreneurship. The findings reveal that Iranian entrepreneurs perceive productive, unproductive, and destructive entrepreneurs based on 45 distinct cognitive features categorized into six groups: formal-institutional, value-creating, business-related, social, individual possessions, and personality characteristics. The research highlights that the distinctions between these types of entrepreneurs go beyond regulatory compliance and encompass social, individual, and personality traits. This multidimensional perspective suggests that policymakers should consider not only laws but also personal, social, and personality factors to reduce unproductive and destructive entrepreneurship in developing countries like Iran. The study contributes to understanding the mindset of entrepreneurs and opens avenues for further research in this field.