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THE IMPACT OF FOUNDER VISION ON SUSTAINABLE GROWTH OF MEDIUM-
SIZE BUSINESSES
A Dissertation Presented in Partial Fulfillment of the
Requirements for the Degree of
Doctor of Management
By
Kimberly Witzel Pichot
Colorado Technical University
February 2016
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Committee
__________________________________________
Dr. Amy Alfermann, PhD, Chair
__________________________________________
Dr. Daphne DePorres, EdD, Committee Member
__________________________________________
Dr. Roland Livingston, EdD, Committee Member
__________________________________________
February 18, 2016
i
© Kimberly Witzel Pichot, 2016
ii
Abstract
Medium-size businesses account for over one-third of private-sector output and employ
over one-third of employees across industries. However, current literature describing
entrepreneurship and growth does not address the unique needs of medium-size
businesses. Thus, studying sustainable growth that has occurred from small to medium-
size businesses may reveal patterns and lessons learned that other entrepreneurs could
adopt to reach similar outcomes. A business founder’s vision may significantly impact
whether an enterprise will grow and flourish or remain small and decline. Toward this
end, the central research question of this study was as follows: How does the founder’s
vision impact business growth over time, leading expansion from small to a medium-size
entity? To address this question, a qualitative study was conducted by sampling 10
medium-size business founders through in-depth interviews. Data analysis revealed four
emerging themes that contributed to understanding the founder’s sustainable growth
vision as follows: casting vision, hiring quality employees, seeking growth opportunities,
and innovating within a niche. Participants identified that vision was the most important
element of their growth strategy in addition to hiring quality employees who can embrace
the vision. Toward this end, this research provides insights to practitioners, founders, and
investors to better understand sustainable growth.
Keywords: founder vision, sustainable growth, entrepreneurship, mid-size businesses
iii
Dedication
I dedicate this dissertation to my husband, Marcel, and my children, Rachelle,
Alain, and Valerie, who have been patient and supportive of me throughout my doctoral
studies. Thank you for all those cooked meals you brought to my computer and for
enduring my distracted behavior. I would also like to dedicate this dissertation to my
parents, Earl and Merna Witzel, who taught me to believe in myself and to dedicate my
life to serving others. Your example of generosity and kindness are my inspiration.
Finally, I would like to dedicate this dissertation to founders of small businesses who
dream of growing their businesses and want to learn from others who have paved the way
for them. May you be able to cast a strong vision among your partners and employees
and sustain healthy business growth.
iv
Acknowledgements
The decision to return to school and pursue a doctorate was not easy. I realized
there would be many sacrifices over the next few years, yet my love for the classroom
drove me to make that decision. I owe my accomplishment to family, friends, and
mentors who helped mold me and encouraged me to pursue my dreams.
Special thanks goes to my husband and best friend, Marcel H. Pichot, for 25 years
of love, support, and encouragement. My success was possible because you believed that
I could make it through the demands of my work and study, and you helped me to stay
focused on this journey.
I want to thank my mentor, Dr. Amy Alfermann, and my committee members, Dr.
Daphne DePorres and Dr. Roland Livingston, who also encouraged me and guided me
through the dissertation process with valuable input, suggestions, and support. I also
want to thank my Colorado Technical University cohort members for all their support
and friendship during the program, especially Kim Phillips, who called, texted, and
encouraged me daily. You are a gem!
I also want to thank Peter Franchot, Comptroller of Maryland, who inspired me to
think bigger and to start my process of casting vision with the Enactus team among small
businesses near Washington Adventist University. My passion for growing healthy small
businesses emerged through the mentorship of Michigan Small Business Development
Center directors Milton Richter and James Converse, along with Cornerstone Alliance
Chief Operating Officer Greg Vaughn to whom I owe a rewarding consulting career. I
especially owe my academic career to two mentors who have supported and encouraged
me along the way, Dr. Allen Stembridge and Dr. Patrick Williams.
v
I especially want to thank the founders who graciously agreed to take time out of
their busy schedules to participate in this study. Your enthusiasm and open dialogue
shaped this study, and I believe there is still much more we could learn from your vision
and focused dedication to growing your business. Without your participation, this
dissertation would not have been possible.
vi
Table of Contents
Acknowledgements ............................................................................................ iv
Table of Contents ............................................................................................... vi
List of Tables ...................................................................................................... x
List of Figures .................................................................................................... xi
Chapter One ............................................................................................................ 1
Topic Overview/Background .............................................................................. 5
Opportunity Statement ........................................................................................ 7
Purpose Statement ............................................................................................... 9
Research Questions ........................................................................................... 10
Propositions....................................................................................................... 11
Conceptual Framework ..................................................................................... 11
Assumptions/Biases .......................................................................................... 16
Significance of the Study .................................................................................. 17
Delimitations ..................................................................................................... 18
Limitations ........................................................................................................ 18
Definition of Terms........................................................................................... 19
General Overview of the Research Design ....................................................... 22
Summary of Chapter One ................................................................................. 22
vii
Organization of Dissertation ............................................................................. 23
Chapter Two.......................................................................................................... 24
Review and Discussion of the Literature .......................................................... 24
Theoretical Foundations of Entrepreneurship ................................................... 25
Historical Perspectives on Entrepreneurship ................................................ 25
Definition of Entrepreneurship ..................................................................... 30
Economic Importance of Small and Medium-size Businesses ..................... 32
Theoretical Foundations of Sustainable Growth............................................... 37
Current Research on Sustainable Growth ..................................................... 38
Theoretical Foundations of Founders’ Vision .................................................. 42
Challenges and Successes Faced by Founders.............................................. 42
Current Research on Founder Vision ............................................................ 44
The Impact of Founder Vision on Sustainable Growth .................................... 48
Conceptual Framework ..................................................................................... 53
Summary of Literature Review ......................................................................... 56
Chapter Three........................................................................................................ 57
Research Traditions .......................................................................................... 58
Research Questions and Propositions ............................................................... 60
Research Design................................................................................................ 61
viii
Population and Sample ................................................................................. 61
Sampling Procedure ...................................................................................... 61
Instrumentation ............................................................................................. 63
Validity ......................................................................................................... 64
Reliability ...................................................................................................... 66
Data Collection ............................................................................................. 67
Data Analysis ................................................................................................ 68
Ethical Considerations .................................................................................. 72
Summary of Chapter Three ............................................................................... 74
Chapter Four ......................................................................................................... 75
Participant Demographics ................................................................................. 76
Presentation of the Data .................................................................................... 79
Presentation and Discussion of Findings ........................................................ 100
Summary of Chapter Four .............................................................................. 103
Chapter Five ........................................................................................................ 104
Findings and Conclusions ............................................................................... 105
Theme One: Cast Vision ............................................................................. 107
Theme Two: Hire Quality Employees ........................................................ 110
Theme Three: Seek Growth Opportunities ................................................. 111
ix
Theme Four: Innovation within a Niche ..................................................... 111
Limitations of the Study.................................................................................. 113
Implications for Practice ................................................................................. 114
Implications of Study and Recommendations for Future Research................ 116
Reflections ...................................................................................................... 117
Conclusion ...................................................................................................... 119
References ........................................................................................................... 121
Appendices .......................................................................................................... 135
Appendix A ......................................................................................................... 136
Appendix B ......................................................................................................... 138
Appendix C ......................................................................................................... 140
Appendix D ......................................................................................................... 141
Appendix E ......................................................................................................... 142
Appendix F.......................................................................................................... 144
x
List of Tables
Table 1 Comparison of Small Business Definition 3
Table 2 History of Entrepreneurship Research 29
Table 3 Key Usage of the Terms Founder and Entrepreneur in the Literature 32
Table 4 Defining Sustainable Growth 38
Table 5 Key Elements of Founder Vision Suggested in the Literature 46
Table 6 Participant Demographics 77
Table 7 Founder's Initial Vision 82
Table 8 Does Vision Change Over Time? 84
Table 9 Influences for Growth 87
Table 10 Major Challenges and Opportunities 90
Table 11 Founder Contributions to Growth 94
Table 12 Founder Motivation for Growth 98
Table 13 Key Elements of Founder Vision 101
Table 14 Key Elements to Sustainable Growth 102
Table 15 Themes on the Impact of Founder's Vision on Sustainable Growth 102
xi
List of Figures
Figure 1. Conceptual framework for founder’s impact on sustainable growth. 16
Figure 2. Expanded conceptual framework for founder’s impact on sustainable
growth. 56
Figure 3. Steps in qualitative data analysis according to Creswell. 70
Figure 4. Building an integrative model of the impact of founder vision on
sustainable growth. 115
1
CHAPTER ONE
The American economy was established on the premise of entrepreneurship and
small business (Alsaaty, 2012; Konorti, 2010). Small businesses accounted for 46% of
the nonfarm gross domestic product in 2008 and currently employ about half of the
nation’s private workforce, making up 99.7% of all employers nationally (Kobe, 2012).
During the economic downturn that occurred from 2006 to 2010, small businesses
outperformed large corporations by about three to one in net job gains; however, small
businesses remained volatile and open to significant failure rates (Kobe, 2012).
According to the U.S. Department of Labor’s Bureau of Labor Statistics (2014),
approximately 54% of businesses fail in their first five years of operation, with other
researchers listing 60 to 90% failure rate depending on the industry (Alsaaty, 2012; Van
Auken, 1999).
The definition of small business is not unified across the literature, with various
government agencies using different category breakdowns. The U.S. Small Business
Administration (SBA) defines small businesses as businesses that are independently
owned and operated, for profit, and not dominant in their field (U.S. Small Business
Administration, 2015). To qualify for government contracts, the U.S. Small Business
Administration created a detailed chart that classifies businesses by industry, limit of
employees and gross receipts, and business classification by industry and size (U.S.
Small Business Administration, 2015). Thus, the employment limit ranges from 50 to
1,500 employees with retail possessing the smallest limit of 50 employees in certain
2
sectors and construction and transportation possessing an employee limit of 1,500 (U.S.
Small Business Administration, 2014). Gross receipts can be as high as $21.5 million for
services, or $7 million for special trade construction (U.S. Small Business Admnistration,
2014).
The U.S. Department of Commerce uses number of employees as a simpler means
of classifying business size with the following breakdown: very small businesses
employing fewer than 20 employees, small businesses employing 20 to 99, medium-size
businesses employing 100 to 499 employees, and large businesses with 500 or more
employees (Caruso, 2015). The data is collected and reported by the U.S. Census Bureau
(2016), which is primarily intended for market research, strategic business planning, and
economic development. The breakdown of small business into smaller categories based
on number of employees is also aligned with research conducted in Europe and India
(Durst & Edvardsson, 2012; Ranjan, 2008; Kumar, 2011; Nieboer, 2011). Toward this
end, the European Commission follows a similar division of small and medium-size
enterprises into three categories: micro businesses having 10 or fewer employees, small
businesses having fewer than 50 employees, and medium-size businesses having fewer
than 250 employees (Durst & Edvardsson, 2012; Verheugen, 2005). Table 1 compares
the breakdown of business size from the U.S. Small Business Administration, the U.S.
Department of Commerce, and the European Commission. In an effort to facilitate
comparisons between studies, the researcher utilized the employee size guidelines of the
U.S. Department of Commerce as the basis of this study, focusing the research on
medium-size businesses that employed between 100 and 499 employees.
3
Table 1
Comparison of Small Business Definition
Business Size
U.S. Small
Business
Administration
U.S. Department
of Commerce
European
Commission
Small business
Agriculture, Forestry,
Fishing, Hunting
up to 500
employees
Utilities
250–1,000
employees
Construction,
Transportation, and
Warehousing,
Information,
500–1,500
employees
Wholesale Trade up to 100
employees
Retail Trade 50–100 employees
Finance and Insurance up to 1,500
employees
Professional and
Technical Services 150–1,500
employees
Very small (micro)
business < 20 employees < 10 employees
Small business 20–99 employees
10–49
employees
Medium-size business
100–499
employees
50–249
employees
Large business 500+ employees 250+ employees
Medium-size businesses significantly contribute to the economy. They account
for an estimated one-third of private-sector output and employ over one-third of
employees across U.S. industries (Caruso, 2015). However, they are a largely ignored
sector of the business environment with big companies attracting a large portion of
conducted research, followed by small businesses receiving dedicated research dollars as
well as support from the U.S. Small Business Administration and other state and local
programs. This leaves medium-size businesses to navigate among strategies employed
4
by either large or small businesses, picking and choosing what applies to their particular
situation with limited research focusing on their unique needs (Coy, 2012; Mitchelmore
& Rowley, 2010; Nuntamanop, Kauranen, & Igel, 2013; Pasanen, 2007).
Studying sustainable growth among medium-size businesses may reveal patterns
and lessons that other entrepreneurs could adopt to reach similar growth objectives.
Coupled with a search for understanding a business founder’s vision in relation to
sustainable growth, this research addressed a demonstrable gap in the literature
(Mitchelmore & Rowley, 2010; Nuntamanop et al., 2013). Thus, based on this identified
gap in the literature concerning medium-size businesses, the researcher examined the
impact of vision on sustainable growth that could yield important information for future
generations of business founders, investors, and policy makers. Toward this end, a
qualitative study of medium-size businesses was conducted consisting of 10 interviews
with business founders who have grown their businesses from 100 to 499 employees
utilizing this central question: How does the founder’s vision impact business growth
over time, leading expansion from small to a medium-size entity? This central theme
was divided into three sub-topics: exploration of the founder’s vision, the growth
experience, and the founders’ view of their contribution to growth. The researcher faced
a number of limitations that impacted the study’s results, such as identifying founders
who were willing to share their stories, the small sample size, and industry variations
concerning length of time in business. Nevertheless, this research provides insights to
practitioners, founders, and investors to better understand sustainable growth. Future
research could focus on industry-specific research, expand the sample size, and explore
other types of research, including case studies and quantitative research.
5
Chapter One discusses small and medium-size businesses as defined by the U.S.
Department of Commerce to include how entrepreneurship combines with theories
focused on the business founders’ vision and sustainable growth. Toward this end,
entrepreneurship and business growth provides a backdrop of the research problem that
emerges from the literature review to identify how the founder’s vision impacts business.
A review of the literature will focus primarily on identifying a gap in the literature,
preliminary research questions, and a conceptual framework. This chapter will also
address the researcher’s assumptions and biases and close with an exploration of research
methods.
Topic Overview/Background
The study of entrepreneurship has evolved through many phases over the decades.
Researchers have studied entrepreneurs and their ability to start and grow a business in an
attempt to understand entrepreneurs and entrepreneurial behavior. Early studies focused
on the economic impact of entrepreneurs and how society, culture, and values shaped
entrepreneurship (Alford, 1977; Schumpeter, 1950). Research then focused on
entrepreneurial traits, demographics, education, and psychological and behavioral
characteristics (Hornaday & Aboud, 1971; McClelland, 1965). Today, research on
entrepreneurship and small business covers human resources, entrepreneurial orientation
(EO), strategic planning, failure, and growth, among other topics (Lumpkin & Dess,
1996). Studies that examine the role of entrepreneurs and their impact on business
performance indicates a number of findings, including entrepreneur experience, access to
resources, and strategic planning as elements that contribute to business success
(Langowitz & Allen, 2010).
6
Many researchers have dedicated their studies to the high failure rate of startups
and their desire to isolate the issues that contribute to failure. The belief has been that if
researchers can understand failure, they can help entrepreneurs navigate the perils of a
startup and reduce the chances that they too will fail (Maschke & zu Knyphausen-Aufseß,
2012). Toward this end, failure has been attributed to a variety of reasons, including lack
of strategic planning, the founder’s inability to develop management skills, or lack of
access to resources (Konorti, 2010; Mitchelmore & Rowley, 2013; Zahra & Covin,
1993).
Conversely, other researchers have focused on the success of business startups,
along with their continued growth, finding a close link between founders and their
leadership capability (Langowitz & Allen, 2010; Phan & Butler, 2003). For example,
entrepreneurial founders have a higher risk-taking propensity, need for achievement, and
tolerance for ambiguity; these founders seek opportunities, are more action-oriented, and
are willing to take on problem-solving (Maschke & zu Knyphausen-Aufseß, 2012).
Other causes of success are attributed to the introduction of attractive products, savvy
strategies, alliances, and powerful boards of directors (Brunninge, Nordqvist, & Wiklund,
2007; Mazzarol, Reboud, & Soutar, 2009). Yet others attribute success to the
entrepreneur’s education, prior work experience, or prior attempts at starting a business
(Perry, Chandler, Yao, & Pett, 2011; Reuber & Fischer, 1999). Review of this research,
however, revealed a critical link between the founder’s management, strategic decision
processes, and business performance (Perry et al., 2011; Phan & Butler, 2003; Reuber &
Fischer, 1999; Wiklund & Shepherd, 2003).
7
One area that merits additional study is the impact founders have in creating a
vision of growth. The entrepreneur’s ability to see the possibilities before they are a
reality is referred to as vision, or intent. Entrepreneurial intent is increasingly recognized
as a vital component of business growth and separates the entrepreneur from the general
business owner (Floyd & McManus, 2005; Groves, Vance, & Choi, 2011). Hence, their
ability to inspire others with a collective vision is one of the most determinant influences
for survival and startup growth (Baum, Locke, & Kirtpatrick, 1998; Brizek, 2005; Ensley
& Pearce, 2001).
Businesses have several paths they follow as they grow. First, they struggle along
and then fail. Second, they grow some and then stabilize as a small business. Third, they
prosper and are able to sustain growth over the long-term (Alsaaty, 2012; Mazzarol et al.,
2009). Sustainable growth refers specifically to the means of maintaining growth. As
such, medium-size businesses are an excellent source for learning about this field (Sloan,
Klingenberg, & Rider, 2013).
Opportunity Statement
The study of business growth has largely focused on either large corporations or
small businesses under 100 employees, yet the literature demonstrates an imbalance in
the study of growth among medium-size businesses. Relatively few studies focus
exclusively on medium-size businesses because of the difficulty in identifying a common
set of criteria in relationship to size. One cannot conclude that growth strategies that
work for large businesses would also work for medium-size and small businesses
(Pasanen, 2007). Founder vision and growth intentions bear an impact on the types of
strategic growth decisions they make, but little empirical data exists in this field
8
(McCarthy, 2003). Thus, an identified gap in the literature indicates that there needs to
be a study concerning the ability of a business to sustain growth and maintain the health
of the business over time (Doern, 2011). Studying sustainable growth that has occurred
among growing medium-size businesses could reveal patterns and lessons that other
entrepreneurs could adopt to reach similar growth. Coupled with a search for
understanding the founder’s vision in relation to sustainable growth, this research filled a
demonstrable gap in the literature (Mitchelmore & Rowley, 2010; Nuntamanop et al.,
2013).
Personal Interest. Over the past eight years, the focus of the researcher’s
consulting has been to coach small business owners through their growth initiatives.
Whether engaging in strategic thinking and planning, expanding human resources
management, or engaging employees in training and development, this experience has
lead to understanding that an underlying belief system exists that governs business
owners’ desires to see their business grow. The researcher has also observed a marked
difference between founders who envision growing their business to multiple locations
with a large number of employees, and those who do not want to surpass 10 employees.
These observations led to a research interest toward conducting a study on
sustainable growth of small to medium-size businesses. An observable difference exists
in working with various business sizes where some founders are able to sustain
tremendous growth over time, while others either do not possess a vision of business
growth or are unable to make it happen, and so they give up (Harms, 2009). As such, this
research explored that ability to maintain growth and possibly to determine how these
founders differ.
9
Purpose Statement
Despite a renewed interest in entrepreneurship and small business growth, few
studies distinguish their findings based on business size, which can lead to the
practitioner’s inability to gain knowledge from the body of literature and apply it to
medium-size businesses. For this reason, this research distinguished between small and
medium-size businesses and explored the founder’s vision and impact on medium-size
business growth. In this study, the researcher followed the U.S. Department of
Commerce’s breakdown of business categories based on the number of employees for
medium-size businesses: from 100 to 499 employees (Caruso, 2015). This greatly
simplified the study by standardizing an important element of business size across
industries.
A business faces many challenges during its growth period; however, a notable
managerial challenge founders face is their ability to gain the knowledge necessary to
adapt and change along with their business (Hisrich, Peters, & Shepherd, 2013). If they
lack the ability to transition to a more professional management approach, their business
may be unable to maintain growth over time (Hisrich et al., 2013). Similarly, few studies
were identified that focused on how the founders’ aspirations for growth related to their
adaptability to the change necessary to maintain sustainable growth (Wiklund &
Shepherd, 2003). Thus, comparatively few studies exist concerning the relationship
between business growth and the founder’s impact on management development
(Brunninge et al., 2007; McCarthy, 2003). Wiklund and Shepherd (2003) concluded that
the entrepreneur has many personal variables that play in the successful growth of a
business, including the founder’s level of education, experience, and aspirations. Despite
10
a renewed interest in entrepreneurship and small business growth, a gap in the literature
exists with respect to studying the role founders play in the growth from small to
medium-size businesses. Understanding this relationship will enable the entrepreneur to
plan for growth and make the necessary adjustments to attain the desired end state.
Research Questions
The researcher explored the impact of the founder’s vision on the ability to
sustain growth of small to medium-size businesses over time. Few studies limit their
research to businesses between 100 and 499 employees or medium-size business.
However, these businesses have learned how to grow, thus, keeping that upward trend for
many years, even decades (Feldman & Klofsten, 2000; Pasanen, 2007; Wiklund &
Shepherd, 2003). Understanding what allows these businesses to sustain growth over
time would be of interest to scholars and practitioners alike.
The central guiding research question provides research direction. It is the
broadest question the researcher can ask in the study (Creswell, 2014). As such, the
focus of this research was to explore the relationship between the growth of small to
medium-size businesses and the vision for growth by its founders. Toward this end, the
central research question posed was as follows: How does the founder’s vision impact
business growth over time, leading expansion from small to a medium-size entity? To
address this question, three sub-topics were examined: (a) an exploration of founder
vision; (b) the growth experience; and (c) the founders’ view of their contribution to
growth.
The phenomenon studied was companies that are founded by entrepreneurs who
possess a vision of growth are better equipped to achieve their target growth projections.
11
The theoretical frameworks guiding this dissertation were entrepreneurship, sustainable
growth, and founder vision. The aim of this research was to explore the lived experience
of founders in understanding their vision and how that vision translated into growth. The
research focus was founders who have led their businesses through a minimum of five
years since startup with three or more years of continued growth that achieved an
employee base of 100 to 499.
Propositions
In light of the identified problem statement, the following propositions served as a
guide throughout the research process:
Proposition 1: From a business founder perspective, vision is a crucial component
of developing the business and guiding both the founder and employees to
develop a focus on the business, leading to the development of a competitive
advantage.
Proposition 2: Communicating and translating a definitive strong vision becomes
a central tenet of creating a growth pattern for the business that will lead to
sustainable growth.
Proposition 3: A strong link exists between founder vision and sustainable
growth, and understanding the elements the founders consider important can
guide other founders to circumvent an extensive learning curve and reach
sustainable growth more consistently.
Conceptual Framework
The conceptual framework presented herein was based on the study of
entrepreneurship and its relationship to founder vision and sustainable growth. The body
12
of knowledge relates these topics to either large or small businesses, leaving a gap in the
study of medium-size businesses (Feldman & Klofsten, 2000; Finlay-Robinson, 2013).
According to Stonehouse and Pemberton (2002), strategic management lacks a unified
theoretical base. Thus, a study that focuses on the role the founder plays in successful
business growth can substantially impact the success of future business entrepreneurs.
The American economy is dependent on the constant creation and growth of small
to medium-size businesses (Sadeghi, 2008). Small and medium-size businesses account
for 95% of all businesses and wealth creation in the United States (Swiercz & Lydon,
2002). As such, entrepreneurship creates new businesses, new jobs, new products, even
new industries, and is also at the root of new inventions and innovations, thus,
contributing to the development of society as a whole (Swiercz & Lydon, 2002). The
U.S. Small Business Administration’s Office of Advocacy (2015) reported that U.S.
small businesses employ about half of the nation’s private workforce and make up 99.7%
of all employers nationally, contributing 44% of the nonfarm gross domestic product
(Kobe, 2012).
The study of entrepreneurship has grown and expanded throughout the decades
with a variety of areas being studied. First, researchers explored demographics and
personality, followed by studies on leadership that focused on the central belief that
entrepreneurs, like leaders, are born and not made (McCarthy, 2003). Researchers have
also studied small business strategy and EO, demonstrating that both founders and
businesses can be evaluated on an entrepreneurial scale and that behaviors could be
predicted along with levels of growth and success (Burgelman, 1983; Moreno & Casillas,
2008).
13
Some studies demonstrated a relationship between the founder’s experience as an
entrepreneur and the level of education, along with the strength and stability of the
environment in which the business was started (Wiklund & Shepherd, 2003). Other
researchers, such as Greve (2008), conducted an empirical quantitative research
demonstrating a sequential attention to organizational goals. As such, he demonstrated
that owners who focus on profitability may not reach their growth goals, while owners
who focus on goals to grow their businesses are able to reach both growth and
profitability goals more consistently (Greve, 2008).
Not all founders aspire to grow their businesses; founders often choose to cap the
size of their business (Mazzarol et al., 2009). However, entrepreneurs with previous
experience starting a business are more likely to engage in activities that grow their
businesses at earlier stages, thus, seeking to establish their business credibility (Perry et
al., 2011). A positive relationship is also evident between entrepreneurs and their self-
esteem, emotional intelligence, and ability to engage in activities that lead to business
growth (Roberts & Robinson, 2010; Yitshaki, 2012). Toward this end, Durst and
Edvardsson (2012) conducted a literature review of knowledge management and its
contribution to organizational growth. In addition, numerous other studies have similarly
attempted to demonstrate which elements contribute the most to small and medium-size
business growth (Greve, 2008; J. Hill, Nancarrow, & Len Tiu, 2002; Hussain, Sultan, &
Ilyas, 2011; Jabareen, 2008; Kefalas, 1979; Vij & Bedi, 2012). Among the reasons for
growth, identified were size and age of the business, resources and capabilities available,
and founder characteristics such as age, education, and experience (Harms, 2009;
Navarro, Casillas, & Barringer, 2012).
14
As business owners engage in organizational growth, they will need to make
several adjustments. One of the greatest challenges during growth is to employ the right
workforce trained and ready for the new tasks ahead. This area of human resource
management can become a stumbling block for the founder as the business expands
(Labedz & Berry, 2011).
Feldman and Klofsten (2000) studied medium-size businesses and limits to
growth and concluded that if businesses failed to properly plan for growth, they would
encounter governance issues in allocating and managing their resources during potential
periods of growth. On the other hand, rapid growth studies of small and medium-size
businesses become guiding models for new entrepreneurs as they launch and plan for the
growth of their own businesses (Harms, 2009). If researchers can demonstrate what
elements contribute to successful growth across industries, their studies will greatly
enhance a newcomer’s ability to achieve growth with more consistency. Toward this
end, Wiklund, Patzelt, and Shepherd (2009) developed an integrative model of small
business growth that suggested how EO, resources, owner attitudes, strategic fit, and
environmental characteristics influence small business growth. Although this model was
comprehensive in nature, it has not yet been validated by other studies.
Much can be learned through studying the growth of small and medium-size
businesses. An increasing number of studies on business growth also address hyper-
growth. Hyper-growth is characterized by a minimum of 20% annual growth, over a
minimum of four consecutive years (Cassia & Minola, 2012). The research on hyper-
growth demonstrates that to sustain growth, the business must have access to strategic
resources (Cassia & Minola, 2012).
15
A review of the literature showed that entrepreneurial studies have focused on
characteristics of successful founders, demographics, and additional areas that help
predict the availability of funding or venture capitalist interest (Man, Lau, & Snape,
2008; Zhang, 2011). Founders must create a vision that is attractive, and they must be
able to communicate it clearly in order to influence others to believe in their dreams as
well (Baum et al., 1998). Toward this end, founders must create a collective vision
among their employees and managers, which is considered one of the most important
determinants of survival and growth of startups (Brizek, 2005; Ensley & Pearce, 2001).
As illustrated in Figure 1, the conceptual framework of this study was based on
entrepreneurship studies associated with small business growth, bringing into focus the
literature concerning founder’s vision and relating it to sustainable growth. The
researcher explored the relationship between entrepreneurship, founder vision, and
sustainable growth to observe if there was a resulting impact of vision on sustainable
growth.
16
Figure 1. Conceptual framework for founder’s impact on sustainable growth.
Assumptions/Biases
With a background in consulting for small and medium-size businesses in
Northern Colorado and Michigan, along with consulting for nonprofits and micro-
businesses in West Africa, the researcher was aware that she possessed certain
assumptions and biases. The researcher noted a number of biases that she noted and by
acknowledging the, eliminated some of their influence.
The literature appears to make an assumption that there is no need to differentiate
between small and medium-size businesses. Researchers may not always pay attention to
the large variance in size of the businesses they are surveying. There appears to be more
distinction concerning business size in the literature originating in Europe or India, but
that research indicated a need to make a distinction between small and medium-size
businesses (Durst & Edvardsson, 2012; Ranjan, 2008; Kumar, 2011; Nieboer, 2011).
17
Significance of the Study
Small business growth is important to the American economy (Alsaaty, 2012;
Konorti, 2010) and is the focus of a large body of research (Amat, Renart, & García,
2013; Bello & Ivanov, 2014; Neneh & Vanzil, 2014; Cassia & Minola, 2012). Current
research groups small and medium-size businesses together ignoring the unique needs of
the medium-size businesses. Because of this, medium-size business must navigate
between research for large and small businesses, picking and choosing what applies to
their particular situation (Ciambotti, Demartini, & Palazzi, 2012). One cannot conclude
that strategy formulation processes that work for large businesses would also work for
medium-size and small businesses. Some of the challenges a small business faces as it
grows include human resource needs, such as balancing hiring at the appropriate time
without overloading existing employees or diluting corporate culture; increased financial
needs while resources are limited; and increased time management needs through each
growth phase (Hisrich et al., 2013).
Studying the founder’s vision and its impact on sustainable growth has the
possibility of impacting both the businesses that are studied in this dissertation and other
businesses whose founders have a strong vision of growth. Founder intent to grow a
business bears an impact on the types of strategic decisions made, but little empirical data
exist in this field (McCarthy, 2003). Thus, a significant gap in the literature indicated the
need for a study focused on the founder’s ability to envision growth and to sustain such
growth while maintaining the health of the business over time (Cassia & Minola, 2012;
Wiklund & Shepherd, 2003).
18
Delimitations
Delimitations are the restricting aspects determined by the researcher that narrow
the scope of the study (Creswell, 2014). The boundaries of this study were to interview
10 founders of medium-size businesses who have been able to maintain business growth
despite economic downturns and have maintained growth through hiring additional
employees for a minimum of three consecutive years. The size of the business was
limited to interviewing founders who had grown their businesses to 100 up to 499
employees, therefore, eliminating possible interviewees outside of this boundary.
Limitations
Limitations are possible flaws built into the research itself and yet outside of the
researcher’s control (Creswell, 2014). These limitations may have arisen from
purposefully excluding certain businesses from the study or accidental omissions from
either the researcher or the founder being interviewed. The businesses identified may
limit the study’s results as follows:
1. The results were limited to no more than 10 founders who have been able to
sustain their business growth through hiring additional employees for the past
three years.
2. This research did not include all industries. Due to the nature of qualitative
studies, the results were not automatically applicable to any industry or new
business. Thus, a follow-up quantitative study may be recommended for
future investigation and analysis.
3. The founders’ ability to remember the details of their vision from years ago
during the interview process posed another limitation. As many founders did
19
not keep written records of their plans during the initial formulation of their
respective businesses, they may have responded to interview questions from
personal biases. Qualitative research records individual experiences at a
moment in time that is open to founders’ personal interpretations (Bryman &
Bell, 2007).
4. During the sample selection process other limitations were made evident such
as participant geography, women founder underrepresentation, and interviews
conducted initially via face-to-face then by phone as needed.
Definition of Terms
The following definitions of terms, collected from various academic and
practitioner publications, are presented herein to ensure consistent understanding of key
terms used in this research:
Business environment. Business environment is the internal and external
elements that affect the performance of a business and its ability to thrive and grow
(Johannesson & Palona, 2010).
Entrepreneur. Entrepreneurs are individuals who are able to see opportunities,
organize resources, and take action that creates value in the marketplace (Huning, Bryant,
& Brown, 2012; Kazakov, 2012). They may be founders, members of upper
management, or employees hired for their expertise and vision.
Entrepreneurial orientation. EO is a measure of an individual’s ability to be
entrepreneurial. Individuals are placed on a continuum and predictions are made
concerning their ability to successfully lead a new venture (Lumpkin & Dess, 1996; Vij
& Bedi, 2012).
20
Entrepreneurial intent. Entrepreneurial intent, or vision, is the entrepreneur’s
ability to see the possibilities before they are a reality. Entrepreneurial intent is
increasingly recognized as a vital component of business growth and separates the
entrepreneur from the business owner (Floyd & McManus, 2005; Groves et al., 2011).
Entrepreneurship. According to Shane and Venkataraman (2000),
entrepreneurship is “an activity that involves discovery, evaluation, and exploitation of
opportunities to introduce new goods and services, ways of organizing, markets,
processes, and raw materials through organizing efforts that previously have not existed.”
Experience. Experience includes events that contribute to the knowledge and
ability of an entrepreneur to start and run a business operation (Man et al., 2008).
Founder. A founder is an entrepreneur who started, continues to manage the
business, and maintains majority ownership in the business (Baum & Locke, 2004;
Cassia & Minola, 2012; Harms, 2009; Perry et al., 2011; Širec & Močnik, 2010). This
term is frequently used to refer to entrepreneurs who founded a business and provide a
distinction between entrepreneurs in general and small business owners who may not
possess any entrepreneurial characteristics (Langowitz & Allen, 2010). Throughout this
research, founder is the preferred term used to refer to the combination of an entrepreneur
who founded a business and continues to manage and lead it.
Hyper-growth business. Hyper-growth is characterized by a minimum of 20%
annual growth over a minimum of four consecutive years (Cassia & Minola, 2012;
Navarro et al., 2012).
21
Medium-size business. The U.S. Department of Commerce uses the number of
employees as a simple means of classifying businesses, where medium-size businesses
employ 100 to 499 employees (U.S. Census Bureau, 2016; Caruso, 2015).
Small business. A significant discrepancy exists in the definition of a small
business, which is a business that is independently owned and operated with a local or
regional impact. The U.S. Small Business Administration varies the definition based on
the industry, and many researchers limit the number of employees to 50. However, based
on the definition established by the U.S.Department of Commerce, this study defines
small businesses as having 20 to 99 employees (Caruso, 2015; Verheugen, 2005; U.S.
Small Business Administration, 2013;).
Small business owner. A small business owner is someone who starts, runs, and
operates a small business within known risks and local parameters (Jones & Crompton,
2009; U.S. Small Business Administration, 2015). Small business owners are not
necessarily entrepreneurs and may either purchase and run a franchise or start a small
business with the intent of keeping it small and local.
Sustainable growth. Sustainable growth is the ability of a company to maintain
continuous growth over time that exceeds the external environment’s carrying capacity
(Harms, 2009; Jones & Crompton, 2009).
Vision. Vision is a motivational distant goal, frequently related to business
growth. It has a positive effect on business performance, and when shared with
employees, inspires others to follow that dream (Baum & Locke, 2004).
22
General Overview of the Research Design
The study of founder vision as it applies to sustainable growth of medium-size
business falls into the exploratory methodology because the focus on medium-size
businesses is relatively new. As such, the research is vague, and the results are unclear or
contradictory. A qualitative study affords the researcher an opportunity to seek new
understanding by conducting 10 qualitative in-depth interviews with founders of
medium-size businesses who have sustained growth over at least a three-year time period,
and employ between 100 and 499 employees. The interviews provided a glimpse into
understanding how their involvement contributed to continued business growth.
Summary of Chapter One
Chapter One demonstrated the background and importance of studying the impact
of the founder’s vision and sustainable growth. The chapter covered the analysis of
current research, identifying a viable gap in the literature as a problem opportunity
statement followed by a purpose statement for the study. The research question and
propositions were outlined, along with a summary of the theoretical framework. This
chapter also noted assumptions and biases, delimitations and limitations of the study, and
definitions of terms.
A study of a medium-size business’s unique needs as it relates to sustainable
growth and founder vision is important for several reasons. First, understanding that
medium-size businesses have unique needs in maintaining growth can help both
founders, managers, and consultants improve their practice in decision-making and create
the desired growth for their business (Brunninge et al., 2007). Second, identifying the
founders’ attitudes that support sustainable growth can serve to improve the U.S. Small
23
Business Administration policies that can, in turn, encourage business development and
economic expansion (Wiklund & Shepherd, 2003). Third, a study that combines
sustainable growth and vision of founders toward growth can help practitioners establish
best practices that will guide businesses in their efforts to grow (Hisrich et al.,
2013). Fourth, although researchers have studied small businesses and areas of growth,
their research rarely focuses solely on medium-size businesses.
In summary, a research study that differentiates medium-size businesses from
small businesses and identifies unique needs of these businesses in relation to sustainable
growth and founder’s vision will contribute to the understanding of both practitioners and
scholars alike. Scholars may test and build on this study’s findings and, thus, create a
framework that will contribute to practitioners and their need to provide relevant
research. In effect, this can serve to positively impacting medium-size business owner’s
growth strategies.
Organization of Dissertation
The sustainable growth of medium-size businesses depends on a variety of
internal and external variables. This study focused on the founder’s ability to adapt and
maintain a steady growth pattern by identifying the founder’s vision as an important
defining element in creating sustainable growth. Chapter Two will review key literature
that leads to an understanding of entrepreneurship, sustainable growth, and founder
vision. Starting with a historical review of entrepreneurship, the literature is reviewed
demonstrating the progression of researchers in discovering important elements of
entrepreneurial studies. Next, the research on founders and their impact on growth will
be examined, and finally, the literature review ends with a discussion of sustainable
24
growth and how these areas all join to create a model of founder vision’s impact on
sustainable growth. Chapter Three describes the methodology employed in the study,
including the selection of qualitative research.
Chapter Four provides a summary of the analyzed data collected in search for
commonalities among the 10 participants. Areas analyzed include founder vision,
reasons for growth, major challenges and opportunities, founder contributions to growth,
and founder motivation for growth. Data revealed commonalities identified into two
distinct areas: seven key elements of sustainable growth and four themes that emerged.
Finally, Chapter Five analyzes the findings and conclusions against prior research.
CHAPTER TWO
Chapter Two contains a detailed account of the body of knowledge as it relates to
entrepreneurship, founder vision, and sustainable growth. As these three areas
interrelate, a picture emerged of the founder as an entrepreneur. This included the impact
a founder’s vision has on the organization and its relationship to sustainable growth.
Review and Discussion of the Literature
The literature review begins with a discussion of theoretical foundations, models,
and the general evolution of entrepreneurship that have developed into a recognizable and
admired part of American society. This chapter explores the impact of entrepreneurship
on economic development and the contribution of medium-size businesses to the
economic growth of a region. Next, sustainable growth of medium-size businesses is
introduced through a review of empirical studies and the incorporation of growth
25
measurements. The literature on founders, entrepreneurs, and their vision is also
explored, paying close attention to previous research on entrepreneur intentions and
vision, as well as the impact of vision on organizational growth. Finally, the relationship
between founders’ vision and sustainable growth is reviewed, concluding with a
statement of need to fill a gap in the body of literature.
Theoretical Foundations of Entrepreneurship
Since the dawn of civilization, people have engaged in the exchange of goods and
services (Cesarano, 2014; Darling, 2015). This trade has become more complex as
society has evolved and with globalization, the exchange is possible regardless of
business size or distance between the business and customer (Darling, 2015). The study
of businesses and the exchange process has taken many forms, including management
and leadership, accounting and finance, and corporate and small business. This literature
review on entrepreneurship will cover the following areas: (a) historical perspectives on
entrepreneurship, (b) definitions of entrepreneurship and founders, and (c) economic
importance of small and medium-size businesses.
Historical Perspectives on Entrepreneurship
The development of entrepreneurship theory has shifted and changed focus over
the decades. The U.S. entrepreneurial spirit has its roots in the Puritan work ethic that
has contributed to economic growth through entrepreneurship (Dahrendorf, 2010; Ryken,
2006). In The Wealth of Nations, Smith (1776) provided an initial analysis of how
entrepreneurship and innovation contributed to the development of a nation’s economy.
Smith also described the process of division of labor that could contribute to a nation’s
economic development through specializations and innovations of products and
26
industries, and, in effect, increase competition (Galindo & Méndez-Picazo, 2013). The
U.S. entrepreneurial spirit best exemplifies this view of entrepreneurship and economic
development (Newbert, 2003).
Interest in the life of entrepreneurs and their enterprises started to emerge during
the first half of the 20th century with early researchers concerned about the definition of
entrepreneurship and the role entrepreneurship held in economic development. One
particular researcher named Schumpeter, an Austrian economist, helped establish
entrepreneurship as a field of study in the 20th century. He defined entrepreneurship as
the creation of new technologies or combinations that disrupted competition and created
new demand in the marketplace (Baumol, 2015; Brouwer, 2002; Goss, 2005; McCraw,
2006; Schumpeter, 1950).
While studies on the topics of innovations and entrepreneurship were evolving,
there was a significant shift among many researchers to focus on management, the rise of
big business in America, and industrial economics (Alford, 1977). Chandler (1956)
significantly contributed to the study of corporations and large organizations and to the
rise in managerial studies. This new line of management research led to a decrease in
research on entrepreneurship and a greater focus on the study of changes in the market,
industries, and political and economic systems (Chandler, 1956; Dale, 1957; Gibson,
1954).
During the 1960s and 1970s, entrepreneurship referred more to business managers
and much less to creative startups. The focus of research during these years was to study
the entrepreneur and the elements researchers could identify that contributed to making a
successful entrepreneur (Hornaday & Aboud, 1971). Many studies emerged as
27
biographical sketches of famous entrepreneurs. For example, Hill wrote The Law of
Success (1946), a book about the most successful people in the United States, such as
Carnegie, Ford, Graham Bell, Edison, and many more. Later McClelland (1965) was one
of the chief proponents of creating a personality profile of the entrepreneur. These
decades produced a large number of studies on the traits, characteristics, and
demographics of entrepreneurs. Researchers during this period concluded that
entrepreneurs were born with identifiable traits and their success could be predicted based
on these aspects (Diaz & Rodriguez, 2003; Ensley, Carland, & Carland, 2000; McCarthy,
2003; Mintzberg, 1973).
By the 1980s and 1990s, research was shifting again to the study of strategy and
EO and whether researchers could predict entrepreneurial behavior based on the level of
EO an individual or a business possessed (Burgelman, 1983; Moreno & Casillas, 2008).
Entrepreneurship became known as the activities, traits, and behaviors associated with a
business startup and, as such, many studies about business failures emerged. Miller and
Toulouse (1986) demonstrated this evolution in their research that evolved into
behavioral studies, showing that people start businesses when the situation or
environment proves to be favorable (Guzmán-Alfonso & Guzmán-Cuevas, 2012). In the
1990s, there was another shift toward the study of entrepreneurial opportunities and
management’s propensity to take risks and make strategic decisions (Lumpkin & Dess,
1996; Lyles, Baird, Orris, & Kuratko, 1993; Vij & Bedi, 2012). Landes (1999)
contributed to the field of entrepreneurship studying how society, culture, and values
shape entrepreneurs.
28
The 21st century has observed a surge in entrepreneurship research in a variety of
areas. An emerging area of study is the exploration of the relationship between the
founding team, founder characteristics and abilities, and the viability of the business
(Ensley et al., 2000; Ensley & Pearce, 2001; Ensley & Pearson, 2005; Langowitz &
Allen, 2010). Other threads of studies have demonstrated a relationship between the
founder’s experience as an entrepreneur and the level of education, along with the
strength and stability of the environment (Wiklund & Shepherd, 2003). Wiklund et al.
(2009) also developed an integrative model of small business growth that suggested how
entrepreneurial orientation, resources, owners’ attitudes, and environmental
characteristics influence small businesses growth. Other elements studied include the
founder’s level of education and experience, along with the entrepreneur’s aspiration for
growth (Wiklund, Davidsson, & Delmar, 2003; Wiklund & Shepherd, 2003). Current
research attempts to match EO to performance. As such, a growing body of literature
exists that attempts to predict the sustainable growth of businesses (Vij & Bedi, 2012;
Wiklund et al., 2009). Wiklund et al. (2009) summarized five models of business
growth, which included creating an integrative model of small business growth. The five
areas of study included EO, the business environment, available resources, the strategic
fit of the organization within its industry, and the founder’s growth attitude.
New business formation persists as an area of interest while studies on growth are
becoming more specialized (Alsaaty, 2012; Davila, Foster, & Jia, 2010; Hmieleski &
Ensley, 2007; Labedz & Berry, 2011). A separate section will cover the literature on
organizational growth and innovation. Table 2 summarizes the history of
entrepreneurship research. It describes four research focus areas, along with a general
29
interest description and key articles that pertain to the development of entrepreneurial
vision and sustainable growth.
Table 2
History of Entrepreneurship Research
Research Focus
General Interest
Key Articles and Aspects
Affecting Entrepreneurial
Vision and Sustainable Growth
Early theories of
entrepreneurship
(First half of 20th
century)
Entrepreneurs are innovators
who create new markets and
new demand for their products.
They identify opportunities,
weigh the risks, and seek to
maximize profits. Researchers
studied individual entrepreneurs
and their impact on economic
development. They also focused
on how society, culture, and
values shaped entrepreneurship.
Schumpeter (1950) – defined
entrepreneurship
Alford (1977) – studied the
impact of society, culture, and
values on entrepreneurship
Traits Theories
(1960s and 1970s)
The focus of entrepreneurial
research in the 1960s and 1970s
shifted to personalities and the
need for achievement of
entrepreneurs. Along with what
makes them unique regarding
traits, demographics, culture,
and motivation, researchers
desired to predict entrepreneurs
and their ability to succeed.
Hornaday and Aboud (1971) –
focused on successful
entrepreneurs
McClelland (1965) – identified
traits and need for achievement
Ensley et al. (2000) – identified
characteristics of founders and
viability of the startup
Strategy and
Entrepreneurial
Orientation
Theories
(1980s and 1990s)
Researchers explored strategy
and entrepreneurial orientation
of the business rather than
focusing on an individual
entrepreneur. Theories support
the propensity of top
management to take risks and
make strategic decisions.
Vij and Bedi (2012) – focused
on EO and top management
strategy
Lumpkin and Dess (1996) –
linked performance to EO
theories
Lyles et al. (1993) – focused on
planning in small business
Growth and
Innovation Studies
(21st Century)
There is a splintering of topics
studied with a return to how
traits contribute to long-term
success. Focus remains on new
Shane and Venkataraman
(2000) – explored
entrepreneurial opportunities
Langowitz and Allen (2010) –
30
business formation with other
pockets emerging such as
opportunities, innovation, and
growth. Studies also link
founder experience to growth.
focused on founder propensity
to take action
Hmieleski and Ensley (2007) –
linked new venture performance
to entrepreneur leaderships and
environmental dynamics
Davila et al. (2010) – focused
on building high-growth
businesses
Singh, Garg, and Deshmukh
(2008) – focused on innovation
and strategy development
Definition of Entrepreneurship
Entrepreneurship is a way of thinking, innovating, and acting on opportunities
that create value for both founders and stakeholders (Finlay-Robinson, 2013). It is also
associated with innovation, motivation, and vision that guide businesses through various
stages of growth (Spinelli Jr. & Adams, 2012). Historically, entrepreneurship was
attributed to small businesses that were able to break into the market with a product or
service that created shifts in that industry (Alford, 1977). Today, entrepreneurship is
recognized as an important element of large corporations as well, and many studies have
been conducted to clarify entrepreneurship as a planned activity that is unique and
separate from an individual (Barringer & Bluedorn, 1999). Roxas, Lindsay, Ashill, and
Victorio (2008) described the level of entrepreneurship in a business based on three
constructs: innovative, proactive, and degree of risk-taking.
Researchers have attempted to isolate entrepreneurship from other concepts and
develop a definition that encompasses all the elements of the field. Mishra and Zachary
(2015) defined entrepreneurship as “a process of value creation and appropriation led by
entrepreneurs in an uncertain environment” (p. 251), and Shane and Venkataraman
31
(2000) added that entrepreneurship involves “discovery, evaluation, and exploitation of
opportunities” (p. 218).
Based on this definition of entrepreneurship, researchers have attempted to
understand the people who shape the entrepreneurship experience. Some of these people
are employees; however, the literature focuses on individuals who start businesses
(Reuber & Fischer, 1999). People become business owners when they believe it is the
best of several alternatives, often after a significant change in life, such as job loss,
midlife crisis, risk opportunity, or money, that lead to a belief that they are following the
best possible option (Huning et al., 2012). In some cases, businesses are started by
individuals who desire to own a business and are not particularly innovative or risk
taking. Small business owners are those individuals who are content to run a small
business. As such, they differ from the entrepreneur’s desire to innovate.
The literature on entrepreneurs shifts away from studying business owners to
studying individuals who possess some unique characteristics (Perry et al., 2011). When
someone can identify new opportunities, take the risk, and organize the resources to
create a new good or service that produces a profit, an entrepreneur is born (Huning et al.,
2012; Kazakov, 2012). Entrepreneurs are individuals who can see opportunities,
organize resources, and take action that creates value in the marketplace. Although some
use the term entrepreneur and founder interchangeably, a founder is someone who starts
a business and maintains the leadership of the business but who may or may not identify
as an entrepreneur (Perry et al., 2011; Reuber & Fischer, 1999; Zhang, 2011).
Although these distinctions may seem small, the mental models of these
individuals vary a great deal. Table 3 summarizes a range of terms that are used in the
32
literature to define the variety of terms utilized to refer to a founder. For this research,
the founder was defined as an entrepreneur who started and continued to manage and
own the business (Širec & Močnik, 2010).
Table 3
Key Usage of the Terms Founder and Entrepreneur in the Literature
Term Definition Article
Small business
owner
Those who manage established
businesses, established processes, or
manage businesses they did not create.
Innovation, entrepreneurship, and
founders are absent
(Lyles et al., 1993); Baum
and Locke (2004)
Owner-managed Entrepreneurial leadership of owner-
managed companies
Mazzarol et al. (2009);
Mazzarol, Clark, and
Reboud (2014);
Gruenwald (2013); Jones
and Crompton (2009)
Entrepreneur A person who discovers and exploits
new products, new processes, and new
ways of organizing
Baum and Locke (2004);
Hmieleski and Ensley
(2007); Hussain et al.
(2011); Man et al. (2008)
Founder CEO Founder entrepreneur who runs the
business
Langowitz and Allen
(2010); Davila et al.
(2010)
Founder-owner Founded, owns, and is a major
contributor to leadership
Baum and Locke (2004);
Sirsly and Sur (2013)
Founder &
Entrepreneur
Used interchangeably, an entrepreneur
is referred to as the founder and top
management team.
Hmieleski and Ensley
(2007)
Founder Entrepreneur, who started, continues to
manage the business, and maintains
majority ownership in the business
Širec and Močnik (2010);
Baum and Locke (2004);
Perry et al. (2011);
Cassia and Minola
(2012); Harms (2009)
Economic Importance of Small and Medium-size Businesses
Entrepreneurship often blossoms during times of economic instability and rising
unemployment (Huning et al., 2012). When faced with a lack of employment
33
opportunities or a desire to be in control of one’s destiny, individuals decide to branch out
and start a business (Finlay-Robinson, 2013). A distinction begins to emerge between
entrepreneurs and non-entrepreneurs, which is why researchers continue to study the
characteristics of these two groups (Huning et al., 2012).
Galindo and Méndez-Picazo (2013) demonstrated a direct correlation between
entrepreneurship, innovation, and economic growth with innovation that is at the heart of
entrepreneurship. Drucker (1999) supported their conclusions demonstrating that
entrepreneurship is driven by innovation, and both are linked directly to economic
development because most entrepreneurs will act only when they see an opportunity and
expect there is a potential for profit. A founder’s entrepreneurial ability to create wealth
is dependent on the founder’s ability to lead the business in creating something
innovative, manage the growth, and select a management style that supports continued
growth (Hussain et al., 2011). In turn, the process of wealth creation contributes to a
region’s economic development (Hussain et al., 2011).
Small and medium-size businesses are considered the backbone of economic
growth by adding jobs and providing products and services to larger businesses (Singh et
al., 2008). They are also often at the root of new inventions and innovations (Vaz &
Nijkamp, 2009), contributing to the development of society as a whole. These businesses
are not as sophisticated and complex as large corporations, are more flexible, and have
shorter decision-making processes with quicker response to customers (Singh et al.,
2008; Singh, Garg, & Deshmukh, 2010).
The American economy is dependent on the development of entrepreneurship and
the growth of small to medium-size businesses (Alsaaty, 2012; Konorti, 2010). Thus,
34
entrepreneurship creates new businesses, new jobs, new products, and has even created
new industries (Swiercz & Lydon, 2002). The U.S. Small Business Administration
Office of Advocacy (2015) reported that U.S. small businesses employ about half of the
nation’s private workforce and makeup 99.7% of all employers nationally. The also
contribute 44% of the nonfarm gross domestic product (Kobe, 2012).
A local economy is bolstered by healthy and growing entrepreneurial activity. As
such, many policy makers view entrepreneurship as a plausible answer to their concerns
for sustainable development (Ryu & Swinney, 2011). When entrepreneurs can identify
an excellent market opportunity and create a clear vision for a growth strategy, there is a
lasting effect on the local economy as that business makes a profit and continues to grow
(Ailenei & Mosora, 2011). In some cases, the growth of one business spurs the creation
of supporting businesses, with competitors further bolstering the economy (Psenicny,
Jakopin, Vukcevic, & Coric, 2014).
Wagner and Schaltegger (2010) developed a positioning matrix that researchers
can use to determine where entrepreneurial businesses fit in relationship to sustainable
development by analyzing internal aspects of social and environmental issues they
address while maintaining a profit. Such a matrix can further be utilized to guide policy
makers who are interested in attracting certain types of new business to their region.
Entrepreneurial businesses maintain a simple and flexible structure with a few individuals
in top management. Toward this end, founders create an organizational culture that
supports risk-taking, innovation, and fast growth.
The majority of entrepreneurship research does not distinguish clearly between
small and medium-size businesses. As such, a closer look at the definition of small and
35
medium-size businesses is helpful at this point. The U.S. Small Business Administration
defines a small business as independently owned and operated, for profit, and not
dominant in its field. It further breaks down the definition by industry with each industry
having an individual classification based on the number of employees or annual receipts
(U.S. Small Business Administration, 2015). In one industry, 500 employees serves as
the limit for small business, while another industry may define small business as 1,500
employees. Gross receipts can be as high as $21.5 million for services or $7 million for
special trade construction (U.S. Small Business Administration, 2014, 2015).
The U.S. Department of Commerce uses the number of employees as a simpler
means of defining business size. For example, very small enterprises employ fewer than
20 employees, small enterprises employ 20 to 99, medium enterprises employ 100 to 499,
and, finally, large enterprises consist of 500 or more employees (Caruso, 2015). The
European Commission uses a simpler definition in which small and medium-size
enterprises are divided into three categories: micro businesses having 10 or fewer
employees, small businesses having fewer than 50 employees, and medium-size
businesses having fewer than 250 employees (Sloan et al., 2013; Verheugen, 2005). As
countries and regions define small and medium-size businesses differently, it becomes
difficult in a scholarly research environment to use one general definition. Furthermore,
much of the research that applies to small and medium-size businesses does not
distinguish results based on organizational size (Alsaaty, 2012).
A natural life cycle of products and businesses exists as industries emerge, grow,
and eventually decline. Entrepreneurs can identify new opportunities by sensing what
will be the next market trend. Not all new products or enterprises are successful, but
36
entrepreneurs who possess a clear vision of their future are better able to make a positive
impact on the economy. Baptista and Karaöz (2011) and Janssen (2009) explained that a
small number of fast-growing companies contribute the most to job creation, and
according to Janssen (2009), a symbiotic relationship exists between the entrepreneur’s
ability to create a fast-growing business and the environment that surrounds the business.
The external environment needs to lend enough support to the startup for the
entrepreneur to attain a higher rate of growth. By the time businesses reach
approximately 100 employees, they have surpassed many of the roadblocks that would
have caused a business to fail. As such, they have entered a more stable and sustainable
business model. Toward this end, studying this group of businesses may lead to
discovering how to cross those barriers and achieve desired growth.
Little distinction has been made in the literature regarding the size of a business
when studying sustainable business growth (Lewandowski & Becker, 2011). Mishra and
Zachary (2015) explained founders’ unique needs at different stages of business
development, while Alsaaty (2012) addressed the unique needs of micro-businesses, and
Feldman and Klofsten (2000) discussed the need to learn from medium-size businesses.
Medium-size businesses must navigate among strategies employed by either large or
small businesses, picking and choosing what applies to their particular situation
(Ciambotti et al., 2012; Navarro et al., 2012). Although a growing segment of
researchers focusing on the organizational development of startup businesses exists
(Alsaaty, 2012; Bello & Ivanov, 2014; Davidsson & Henrekson, 2002), medium-size
businesses have been largely ignored in these studies (Coy, 2012; Mitchelmore &
Rowley, 2010; Nuntamanop et al., 2013; Pasanen, 2007). Thus, further research is
37
needed that could provide entrepreneurs support through periods of growth and the
necessary transitions for maintaining a healthy business (Fadahunsi, 2012).
Theoretical Foundations of Sustainable Growth
Sustainable growth is emerging as an important research topic as businesses of all
sizes are concerned with their viability over the long term (Cassia & Minola, 2012).
Sustainable growth is a realistic growth path that a business can maintain without running
into insurmountable obstacles to growth (Gruenwald, 2013; Sloan et al., 2013). For
entrepreneurs, this interest is even more pronounced as they seek ways to maintain their
new business on an upward growth path with limited financial capacity (Cassia &
Minola, 2012; Knotts, Jones, & Udell, 2003).
A distinction exists between sustainable growth and entrepreneurship for
sustainable development. Entrepreneurship for sustainable development is a broader
view of entrepreneurship and sustainability, a field that emerged from environmentally
oriented endeavors (Loucks, Martens, & Cho, 2010). Sustainable development focuses
on an integration of environmental and social aspects of business growth in a particular
geographical area (Wagner & Schaltegger, 2010). Sustainable growth, on the other hand,
refers specifically to the means of maintaining growth, apart from environmental or
social concerns. Thus, sustainable development seeks to improve human life while
enhancing the environment (Sloan et al., 2013). Table 4 summarizes the definitions
discussed in this section, offering a definition of sustainable growth. For this study,
sustainable growth is defined as the means of maintaining growth over time, through
innovations targeted at identified narrow market niches (Gruenwald, 2013).
38
Table 4
Defining Sustainable Growth
Term Definition Article
Sustainability Sustainability and
sustainable development
focus on the integration of
environmental and social
aspects of business growth
and are not a part of this
study.
Loucks et al. (2010)
Wagner and Schaltegger
(2010)
High-Growth Businesses Companies that outperform
the market sustaining a
minimum annual growth
rate of 10% over a five-year
period, and reaching 50 or
more employees.
Navarro et al. (2012)
Gruenwald (2013)
Davila et al. (2010)
Hyper-Growth Businesses Companies that show a
minimum of 20% annual
growth over four or more
consecutive years.
Cassia and Minola (2012)
Harms (2009)
Fischer and Reuber (2003)
Sustainable Growth Companies that maintain
growth frequently because
of identified narrow market
niches and innovations
Sloan et al. (2013)
Gruenwald (2013)
Current Research on Sustainable Growth
Founder-entrepreneurs endeavor to grow their businesses (Neneh & Vanzil, 2014;
Kefalas, 1979). Some of the benefits of maintaining a growth pattern include improving
the competitive positioning of the business, expanding the sales and resource base,
generating increased employment, and increasing the capabilities of entrepreneurs and
product innovations (Neneh & Vanzil, 2014; Doern, 2011). It is not easy to maintain
sustainable growth over an extended period, and many companies grow in spurts (Doern,
39
2011; Dutta & Thornhill, 2014). Toward this end, there have been many studies
evaluating barriers to growth, covering areas such as financial barriers, lack of skills
among founders and key employees, intense competition, lack of demand for products,
and more (Doern, 2011; Reijonen & Komppula, 2007). Researchers have attempted to
evaluate the importance of barriers and found it difficult to predict growth based on these
barriers (Mazzarol et al., 2009). An important consideration is whether perceived
barriers to growth hold founders back from planning for growth (Doern, 2011; Reijonen
& Komppula, 2007).
The most crucial performance measure of business success is business growth
(Baum, Locke, & Smith, 2001; Doern, 2011). Baum et al. (2001) concluded that business
growth emerges from entrepreneurs who are hard-working, proactive, and who possess a
high skill set. The researchers also illustrated that entrepreneurs who are highly
motivated, communicate a clear vision, and possess high growth goals are the ones who
consistently achieve the desired growth (Baum & Locke, 2004). Nuntamanop et al.
(2013) presented strategic thinking as a major contributor to sustainable business growth.
Strategic thinking is defined as someone being visionary, creative, and innovative in such
a way that it positively impacts business performance (Nuntamanop et al., 2013).
Intention to grow emphasizes the concept of strategic thinking and visioning and
is a worthwhile study because intentions can indicate the level of commitment to growth,
goal setting, and actual growth (Baum & Locke, 2004; Delmar & Wiklund, 2003).
Wiklund et al. (2009) supported these findings as they summarized the five perspectives
on small business growth as incorporating availability and usage of resources, the
40
environment, entrepreneurial orientation, strategic fit, and founder vision of growth as
integral elements that all work together to attain sustainable growth.
First, Wiklund et al. (2009) linked entrepreneurial orientation to growth,
clarifying their definition of entrepreneurial firms as organizations that are innovative,
risk-taking, and highly competitive in the market. They also tied sustainable business
growth to the availability and usage of resources and essential elements. Second, these
researchers incorporated the idea that a business cannot grow unless there is a strategic fit
between the characteristics of the business and the environment. They argued that
demand must meet the innovation. Finally, the founder’s vision of growth is the key to
actually ensuring the business experiences sustainable growth. Often taken for granted, a
positive attitude towards growth is crucial to the founder’s ability to cast a vision that
encourages all employees to pursue the type of challenges that move the business forward
month after month (Wiklund et al., 2009).
Judge and Blocker (2008) discussed how successful businesses must transcend
traditional market demand thinking with nonlinear growth models. Successful businesses
must develop the capability to explore simultaneously new markets while growing their
market share in their existing market. Founders must, therefore, shift their focus from a
small startup to that of a growing business. One of these notable changes involves the
founders formalizing the governance structure and hiring talent for specific areas that will
ensure continued growth (Brunninge et al., 2007). Smollan and Sayers (2009) explored
the relationship between change, organizational culture, and emotions, concluding that
change ultimately is about feelings in a business. The closer change matches one’s
values, the easier it will be to embrace the change; therefore, the founders must
41
communicate their values and mission before introducing organizational change.
Organizational growth and change can only be sustainable over time if the business can
shift and support an evolving culture (Arnold, 2010).
Researchers have also focused on the ability of a founder to leverage external
funding as a limit of business growth (Watson, 2006). Feldman and Klofsten (2000)
studied medium-size businesses and related limits to growth, concluding that if
businesses fail to plan adequately for growth, they will encounter governance issues in
allocating and managing their resources during periods of growth. On the other hand,
studies of rapid growth in small and medium-size enterprises become guiding models to
new entrepreneurs as they launch and plan for growth of their businesses (Harms, 2009).
If researchers can demonstrate what elements contribute to successful growth across
industries, their studies will greatly enhance a newcomer’s ability to achieve growth with
more accuracy and consistency (Baum & Locke, 2004; Navarro et al., 2012).
Isaksson and Rickard (2003) addressed the triple bottom line that forms the
bedrock of sustainable development: economic prosperity, social equity, and
environmental protection. In their research, they created a process-based model that
guides the creation of sustainable development. Although there is a broad interpretation
concerning what sustainable development means, this area of research is receiving greater
focus. From the perspective of organizational growth, sustainable development is
interpreted as economic development over time (Byrch, Kearins, Milne, & Morgan,
2007; Jabareen, 2008). In reference to sustainable growth in small- and medium-size
businesses, several elements play into the ability to sustain this growth over time:
entrepreneurs’ strategic choices, structural decisions, and the external environment
42
(O'Gorman, 2001). However, there is room for more research in this area to explore
models and theoretical frameworks that can demonstrate with some predictability, a
business’s ability to sustain growth over time.
Theoretical Foundations of Founders’ Vision
Researchers have studied entrepreneurs and their ability to start and grow
businesses. This research study attempted to understand entrepreneurs and
entrepreneurial behavior through the entrepreneur’s background, demographics,
education, and psychological and behavioral characteristics. Newer approaches to
understanding entrepreneurs focused on human and social capital dynamics, resulting in
mixed and inconsistent findings (Fadahunsi, 2012; Man et al., 2008). Furthermore, some
studies have not been able to establish a business relationship between entrepreneurial
characteristics and business performance (Fadahunsi, 2012; Man et al., 2008; Shane,
2000).
The presence of entrepreneurial characteristics in individuals does not necessarily
mean they are entrepreneurs or that a business or innovation will take place (Shane,
2000). Also, Man et al. (2008) explained that having entrepreneurial characteristics does
not automatically lead to superior business performance. According to Fadahunsi (2012),
it is only a rather limited number of small businesses that will grow into medium-size
businesses. If characteristics are not indicators of potential growth, a need exists to
explore other areas.
Challenges and Successes Faced by Founders
Why do some entrepreneurial businesses succeed while others do not? In the
United States, small and medium-size businesses experience a high failure rate of more
43
than 65% in the first five years (Alsaaty, 2012; Konorti, 2010). Thus, lack of vision and
strategic planning are linked directly to poor performance and failure of many businesses
(Mitchelmore & Rowley, 2013; Zahra & Covin, 1993). Other researchers have attributed
the large failure rate to lack of management skills (Knotts et al., 2003; Konorti, 2010).
Konorti (2010) added that many founders are unable to adapt as their business starts to
grow. Singh et al. (2008) expanded this discussion by adding that founders must be able
to manage and acquire the necessary resources to sustain that growth, including human
resources, technology, and constant innovation. The role founders play in the success or
failure of a business is central to understanding business failures (Maschke & zu
Knyphausen-Aufseß, 2012).
The success of a business startup, along with its continued growth, is closely tied
to founders and their leadership capability (Langowitz & Allen, 2010). Entrepreneurial
founders have a higher risk-taking propensity, need for achievement, and tolerance for
ambiguity; these founders seek opportunities, are more action-oriented, and are willing to
take on problem-solving (Langowitz & Allen, 2010). However, a variety of identifiable
reasons exist for success, ranging from the introduction of attractive products, savvy
strategies, goal achievement, or alliances and boards (Reijonen & Komppula, 2007).
Each of these comes back to business management. Review of early research reveals that
a critical linkage exists between the entrepreneur’s vision, strategic decision processes,
and business performance (Baum & Locke, 2004; Byrch et al., 2007; Schoemaker, 1992).
The research identified some elements entrepreneurs possess that ensure a higher
success rate of businesses. For example, the founder’s education, prior work experience
in the same field, prior entrepreneurship experience, and a pursued strategy that matches
44
skills and opportunities contribute to growth (Davila et al., 2010; Dutta & Thornhill,
2014; Wiklund & Shepherd, 2003; Zhang, 2011). McCarthy (2003) demonstrated that
entrepreneurs with ambitious goals were better prepared to grow their businesses. While
Neneh and Vanzil (2014) referred to these ambitious goals as an intention to grow, Baum
et al. (1998) referred to vision in growth.
Current Research on Founder Vision
Founders often state that they want to grow their business, but without
knowledge of growth strategies, they cannot determine how to scale the business.
Founders start businesses out of a passion for something specific, but there are specific
skills and understanding of growth they will need to acquire to grow the business
(Eliadis, 2013). A vital component of business growth is the founder’s vision that
separates the entrepreneur from the business owner (Floyd & McManus, 2005).
Hmieleski and Ensley (2007) argued that founders cannot successfully grow and
develop their businesses unless they can display effective leadership behavior. They
discuss the need for the founder to create and communicate a vision for the business that
will influence others and unify employees behind a single goal (Baum et al., 1998). This
founder vision is what he or she thinks about the business and how he or she takes action
on those thoughts (Dutta & Thornhill, 2014). Distinct from strategic planning, a
founder’s vision is the big picture that motivates the founder to take action and is
characterized by problem-solving and an ability to motivate others to embrace their
dreams (Guzmán-Alfonso & Guzmán-Cuevas, 2012; Jones & Crompton, 2009).
Founders who can engage in sustainable growth, create an attractive vision, and
communicate that vision clearly can, in effect, influence others to embrace their dreams
45
through powerful communication (Baum & Locke, 2004; Baum et al., 1998). Once
founders can inspire a collective vision among their employees and managers, they are
better-positioned to affect the environment, create opportunities, and, therefore, demand
for their products (Ensley et al., 2000; Ensley & Pearce, 2001). Communicating a clear
vision for their business provides employees with guidance and direction, which leads to
greater chances of sustainable growth (Brizek, 2005).
The literature described founder vision in some ways, from vision, strategic
vision, intent, and growth intent, among other terms. Table 5 summarizes the key
elements of founder’s vision from several sources. According to Baum et al. (1998),
founder’s vision is described as an ideal and unique image of the future and a projected
mental image of what the founder wants to achieve. The founder’s vision is sometimes
described as dreams that are able to influence and motivate employees and build
commitment to both the business and the founder (Baum & Locke, 2004; Hmieleski &
Ensley, 2007; Jones & Crompton, 2009; Navarro et al., 2012). Jones and Crompton
(2009) illustrated that founders who possess a clear vision are better problem solvers,
more action-oriented, and are better equipped to pursue growth. There is a consensus
among researchers that a founder’s vision is related to growth (Baum & Locke, 2004;
Baum et al., 1998; Dutta & Thornhill, 2014; Ensley et al., 2000; Guzmán-Alfonso &
Guzmán-Cuevas, 2012; Navarro et al., 2012).
46
Table 5
Key Elements of Founder Vision Suggested in the Literature
Baum et al.
(1998)
Baum and Locke
(2004)
Hmieleski and
Ensley (2007)
Navarro et al.
(2012)
Dutta and
Thornhill (2014)
Ensley et al.
(2000)
Guzmán-Alfonso
and Guzmán-
Cuevas (2012)
Jones and
Crompton (2009)
Ideal and unique
image of the
future
Big dreamers
and big
communicators
Influence others
to buy into their
dreams
What
entrepreneurs
think on their
ventures and
how they act on
these thoughts
Craft dreams
and clarify the
firm's vision
and strategy
Intention is a
precursor to
behavior
Pursue their vision
Projected mental
image one wants
to achieve
Projected mental
image of future
achievement
See what is not
there
Entrepreneurial
thinking is
characterized by
problem-solving and
action-oriented;
Imagery of new
products and
markets
Motivational
goal inspires
others
Attract employees Attract
superior
talent
Ability to see
how to change
the environment
and create
opportunities;
ability to motivate
others
Vision of growth
leads to faster
growth
Related to
growth
Intention to
grow
Intentions set the
business on
growth trajectory
or they don't
Sustained
venture growth
and strategic
thinking are
aligned
Intention
influences and
predicts growth
Build commitment
Reflects shared
values
Reflects values
Desire for
organizational
excellence:
innovation, care of
customers, and
committed to people
47
Several studies have explained entrepreneurial drive, describing characteristics
such as the need for achievement, propensity for risk-taking, and innovation as
determinants of entrepreneurship (Vij & Bedi, 2012). Some researchers have suggested
that founders who possess these characteristics also have a vision, or the entrepreneur’s
ability to see what is not there (Ensley et al., 2000). Thus, the founder’s vision is best
summarized by the entrepreneur’s ability to see an ideal picture of the future. This vision
goes beyond recognizing opportunities. It involves understanding how to change the
environment to create opportunities, and finally, how to change the marketplace (Dutta &
Thornhill, 2014; Ensley et al., 2000). The entrepreneurs’ capability for visioning leads
them to achieve sustained growth. According to Ensley et al. (2000), most of the high
growth businesses listed in Inc. magazine’s top 500 companies, also referred to as Inc.
500, have a lead entrepreneur who emerges as the visionary leader and has the self-
confidence to make that vision a reality.
Successful entrepreneurs gather information through a variety of sources and
methods to gain an understanding of the current market and potential for their business
ventures. Through a combination of intuition, insight, and creativity, entrepreneurs have
a keen sense of what is happening in the marketplace and how they can bring something
new to this environment (La Pira, 2011). At the same time, they rely on data to fine tune
and modify their strategies as the business grows (Groves et al., 2011; La Pira, 2011).
Through a balanced thinking approach to their business, they use both linear and
nonlinear thinking to analyze and make decisions for sustainable growth (Groves et al.,
2011). These founders possess an entrepreneurial vision that leads to performance and
growth through effective strategies (Kansikas, Laakkonen, Sarpo, & Kontinen, 2012).
48
The Impact of Founder Vision on Sustainable Growth
Researchers have studied business growth from many perspectives, contributing
pieces of knowledge that make up a whole picture of entrepreneurship and sustainable
growth. Achieving and maintaining sustainable growth among these businesses remains
a major challenge and worthy of continued study. According to Navarro et al. (2012),
growth can occur through many different activities, including domestic and international
geographic expansion, launch of new products, product improvements or innovations,
and retention or acquisition of clients. Combining several of these forms could lead to
higher growth, and strategic use of these growth activities could help a business sustain
growth over time.
In trying to predict growth, research of small and medium-size businesses has
examined why some businesses outperform others. Higher growth businesses are using
strategic planning as an essential element in achieving growth, while hyper-growth firms
are using more sophisticated strategic planning processes (Kohtamäki, Kraus, Mäkelä, &
Rönkkö, 2012; Mazzarol et al., 2009; Nieboer, 2011). Mazzarol et al. (2014) created a
framework used to understand the conditions that drive and shape growth within
entrepreneurial businesses, illustrating that elements such as vision, strategy, innovation,
and risk-taking are important contributors for businesses to achieve growth. Strategic
entrepreneurship is opportunity-seeking and advantage-seeking business endeavors that
are designed to create wealth (Baum & Wally, 2003; Hmieleski & Ensley, 2007).
Founders with a sharp vision are better equipped to make rapid decisions in a competitive
market while continually evaluating and recognizing new opportunities (Jones &
Crompton, 2009).
49
As a business evolves from a startup into different phases of small business
growth, business needs continually change with additional financial pressure to balance
continued growth that includes meeting new and increased financial demands on human
resources, inventory, fixed assets, costs, and profits (Hisrich et al., 2013). Some founders
like their businesses small and are unwilling to engage in the activities that would lead to
growth (Hisrich et al., 2013). Wiklund, Davidsson, and Delmar (2003) explored business
managers’ attitudes toward growth and concluded that although founder vision does not
determine the ability to grow, it does influence the propensity to attempt to expand.
Other studies demonstrated a positive relationship between entrepreneurs and their self-
esteem, emotional intelligence, and ability to engage in activities that lead to business
growth (Roberts & Robinson, 2010; Yitshaki, 2012). However, if the founder wants to
grow the business he or she may be ill-equipped to guide the business through these
changes. As such, these enterprises can learn from high-growth businesses and their
ability to sustain growth over time (Cassia & Minola, 2012). High-growth businesses
sustain growth by at least 20% per year for five consecutive years. Governments create
policies to support these large-growth businesses because they create a high number of
jobs (Fischer & Reuber, 2003). Other entrepreneurs can learn from these high-growth
businesses and their abilities to manage all the capabilities such as labor, financing, and
innovation.
The need to learn from other founders led to a review of the literature concerning
founder vision as one of the entrepreneurial competencies needed to start and grow a
business. Founders will need to learn and evolve in their role over time to sustain growth
(Chaifetz, 2010). In their research, Mitchelmore and Rowley (2010) established a group
50
of competencies relevant to successful entrepreneurship, which included both
components rooted in a person’s background such as traits and attitudes and components
one can gain through experience, training, and knowledge-based acquisition. A variety
of competency lists exist in the literature, including a very comprehensive study by Man
et al. (2008) that grouped 70 competency components into six categories: opportunity,
relationship, conceptual, organizing, strategic, and commitment. Entrepreneurial
competencies are linked directly to business performance and growth, to strategic choice,
and to the quality of businesses they pursue, which all lead to higher probabilities of
growth (Fischer & Reuber, 2003).
Entrepreneurial growth results from entrepreneurial, managerial, and technical
skills that the founder must possess and balance in the creation of a new business (Fischer
& Reuber, 2003). Entrepreneurial competencies will assist the founder to identify and
envision opportunities while managerial skills help the founder acquire and manage the
necessary resources to sustain growth (Fischer & Reuber, 2003; Nuntamanop et al.,
2013). Zhang (2011) pointed out that entrepreneurs with prior experience can attain
organizational growth quicker and have a higher threshold of success because they have
already gained experience in managerial and entrepreneurial skills to support their
technical skills. This correlation between experience and new business creation is further
supported by the work of Perry et al. (2011). Mitchelmore and Rowley (2010) concluded
that for small and medium-size businesses, competencies indicate the entrepreneur’s
ability to envision growth, which leads to an ability to acquire, use, and develop
resources, creating a unique value proposition for the customer, thereby, leading to
growth.
51
As a business grows, new opportunities arise due to the benefits of attaining larger
sales and markets (Gruenwald, 2013). Growth results in a higher volume of production,
new efficiencies and economies of scale, and increased bargaining power (Pettus, 2001).
As the business continues to grow, it also continues to change. Thus, new management
issues will need to be addressed as the demand to hire and train more employees leads to
a formalization of human resources (Ghassemieh, Thach, & Gilinsky, 2005). The
founder will no longer be able to manage all employees first hand which results in adding
new layers of organizational management (Davila et al., 2010). Hence, the founder
transitions in focus from direct or “hands-on” to strategic thinking and guiding the
business as time pressures increase (Formichelli, 1997). There is also greater financial
pressure to balance the continued growth with meeting new and increased financial
demands on inventory, fixed assets, costs, and profits (Hisrich et al., 2013).
Researchers have identified many reasons that influence the propensity to grow a
business. Toward this end, the level of a small business owner’s education and
experience also plays a role in planned growth, along with a positive correlation between
a founder’s vision and achieved growth (Wiklund & Shepherd, 2003). A strong link is
also evident between an entrepreneur’s personality and strategy formulation in the
planning process, with charismatic entrepreneurs having to review their propensity to
take risks and delegate, which leads to a more deliberate planning process (McCarthy,
2003). The entrepreneur’s experience level, coupled with growth aspirations, also
contribute to business growth (Guzmán-Alfonso & Guzmán-Cuevas, 2012). A high
correlation also exists between previous entrepreneurial experience and new venture
success, indicating that an entrepreneur who has prior experience with another startup
52
will be more successful in subsequent new ventures, making it easier to sustain growth
(Perry et al., 2011). Vora, Vora, and Polley (2012) demonstrated that entrepreneurial
orientation has a significant effect on medium-size businesses and that growth is affected
by the leadership’s ability to transfer the entrepreneurial orientation to employees
throughout the business. Opportunities motivate entrepreneurs, yet their ability to
communicate vision impacts success (Yitshaki, 2012).
An area that merits additional research is that of the entrepreneur’s vision of
growth. As demonstrated above, research frequently focuses on either vision or growth
and, in effect, lacks research that studies the two aspects together. In the United States,
only 3.5% of new businesses started each year evolve into large businesses (Dutta &
Thornhill, 2014). However, not all new business owners perceive growth, the
achievement of wealth, or innovation as a goal (Mazzarol et al., 2009). Among trait
studies, the entrepreneur’s passion and vision for the business are viewed as some of the
most important indicators of future business growth (Baum et al., 2001). The attitude of
entrepreneurs toward growth and their intentions to grow are directly linked to whether or
not they attempt to grow at all (Wiklund et al., 2003).
Entrepreneurial growth intentions, or vision of growth, play a significant role in
the actual growth of a small business (Wiklund et al., 2003). As such, this research study
focused on the impact the founder’s vision exhibits on sustainable growth. Based on the
available research in this regard, the research question emerged as follows: How does the
founder’s vision impact business growth over time, leading expansion from small to a
medium-size entity? Studying medium-size businesses that have passed the five-year
mark with over 100 employees and have been able to sustain growth over three
53
consecutive years may provide the researcher a view of the relationship between the
entrepreneur’s vision of growth and end results. Toward this end, lessons from such a
study will help other entrepreneurs who want to achieve similar growth.
Conceptual Framework
The original conceptual framework presented in Chapter One illustrates the
researcher’s general ideas during the beginning stages of the literature review. As such,
Figure 1 (located on page 16) shows three areas of research that intersect to form the
basis of this research. These three areas are the study of entrepreneurship, sustainable
growth, and founder vision. Toward this end, the researcher discovered a need to
distinguish medium-size businesses and to consider these businesses in relationship to the
role the founder’s vision played in the growth of these businesses (Stonehouse &
Pemberton, 2002).
Medium-size businesses have 100 to 499 employees (Caruso, 2015) and make a
notable contribution to the American economy (U.S. Small Business Administration,
Office of Advocacy, 2015). In addition, medium-size businesses account for an
estimated one-third of private-sector output and employ over one-third of employees
across U.S. industries (Caruso, 2015). Without the constant cycle of new business
creation and growth, the American economy would suffer (Sadeghi, 2008).
Entrepreneurs are the creators of much of the innovation introduced. Thus, early
researchers focused on defining entrepreneurship and the role entrepreneurship held in
economic development. Entrepreneurship is a process of innovation and risk-taking on
the part of an individual, or an entrepreneur, who creates value by discovering and
exploiting opportunities in a market (Mishra & Zachary, 2015; Roxas et al., 2008; Shane
54
& Venkataraman, 2000). A region’s economic development depends on the ability of
businesses to create wealth. As such, wealth creation is linked to a founder’s ability to
lead the business in the creation of something new and innovative, manage the growth,
and select a management style that supports continued growth (Hussain et al., 2011).
A review of the literature on entrepreneurship demonstrated a progression in the
development of studies that reveal the complex nature of entrepreneurship and business
growth. Early studies focused on traits, characteristics, and demographics of
entrepreneurs, attempting to isolate traits that could help researchers better predict who
would succeed in business (Diaz & Rodriguez, 2003; Ensley et al., 2000; McCarthy,
2003; Mintzberg, 1973). Later, researchers studied another area of research, EO,
analyzing such topics like entrepreneurial behavior: being proactive, leading innovation,
and believing that entrepreneurs were born with certain characteristics (Burgelman, 1983;
McCarthy, 2003; Moreno & Casillas, 2008). From these early studies, founder
characteristics, such as risk-taking and innovation, are still considered important today
(Mishra & Zachary, 2015) and are illustrated in Figure 2.
The growth of small and medium-size businesses is another high concentration of
research with a new emphasis on sustainable growth (Greve, 2008; J. Hill et al., 2002;
Hussain et al., 2011; Jabareen, 2008; Kefalas, 1979; Vij & Bedi, 2012). Sustainable
growth is defined as constant growth over a number of years, usually five or more, which
is frequently attributed to the founder’s ability to deliver a valuable product to a narrowly
defined market niche (Gruenwald, 2013; Sloan et al., 2013).
Feldman and Klofsten (2000) addressed the concern of growth limits and
concluded that if businesses failed to plan adequately for growth, they would encounter
55
governance issues in allocating and managing their resources during future growth
periods. An interest in studying sustainable growth naturally arose from this line of
questioning as researchers continue to study the path of high-growth and hyper-growth
businesses (Gruenwald, 2013; Sloan et al., 2013). The research on hyper-growth
demonstrated that to sustain growth, the business must have access to strategic resources
(Cassia & Minola, 2012). Thus, research highlights indicated that prior experience with
starting a business more likely led founders to engage in activities that grew their
businesses at earlier stages (Perry et al., 2011). These same founders will formalize their
governance structure (Brunninge et al., 2007) and prepare for growth by ensuring they
have the right workforce trained and ready for the new tasks ahead (Labedz & Berry,
2011). Wiklund et al. (2009) added to the literature by pointing out the need for strategic
fit and the founder’s positive attitude toward growth. Figure 2 also shows some the
important aspects of growth such as planning, capacity building, human resources
preparation, and identifying a niche to serve.
The research concerning growth is only useful when it has as a central tenet, the
founder’s desire to grow the business. Often taken for granted, a positive attitude
towards growth is crucial to the founder’s ability to cast a vision that encourages all
employees to overcome the types of challenges that move the business forward (Wiklund
et al., 2009). Vision is the founder’s ability to see an ideal picture of the future that
motivates the founder to take action and inspires and motivates others to embrace that
vision and take action (Guzmán-Alfonso & Guzmán-Cuevas, 2012; Jones & Crompton,
2009). Thus, clear and constant communication of that vision is important in motivating
employees (Baum & Locke, 2004; Baum et al., 1998) and to better position the business
56
to affect the environment, create opportunities, and demand for their products (Ensley et
al., 2000; Ensley & Pearce, 2001).
The literature review shifted the research from analyzing entrepreneurship,
founder’s vision, and sustainable growth as three separate and distinct areas of research to
seeing the needed integration of entrepreneurship as the backdrop of what makes an
entrepreneur and vision as the carrying agent that helps a founder realize a dream. In
Figure 3, vision is then the connecting concept between the founder and sustainable
growth.
Figure 2. Expanded conceptual framework for founder’s impact on sustainable growth.
Summary of Literature Review
This chapter began with a brief study of entrepreneurship and entrepreneurs and
the conditions that favor creating new entrepreneurial businesses. It then explored the
impact entrepreneurship has on economic development and the additional importance of
small and medium-size businesses to employment and innovation. A review of theories
concerning entrepreneur characteristics revealed that external and internal conditions of
57
success and founder’s vision form a picture of sustainable growth. Thus, entrepreneurial
vision is a relevant and significant element in business growth and an area that is
understudied. Lastly, the study of medium-size business sustainable growth emerged as a
growing area of study; however, a shortage remains of unified studies that join the
concepts of sustainable growth and founder vision to create and sustain growth over a
relatively long period (O'Gorman, 2001). Chapter Three will present the research study
methodology concerning how the founder’s vision contributes to a business’s sustainable
growth.
CHAPTER THREE
In Chapter Two, entrepreneurship was introduced as the study’s foundation, along
with a discussion of business size that examined the impact of small and medium-size
businesses on the economy, innovation, and job creation. The study of sustainable
growth concerning medium-size businesses emerged as a growing area of research
interest in support of examining the relevance of entrepreneurial vision as it applies to
business growth. Toward this end, examining the literature revealed a shortage of unified
studies that join the concepts of sustainable growth and founder vision to create and
sustain business growth over time (Ciambotti et al., 2012; Fadahunsi, 2012; Mitchelmore
& Rowley, 2010; Nuntamanop et al., 2013; Pasanen, 2007). As such, the following
central research question was posed with the intent to contribute to the gap in the body of
knowledge: How does the founder’s vision impact business growth over time, leading
expansion from small to a medium-size entity?
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Chapter Three includes a discussion of research traditions, research questions and
propositions, and selected research design. The chapter also includes a description of the
population and sample, the sampling procedure utilized, instrumentation, validity and
reliability of a qualitative study, and how the data was collected and analyzed.
The purpose of this qualitative research study was to examine the perceived
founder’s vision influence on sustainable growth by sampling 10 medium-size businesses
that have experienced continuous growth over three or more years in support of
developing major research data themes. Purposive sampling was used to select
appropriate respondents who could best contribute understanding to sustainable growth.
These entrepreneurs were chosen based on the attainment of 100 employees at a
minimum. The number of entrepreneurs interviewed allowed for sufficient data
gathering within the time constraints, thus, reaching theoretical saturation by the eighth
interview (Bryman & Bell, 2007). The study included audio recorded, semi-structured
in-depth interviews of 10 medium-size business founders using open-ended questions. It
is anticipated that these research themes will contribute to understanding vision and
potential growth for other businesses.
Research Traditions
A qualitative research design was chosen to study founders of medium-size
businesses and their relationship to vision and sustainable growth. The field of
entrepreneurship has yielded numerous studies as researchers attempt to understand
entrepreneurial behavior (Ezzedeen & Zikic, 2012; La Pira, 2011). A qualitative
exploratory study seeks to discover the lived experiences of founders while providing the
freedom to explore the impact of their vision on achieved growth (Bryman & Bell, 2007).
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This approach provides a methodology that allows the researcher to explore and
understand a lived experience without interjecting personal experience or pre-
suppositions into the analysis (Earle, 2010; Ezzedeen & Zikic, 2012). The exploratory
qualitative design prompted founders to give detailed accounts of their experiences.
Commonalities between founders could emerge from an exploratory qualitative study that
captured the founders’ lived experiences.
In-depth interviews were used to gather and analyze data from the lived
experiences for possible future application (Creswell, 2014). Despite a renewed interest
in entrepreneurship and small business growth within the past 20 years, few studies have
distinguished their findings based on business size. This has led to the practitioner’s
inability to gain accurate knowledge from the body of literature and apply it to a medium-
size business. For this reason, a distinction between small and medium-size businesses
was made during this research and exploration of the relationship between a founder’s
vision and sustainable growth of medium-size businesses (Hisrich et al., 2013).
A review of the literature revealed two gaps in the analysis. First, few studies
focused exclusively on a medium-size business because of the difficulty in identifying a
standard set of criteria in relationship to size. Thus, studying the growth of medium-size
businesses could reveal patterns and lessons that other entrepreneurs could adopt to reach
similar growth. Second, although research on entrepreneurship is vast, any study that
examined the founder’s vision concerning sustainable growth was relatively unexamined.
Toward this end, this study explored this focus utilizing a qualitative research approach
that explored the perceptions and perspectives of founders and how they interpreted their
experiences (Creswell, 2014). Furthermore, the research incorporated a grounded theory
60
design where empirical or theoretical observations emerged inductively and, therefore,
were identified through the analysis of interviews rather than coming from literature
(Lofland, Snow, Anderson, & Lofland, 2006).
Research Questions and Propositions
The central guiding research question is the question that gives a research
direction. It is the broadest question the researcher can ask in the study (Creswell, 2014).
This study explored the relationship between the growth of medium-size businesses and
the entrepreneur’s vision of growth. The proposed central research question was as
follows: How does the founder’s vision impact business growth over time, leading
expansion from small to a medium-size entity? To address this question, three sub-topics
were examined during the interviews: (a) an exploration of founder vision, (b) the growth
experience, and (c) the founders’ view of their contribution to growth.
The researcher explored the hypothetical situation that companies founded by
entrepreneurs who possess a vision of sustainable growth are better equipped to achieve
their target growth projections. The theoretical frameworks that guided this study were
entrepreneurship, sustainable growth, and founder vision. As such, the intention of this
research was to explore the lived experience of founders who started their businesses
with a vision of growth in support of understanding the relationship between vision and
sustainable growth. The research focus concerned founders who have led their
businesses through a minimum of five years in operation, three of which consisted of
continued growth with an employee base of 100 to 499.
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Research Design
Population and Sample
The target population of the qualitative research was founders of medium-size
businesses. Additional criteria included founders who possessed experience with
sustained growth over a period of three or more consecutive years and operated a
business a minimum of five years, in effect, moving the business from a startup to an
established enterprise (Fischer & Reuber, 2003). This research study followed the U.S.
Department of Commerce’s breakdown of small and medium-size businesses that defines
medium-size businesses as having 100 to 499 employees (Caruso, 2015). Following the
same logic, research on the stages of small businesses growth indicated that after about
five years of operation, the founder had worked through many of the startup issues and
was ready for real expansion (Churchill & Lewis, 1983). Furthermore, to achieve this
level of growth, the business must have demonstrated a consistent growth rate of 5 to
10% (Navarro et al., 2012).
Sampling Procedure
The sampling procedure followed a purposive non-probability or nonrandom
sampling where interviewees were selected based on a set criteria focused on founders of
medium-size businesses who best exemplified both sustained growth and vision
(Creswell, 2014). The researcher’s goal was to conduct 30- to 45-minute interviews of
10 founders regarding the vision for their business as a start-up and how that vision was
communicated and lived throughout the business. The selection criteria included the
following:
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1. The founder is the key leader of the business and has been since the inception
of the business.
2. The business has been in operation for a minimum of five years with
demonstrated growth over the past three years of 5 to 10% annual growth or
higher (Churchill & Lewis, 1983; Navarro et al., 2012).
3. The business has grown to the point of employing 100 to 499 employees.
4. Published lists of award-receiving businesses provided the initial list of
businesses to contact.
Because of the purposive non-probability sampling methodology, the researcher
started with a list of the top 50 best employers in the DC Metro area that was published in
the Washington Post in June 2015. The list included the number of employees, which
helped narrow the list. The founders were contacted via email, followed by a phone call
inviting them to participate in a 45-minute interview. LinkedIn and Twitter were also
used to reach founders. Those who agreed to an interview were later asked if they knew
any other businesses that fit the same category for possible recommendation to the
researcher. Other sources utilized were the 2015 Northern Virginia Technology Council
Hot Ticket Awards and the 2015 Washingtonian 50 Great Places to Work.
All study participants were founders or members of a founding team and active in
the leadership of their business. The researcher pre-screened participants to include only
those who fit the criteria as aforementioned. In each case, the researcher explored the
“About” page of business’ websites, reading the founder’s bio, history of the company,
mission statement, and any other pertinent information, while also reviewing the
company and the founder’s LinkedIn pages.
63
An initial list of 87 businesses was generated, screened, and contacted. The
researcher also utilized a snowball effect in reaching 14 additional businesses for possible
interviews as participants and contacts contributed other names to interview, resulting in
a total of 13 interviews. In the end, analysis was conducted of 10 founders who fulfilled
all the criteria with three excluded from the analysis due to either being too small or too
large to fit the criteria.
Initially, the researcher intended to conduct face-to-face interviews at the
founder’s office location to help establish rapport and build trust. However, given the
busy schedule of the founders, along with the geographic dispersion of the sample,
telephone interviews became the chosen means of interviewing the participants.
Instrumentation
A qualitative study is fully dependent on the quality and consistency of instrument
implementation. The instrument design and analysis and the consistency of the
interviews in this study ensured a high level of reliability and validity. The type of
interview strategy and format that best fit this research was in-depth, semi-structured
interviews (Ekanem, 2007). As such, the interview approach included an interview guide
anchored to the central question followed by secondary questions that allowed the
interviewee to navigate the most applicable experiences and stories yet providing a
framework that respected participants’ busy schedules. Because of the exploratory nature
of the research, the founders contributed their thoughts and conclusions, and the
researcher then compared these to other responses, utilizing a responsive approach to the
interviews. By taking a qualitative approach to the research, it was possible to search for
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meaning through the stories of the participants interviewed as they have lived through the
experience of founding and growing a business (Schipper, 1999).
The researcher developed an interview guide that was divided into three sections:
founder’s vision, founder’s role in organizational growth, and founder’s contribution to
growth (see Appendix A). The questions in the first section on founder’s vision explored
the founder’s original vision, followed by if and how that vision changed over time. Also
explored here were the founder’s perceptions of achieving the desired vision, growth, and
what constituted success in achieving the founder’ vision. Section two of the interview
guide explored the role founders play in organizational growth, their level of
involvement, and motivational issues for both the founder and employees. Finally,
section three examined the founder’s key contributions to growth, along with significant
challenges and opportunities observed in their business or industry.
Available data sources. The primary data source was interview content. When
conducting interviews, there were a variety of data sources explored as well. Although
some founders provided the researcher with other documents, such as history of the
business, vision and mission statements, organizational chart, and other ancillary
documents, these documents were not included in the analysis due to the inconsistent
collection of similar documents. The rationale for excluding these documents from the
analysis was to keep the analysis equal across all participants to minimize the possibility
of skewing the data.
Validity
The researcher was concerned about both internal and external validity of the
research. According to Bryman and Bell (2007), the researcher must verify that the
65
observations and theoretical ideas that develop match each other while ensuring that the
findings apply to other situations and businesses. The researcher refrained from guiding
the conversation other than providing the general research questions. When interpreting
the data, the researcher looked for themes that emerged from the interviews rather than
providing the framework ahead of the interpretation.
The researcher, in this case, coded all the transcripts and grouped the codes
together by category into a spreadsheet, gathering and observing commonalities between
interviews. Several observations from the founders were surprising to the researcher as
she had not observed those particular connections in the literature review. Thus,
observing the codes and categories in a spreadsheet format allowed the researcher to
organize the interpretations according to the commonalities of ideas. In effect, this
process limited the bias of the researcher’s knowledge from entering the analysis.
According to Chan, Fung, and Chien (2013), reflexivity should be used through a
journaling process to reflect and analyze biases throughout the research study, therefore,
contributing to the researcher’s ability to identify and isolate her biases and assumptions
throughout the research process. Using this journaling process of gathering and
analyzing data helped the researcher synthesize the information as well. This method of
reflexivity assists in action research and has significant applications in a qualitative study
as well (Clarke, Thorpe, Anderson, & Gold, 2006).
Ensuring the interviews were recorded and accurately transcribed within 24 hours
of the interview achieved internal validity. In addition, following the interview guide and
sequence of questions across all interviews maintained consistency of data collection. A
planned structure was also created in the interview guide, allowing space for notes that
66
could be quickly taken in an unobtrusive manner before and after the interview.
Furthermore, the researcher manually coded each interview following the same coding
guidelines that was cross-examined to ensure consistency in analysis.
External validity was achieved based on the generalizations made and the
applicability of what was learned from other businesses. Two external research
professionals reviewed the coding, read the dissertation proposal, and analyzed the coded
transcripts for consistency, adding any additional information the researcher may not
have observed. Furthermore, the reviewers identified themes, reviewed codes, and added
their observations to the transcripts. The two reviewers also discussed their findings with
the researcher, where they were able to provide additional feedback about their
impressions, confirming the researcher’s results and identified themes. The final analysis
incorporated notes from outside researchers.
Finally, external validity was strengthened through the use of triangulation. The
process of triangulation involves comparing the researcher’s findings with the results of
other research published in peer-reviewed journals. As such, the researcher compared the
interview results with peer-reviewed articles, identifying supporting data that provided a
background and helped support current research findings (Shenton, 2004).
Reliability
The reliability of a qualitative study depends on the researcher’s ability to present
the findings in such a way that confirms the ability to duplicate the study (Bryman &
Bell, 2007). Following a precise approach to selecting organizations and their founders,
as well as consistent usage of the interview guide and recording, transcribing, and
analyzing notes, all contributed to the reliability of the study (Houghton, Casey, Shaw, &
67
Murphy, 2013). In qualitative research terms, the researcher seeks to establish that the
data collected is dependable (Sarma, 2015).
This research achieved reliability by carefully following the process outlined in
the methodology, documenting and reporting the steps followed. As such, future
researchers interested in studying this topic would be able to reach similar conclusions
through the same process. The literature review provided support to the findings of this
research and validated the reliability of the research.
Data Collection
Contact procedures and estimated length of interview process. The access to
professional contacts through the generated lists of award recipients, the Greater Silver
Spring Chamber of Commerce, Twitter, and LinkedIn, all contributed to identifying
founders who both fit the established criteria and were willing to participate. The initial
founders’ lists selected from the DC Metro area were a convenience sample based on the
researcher’s location. Local business lists were thought to be necessary for the sake of
accessibility and cost of travel; however, as founders and others shared their contacts
through a snowball effect of selection, the geographic area expanded. Each founder
received an email and a telephone call, and appointments were made to either interview
in person or over the telephone based on the founder’s location and preference (see
Appendix C and D for a copy of the emails sent to founders).
The interviews were designed to last 30 to 45 minutes, which respected the time
of busy executives and provided enough data to distill and gain the desired information.
An attempt was made to maintain a balance between open-ended free expression and
ensuring certain points were covered in the interview, all in keeping with the qualitative
68
research design (Ezzedeen & Zikic, 2012). In reality, interviews lasted anywhere from
25 minutes to 50 minutes, with one founder spending another two hours sharing details of
his personal vision, life goals, and future business plans. Many founders shared their
desire to give back to society. As such, their businesses provided them with a backdrop
for fulfilling their life purpose. At the end of the interviews, most of the founders shared
their appreciation for the reflection time and voiced their desire to see this research
study’s results.
Recording and transcription. Each interviewee gave permission to record the
interview so that the interviewer would be able to focus entirely on the interview process
and ensure accurate notes. An informed consent form was given to each founder,
reviewed, and a signature obtained before the interview began (see Appendix B). The
researcher carefully transcribed the interview, and if necessary, contacted the interviewee
for clarification if any questions arose. It was vital to complete the transcription within
24 hours of the interview so that the information was still fresh in the interviewer’s mind.
A voice transcription software, Dragon NaturallySpeaking, was utilized to transcribe all
the interviews, providing a consistent and accurate transcription. Each transcript was also
carefully reviewed for accuracy.
Data Analysis
The proposed data analysis supported the grounded theory and the qualitative
research approach. Grounded theory is a method of building a theory through systematic
analysis of research. One of the tools of grounded theory is theoretical saturation. With
this method, the researcher continued to gather and analyze data until no new information
emerged (Bryman & Bell, 2007). Qualitative research adds a discovery of the
69
phenomena through rich descriptions of the participants. The researcher observed that by
the eighth interview, participants were no longer adding new information to the data but
merely confirming each other’s experiences.
Interview analysis commenced immediately after completing each transcript.
First, the transcript was read, marking any pre-determined codes from the initial list of
codes. Second, the transcript was read for any emerging concepts, themes, events, or
specific examples that demonstrated a theme. According to Rubin and Rubin (2012), the
researcher creates a particular list of clearly defined labels to ensure the highest level of
consistent coding and, therefore, accuracy in interpretation. According to Creswell
(2014), this involves establishing a coding protocol that includes several steps as shown
in Figure 3.
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Figure 3. Steps in qualitative data analysis according to Creswell.
By following this process consistently, the researcher was able to write reliable research
conclusions.
Step 1: Organize and prepare data for analysis. After the conclusion of each
interview, a transcript was made using Dragon Naturally Speaking, a software that
transcribes voice to text. The text was then printed with a wide margin to provide the
researcher space to take notes.
Step 2: Read all the data. Once the first five interviews were transcribed, the
researcher read the interviews to reflect on the information. Notes and observations were
taken to inform the depth and comprehensiveness of the interviews. Other interviews
were added to this reflection phase as well upon completion.
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Step 3: Code the data. The interviews were then analyzed, with key words
circled and key phrases underlined. The wide margin provided space for notes, emphasis,
and reflection, as the researcher searched for appropriate data categories. These
categories emerged from both the data and historical literature on these topics that
provided a common vocabulary to refer to the particular data. After manually coding the
interviews, the researcher transferred all the notes into the typed Word document, and the
categories were color coded. The coded interviews were given to two different
researchers (all possessing terminal degrees) to review and provide input on the
categories created. This step ensured a deeper level of validity to the data coding.
Step 4: Generate themes and descriptions. The researcher created an Excel
spreadsheet to analyze the categories and codes, grouping the codes and categories into
themes. This process involved revisiting the interviews and searching for additional
keywords and concepts presented by the interviewees. A series of memos were then
written within the text of each interview, providing themes and descriptions of each
interview section. This allowing a deeper analysis of what the interviewee reported.
Step 5: Interrelate themes and descriptions. The researcher added the themes
to the spreadsheet allowing her to analyze theme consistency across all interviews and
discover the similarities and differences among the interviewees. This step also provided
the framework for analysis presentation in the narrative. Participant quotes were also
selected during this step that added meaning to the analysis and the descriptive narrative.
Step 6: Interpret the meaning of the themes and descriptions. In this final
step, the researcher asked questions such as, “What lessons can other founders learn from
this that will allow them both gage their vision and grow their businesses?” Two
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independent researchers reviewed and checked the coded interviews. The coding was
then modified according to their suggestions, and their theme recommendations were
included in the analysis. Finally, the researcher checked her interpretations of themes
and descriptions to published research, confirming her findings to be consistent with
other researchers.
Ethical Considerations
Any time a researcher is conducting research with human subjects, an ethical
concern arises for the safety and protection of the individuals participating. Due to past
abuse or endangerment of human subjects, universities and research institutions follow
strict guidelines of acceptable ethical behavior in conducting research with human
subjects. The Institutional Board Review (IRB) was established to moderate and ensure
that research is conducted in an ethical manner and has set guidelines arising out of The
Belmont Report: Ethical Principals and Guidelines for the Protection of Human Subjects
of Research (Herr & Anderson, 2005). Before starting any research, the members of the
IRB will check the researcher’s and researcher proposals against three important ethical
principles: beneficence, respect for autonomy, and justice. In business research, where a
researcher is often interviewing members of a business, beneficence refers to the need to
protect employees from being singled out, mocked, marginalized, or even terminated
because of their participation in the research. In other words, beneficence is the need for
research to maximize benefits and minimize any possible harmful effects of participation.
Next, the researcher must inform participants that they have autonomy, that they are free
to decide whether or not to participate in the research, and that they receive enough
information to make an informed decision about their participation. Under justice, the
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consultant ensures participants fair treatment while minimizing risks in participation
(Bryman & Bell, 2007).
The researcher followed the guidelines established by the IRB to ensure that the
participants and their businesses received adequate protection (Herr & Anderson, 2005).
The researcher used a variety of measures to protect participants during the meetings.
First, the researcher gave each potential participant an informed consent form to sign,
with an explanation of their involvement and full disclosure of all aspect of the research
so the participants could make a decision about their participation. Each participant
signed the informed consent and agreed to participate in the research before starting the
interview (see Appendix B). The researcher promised anonymity in the report. The
informed consent gave a statement of the purpose of the research study, the procedures
used in the study, and how much time would be involved. It also included the risks and
benefits involved, along with a statement that there would be no compensation offered for
the interview, an assurance that the study was voluntary, and that the participants could
withdraw at any time. The form ended with contact information for the researcher in case
the participants had questions.
The researcher developed a coding system so that the names of the founders and
their businesses were protected and not revealed in the research report, ensuring
confidentiality and anonymity. Furthermore, meeting notes have been kept in a locked
filing cabinet where others cannot access the data. At no time during the interviews were
the researcher’s notes available for others to see and read. In addition, all recorded
conversations were transcribed without identifiable data to maintain anonymity and kept
secure. The informed consent forms have been stored in a separate file within the same
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locked filing cabinet and will be kept for a minimum of three years. After three years,
these forms will be destroyed.
Summary of Chapter Three
Chapter Three described the research methodology along with the purpose of the
study. This research study attempts to understand the vision founders possess when they
start their businesses and how that vision translates into sustainable growth over time. To
explore this study, the researcher used an exploratory qualitative design as well as
grounded theory. The purpose of this investigation of the founders’ vision concerning
sustainable growth, coupled with their approaches employed and the corresponding
results, was to potentially providing guidance and a pathway that other entrepreneurs can
follow to reach the same levels of growth and success. Toward this end, the interview
protocol was followed carefully, which ensured the highest level of accuracy and
reliability in reporting the research results. In keeping with this process, the researcher
updated the codes and categories as new data emerged, then checked all data against any
changes in the protocol. The researcher was able to report reliable research and develop
themes that may be of use to other businesses interested in experiencing similar growth.
In the next chapter, the researcher will follow the stated process identified in
Chapter Three to collect and analyze the data and to provide a complete record of the
findings. The themes explored in Chapter Four will contribute to the body of knowledge
on founder vision and sustainable growth with the potential to lead other businesses to
follow similar pathways.
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CHAPTER FOUR
The purpose of the qualitative study was to examine the themes of founder vision
and sustainable growth as perceived by 10 founders from selected medium-size
businesses. The study showed patterns among the descriptions of these founders that
explained how they achieved the level of growth in their organizations. Purposive non-
probability or nonrandom sampling provided the basis for selecting founders to interview
who would assist in understanding the impact of founder vision on sustainable growth
(Creswell, 2014).
The number of participants provided sufficient data to conduct a detailed research
analysis (Creswell, 2014). The study involved digitally-recorded semi-structured
interviews, both in-person and by telephone. As such, the 10 founders of medium-size
businesses responded to open-ended questions that allowed themes to emerge from the
data.
The themes that emerged from the data contributed to an understanding of the
areas these founders considered important in developing and sustaining the growth of
their businesses. The targeted participants in the research study included founders
currently leading organizations who have achieved a level of growth defined by a range
of 100 to 499 employees. The results of this study may provide information to influence
other founders who interested in growing their businesses to follow a more determined
path and be able to grow their businesses intentionally.
Chapter Four includes the demographics of the study participants and a discussion
of the collection method. This chapter also includes the presentation of the data as well
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as a description of the data analysis technique, along with the major themes uncovered
from the transcriptions. The chapter concludes with a discussion of the findings.
Participant Demographics
Table 6 summarizes the participants’ demographic profile. Selection of
participants came from lists of award-winning businesses and others that received
recognition in local newspapers. In addition, founders were recommended by peers, the
Greater Silver Spring Chamber of Commerce, and the Edward Lowe Foundation.
Participants were selected contingent upon meeting the specified criteria. The selection
criteria included the founder serving as the principal leader of the business, the business
being in operation for at least five years, the business having attained 100 to 499
employees, and the business having maintained an annual growth over 10%.
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Table 6
Participant Demographics
A. Demographic Characteristics of Research Participants – Gender
Gender
Female 1
Male 9
B. Demographic Characteristics of Research Participants – Ethnicity
Number
Immigrant 1
Caucasian 9
C. Demographic Characteristics of Research Participants – Years in Operation
Years in Operation
< 5 1
5 - 10 years 3
11 - 20 years 3
21 or more years 3
D. Industries Represented by Research Participants
Number in Industry
Consumer Products 1
Business to Business Services 6
Manufacturing 2
Real Estate Investment 1
E. Previous Experience in Business Startups
Previous Start-Ups
Yes 6
No 4
Table 6 highlights several interesting facts. For Section A, concerning gender,
there was an overwhelming majority of founders who were male. The lists of award
winners that created the original contact list contained very few female-owned
businesses. It is important to note that the women contacted were less responsive to the
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interviews. According to a report commissioned by the U.S. Small Business
Administration (2015), women-owned businesses account for 31% of the privately held
firms and contribute 14% of the employment, indicating that women-owned businesses
tend to employ fewer people overall. Identifying and interviewing female founders of
medium-size businesses became a difficult task for this research that merits investigation
in future research.
Section B summarized the ethnicity of the participants, highlighting the near
absence of minorities in this research. As founders were identified to interview, there
were instances when the number of employees was incorrect. However, this fact did not
surface until the interview. One interview was excluded because it was a family business
where the founder did not intend the business to grow beyond the current 35 employees.
Two other interviews were also excluded because they had been growing exponentially
and exceeded 500 employees. In two of these cases, the founders were African American
and, because of the business size, were excluded from the interviews. These issues
affected the report concerning ethnicity as the interviewees who qualified were one
immigrant and the rest were Caucasian.
The report concerning years in operation in Section C were quite even in their
breakdown, with the highest level of growth coming from the younger businesses, yet all
ages of business exhibiting sustained healthy growth. Section D grouped the businesses
into large industry categories, with one consumer-product company, one real estate
company, two manufacturers, and six business-to-business service companies. The
growth of each of these businesses was not strictly based on industry; however, two of
the business-to-business services are growing in the 2X and 3X range. Due to the small
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sample size, these facts did not create substantial evidence to base conclusions, yet as a
whole, the overall themes identified united these businesses in their overall vision of
growth. Finally, Section E indicated that six founders had previous experience with
different types of businesses while four were experiencing their first startup. The growth
results for these businesses did not show a demonstrable difference between the two
groups; however, the founders with previous startup experience reported a higher
confidence level in the early business stages. All the founders conveyed a need to adjust
to their changing roles as their businesses grew.
Presentation of the Data
As previously mentioned, the data analysis followed the six steps presented by
Creswell (2014), shown in Figure 3, and included collecting, coding, analyzing,
reporting, and interpreting the codes, themes, and descriptions that emerged from the
data. Data collection included contacting the founders by any available means, which
included phone calls, Twitter, and LinkedIn, setting an appointment, and conducting the
interview. Each participant provided a signed Informed Consent form (see Appendix B)
prior to the interview.
An interview guide was used to provide consistency in the interview format (see
Appendix A). This interview guide consisted of questions in three areas of interest:
founder vision, business growth, and entrepreneurial success elements. These questions
provided a backdrop to investigate the impact of the founder’s vision concerning
sustainable growth of medium-size businesses. The interviews were transcribed, and
coding procedures were used consistently to provide data analysis. A brief explanation of
the six steps for data analysis in qualitative research follows (Creswell, 2014).
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Step 1: Organize and prepare data for analysis. After the conclusion of each
interview, a transcript was made using Dragon Naturally Speaking, a software that
transcribes voice to text. The text was then printed with a wide margin to provide the
researcher space to take notes.
Step 2: Read all the data. Once the first five interviews were transcribed, the
researcher read the interviews to reflect on the information. Notes and observations were
taken to inform the depth and comprehensiveness of the interviews. Other interviews
were added in this reflection phase as well upon completion.
Step 3: Code the data. The interviews were then analyzed, with keywords
circled and key phrases underlined. The wide margin was also used for notes, emphasis,
and reflection, as the researcher searched for appropriate data categories. These
categories emerged from both the data and historical literature on these topics that
provide a common vocabulary to refer to the particular data. Once the interviews were
manually coded, the researcher transferred all the notes into the typed Word document,
and the categories were color coded. The coded interviews were divided into three
groups and given to three researchers to review and provide input on the categories
created. This step ensured a deeper level of validity to the data coding.
Step 4: Generate themes and descriptions. The researcher created an Excel
spreadsheet to analyze the categories and codes, grouping the codes and categories into
themes. This process involved revisiting the interviews and searching for additional key
words and concepts presented by the interviewees. A series of memos were then written
within the text of each interview, providing themes and descriptions of each interview
section, thus, allowing a deeper analysis of what the interviewee reported.
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Step 5: Interrelate themes and descriptions. The researcher added the themes
to the spreadsheet allowing her to analyze theme consistency across all interviews and
discover the similarities and differences among the interviewees. This step also provided
the framework for analysis presentation in the narrative. Participant quotes were also
selected in this step that added meaning to the analysis and the descriptive narrative.
Step 6: Interpret the meaning of the themes and descriptions. In this final
step, the researcher asked questions such as, “What lessons can other founders learn from
this that will allow them both gage their vision and grow their businesses?” Two
independent researchers reviewed and checked the coded interviews. As such, their
suggestions were incorporated into the coding, and their theme recommendations were
included in the analysis. Finally, the researcher checked her interpretations of themes
and descriptions with published research, confirming her findings to be consistent with
other researchers. These lessons served as the researcher’s interpretation that was
supported by peer-reviewed literature.
Emerging Themes from the Research Questions
A return to the identified gap in the literature concerning medium-size businesses
presented the need for focused research that ties founder vision to sustainable growth.
The findings of such research could impact future generations of founders, investors, and
policy makers, as the success of small and medium-size businesses significantly impacts
the U.S. economy. The following central research question served as the guiding force in
understanding the founders as they shared their experiences: How does the founder’s
vision impact business growth over time, leading expansion from small to a medium-size
entity? As the data categories were broken down and then grouped together under larger
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themes, the ideas participants’ expressed demonstrated a clear breakdown of the three
interview question areas: (a) an exploration of the founders’ original vision, (b) the
growth experienced, and (c) the founders’ view of their contribution to growth, such as
skills, attitudes, and experiences. Appendix E contains a table with categories and codes
identified, along with the participant responses, and Appendix F identifies a portion of a
transcript with initial codes identified for reference.
Founder Vision
Founder described the beginning of the business and the circumstances that lead
them to pursue their businesses. The responses allowed for an analysis of the initial
vision for a business that contributed to the business success. Table 7 depicts the
common descriptors and phrases participants used when describing their initial vision.
Even though only six of the participants started the business with a definite vision of
growth, all of them reported recognizing the opportunity from the start and matching the
vision to the growth curve they were experiencing.
Table 7
Founder's Initial Vision
Category Descriptor Responses
Opportunity 10 out of 10
Initial vision 6 out of 10
Part-time or side project 4 out of 10
Needed a job 2 out of 10
The participants who needed a job or started as a part-time project knew there was
a demand for their product or service but were focused on other goals when starting their
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business. While describing his need for a job, Participant 1 stated, “The vision and the
dreams caught up with it after the ball started rolling,” and he realized that his business
was largely supplying his financial needs. Participant 8 added that his side project
“started getting legs, and I never in one million years would have imagined myself as an
entrepreneur or as a CEO or as a founder, and now I can’t think of doing anything else
other than that.”
Those who started with a vision spoke of the opportunities they had identified and
how they knew the market needed their idea to be developed into a business. Participant
2 shared that he was very clear about his business concept and believed that “people do
business with you because of why you do what you do, not what or how you do it” and,
therefore, developing “a brand that people could connect with” became paramount from
the start. Participant 9 explained that as his business improved his skills and knowledge
within the industry, he refined and strengthened his niche, in effect, becoming more
efficient.
Does vision change over time? Regardless of how a business is started, a vision
is a guiding force to keep the founder focused on filling a need in the market in a unique
way. Does this mean that the vision changes or stays the same? Participants explored
this question from different perspectives as they reflected on their vision when they
founded the business versus where their vision had taken them to the present. Table 8
demonstrates that having a vision that is defined from the beginning is not necessary as
long as the founder has a vision and is willing to have it evolve along with the growth of
the business.
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Table 8
Does Vision Change Over Time?
Category Descriptor Responses
Vision did not change 5 out of 10
Niche 9 out of 10
Scalability 7 out of 10
Purpose 6 out of 10
Timing 4 out of 10
The same five founders who started with a clear vision stated that their vision did
not change. They knew what they were doing from the start, and it has worked well for
them. One founder who had started his business as a side project also stated that his
vision has not changed. These founders had clearly identified a need in the market and
were confident they could fill the need in a unique way. Participant 3 summarized this
group’s assessment by stating, “I don’t think the vision has changed; I think the ability to
make or realize that vision has changed.”
As the founders discussed their vision and how it may have changed, four areas
emerge as contributing to strengthening and helping shape their vision: a strong niche, the
business scalability, well-defined purpose of the business, and the importance of timing.
Nine out of ten founders interviewed expressed the importance of finding a niche in their
market where they could differentiate their products or services from the competition.
Participant 10 spoke of “searching for solutions to problems before customers even knew
they had a problem”, and by anticipating the customer’s needs, they were able to find a
niche in their market space. Participants 3 and 6 shared their desire to offer a product that
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was different and that would stand out from their competitors, while Participant 2 said
they wanted to “revolutionize the industry”. Participant 7 spoke of finding a unique
market niche because of her willingness “to provide services that took significant,
additional effort that none of the competitors were willing to pursue.”
Central to actualizing their vision was the founders’ ability to scale growth.
Participant 3 addressed his ability to scale growth as the demand for the product is
increased, stating that his experience was important to actualizing growth. Participant 2
shared that “we had hoped for it, but it’s been incredibly rapid growth” and figuring out
how to scale the company without losing sight of the vision is a constant challenge.
Participant 4 stated the following:
When we started we were hopeful that we could break even in a year. It was hard
to figure out how we would accelerate the growth, but we knew we were onto
something when we started to break even in four months.
Participants 5 and 7 shared that they expanded and scaled their businesses based on the
requests of satisfied customers who asked them to open offices in new locations to better
support those customers.
Founders eagerly shared their purpose in starting their businesses. Participant 1
summarized it well when he spoke about his ambition to “do big and do well, and to earn
and live well, and do all those things to your very best.” Several participants spoke
passionately about ways in which they impacted their employees and how they give back
to society. Participant 4 stated that he wanted to “build a company that was somewhere
we would want to work” and a commitment to building a culture that “fits the times and
that leads the times in which we live.”
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In addressing the issue of timing, Participant 2 summarized each founder’s
vulnerability by stating that a product that is introduced too early or too late could cause a
business to fail. He explained the following:
By the time the adoption curve started taking off, we already had the product, and
the product was still fairly new and using cutting edge technology, and as much as
I’d like to say that the team and the strategy were central, and those were
massively important, if we’d been three years earlier or three years later, it
probably wouldn’t have been as successful in what we’re seeing now.
Regardless of the industry, issues of introducing the right product at the right time
concerned the founders as they contemplated their vision for their businesses.
Sustainable Growth
The study of organizational growth reveals a number of elements that impact
growth. Wiklund et al. (2009) developed an integrative model of small business growth
that suggests that entrepreneurial orientation, resources, owners’ attitudes, and
environmental characteristics influence the growth of small businesses. Thus, the
researcher explored the reasons the founders attributed to the growth of their businesses
as well as an analysis of the founders’ stated challenges and opportunities in the growth
process.
Influences for growth. A list of key influences for growth provided insights into
the founder’s vision and the importance they placed on a variety of areas. Table 9
contains key influences on growth:
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Table 9
Influences for Growth
Category Descriptor Responses
Employee Hiring & Engagement 10 out of 10
Competitive Advantage 9 out of 10
Customer Relationships 8 out of 10
Demand for the Product 5 out of 10
Entrepreneurial Approach 5 out of 10
Favorable Market Conditions 5 out of 10
The participants spoke enthusiastically about what they perceived as the
influences that contributed to their business growth. Participant 8 started by stating that
their success came from the fact that they had evolved “in every which way.”
Throughout the interview, all of the participants referenced their employees as crucial to
their success. Specifically when answering about growth influences, all 10 of the
founders interviewed stated that their employees were essential to the continued growth
of their business. They spoke of hiring practices, empowering them, and hiring people
who make a difference. Participant 6 addressed the challenge as follows:
Finding the one out of 80, people that are not only passionate and talented, but
they have a way of putting the people skills, the leadership skills, the serving
skills, combined with their individual talents that make them unique and stand
out.
This founder further explained that when he can surround himself with top talent, “if the
market gets tight, the right guys I have are better than half of the competition out there, so
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we should be able to outwit and outcompete half the market just with the talent that we
have.” However, this will not happen unless it is backed by superior customer
relationships, which was mentioned by 8 out of 10 of the participants. They reiterated the
need to listen to customers and to fulfill customer needs by delivering exceptional
customer service. As Participant 9 stated, “We care a great deal about our people, and we
want to see them succeed, and we view ourselves all on the same team.”
As they described their influences on growth, 9 out of the 10 participants
addressed their competitive advantage by providing a product that was unmatched in the
market. They went on to explain their competitive advantage by highlighting their ability
to focus on a niche, create a product that was differentiated in the market, build a
cohesive and consistent brand, and provide a superior product that is best in class.
Participant 7 summarized the group’s sentiment by saying that “we do things for people
that none of the other agencies do, and that brings people to our doorstep to fill the job.”
To further demonstrate their competitive advantage, participants added that the market
demand for their product came from their ability to anticipate demand and offered a
distinct product that filled a need even before the customer knew that need existed.
Participant 5 emphasized, “We are excellent at listening to the customer and fulfilling
customer needs, and by doing that, it has enabled us to succeed and excel. We try to
listen to them and anticipate what they need.” Participant 4 further explained this by
stating that his business built a product that was “better than what the market is asking
for, yet at the same time knowing that they will be there in one year.” They also felt that
market conditions were necessary to their success, including a significant emphasis on
the timing of product introduction, along with a comment from Participant 6 that it
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involves “a little bit of luck and a lot of faith.” Participant 6 commented that “the
economy has to hit you with the right things, and have the right things happen.”
A commitment to entrepreneurship was included as an influence for several
participants. They spoke about the discipline and higher level of commitment to growth
they experienced through their entrepreneurial spirit. Participants 5 and 8 addressed their
strong work ethic while Participant 1 stated he did not readily accept a “no” as a closed
door. Participant 8 also highlighted the fact that his “leadership has evolved, along with
every single thing has evolved” as the business grows. Participant 7 summarized this
entrepreneurial approach to talking about the services her business has added and
concluding that “you have to be willing to do things that no one else is going to take on
because it’s hard work.”
Challenges and opportunities. Opportunities are frequently the flip side of
challenges. In addressing both of these points together in Table 10, it is possible to
conclude that the founders addressed challenges by constantly scanning the market for
opportunities. Participant 8 introduced this section by acknowledging that challenges are
everywhere: “There are millions of challenges, I mean every day is a challenge right?
Yesterday’s dreams are today’s reality, and yesterday’s nightmares are tomorrow’s
reality.”
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Table 10
Major Challenges and Opportunities
Category Descriptor Responses
Challenges
Financial 8 out of 10
Employees 7 out of 10
Customer Relationships 5 out of 10
Culture 4 out of 10
Competition 3 out of 10
Opportunities 3 out of 10
Opportunities
Niche 9 out of 10
Innovations 9 out of 10
Scalability 7 out of 10
Culture 5 out of 10
The challenge that surfaced the most during the interviews was financial. Toward
this end, participants mentioned an early learning curve they experienced with meeting
payroll and understanding their taxes, compensation and benefits, government contracts,
and the danger of a market crash. Their focus was placed on planning, taking care of
employees, and moving away from their basic need to “watch every penny and not going
into debt,” as stated by Participant 7. In order to scale growth, their financial focus
quickly shifted to resource allocation and reinvesting in product and technology.
Employment was also mentioned as a major challenge. Finding and retaining
talent, building a loyal and engaged workforce, developing leaders who embraced the
business at heart were all concerns founders faced. Participant 6 explained that it is a
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process of hiring quality employees, then “you have to develop those people and find
those people and raise leaders under them as well before you can grow and be
successful.” Participant 1 spoke of the challenge of having to “make sure people are
excited every day” when they come to work and when they engage with customers.
Participants 9 and 10 described their need to hire and train employees ahead of the
growth curve so that people could be in place when growth occurred. Participant 10
described the need to create accountability for their employees so that the founder could
be available to guide the transition of the business as it grew while experts accomplished
their daily work.
Participants wove together the challenge of maintaining strong customer
relationships, rising above the competition, and managing their opportunities. Participant
7 stated that she met with her customers “on a monthly basis, went out and visited them
at their businesses, and developed personal relationships with the customers.” Other
participants also addressed quality service, becoming best in class, and making sure their
clients had personal access to them. Creating a distinctive customer service helped them
better compete. Toward this end, their competitive advantage came from being vigilant
to remain best in class by anticipating demand and delivering above expectations. They
stated they remained innovative and relied on strong leadership and strategic planning
while learning how to scale their company and still staying true to their core culture.
Although presented as a challenge, these founders believed that accomplishing these
areas gave them an edge on continued growth.
Two of the participants concluded that much of their challenges were due to the
need to create a culture that would drive their business. Participants 2 and 8 discussed
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staying true to their culture as the business grew, and Participant 8 concluded that “it
comes down to how you keep a familial culture and focus on performance, because if
you’re family, you cannot focus on performance too much because you can’t shoot your
family.” He then added that the real challenge was “how you maintain the corporate
culture to make sure you can grow” while keeping employees happy and engaged.
Most of the founders were not concerned with a lack of opportunities. On the
contrary, central to their discussion of opportunities was the ability to scale growth to
keep up with the increased possibilities. Participant 4 stated that he saw his business
“positioned to be one of the few firms who has the expertise and the experience to pull
out all the stops and help achieve the objective” his clients want. Participant 8 explained
that there is such an abundance of opportunity that “with growth there’s just more and
more opportunity, and you just have to focus on your niche and not get distracted by all
the possibilities.” Although only 5 out of 10 participants spoke directly about culture as
an opportunity, the culture of innovation and growth permeated the founders’ discussion
of how they managed both challenges and opportunities and the importance of
communicating and educating employees about their organization’s culture. Participant
10 said that his industry faced constant disruption and change, which offered them
excellent opportunities as they positioned themselves to be stronger financially in the
marketplace.
Innovation was a key element in the growth of these businesses, along with being
a significant influence that would continue to create opportunities. Nine out of the ten
participants spoke passionately about how their innovations contributed to being industry
leaders. Participant 5 explained that “instead of going head-to-head with competition, we
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are trying to be the industry leader and look at our industry and customer needs in a
different way.” All participants incorporated a unique aspect of innovation they
implemented, including new technology, new product applications, new product creation,
and creative approaches to problem-solving for their clients. This led to an explanation
of how their company had focused on a niche that positioned them uniquely in the
market. They described the concept of being first to market, delivering top quality
products and services, creating unique aspects of hiring, continuing product development,
and differentiating themselves in their industry. This led into descriptions of how
founders viewed the scalability of their business and how they balance innovations with
maintaining a niche as they grow their businesses.
Entrepreneurial Process
When considering the growth of a business, the founder’s ability to lead the
organization through growth was identified as central to success. A look at what these
founders considered being their personal contribution to growth aligned with the
literature on EO. The founders stated that their greatest responsibility was to cast vision
and to inspire others within the organization to follow. The categories listed in Table 11
illustrate what they considered their most significant contributions to their business
growth.
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Table 11
Founder Contributions to Growth
Category Descriptor Responses
Cast Vision 10 out of 10
Hire Quality Employees 10 out of 10
Seek Growth Opportunities 10 out of 10
Innovation 9 out of 10
People Skills 7 out of 10
Product Expertise 7 out of 10
Build Client Relationships 5 out of 10
Industry Recognition 5 out of 10
Personal Commitment 5 out of 10
Participants identified nine critical areas they believed to be founder contributions
to growth. The principal founder contribution identified was the role of casting vision for
the organization, with all of the founders speaking directly to this point. They referred to
themselves as “the vision guy” or as visionaries and storytellers. Participant 3 described
his role as “finding different ways to make that message meaningful to different people,
whether they are investors, employees, or customers, and being able to keep people
focused on the big picture.” Participant 4 added that he had to “provide them with a
vision and a framework to become partners,” agreeing with Participant 3 that casting
vision involves the buy-in of employees as well as customers and investors. Participant
10 explained that he was the chief storyteller. As such, he had to learn how to share his
stories, cast vision, and create a culture while allowing his employees to create their
stories as well. The discussion of casting vision also led to reports on participants’
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organizational structure with all of them reporting a flat organizational structure.
Participant 8 described his ability to cast vision based on his reporting structure:
I have seven departments that report to me: HR, finance, sales and marketing,
customer success, which is customer service, and training and education, product
and engineering. All of those report to me, and I find it vital that they do. That’s
super important because I can be keenly aware of each area and what’s going on
out there and making sure that they are all humming well.
All participants described their ability to hire quality employees and surround
themselves with employees who had superior skills. They addressed their strategies in
hiring the best talent, empowering their employees to do their best work, and training the
employees to hire as well. Participant 2 explained that to grow a business, the founder
must “be great at hiring people too,” and went on to explain that each of his departments
was “run by someone who is capable, in their right of running their company.” All
participants believed their employees must not only be able to catch the vision but be able
to accomplish the vision as trusted experts, so the founders are able to look ahead for
growth opportunities.
Seeking growth opportunities was just as high of a priority for the participants,
who spoke of acquisitions and organic growth in addition to ensuring a high return on
investment. This primarily included maintaining a high level of involvement in the
marketplace to understand demand and shifts in preferences so that they could anticipate
market demand and fill the demand before their competitors. Several described their
primary role as establishing relationships with clients to maintain the culture, cast vision,
and ensure highest quality of product or service delivered. They described the nature of
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their long-term relationships, indicating how important it was for those customers.
Founders spoke with pride of the clients who had worked for them since the beginning of
their business, some celebrating 20 years together. Participant 3 described his initial
contact with potential clients stating that he saw his role as one to “meet the initial,
potential people who are interested, to have the first meetings, and to open the door, and
to expose them to what we do and what to look for in a service,” while Participant 6
emphasized that the quality of service his business offered was primarily responsible for
their growth.
Participants spoke of their superior people skills in communication and casting
vision as well as their commitment, integrity, and likable personalities that allow them to
connect with employees and customers. They believed that having superior people skills
created an open environment where employees actively engaged in the business and came
to work excited every day. Participant 9 explained that having a keen ability to connect
with his investors was a crucial contribution he has made to his organization. As
Participant 10 explained how he revolutionized his industry, he echoed that he relied on
his ability to communicate with industry leaders and showed them a new way of
conducting business.
Product expertise also emerged as an essential ingredient in founders’
contribution to growth as they described their ability to create products, develop services,
and develop product strategy, along with their ability to innovate and lead the creative
process. Participant 8 stated that he was a technical guy who had strong generalist skills
such as superior human resources knowledge. He explained that it made it easy for him
to speak the language of that particular department while guiding them in product
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expertise. Participant 6 explained that he was the chief product person and that being
technically minded was a key to growth because he saw that product expert CEOs were
the ones “creating the wild innovations who can sustain that over the lifetime” of the
business. A return to the importance of innovation emphasized anticipating demand, and
according to Participant 1, “to give them something they are wildly dreaming about” but
are not aware that it is possible yet. Participants explained that their role in innovation
was to be involved in sharing the vision, connecting marketplace needs with their
products and services, and ensuring they were involved in a continual cycle of innovation
and improvement.
It was also evident that participants intimately led the organization with a direct
approach through leading by example, from casting vision to directly assisting any
department within the organization. Their active involvement in the business was not
perceived as controlling, but rather as inspiring employees. They also described how
seeking industry recognition was an important role they played in being listed in the Inc.
500, receiving awards for customer service, innovation, growth, or other distinctions
relevant or important in their industries. Although these accolades are prestigious,
participants identified that their reputation was ultimately the key to their sustained
growth.
Sustainable growth. A key distinction between the entrepreneur-founder who
pursues growth rather than running a small or micro-business is a high engagement that is
shared as the founder motivation for growth. A business can only sustain growth over
time if the founder and top leadership of the business are intentional about pursuing such
growth. According to Wiklund et al. (2009), business growth is largely dependent on the
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founder’s desire for such growth. Therefore, understanding what motivated the founders
to sustain growth was an important element in the analysis of vision impact on
sustainable growth. Table 12 summarizes the participant responses.
Table 12
Founder Motivation for Growth
Category Descriptor Responses
Legacy 8 out of 10
Employee Relationships 10 out of 10
Challenge of Growth 6 out of 10
Innovation 6 out of 10
Corporate Social Responsibility 6 out of 10
Although none of the founders spoke of legacy directly, as they addressed
different aspects of motivation and pride in the organization, these discussions were best
described through this focus. For example, they addressed being industry leaders,
impacting industry through their products or services and, more specifically, their clients,
and envisioning their products or services being widely distributed. Participant 7 stated
that “I will pass on something that is worthwhile and sufficiently stable over time” and
described her up-coming retirement where she would still be involved in the vision and
growth of the business while letting go of the day-to-day business operations. Participant
4 explained his desire to “build an amazing product that would touch as many businesses
and empower them to do great things. It would change how people connect, it would
change their innovation, and it would completely change how they go to market.”
Participant 4 expressed his desire to have such an impact on the market that it would
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change the industry. In addition, Participant 8 described his dream to “develop future
leaders: leaders who are autonomous and aligned and collaborative, and growing every
day as individuals” and by doing so, would empower his employees to become industry
leaders.
All 10 of the founders described their relationship with their employees in terms
of parental pride when they observed employees accomplishing initiatives aligned with
their vision and without direction. Participant 2 described “being able to pull together
and maintain a team that pulls together, stays together, and shares your values” as central
to the organization’s ability to grow and as a motivation for the founder to continue
forging ahead. Participant 8 stated, “I am saturated with happy employees with high
engagement rates, active employees, and being around great people who are doing great
things and are really smart. That’s what motivates me.” Participant 9 said that mentoring
his employees, watching them develop and grow, and then being able to compensate and
reward them for that growth was his most rewarding responsibility.
The challenge of scaling growth was also a strong motivator, as founders enjoyed
the process of expanding product lines and product offerings, introducing their products
to new industries or new clients, developing systems and processes that supported the
growth of the business, and taking calculated risks to introduce new products and services
ahead of the competition. The challenge growth reintroduced their passion for product
innovation and market leadership, as they desired to remain at the top of their industry.
Corporate social responsibility emerged as a significant motivator of founders as
they described how their businesses impacted different stakeholders and how they were
passionate about giving back to their communities. Conversation threads involved
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different aspects of the triple bottom line: people, planet, and profit. These founders
acknowledged their responsibility towards their employees and families, providing
educational opportunities for employees and scholarships for family members as well as
offering benefits beyond government requirements. Several discussed their concerns for
the planet through programs that addressed reducing their carbon footprint through
recycling, reducing, and eliminating tons of paper and organic production. They also
shared with great enthusiasm their initiatives with respect to giving back through sharing
profits, along with helping other entrepreneurs with startups.
Presentation and Discussion of Findings
The interviews consisted of questions in three main areas, covering founder
vision, sustainable growth, and entrepreneur characteristics, that explored the impact of
founder’s vision on sustainable growth. Participant offered insights from experiences
with starting their own business where they were asked questions about their vision,
reasons that contributed to growth, challenges and opportunities, key contributions to
growth, and motivation to continue growth.
Whether founders started with a clear vision or quickly caught up with their
vision, they (a) recognized an opportunity, (b) targeted a niche, and (c) possessed a view
of growth scalability as shown in Table 13. This initial vision was central to fulfilling
their dream of being best in class and leaders in their industry. Ensley et al. (2000)
confirmed that the founder’s ability to identify opportunities was key to founder vision
and reflected the statements participants made who stated a variety of ways they created
opportunities through their product innovations that filled a unique market need. This
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ability to seek out opportunities and problem solve for their customers was a key element
of their vision that lead them to plan for growth and scale their businesses appropriately.
Table 13
Key Elements of Founder Vision
Category Descriptor Responses
Opportunity 10 out of 10
Niche 9 out of 10
Scalability 7 out of 10
Not every founder includes growth as a goal. However, when growth becomes
part of that vision, the founder’s ability to sustain growth over time is dependent on a
number of elements. Researchers have identified innovations, niche development, and
competitive advantage as key elements of growth (Harms, 2009; Wiklund et al., 2009).
Other researchers also mentioned the founder’s ability to organize financial resources,
hire the right quantity of employees at the right time, and, therefore, scale the business as
key to sustaining growth (Feldman & Klofsten, 2000; Watson, 2006). Toward this end,
employee engagement and customer relationships were viewed as keys to growth. This is
because increased employment indicates a greater demand and workload, and strong
customer relationships lead to loyal and happy customers that, in effect, lead to increased
sales (Brunninge et al., 2007; Wiklund et al., 2009). As shown in Table 14, the founders
in this study summarized the key elements that contributed to sustainable growth as
employee engagement, innovations, and niche maintenance. These are what they
identified that lead to a competitive advantage: managing financial resources in such a
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way that they are positioned to scale the business for growth and problem-solving that
builds satisfied and loyal customers.
Table 14
Key Elements to Sustainable Growth
Category Descriptor Responses
Employee Engagement 10 out of 10
Innovation 9 out of 10
Find a Niche 9 out of 10
Competitive Advantage 9 out of 10
Financial Resources 8 out of 10
Customer Relationships 8 out of 10
Scalability 7 out of 10
Finally, the analysis of how vision leads to growth, the entrepreneurial ability of
the founder to sustain growth emerges to create a picture of what distinguishes the
medium-size business founder. Table 15 displays the four themes that emerged from the
participant interviews focusing on the impact of vision on sustainable business growth.
Table 15
Themes on the Impact of Founder's Vision on Sustainable Growth
Category Descriptor Responses
Cast Vision 10 out of 10
Hire Quality Employees 10 out of 10
Seek Growth Opportunities 10 out of 10
Innovation within a Niche 9 out of 10
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The study of medium-size businesses provided the researcher with insights into
founders’ perceptions concerning what has led to such growth. The size of these
businesses indicated some level of accomplishment as few small business founders reach
these levels of employment. By exploring the relationship between the growth of these
medium-size businesses and the vision of the founders, the researcher was able to analyze
its impact. The results of such a study will contribute to the understanding of how
medium-size businesses attain their size and provide a framework for guiding future
entrepreneurs to grow their businesses as well. These four themes will be explored and
developed in Chapter Five.
Summary of Chapter Four
Chapter Four started with a review of the purpose of the research and the
interview criteria for selecting founders. The demographics of the 10 participants
reflected the lower-than-average number of female- and minority-owned businesses
within the medium-size business sector (American Express Open, 2014). The
demographics also reflected a range of industries and ages of businesses. The data was
presented with a review of the process of analyzing qualitative interviews following
Creswell (2014) six steps for qualitative research data analysis. The data from the
research questions were also summarized under the three headings of the research study:
founder vision, sustainable growth, and entrepreneurial process. It was also discussed
how the process of analysis allowed the researcher to combine commonalities among the
answers and to examine the frequency that the founders mentioned these data categories.
A series of tables were also provided that summarized the data, followed by a discussion
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and participant quotes that further explained identified data categories. This provided
richness and depth to the data analysis as themes were presented.
In the following chapter, the researcher will develop the four themes identified by
the founders who were interviewed, describe the implications of the findings, and discuss
how they can contribute to understanding the impact of founder vision on sustainable
business growth.
CHAPTER FIVE
Minimal research exists that focuses on medium-size businesses. In addition,
limited research exists on the particular topic of founder vision as it relates to growth.
The current literature focused primarily on entrepreneur characteristics, hyper-growth, or
strategic planning but did not explore the relationship between entrepreneurial vision and
how it relates to business growth. This identified gap in the body of knowledge led the
researcher to examine the literature as it relates specifically to the founder’s vision and
how that vision may impact growth throughout the life of a business. The purpose of this
qualitative study was to foster an understanding of sustainable growth by exploring the
views of 10 founders from selected medium-size businesses that could provide a means
for future founders to grow their businesses intentionally. Purposeful sampling was
utilized to select the 10 founders who shared their experiences and, therefore, provided
insights into their vision as founders, to include how their vision impacted their business
growth. This number of participants provided for sufficient data to conduct a detailed
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research analysis. Through an open-ended interview process, the study revealed a
number of themes from the founders.
The medium-size business founder exhibited certain characteristics identified
through the research and, coupled with a better understanding of their challenges and
opportunities, yielded a preliminary view of the relationship between the founders’ vision
and their ability to grow a business beyond a micro or small business to a healthy
medium-size business. Toward this end, this study can contribute to future founders’
understanding of sustained business growth by potentially gaining beneficial insight.
This chapter contains the interpretation of the findings from the four identified
themes presented in Chapter Four as well as the conclusions of the purposive study. The
researcher then follows with a statement of the study’s limitations and the implications
and relevance for practitioners. Finally, the researcher makes recommendations for
future research, discussing the areas that could strengthen the current literature and this
study.
Findings and Conclusions
The U.S. economy is dependent on a broad base of growing small- and medium-
size businesses that contribute to the local economy and develop product innovations as
medium-size businesses employ over one-third of the workforce (Caruso, 2015). Large
failure rates among startups can hamper the economy. Therefore, developing models that
enhance business success and growth become essential research components (Alsaaty,
2012; Van Auken, 1999). The current literature makes little distinction in the study of
small businesses, following a very broad model established by the U.S. Small Business
Administration (2015) that defines small businesses based on industry-specific norms.
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Research that studies business growth is more concerned with the annual percentage
growth. Toward this end, small business research may factor into the same study that
examines a variety of business sizes ranging from under 10 to over 500 employees, thus,
making it difficult to draw reliable conclusions from such varied businesses (Fadahunsi,
2012). Relatively few studies have focused exclusively on medium-size businesses, and
based on this research, this business category offers extensive knowledge that can
contribute to the growth of other small businesses. Hence, founder vision and business
growth are two elements that, when combined, can pave the way for other founders to
lead more viable businesses and sustainable growth.
The population under study was founders who have achieved growth based on the
U.S. Department of Commerce’s definition of medium-size businesses as employing 100
to 499 employees (Caruso, 2015). This presented a comparable measure of growth for
this research. A qualitative research methodology was chosen as an appropriate method
to explore the views of a small purposive sample of founders through a semi-structured
interview process. This approach allowed the researcher to discover the experiences of
the founders in relating their vision and growth phenomenon. The purpose of the
research was to discover the perceived influence of founder’s vision on sustainable
growth in support of the possibility to develop a model that can contribute to the
successful growth of other businesses.
The qualitative study consisted of seven questions divided into the following three
areas of exploration: founder vision, business growth, and founder contribution to
growth. These questions explored founders’ perceptions of the elements they considered
vital to the growth of their businesses. The four themes that emerged from the interviews
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as the impact of founder’s vision on sustainable growth were (a) cast vision, (b) hire
quality employees, (c) seek growth opportunities, and (d) innovate within a niche. Based
on the responses from the seven research questions employed (see Appendix A), these
themes emerged from analyzing the data that were coded, analyzed, and grouped into
similar themes.
The themes emerged through the analysis process described in Chapter Four
concerning how data is analyzed in qualitative studies. After interviews were transcribed
and coded, the founders’ responses were organized into tables, followed by a process of
identifying categories and clusters from the comments collected. These responses, as
they were placed into common categories and clusters, created rich descriptions of
founder experiences with a smaller number of themes that emerged. Core themes were
ranked based on the participants’ responses from highest to lowest, which are listed here
in this order. The participants’ views concerning the impact of their vision for business
growth may result in a better understanding of what contributes the most to business
growth and, therefore, contribute to other founders’ ability to lead growth in their
businesses.
Theme One: Cast Vision
At the conception of a business, the vision of the founder will impact what
happens in that business. Not all business owners view growth as a goal, and, therefore,
will not pursue any of the concepts contained in this study. Many founders are content to
own a small operation with a small number of employees. According to Caruso (2015),
very small businesses with fewer than 20 employees employ 17.6% of the U.S.
workforce; small enterprises with up to 99 employees employ another 16.7% of the
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workforce. Some founders do, however, envision scaling their enterprises and may
benefit from those entities that have already reached the status of a medium-size business.
Ensley et al. (2000) described entrepreneurial vision as an ability to see what is
not there and to see the possibilities for a business. As such, they reported that growth
was directly related to the founder’s vision. This focus on seeing opportunities before
they exist was reflected in the participants’ answers when they spoke about anticipating
market needs, keeping employees focused on the vision, and setting the vision. This
vision was further described as a distant motivational goal that reflected the values of the
founder and, therefore, the organization. Baum and Locke (2004) emphasized that this
vision must be communicated clearly and can exhibit a positive effect on organizational
performance. Thus, visions for high growth are followed by casting vision so that a
larger team can achieve the growth together. Casting a vision, therefore, is a process of
sharing a vision in such a way that employees catch the vision and work to achieve it in
unity.
Even though only half of the participants stated they started their business with a
clear vision, possessing a clear vision was reported as a key to their growth. Brizek
(2005) confirmed that a clear vision helped the entrepreneurs in his study to remain
competitive, innovate, and grow. Thus, the founders in this study reported that their
vision from the onset was one of growth and delivering the best in their industry. As
such, casting a vision of being industry leaders was central to their discussion.
Participant 8 shared that his “vision has always been to bring people together and help
them do great things” in his industry, which then developed into his business culture as
well. This view of casting vision included being optimistic and passionate about the
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business, demonstrating a commitment to the employees, and finding different ways to
communicate the vision so that it was meaningful to investors, employees, and
customers.
Founders reported that having strong people skills coupled with superior
communication were key to their business growth, as it contributed to their ability to cast
vision and inspire employees to adopt the vision. This ability to communicate and relate
to others was crucial in all aspects of interactions with respect to building relationships
with customers, employees, suppliers, and other stakeholders. Many times, a growing
business can be perceived as a higher risk, and these skills will help the founder receive
buy-in from those with whom they interact. When it comes to casting a vision of growth,
communication skills are crucial to attaining employee commitment, especially because
they are the ones who will perform the required work.
Human relations skills are crucial to founders as they cast vision and rely on
employees to help accomplish their vision. In this process, developing an organizational
culture that accomplishes the vision, learning to delegate more, and empowering the
employees hired in areas of needed expertise, as well as the ability to motivate employees
to perform optimally and embrace the vision, are all crucial to business growth. Baum
and Locke (2004) explained that as founders cast vision, they become great
communicators. Realizing they cannot accomplish their vision alone, they seek ways to
inspire employees. Mitchelmore and Rowley (2010) concluded that superior
communication and people skills culminate in exceptional leadership skills.
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Theme Two: Hire Quality Employees
Theme two was identified as the founder’s ability to hire quality employees. To
define quality employees, research participants were unanimous in stating that a founder
who envisions growth must hire the best talent available. Hiring quality employees can
be a challenge as others are searching for a limited pool of quality, committed people
who can catch the vision and embrace it. They described quality employees as people
who were committed to their work, passionate, and talented, with strong people skills.
According to Formichelli (1997), founders who control too tightly scare away any talent
and hire under-performers they can control. However, founders who envision growth
must possess a high level of understanding of their skills and abilities if they want to hire
talented people who can catch the vision and lead the organization in their expertise
areas. In effect, this will free founders to continue to cast vision and hire other quality
employees who can make a difference. Barringer, Jones, and Lewis (1998) reported this
managerial capacity problem in earlier research, concluding that founders must hire
quality employees who possess expertise and who can lead a team to continual growth.
Participants stated that hiring the right people was crucial to their success, yet
empowering them to perform their work was even more important. Participant 6
discussed “finding the one person out of 80 who is not only passionate and talented but
who also has a way of putting people skills, leadership skills, and serving skills that make
him unique and stand out.” Participant 5 brought it back to casting vision when he stated
that “great people tend to work for greatly run organizations and ethical companies, and
it’s made the difference for us.” Participant 8 summarized the founder’s experience by
stating that people at his business “have been the greatest contributors to success.”
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Theme Three: Seek Growth Opportunities
Groves et al. (2011) defined growth seeking as a means of using multiple sources
of information, both formal and informal, to create new knowledge and identify creative
solutions to problems. They remain close to the market, seeking to understand their
customers’ needs and the trends in the marketplace and relying on creativity and intuition
to find unique solutions to customer problems. These founders can seek out opportunities
to anticipate demand and to create opportunities for their businesses faster than the
competition, remaining leaders in the marketplace (Brizek, 2005; Ensley et al., 2000).
Growth is a standard measure of performance as it creates jobs and increases economic
contribution (Baum & Locke, 2004).
Several participants explained that the key to their growth was that they
maintained market leadership and constantly anticipated their customers’ needs. They
explained that the old business model was to create a need in the mind of the customer
and get them to buy a product. Emerging companies today, however, anticipate a need in
the market and educate their customers on the solution to their problems. They described
their ability to know the customer’s needs so well that they can create a product before
the customer needs it. They described themselves as the best in the industry and the best
in class. Participant 5 stated that “instead of going head to head with the competition, we
are trying to be the industry leader and look at it a different way” to impact customers.
Theme Four: Innovation within a Niche
The quest for innovation includes searching for ways to improve people’s lives
while reducing the effort exerted for that improvement. Toward this end, a founder’s
preoccupation with innovation focused primarily on ways to organize capabilities,
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knowledge, resources, and skills to produce something better than the competition.
Innovation can involve the introduction of a new product, organization, or process
(Galindo & Méndez-Picazo, 2013). Mitchelmore and Rowley (2010) reported a number
of entrepreneurial competencies that have contributed to business growth. These
included identifying and defining a viable market niche, generating an idea, and
developing innovative products or services appropriate to the identified niche, as well as
recognizing and envisioning taking advantage of opportunities. These competencies
aligned with this theme that emerged from the interviews. A key element of
organizational growth was a founder’s ability to capture the opportunity and then put
both financial and employee resources in place to take advantage of that opportunity.
Regarding product development, Participant 2 stated the following:
[The] biggest help for the company now is making sure that we stay focused on
those elements of the product that are going to serve not only what our customers
say they want, but what they’re saying and what we don’t hear them saying.
Other participants agreed and spoke about their need to connect innovation with their
customers’ needs. They also addressed how they differentiate themselves within their
market niche and position their products uniquely within their industry.
Participants spoke strongly about their product skills and the importance of these
skills translating into an ability to lead innovation, maintain their position as industry
leaders, and produce superior products. They explained that because of their product
background, they were able to stay in tune with market demand and anticipate problems,
which, in turn, led back to more innovations. These founders believe that product people
are great salespeople because they can explain the product, troubleshoot, and relate easily
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to the buyer’s demands. Participant 2 explained that to sustain growth, the founder must
be technically minded: “The businesses and the CEOs that are creating the wild
innovations and can sustain such impressive innovations over the lifetime of a business
are the product people.” They can drive the innovation cycle because they understand the
product. He concluded that “a great product person ultimately ends up also as a great
salesperson because, in their role selling their product to their customers, they can talk
about, they can get people emotionally connected to the problem and to the solution that
their product offers.”
Limitations of the Study
The researcher faced several limitations in this study. The small sample size
provided a beginning exploration of the topic concerning the impact of founder’s vision
on sustainable growth; however, a larger research sample may have provided data
resulting in a different outcome. Although over 100 founders were contacted, the
majority never responded to emails and phone calls. Five stated they were interested but
did not make the commitment to the interview, and two canceled multiple times. The
decision to include only businesses with 100 to 499 employees, as classified by the
Department of Commerce (Caruso, 2015), could also be considered a limitation because
the experiences of businesses larger and smaller were not sought.
An exploratory research format provides a strong narrative, yet cannot apply to
any particular founder or industry. Through recording individual experiences, the results
were open to the personal interpretations of the founders interviewed. A larger pool of
participants focused on specific industries would likely reveal some variations from the
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current findings. Finally, although not observed in this study, the length of time the
business was in operation may also influence future results.
Implications for Practice
A review of current literature captured some of the themes that emerged from the
interviews conducted for this study. The literature identified the themes that emerged
from the research in a variety of ways, yet it did not highlight the importance of casting
vision with the same emphasis that was raised in the current research. As such, all
participants (100%) discussed the importance of casting vision, hiring quality employees,
seeking growth opportunities, and innovating within their niche. Also, they emphasized
that possessing superior communication and people skills and product expertise added to
their ability to remain market leaders. In previous research, these themes were not
addressed together as crucial elements to sustainable growth, as much of the identified
research focused on financial resources and other challenges growing organizations face.
The following model, as shown in Figure 4, serves as a visual representation of
the results of this research. Each element was supported by the interview results reported
in Chapter Four. As illustrated in Table 13, Key Elements of Founder Vision, the
founders identified three items as most important elements of their vision: an identified
opportunity, the creation of a narrowly defined niche, and an ability to scale growth. The
four arrows leading towards sustainable growth are the four themes developed in Chapter
Four as well and illustrated in Table 15, Themes on the Impact of Founder’s Vision on
Sustainable Growth. This model is simple to understand and can be used by practitioners
to discuss with small and medium-size businesses. The model is also useful to the
founder who wants to develop sustainable growth.
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Figure 4. Building an integrative model of the impact of founder vision on sustainable
growth.
According to Dutta and Thornhill (2014), only 3.5% of businesses grow into large
corporations, and the distance between a business with 10 employees and 500 may seem
insurmountable to a founder. However, learning from another founder who was able to
reach 50, 100, or 250 employees could pave the way for these smaller and possibly newer
businesses to pursue growth. For the practitioner, research conducted specifically with
medium-size businesses provided a more realistic path for the smaller business to follow
while helping the medium-size business founder understand that others are facing similar
experiences. Many of the founders who participated in this study stated they would be
interested in reading the results because they are curious to learn how others answered the
same questions. The shared knowledge could provide validation to their observations
while building their confidence that others are experiencing similar situations. This study
has the possibility of impacting both the founders who participated in this study and
others who could read about the results in the future.
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Implications of Study and Recommendations for Future Research
As stated in Chapter One, the American economy is dependent on a constant
influx of new businesses (Konorti, 2010). The high failure rate and a large percentage of
businesses that remain under 20 employees indicate that a need still exists for research
and education that can guide future startups and founders. If researchers can demonstrate
what elements contribute to the successful growth of businesses across industries, their
studies will greatly enhance a newcomer’s ability to achieve growth with more accuracy
and consistency. Toward this end, the results of this research project provide some links
that were not clearly defined in the literature, demonstrating relationships that founders
can benefit from understanding. Building on the concepts presented by Wiklund et al.
(2009), this model demonstrated what medium-size founders identified as the most
important elements leading to sustainable growth.
The findings and conclusion of this research project provided a window into
understanding the founders’ lived experiences and perceptions concerning vision and
sustainable growth from the perspective of 10 medium-size founders. The following
recommendations for future study may help current and future founders develop a vision
and create their pathway to sustainable growth. The following recommendations are
divided into practical applications for founders and practitioners, and recommendations
for future research.
Recommendations for Founders and Practitioners
Founders and practitioners can benefit from understanding the principles of
business startups, followed by an understanding of the path others have taken to create
sustainable growth. An understanding of the phenomena concerning founder vision and
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sustainable growth will help founders navigate better, plan for, and sustain growth in
their businesses. The new themes identified in this research will also help founders
realize that sustainable growth is an achievable goal.
Recommendations for Future Research
This study provided a foundational work in understanding the tenets of founder
vision and its relationship to sustainable growth. The results presented can be expanded
in a number of ways to continue deepening the body of knowledge that relates sustainable
growth to founder vision. Three suggested areas for future study are provided herein.
First, an expanded pool of founders could provide future researchers with confirmation of
themes identified in this study. Thus, confirmation of themes could be accomplished by
following the same protocol regarding continuing the same interview process. Second,
confirmation of themes could be tested through a series of industry-specific interviews,
comparing the themes across industries. In the small sample included in this study, many
similarities were evident in the reports across industries; however, a larger sample in each
industry would allow future researchers to draw conclusions with a greater degree of
certainty. Third, a quantitative study could be developed to test these themes across a
large sample and statistically demonstrate the reliability of the results. From these
results, theories may be developed that could provide researchers with tools to help future
founders reach similar growth as well.
Reflections
Organizational growth cannot occur without change. A review of the literature on
organizational development and change supports much of the findings reported by the 10
founders who were interviewed. Small businesses have an organizational structure that is
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closely held and founders often introduce change at a slower pace than organizations that
engage in a more formalized organizational structure. Thus, founders who engage a
governance structure with top management hired for specific areas of expertise are better
prepared to introduce change as the organization continues to grow (Brunninge et al.,
2007). The founders interviewed confirmed this as they reported that they would have
benefited from hiring quality, specialized talent earlier in the life of the business.
Smollan and Sayers (2009) explored the relationship between change, organizational
culture, and emotions, concluding that change ultimately is about feelings. The closer
change is aligned with one’s values, the easier it will be to embrace the change.
Organizational growth and change can only be sustainable over time if the organization
can shift and support an evolving culture (Arnold, 2010). Again, founders reported that
their primary responsibility was that of casting vision, which they reported as aligning
with business culture and values and communicating this vision to their employees.
Organizational change theory is a mature area of study where researchers have
devoted much focus on studies of change in large corporations. Organizational
development is a study of how organizations conduct planned change as they progress
through adjustments and growth. Applying these theories to small and medium-size
businesses might reveal a number of unique concepts that would be better suited to a
smaller organization.
Regardless of size, organizations are facing an ever-increasing rate of change in
the environment due to global competition. In effect, this is shifting available workforce
talent and creating economic turbulence that is forcing them to analyze their strategies to
maintain sustainable growth (Latham, 2013). Bordum (2010) addressed methods used by
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top management to discuss environmental changes through the traditional SWOT
(strengths, weaknesses, opportunities, and threats) analysis and other methods as well.
Klarner and Raisch (2013) presented how organizations must adapt at different rates to be
successful, while Mwanzia, Lulili and Wong (2011) addressed the growing awareness
among both scholars and practitioners that organizational change must become a
continuous process. Successful entrepreneurs understand this well, as they create and
bolster organizations that are poised for constant change and innovation.
Conclusion
Chapter Five presented an overview of the problem statement, purpose, method,
limitations, implications, and recommendations for future research. The body of Chapter
Five interpreted and expounded on research findings as well as the four themes that
emerged from the in-depth interviews. Figure 4 introduced an integrative model of
founder vision leading to sustainable growth where the founders defined their vision as
something that had evolved to include an opportunity in the marketplace, the creation of a
niche, and ability to scale the business. The four themes that emerged from the research
are the elements that contributed to making the founder’s vision a reality and creating that
pathway for sustainable growth as follows:
1. Cast a Vision: The founder has a responsibility to communicate the vision
clearly and inspire employees to follow that vision.
2. Hire Quality Employees: To grow, the founder must move from the “hands-
on” owner involved in all business minutia to a strategist who gives direction
to the organization. Hiring quality employees who can catch the vision, align
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to the values of the business, and be accountable for their expertise allows the
founder to move to a more strategic position that continues to cast vision.
3. Seek Growth Opportunities: The founders reported that they maintained a
close relationship and handled many aspects of the growth process ranging
from watching trends, understanding the disruptive movement of their
industry, and identifying innovations and shifts that will keep their business
healthy and grow.
4. Innovate within a Niche: To sustain growth, the founders reported a need to
identify clearly a niche and create innovations for that niche. Growth was
possible and sustainable when they did not try to accomplish too much or
reach too many segments within their industry.
This study represents a practical guide that both founders and practitioners can
follow to ensure sustainable growth. The recommendations for future study also provide
a summary of other research that can strengthen the body of knowledge concerning the
relationship between founder vision and sustainable growth.
121
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APPENDICES
136
APPENDIX A
Interview Guide
“Thank you for agreeing to participate. This interview will last approximately 45
minutes. You have been selected for this interview because you have a great deal to
share about growing a business. My research project as a whole focuses on the elements
that affect the ability of an organization to sustain growth over time as the organization
expands beyond a startup into a healthy medium-size business. I want to learn more
about the experiences of founders as they maintain growth in their organization. To
facilitate my notetaking, I would like permission to record our conversation. Could you
please sign the release form? Only I will have full access to the recordings which will
only be used for my dissertation.”
Main questions to guide conversation with individuals.
A. Vision and contribution to growth
1. Briefly describe how you, as the founder of this business, envisioned your
business when you started it.
Probes: Would you give me an example?
2. When you started your business, how large did you envision it to grow? Has is
met your expectations? And if so, how?
3. In what specific ways has your business excelled? To what do you attribute this
success?
4. Has your vision for the business changed over time? If so, how?
B. Organizational Growth
5. How are you involved in the growth of the organization today?
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Probes: Is it working – why or why not?
6. What motivates you to continue to pursue growth for your business?
7. What resources are available to your employees for sustaining growth over time?
Probe: Would you give me an example?
8. How has your role changed over time?
Probe: Is there anything else?
C. Attitudes, Skills, Experiences that Lead to Growth
9. What are some of the major challenges you have faced through the growth of your
organization?
Probes: What are the major opportunities?
How did you overcome the barriers?
10. What strategies and personal skills did you employ that contributed to such
growth?
Probes: What would you do differently if you were to start now?
11. Is there anything more you would like to add?
Demographic Data
Male / Female
Age:
Number of years in business:
Number of businesses started, if any others:
Number of current employees:
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APPENDIX B
Informed Consent
Title of Study: The Impact of the Founder Vision on Sustainable Growth of Medium-Size
Business
Investigator: Kimberly Pichot
Contact Number: XXX-XXX-XXXX
Purpose of the Study
You are invited to participate in a research study. The purpose of this study is to
understand the relationship between the founder’s vision and the sustainable growth of
the business.
Participants
You are being asked to participate in the study because your experience, knowledge, and
insights as an entrepreneur and founder of a growing business are critical to this study.
Procedures
If you volunteer to participate in this study, you will be asked to do the following: Share
your vision of the business when you started and answer some questions about growth,
including some statistics on the number of employee growth, and some general
documents that will give the study some background such as the organizational chart and
strategic plan.
Benefits of Participation
There may/may not be direct benefits to you as a participant in this study. However, we
hope to learn a variety of ways that founders have envisioned the growth of their
businesses and the generalizations from several founders may give you insights that can
help your continued growth and success.
Risks of Participation
There are risks involved in all research studies. This study is estimated to involve
minimal risk. An example of this risk possibly feeling uncomfortable answering question
about your organization.
Cost/Compensation
There will be no financial cost to you to participate in this study. The study will take
approximately 45 minutes. You will not be compensated for your time. Colorado
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Technical University will not provide compensation or free medical care for an
unanticipated injury sustained as a result of participating in this research study.
Contact Information
If you have any questions or concerns about the study, you may contact Dr. Amy
Alfermann, email, XXX-XXX-XXXX. For questions regarding the rights of research
subjects or any complaints or comments regarding the manner in which the study is being
conducted, you may contact Colorado Technical University—Doctoral Programs at
XXX-XXX-XXXX.
Voluntary Participation
Your participation in this study is voluntary. You may refuse to participate in this study
or in any part of this study. You may withdraw at any time without prejudice. You are
encouraged to ask questions about this study at the beginning or at any time during the
research study.
Confidentiality
To provide confidentiality, the researcher will develop a coding system so that the names
of the participants are never written down in meeting notes. Furthermore, any notes from
meetings are kept in a locked filing cabinet where others cannot access the data. As the
researcher records any conversations, the recordings will be kept secure and transcribed
without identifiable data to maintain anonymity. At no time should the researcher’s notes
be available for others to see and read.
Participant Consent
I have read the above information and agree to participate in this study. I am at least 18
years of age. A copy of this form has been given to me.
______________________________________ _____________________
Signature of Participant Date
______________________________________
Participant Name (Please Print)
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APPENDIX C
Email to the List of Businesses
Founder vision and business growth interview request for my dissertation
Dear Mr. Founder,
I recently read about [business name] and your accomplishments and would like to
request an interview with you about your entrepreneurial vision for the business and how
it has grown.
This would involve talking about general principles important to you in starting and
growing your business, rather than proprietary information about your business. Since
you are in the DC Metro Area, we would have the choice of talking in person or over the
phone.
As an entrepreneur and small business consultant, I am passionate about helping startups
develop sustainable growth, and have chosen this topic as the focus of my dissertation.
Would you be willing to set aside 30 to 45 minutes to talk about your experience as an
entrepreneur?
Thank you in advance for your time,
Kimberly Pichot
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APPENDIX D
Purpose of the Research Study
This summary of the dissertation proposal was provided to participants who responded
with interest to further narrow the scope of the research.
Problem Statement
The study of business growth has largely focused on either large corporations or small
business under 100 employees, yet the literature demonstrates an imbalance in the study
of growth among medium-size businesses. Relatively few studies focus exclusively on a
medium-size business because of the difficulty in identifying a common set of criteria in
relationship to size. One cannot conclude that growth strategies that work for large
businesses would also work for medium-size and small businesses. Founder vision and
growth intentions bear an impact on the types of strategic growth decisions they make,
but little empirical data exists in this field as of now as well. A significant gap in the
literature indicates that there needs to be a study concerning the ability of a business to
sustain growth and maintain the health of the business over time. Studying sustainable
growth phenomenon that has occurred among growing medium-size businesses could
reveal patterns and lessons that other entrepreneurs could adopt to reach similar
growth. Coupled with a search for understanding of the founder’s vision in relation to
sustainable growth, this research will fill a demonstrable gap in the literature.
Purpose of the Study
The purpose of this qualitative study is to understand the relationship between the
founder’s vision and the sustainable growth path the founder has taken to lead such
growth.
Participants
The ideal person I would like to interview is a business founder who has been in business
a minimum of five years and has an employee base of 50 to 250 employees. This person
is still actively leading the organization and will be able to share the experience,
knowledge, and insights as an entrepreneur and founder of a growing business.
Procedures
If you volunteer to participate in this study, you will be asked to do the following: Share
your vision for the business when you started and answer some questions about growth,
what you have seen as elements contributing to the unique path your business is
taking. This interview will last 30 to 45 minutes. The information gathered will be
shared in my dissertation in general terms, without divulging company secrets or the
names of the businesses.
Kimberly Pichot
Colorado Technical University Doctoral Candidate
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APPENDIX E
Table of Categories and Participant Responses
Category Code
Number of
respondents % 1 2 3 4 5 6 7 8 9 10
Table 7 Founder's Initial Vision
Initial Vision Opportunity 10 100% 1 2 3 4 5 6 7 8 9 10
Initial vision 6 60% 2 3 4 7 9 10
Part-time or side project 4 40% 5 6 8 10
Needed job 2 20% 1 6
Table 8 Does Vision Change Over Time?
Vision Vision did not change 5 50% 2 3 4 7 8
Niche 9 80% 2 3 4 5 6 7 8 9 10
Scalability 7 60% 1 2 3 4 6 8 9
Purpose 6 60% 2 6 7 8 9 10
Timing 4 40% 2 3 4 8
Table 9 Elements for Growth
Elements for
Success Competitive Advantage 9 90% 1 3 4 5 6 7 8 9 10
Market Demand 5 50% 4 5 8 9 10
Entrepreneurship 5 50% 5 7 8 9 10
Employees 10 100% 1 2 3 4 5 6 7 8 9 10
Favorable Market 5 50% 2 5 6 9 10
Customer Relationships 8 80% 1 2 3 5 6 7 9 10
Table 10 Major Challenges and Opportunities
Challenges Financial 8 80% 1 2 4 5 7 8 9 10
Employees 7 70% 1 5 6 7 8 9 10
Customer Relationships 5 50% 2 3 5 6 9
Competition 3 30% 1 5 7
Opportunities 3 30% 4 6 8
Culture 4 40% 2 8 9 10
Opportunities Innovations 9 90% 1 2 3 4 5 6 8 9 10
Niche 9 90% 2 3 4 5 6 7 8 9 10
Scalability 7 70% 1 2 3 4 6 8 9
Culture 5 50% 1 2 8 9 10
Table 11 Founder Contribution to Growth
Growth Cast Vision 10 80% 1 2 3 4 5 6 7 8 9 10
People Skills 7 70% 1 3 4 5 7 9 10
Product Expertise 7 70% 2 3 4 6 8 9 10
Hire Quality Employees 10 70% 1 2 3 4 5 6 7 8 9 10
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Seek Growth Opportunities 10 70% 1 2 3 4 5 6 7 8 9 10
Build Client Relationships 5 40% 1 3 6 9 10
Innovation 9 40% 1 2 3 4 5 6 8 9 10
Industry Recognition 5 30% 1 2 7 9 10
Personal Commitment 5 50% 4 6 8 9 10
Table 12 Founder Motivation for Growth
Motivation Legacy 8 50% 1 2 4 5 6 7 8 10
Employee Relationships 10 60% 1 2 3 4 5 6 7 8 9 10
Challenge of Growth 6 40% 3 4 5 6 9 10
Corporate Social
Responsibility 6 60% 1 2 3 6 7 10
Innovation 6 40% 2 4 5 8 9 10
Table 13 Key Elements of Founder Vision
Vision Opportunity 10 100% 1 2 3 4 5 6 7 8 9 10
Niche 9 90.0% 2 3 4 5 6 7 8 9 10
Scalability 7 70% 1 2 3 4 6 8 9
Table 14 Key Elements of Sustainable Growth
Sustainable
Growth Employees 10 100% 1 2 3 4 5 6 7 8 9 10
Competitive Advantage 9 90.0% 1 3 4 5 6 7 8 9 10
Niche 9 90.0% 2 3 4 5 6 7 8 9 10
Innovations 9 90.0% 1 2 3 4 5 6 8 9 10
Financial 8 80% 1 2 4 5 7 8 9 10
Customer Relationships 8 80% 1 2 3 5 6 7 9 10
Scalability 7 70% 1 2 3 4 6 8 9
Entrepreneurship 5 50.0% 5 7 8 9 10
Culture 5 50.0% 1 2 8 9 10
Table 15 Themes on the Impact of Founder's Vision on Sustainable
Growth
Themes Cast Vision 10 100% 1 2 3 4 5 6 7 8 9 10
Hire Quality Employees 10 100% 1 2 3 4 5 6 7 8 9 10
Seek Growth Opportunities 10 100% 1 2 3 4 5 6 7 8 9 10
Innovation within a Niche 9 90.0% 1 2 3 4 5 6 8 9 10
Additional
Concepts People Skills 7 70.0% 1 3 4 5 7 9 10
Product Expertise 7 70.0% 2 3 4 6 8 9 10
Build Client Relationships 5 50.0% 1 3 6 9 10
Industry Recognition 5 50.0% 1 2 7 9 10
Personal Commitment 5 50.0% 4 6 8 9 10
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APPENDIX F
Sample Transcript with Initial Coding
Step 1: Organize and prepare data for analysis—transcription
Step 2: Read all the data—read several interviews simultaneously to help compare and
see patterns
Step 3: Code the data—the coder utilized color and bold fonts to highlight key concepts
that stood out
Interview 6.
November 6, 2015
Interviewer: I’m very excited to talk to you today. I reached out to Dino at the Ed
Lowe foundation because I knew they work with the right size of business that I
want to talk to.
Participant: It is sad that Michigan has lost much of its entrepreneurial spirit
since the Henry Ford days. People got accustomed to working for large
corporations where it feels now that you cannot do anything without scale and
unfortunately now I think we’re losing a lot of the keen sharp thinking of the
fittest mentality that entrepreneurs have and that they bring to the marketplace
to make the world better.
Interviewer: We need to create an environment where more entrepreneurs like
you are birthed and encouraged to go out and start new businesses.
Participant: Certainly the Ed Lowe foundation contributes, and we love that
organization because of their focus on second stage. And of course we need
startup as well and creating an environment where more people will try to do
that. But it seems that we need a new appetite for entrepreneurs who are
willing to really work hard and start something new and pour their passion
and talent into that. And I think it is good for the economy and good for our
standard of living. I do believe those folks are out there but it’s just harder
and harder for them to get started. So how do we remove those obstacles to
allow them to flourish is something that I worry about myself.
Interviewer: So you started your business in 1987, and today you have about 120
employees. So when you started your business, did you envision it having 120
employees?
Participant: I envisioned it having one employee. I did not start the business
with any kind of plan. I had been laid off and couldn’t find work, so I grew
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up on a farm, my dad and uncles were very entrepreneurial and certainly had to be
competitive in that crowded space, and I learned a lot about self-sufficiency from
them, and I just never saw myself as being able to do it or having to do it. But
once I was laid off and couldn’t find work, I took a couple ideas I had for the
tractor and forklift world edges started running with them. My goal was to
initially find enough work that I’d be able to be self-employed, and I was not
thinking beyond that.
Interviewer: So when did that change?
Participant: It actually was an evolution process. He agrees with me. It’s like a
gentleman here from my church encouraged me, and people who knew I was out
of work kept encouraging me to go on my own. And this man would come over
wherever I was doing something and working and encourage me. He would say,
you know you just need to step into the water and once you get going, you’ll
find out it’s not that deep and you’ll be able to handle it. And I found that was
kind of true. So you move along, you go along and learn about something, and
you find the programs that are out there to help you. So I used SCORE, and then
you see what’s available and you talk to the chamber, and you just wade into it.
I don’t think it’s something you can go to the University for four years and to
learn about it, and say okay now I know how to do it. First you have to have the
idea and catalyzed thing and the rest of the steps, like learning marketing
and finance, they seem to come along as you grow and thrive. And you don’t
need those things until you’re ready to go. A broad knowledge about business
without an idea of what to do is a much bigger problem than great ideas that
the market might and then having to learn the other things and other aspects of the
business.
Step 4: Generate themes and descriptions
Themes, Key Words & Phrases
Vision
Unfortunately now I think we’re losing a lot of the keen sharp
thinking of the fittest mentality that entrepreneurs
We need a new appetite for entrepreneurs who are willing to really
work hard and start something new and pour their passion and talent into
that
I do believe those folks are out there but it’s just harder and harder
for them to get started
I envisioned it having one employee
I did not start the business with any kind of plan, I had been laid
off and couldn’t find work
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My goal was to initially find enough work that I’d be able to be
self-employed
Evolution process evolving
You just need to step into the water and once you get going you’ll
find out it’s not that deep and you’ll be able to handle it
I used SCORE
Talk to the chamber
Go to the University
First you have to have the idea and catalyzed thing and the rest of
the steps like learning marketing and finance, they seem to come along as
you grow and thrive
A broad knowledge about business without an idea of what to do is
a much bigger problem
Step 5: Interrelate themes and descriptions—created a spreadsheet to compare themes
and descriptions across participants
Step 6: Interpret the meaning of themes and descriptions
Memo: Develop a vision as they go along. They know they want to be self-
employed, or circumstances dictate to them that they need to start something since
they are unemployed. Here, an entrepreneurial family paved that way for
entrepreneurship to be born. He describes an evolution process, where he started
working part-time, then it grew, and he sought help from external resources to
know how to grow the business. Instead of growing very large, his model is to
create divisions with owner-partners and grow a number (6-7) of divisions all
with about 120 employees. Create a culture of expansion through startups and
acquisitions that are in the same industry and complimentary products to what he
already has.
Hiring the right people who are passionate and capable of doing great work
emerges as a theme throughout the interviews as well.
A Section of Notes from Peer Reviewer:
“Unfortunately now I think we’re losing a lot of the keen sharp thinking
of the fittest mentality that entrepreneurs have and that they bring to the
marketplace to make the world better.”—This is a challenge statement.
“So how do we remove those obstacles to allow them to flourish is something
that I worry about myself.”—Again, a challenge statement.
Here’s another example of a founder whose vision evolves.
“it actually was an evolution process”—He agrees with me!
There seems to be a common theme of delegating work across the interviews.
Speaks to motivation of the employee.
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Keep adding value to the steel business, and components—motivational
thoughts here.
Second interviewee to mention l You might incorporate into your paper that
luck is the interface between opportunity and action, and this fits some of
what I have read thus far.
Another recurring theme people !!!
