Established Entrepreneurs Research Articles

Taking an Active Approach in Entrepreneurial Mentoring Programmes Geared towards Immigrants

Immigrants face significant challenges that impair their ability to access resources that can develop their entrepreneurial potential. Using an action research and case-based approach, we highlight the challenges experienced by immigrant entrepreneurs and in turn discuss practical measures to resolve these challenges through mentoring programmes for nascent entrepreneurs. We profile a unique multi-disciplinary programme involving both business and law students who coordinate and deliver workshops for course credit. Established entrepreneurs and professionals also volunteer their time as mentors. We develop a balanced scorecard to assess and improve the programme. Study results provide a model to enable universities and others to reach out to nascent immigrant entrepreneurs.

Taking an Active Approach in Entrepreneurial Mentoring Programmes Geared Towards Immigrants

Immigrants face significant challenges that impair their ability to access resources that can develop their entrepreneurial potential. Using an action research and case-based approach, we highlight the challenges experienced by immigrant entrepreneurs and in turn discuss practical measures to resolve these challenges through mentoring programmes for nascent entrepreneurs. We profile a unique multi-disciplinary programme involving both business and law students who coordinate and deliver workshops for course credit. Established entrepreneurs and professionals also volunteer their time as mentors. We develop a balanced scorecard to assess and improve the programme. Study results provide a model to enable universities and others to reach out to nascent immigrant entrepreneurs.

Demographic Characteristics of Established Entrepreneurs of Small and Medium Enterprises - An Evaluation

The role played by an entrepreneur in entrepreneurship is undeniable. Each person’s, psychology and demographic characteristics contribute to or detract from his or her abilities to be an entrepreneur. In the study of entrepreneurship, one concept recurs: that entrepreneurship study is inter-disciplinary. Some of the empirical studies have also supported that the entrepreneurial career is based on family background, experience and other attributes. Among the three factors, the studies have described that previous work experience of entrepreneurs predominates over the other variables as far as pursuing their career is concerned.

Entrepreneurship and the off-the-books economy: some lessons from England

This article evaluates whether entrepreneurs trade off-the-books and how this varies across populations. Reporting the results of 811 face-to-face interviews in English affluent and deprived localities, the finding is that even though only a relatively small proportion of all off-the-books work is conducted by nascent and established entrepreneurs, although the share is higher in affluent populations, some three-quarters of business start-ups and the established self-employed trade wholly or partially off-the-books, and this figure is even higher in deprived populations. The outcome is a call to reposition the hidden enterprise culture more centre-stage in discussions of entrepreneurship and enterprise development.

Entrepreneurs' learning preferences: A guide for entrepreneurship education

Purpose: The purpose of the paper is to determine guidelines for effective entrepreneurship education and training, focusing on the development of entrepreneurial skills, based on what successful, established entrepreneurs look like, how they operate and their learning and thinking preferences. Problem investigated: Entrepreneurial skills training is the difficult part of teaching entrepreneurship and is different from teaching functional and managerial skills related to entrepreneurship. The problem is that training and education focuses primarily on the management and functional business training of entrepreneurs and very seldom on the entrepreneurial skills. This study focuses on the much neglected second leg of entrepreneurship training, as most entrepreneurship programmes focus on the first leg, namely business planning and functions and management skills. Design/methodology/approach: This is a formal and exploratory study. Two measurement instruments (Schein Career Orientations Inventory and the Neethling Brain Instrument) were used and completed by a sample of 50 entrepreneurs of the identified population. The paper address the entrepreneurship education needs as determined by the learning preferences of entrepreneurs. Findings: The research indicated that all the essential entrepreneurial skills are seldom addressed in entrepreneurial training. The entrepreneurial skills that need to be incorporated in these programmes are self-concept, creativity and innovation, risk orientation, good human relations; perseverance and a positive attitude. The research also revealed that entrepreneurs have different learning preferences from other students / learners and this should be taken into consideration in the design of entrepreneurial curricula. Value of research: The paper assist curriculum developers of entrepreneurship education programmes to better align their content to the entrepreneurial skills identified by successful entrepreneurs that need to be developed, and to conduct entrepreneurship education according to the learning preferences of entrepreneurs. Conclusion: The application of the Garavan and O'Cinneide model regarding the methodology in the education of entrepreneurs can therefore be confirmed and recommended. The results of the career anchor and brain instruments indicate the importance of entrepreneurial skills-training and include training in the following areas : self concept; creativity and innovation; risk orientation; good human relations, perseverance and positive attitude.

Minority Entrepreneurs: More Likely to Try, But Less Likely to Succeed?

The article describes a comparison of the success of black and white entrepreneurs. The author cites research by Philipp Kollinger of the German Institute for Economic Research (DIW Berlin) and Maria Minniti of Babson College. The reseachers found that black entrepreneurs are more likely to attempt a new business but less likely to succeed than their white counterparts—regardless of demographic or socio-economic characteristics or industry. Findings suggest that part of the gap is related to perceptual differences: Black entrepreneurs are more optimistic and so more willing to undertake a new business. Kollinger and Minniti posit that black under-representation among established entrepreneurs is related to external conditions, such as availability of financing.

Politics, Investor Protection and Competition

External finance is critical for less established entrepreneurs, so poor investor protection can hinder competition. We model how lobbying by incumbents may reduce access to finance in countries where politicians are less accountable to voters. In a broad cross-section of countries and industries, we find that (i) the number of producers and entry rates are positively correlated with investor protection in financially dependent sectors, and (ii) countries with more accountable political institutions have better investor protection.

Not for Lack of Trying: American Entrepreneurship in Black and White

Using a sample obtained from a survey conducted in the United States during summer 2002, we study the variables related to observed differences in the rate of entrepreneurial involvement between black and white Americans. We find strong evidence that differences in subjective and often biased perceptions are highly associated with entrepreneurial propensity across these two racial groups. In addition, we find that black Americans tend to exhibit more optimistic perceptions of their business environment than other racial groups and are more likely than others to attempt starting a business. In fact, our results show that blacks are almost twice as likely as whites to try starting a business. Thus, our results suggest that the under representation of black Americans among established entrepreneurs is not due to lack of trying but may instead be due to stronger barriers to entry and higher failure rates.

Empowering women through the Internet: Dutch women unite

In The Netherlands, women are uniting to learn about computers and the Internet without the intervention of men or others who feel the need to show rather than to teach. Webgrrls-NL, which started in the spring of 1996, is one of the largest organisations of Internet users in Europe, and is developing into an influential power in both society and politics. Webgrrls-NL is seen as a practical organisation that does not get stuck in theory but works pragmatically. It organises training days and theme discussions, hosts a variety of mailing lists, supports new and established entrepreneurs, and provides a safe environment for women to experiment with a medium that is relatively strange to some of them. At present, activities of Webgrrls-NL include support for 10 mailing lists, two training days per year, three In Real Life (IRL) meetings per year for entrepreneurs, annual informal New Year gatherings throughout the country, and ad hoc IRL meetings when an occasion arises.

Testing a Psychological Typology of Entrepreneurship Using Business Founders

This study follows upon previous research among established entrepreneurs indicating that a four-way psychological typology (i.e., personal achievers, real managers, expert idea generators, and empathic supersalespeople) predicts firm growth. It extends support for the typology to the venture initiation phase and to a student population. The results confirm that those students who are characterized by one or more of the types are more likely to be entrepreneurs after graduation. Measures of entrepreneurial propensities and skill in business plan preparation—both obtained prior to graduation—are also predicted by the typology. As a test of the basic theory, this research provides substantial support. It also extends the domain of that theory to incorporate the enterprise start-up phase.

University training for entrepreneurship: Swedish approaches

Empirical research in Sweden on business venturing suggests that qualified experience and social skills are more crucial to success than formal education. Adopting an action perspective on entrepreneurship, a framework for identifying competences needed for an entrepreneurial career is provided. It is argued that entrepreneurial training calls for a contextual approach, implying, for example, that the social resources included in the personal network will supplement personal and organizational resources. Within such an entrepreneurial-learning framework, different Swedish academic programmes aiming at enforcing or supplementing management skills in small firms are presented. The reported courses include a MBA-programme with internship and training programmes for established entrepreneurs. Implications of the Swedish experiences for career management, the general school system and the re-training of management for entrepreneurial initiative are discussed.

Psychological characteristics associated with performence in entrepreneurial firms and smaller businesses

This article examines the prevalence of five psychological attributes in a sample of established entrepreneurs. These attributes are need for achievement, locus of control, risk-taking propensity, tolerance of ambiguity, and Type A behavior. These characteristics are widely regarded as hallmarks of the entrepreneurial personality. The focus of the study is twofold: 1) Do these attributes distinguish entrepreneurs (founders) from small business managers (nonfounders)? 2) Does the presence of these “entrepreneurial” attributes relate to the financial performance of the firm? Survey questionnaires were completed by 239 members of the Smaller Business Association of New England. Founders in this sample score significantly higher than nonfounders for three of the five dimensions: need for achievement, risk-taking propensity, and tolerance of ambiguity. Both groups manifest an internal locus of control: that is, they share a perception that they can influence events in their lives and are thereby free from external forces such as destiny or luck. In terms of Type A behavior, founders and nonfounders alike score 60% above the midpoint on the Type A scale. Such Type A persons tend to be competitive, restless strivers who constantly struggle against the limitations of time. The relationships between psychological attributes and financial performance are few, but suggestive. Among founders, internal locus of control relates to a low liquidity ratio. Among non- founders, high tolerance of ambiguity associates with high return on assets (ROA), and high need for achievement associates with a high liquidity ratio. A test for curvilinearity reveals a “threshold effect” : in three instances, a psychological attribute associates with corporate performance only to a certain point. Beyond this optimal level, the psychological pattern appears to become dysfunctional and financial returns falter. In the founders, for example, moderate risk-taking is associated with increased ROA. However, the ROA of these firms decreases when risk-taking becomes excessive. In similar fashion, founders may see their firms' ROA flourish if this attribute is present to a moderate extent. When too pronounced, the profitability of the firm may decline. The same pattern exists between tolerance of ambiguity and growth rate in the nonfounder group. Excessive ambiguity tolerance may lead to a lack of response mechanisms for dealing with environmental change. In assessing the leadership of established ventures, it might be prudent for bankers, investors, and entrepreneurs themselves to pay heed to the mix of these characteristics

Risk Taking Propensity of Entrepreneurs.

The risk taking propensities of entrepreneurs of new ventures were objectively obtained using the Kogan- Wallach choice dilemmas questionnaire and were compared to those of managers and to normative data developed for the measurement instrument. The findings suggest that risk taking propensity may not be a distinguishing characteristic of entrepreneurs. They refute assumptions based on research that has been subjective and noncomparative and that used established entrepreneurs.

Risk Taking Propensity of Entrepreneurs

The risk taking propensities of entrepreneurs of new ventures were objectively obtained using the Kogan- Wallach choice dilemmas questionnaire and were compared to those of managers and to normative data developed for the measurement instrument. The findings suggest that risk taking propensity may not be a distinguishing characteristic of entrepreneurs. They refute assumptions based on research that has been subjective and noncomparative and that used established entrepreneurs.

Risk Taking Propensity of Entrepreneurs.

The taking propensities of entrepreneurs of new ventures were objectively obtained using KoganWallach choice dilemmas questionnaire and were compared to those of managers and to normative data developedfor measurement instrument. The findings suggest that taking propensity may not a distinguishing characteristic of entrepreneurs. They refute assumptions based on research that has been subjective and noncomparative and that used established entrepreneurs. Palmer has suggested that psychological testing of entrepreneurs be directed most toward measurement of an individual's perception and handling of a risk (1971, p. 38). The major purpose of present research is to determine whether founders of new ventures and newly hired managers or newly promoted managers differ in their taking propensities. In order for this study to understood completely, varied definitions of term must presented and a functional definition for use in this study must developed. Webster's Third New International Dictionary (1961) defines an entrepreneur as the organizer of an economic venture, especially who organizes, owns, manages, and assumes of a business. Funk and Wagnall's Standard Dictionary (1958) offers a similar definition. It states that an entrepreneur is one who undertakes to start and conduct an enterprise or business, assuming full control and risks. Schumpeter (1954) credits J. S. Mill with bringing term into general use among economists. Mill (1848) included as entrepreneurial functions direction, control, superintendence, and bearing. Mill appeared to believe that inclusion of bearing distinguished term from term manager.