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Established Business Owners' Success: Influencing Factors

Author

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  • JUAN CARLOS AYALA CALVO

    (La Rioja University, La Cigüeña, 60, 26004 Logroño, Spain)

  • GUADALUPE MANZANO GARCÍA

    (La Rioja University, San José de Calasanz s/n, 26004 Logroño, Spain)

Abstract

This study investigates the effects of the following factors on established business owners' success. First, the human capital of the entrepreneur is examined (education, experience, locus of internal control, need for achievement and resilience). Second, the characteristics of the firm with reference to the initial financial resources, number of partners, frequency and breadth of external communication are taken into consideration, and finally, factors relevant to the conception and development of the firm are studied. To achieve our objective, we have used a structural equation modeling technique (Partial Least Squares -PLS-) to estimate a path model with latent variables. Although all the latent variables have a positive impact on established business owners' success, our findings show clearly that the size of the company is an important moderating factor when explaining established business owners' success. The variables in which this effect is most evident are that of education and resilience. If we do not take the size of the company into consideration, the variables that help explain the success of established business owners are, in order of decreasing importance, experience, a favorable perception of the business environment and the resilience of the entrepreneur.

Suggested Citation

  • Juan Carlos Ayala Calvo & Guadalupe Manzano García, 2010. "Established Business Owners' Success: Influencing Factors," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 263-286.
    • Handle: RePEc:wsi:jdexxx:v:15:y:2010:i:03:n:s1084946710001555
    DOI: 10.1142/S1084946710001555
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    References listed on IDEAS

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    1. Veronique A.J.M. Schutjens & Egbert Wever, 2000. "Determinants of new firm success," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 135-153.
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    1. Martín-Rojas, Rodrigo & Garrido-Moreno, Aurora & García-Morales, Víctor J., 2023. "Social media use, corporate entrepreneurship and organizational resilience: A recipe for SMEs success in a post-Covid scenario," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    2. Stephanie Duchek, 2018. "Entrepreneurial resilience: a biographical analysis of successful entrepreneurs," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 429-455, June.
    3. Alaa M. S. Azazz & Ibrahim A. Elshaer, 2022. "Amid COVID-19 Pandemic, Entrepreneurial Resilience and Creative Performance with the Mediating Role of Institutional Orientation: A Quantitative Investigation Using Structural Equation Modeling," Mathematics, MDPI, vol. 10(12), pages 1-17, June.
    4. Ingrid C. Chadwick & Jana L. Raver, 2020. "Psychological Resilience and Its Downstream Effects for Business Survival in Nascent Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 44(2), pages 233-255, March.

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