Evaluating entrepreneurs’ perception of success

Abstract

Purpose– The purpose of this paper is to evaluate the insights of founding entrepreneurs to understand what they consider as indicators for achieving entrepreneurial success. Using this information, the construct entrepreneurial success was conceptualized and a scale developed for use in subsequent testable models.Design/methodology/approach– Through qualitative research, the concept of entrepreneurial success was explored with ten founding entrepreneurs. Themes emerged from this enquiry process which informed the development of nine indicators. The indicators were subjected to exploratory and confirmatory factor analysis in a subsequent study, comprising 213 founding entrepreneurs. The result is an early attempt to produce a measurement scale for entrepreneurial success, as perceived by the entrepreneur.Findings– Entrepreneurs perceive entrepreneurial success as the presence of both personal and macro level variables. This research supports theorizing that suggests entrepreneurial success is a multidimensional construct best captured by more than financial and economic indicators.Research limitations/implications– This research is limited by the size of the sample, the qualitative context of the research that conceptualized the construct, and the self-report nature of the quantitative study that was used to develop the measurement scale.Practical implications– The development of a scale provides researchers with the opportunity to include entrepreneurial success, as perceived by entrepreneurs, in future testable models.Originality/value– This research responds to a call for investigation into entrepreneurial success. It is an early attempt to conceptualize a relevant construct and to develop a scale for use in empirical testing. It is distinguished by using the perceptions of successful entrepreneurs to develop the construct and to validate it.