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Decisiveness and opportunity perception as predictors of entrepreneurial growth

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  • Nandram, Sharda

    (Nyenrode Business Universiteit)

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    Abstract

    A model for explaining firm’s growth has been developed and tested, based on the strategic management model of Chrisman, Bauerschmidt and Hofer (1999) and the attitude approach of Fishbein & Ajzen (1975). The research consists of a sample of 117 entrepreneurs. It is hypothesized that the model variables decisiveness and the perception of opportunities will occur as predictors of growth. It is hypothesized that the external variables may have an indirect impact on growth. The growth of a venture is measured by using two Birch-indexes, one for growth in turnover and one for growth in personnel. Both hypotheses have been confirmed for turnover growth. Results changed when using the Birch index for personnel growth. The role of decisiveness as a direct predictor of success disappeared. The education level was the highest significant predictor of success followed by the capacity for empathy. Opportunity perception contributed marginally to the prediction. It can be concluded that entrepreneurial variables are important but their role as a predictor depends on the growth measure used.

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    Bibliographic Info

    Paper provided by Nyenrode Business Universiteit in its series Nyenrode Research Papers Series with number 07-03.

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    Date of creation: 2007
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    Handle: RePEc:dgr:nijrep:2007-03

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    Web page: http://www.library.nyenrode.nl

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