SELF-IDENTIFIED MANAGEMENT DEFICIENCIES OF ENTREPRENEURS
George
Solomon, The George Washington University
Lloyd W. Fernald, Jr., University of Central Florida
William “Denny” Dennis, NFIB Education Foundation
Principal Topic
Every year thousands of courses, seminars and training sessions in entrepreneurship and small business management are being offered. However, it is not obvious that the education and training needs of growth-oriented entrepreneurs are being met. Nor is it obvious in these educational efforts that the education and training needs of entrepreneurs are differentiated from the education and training needs of small business owner-managers. This paper examines the areas of knowledge (subject matter) that owners of growing businesses (entrepreneurs) identify as their most deficient. It then compares and contrasts their self-identified training needs to those of individuals owning stagnant or declining firms (small business owner-manager).
Method
The data for this paper were obtained from a national mail survey of business owners who sought assistance from Small Business Development Centers (SBDCs) in the U.S. A stratified random technique was used to generate the sample. Three hundred and forty five (345) or eighteen percent (18%) of the sample responded. This data set contains employment information at three points in time. Growth measures are subsequently generated. The set also contains the number of specific topics, for example, interpersonal competence and time management that respondents identified as areas of deficiency. First we examine frequencies of entrepreneurs and small business owner-managers for each possible deficiency and determine any statistical difference (p’s) between them. Then logistic regression analysis is employed to establish the relationship between specific owner deficiencies and firm growth controlling for a series of other variables e.g., owner’s educational level.
Results and Implications
Visual inspection of cross-tabulations identified potential relationships between the sampled entrepreneur’s demands for additional training and firm growth. Multivariate regression analysis is required to determine if these relationships are confounded by other factors (variables). The dependent variable, that is, the desirability of training having a specified content, however, is binary. The result is the use of logistic regression as the primary tool of analysis.
The results produced from this paper can help guide those who intend to train entrepreneurs by making the content of their offerings more relevant especially to those entrepreneurs who have intent to grow versus no intent to grow their businesses. In addition, the results may help steer classroom curriculum toward greater content relevance for entrepreneurs by distinguishing between the areas of management knowledge deficiency among entrepreneurs and small business owners.
CONTACT: George Solomon, The George Washington University; (T) 202-205-7426, (F) 202-205-7426; gsolomon@gwu.edu
2002 Babson College. All Rights Reserved. Last Updated March 2003.