© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Chapter 2Chapter 2

Heroes and super-heroesHeroes and super-heroes

Entrepreneurship and Small Entrepreneurship and Small BusinessBusiness

Paul BurnsPaul Burns

Back to Contents

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Influences on owner-managers and Influences on owner-managers and entrepreneursentrepreneurs

Antecedent

influences

Personal characteristics and traits

Situational factors

Culture of

society

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Managerial typologiesManagerial typologies

Type of manager Type of business

Owner-manager

Lifestyle firm, often trade or craft based. Will not grow

Entrepreneur

Manager

Growth firm. Pursuit of growth and personal wealth important

Manages business for others. Organisation similar to large firm

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Methodological problems in Methodological problems in measuring personality characteristicsmeasuring personality characteristics

• Not stable over time

• Require subjective judgements

• Measures tend to ignore cultural and environmental influences

• The role of education, learning, training is often overlooked

• Issues such as age, sex, race, social class can be overlooked

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Characteristics of owner-Characteristics of owner-managersmanagers

• The need for independence

• The need for achievement

• Internal locus of control

• Measured risk takers

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Characteristics of Characteristics of entrepreneurial ownersentrepreneurial owners

• Opportunistic

• Innovative

• Self-confident (or delusional?)

• Self-motivated and restless

• Proactive and decisive

• Vision and flair – good at creating an image

• Willing to take even greater risks

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Antecedent influences on start-Antecedent influences on start-upsups

• Education

• Employment and unemployment

• Family

• Immigrant

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Factors that cannot be proved to Factors that cannot be proved to influence start-upsinfluence start-ups

• Marital status

• Children

• Previous wage

• Experience

• Age

• Gender

• Ethnicity

• Social class

• School type

• Personality

• Manager in previous job

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Antecedent influences on Antecedent influences on entrepreneursentrepreneurs

• Well educated

• Start business because of positive motivations

• Leave managerial job to start business

• Middle aged (or very young?)

• Willing to share ownership of business

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Factors that cannot be proved to Factors that cannot be proved to influence growthinfluence growth

• Gender

• Prior firm size experience

• Prior sector experience

• Training

• Ethnicity

• Social marginality

• Family history

• Prior self-employment

© Paul Burns, Entrepreneurship and Small Business, Palgrave, 2001

Hofstede’s dimensions of cultureHofstede’s dimensions of culture

INDIVIDUALISM

POWER DISTANCE

UNCERTAINTY AVOIDANCE

MASCULINITY

South America, Pakistan

LOW

USA, Germany, Scandinavia, UK

Hong Kong, UK, USA, Singapore

North Europe

HIGH

USA, Australia, Canada, FranceSouth America, Malaysia, France

Greece, France Portugal, Uruguay

USA, Austria, UK, Japan, Germany