One perspective which is seldom applied to the entrepreneurial process is the identity perspective in spite of the fact that this perspective represents a widely accepted value-adding contribution in organisational research. The question of identity is somewhat recognized in effectuation theory of entrepreneurship, which implicitly suggests that individuals from the beginning of the entrepreneurial process hold a clear and coherent perception of who they are. A key rationale of newer identity theory is however that various psychological, economical and sociological characteristics of modern society cause individuals to strive for a coherent self-perception, but they seldom reach this. Thus, identity confusion can be expected to highly influence the effectuation activities of the entrepreneurial process, and the entrepreneurial performance. The lacking integration of the identity perspective in entrepreneurship research causes a gap of knowledge on how the enterprising individual creates and re-creates his/her identity along with developing a new organisation. Thus, further research is needed, and the present paper takes a step in this direction by addressing the question: How does the identity perspective add to the understanding of entrepreneurial processes?