Abstract
There have been divergent opinions as to the suitability of the various indicators of locus of control in business management research. This study examines how the indicators of internal locus and strategic locus of control function in the small business context. The study examines first the interrelations between these indicators and then relation between each of the indicators and the firm's strategic factors. The indicators of locus of control differed from each other in their relation to external control. The indicator of strategic locus of control correlated with the firm's targets, strategic decision-making and success. On the other hand the indicator of internal locus of control is useful in research on entrepreneurship and the birth of new firms.
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