Entrepreneurial Decision-making Style and Small Business Success in Australia
2017-06-05T04:20:00Z (GMT) by
The current study examines one aspect of the entrepreneurial process: Decision-Making Style. Based on the extant research literature, a new instrument, the Entrepreneurial Decision-Making Inventory, was developed. Questionnaires were distributed to 578 Victorian New Enterprise Incentive Scheme (NEIS) graduates who had completed business training and established businesses before 1994, resulting in 255 useable responses. Factor analysis of the data indicated three distinct dimensions in the instrument: Convergent, Divergent, and Inventive Decision-Making Style. Measures of entrepreneurial success included income, number of employees and survival in business. The results indicated that entrepreneurs who survive the establishment phase appear to utilise a significantly different style of Decision-Making from respondents who are no longer in business. Also, the instrument could be used to differentiate between growth and non-growth businesses, and could assist in the selection and training of potential entrepreneurs. The implications of the findings for entrepreneurial performance are considered and areas for future research are identified.