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Abstract
The problem to be discussed in this study is to determine the effect of entrepreneurial characters
on type of ownership in an enterprise. The aim of the study is to determine whether there is a relation
between entrepreneurial characters and enterprise ownership.
The method of the study: 213 SMEs (Small and Medium Size Enterprises) in Konya were
surveyed and data gathered was assessed. Findings and results: As a result of the analyses carried out,
although it was seen that enterprise owners generally have entrepreneurial characters, no relation was
found between enterprise ownership type and having entrepreneurial characters.
Suggestions: It was determined that enterprise owners generally have high entrepreneurial
characters and by providing them an accurate guidance to make best use of these characters of them,
industrialization and development process can be accelerated.
Further Discussion: The fact that all the enterprise owners have high entrepreneurial characters is
not an expected result. Therefore, it can be concluded that “the entrepreneurial characters which were
used in previous many studies and which guided many studies can no longer distinguish ones with
entrepreneurial characters from those without entrepreneurial characters”. Further, more
comprehensive and detailed studies are to be carried out on this issue. Another point of discussion is
whether starting type is an indicator of entrepreneurial character or not. In this study, entrepreneurial
characters are examined in terms of both starting a business and their effect on the type of ownership.
with the entrepreneurship concept. Some into being as the characteristics of the
investigators even think that entrepreneur.
entrepreneurship is nearly the same as risk In general many believe that innovation,
taking. Lunan and et al, and Zimmerer and risk taking and internal locus of control are
Scarborough, with their approach to this essential traits for the success of starting new
situation, identify two main elements of business(Wang & Wong, 2004). According
entrepreneurship; the ability to recognize to Lumpkin and Dess (1996), key
business opportunities and the ability to take entrepreneurial process include autonomy,
calculated risk (Lunnan et al., 2006), innovativeness, risk-taking, proactiveness,
(Zimmerer & Scarborough, 1998). Similarly, and competitive aggressiveness. According
Dickson and Gigilierano paid attention to the to Zimmerer & Scarborough profiles of the
relation between entrepreneurs and risk entrepreneur is desire for responsibility,
taking, expressed “Risk-taking is inherent in preference for moderate risk, confidence in
entrepreneurship(Dickson & Gigilierano, their ability to succeed, desire for immediate
1986)” Besides, risk taking shouldn’t be feedback, high level of energy, future
appraised lonely in identifying of orientation, skill at organizing. Other
entrepreneurship. Miller added proactiveness characteristics frequently exhibited by
traits and renovation to the entrepreneurship entrepreneurs include, high degree of
characteristics. (Miller, 1983). Numerous commitment, tolerance for ambiguity and
researchers have used this conceptualization flexibility (Zimmerer & Scarborough,1998).
in their works including Covin and Slevin Innovation becomes an important factor used
(1989), Ginsberg (1985), Morris and Paul to characterize entrepreneurship (Miller &
(1987), Naman and Slevin (1993), Schafer Friesen, 1982; Miller & Friensen, 1983;
(1990) and Kazmi (1999). Kent, Sexton, Karagozoglu & Brown, 1988; Covin &
Vesper and Stoner, Freeman has stressed on Slevin, 1989).
the free treat in addition to risk taking. It is necessary to associate these
According to Kent, Sexton and Vesper, the personality characteristics with the
psychological profile of entrepreneurs entrepreneurship closely because
includes a need for independence, entrepreneurship is a behavior which has the
achievement and recognition, internal locus desire of starting new business and carrying
of control and a risk-taking propensity (Kent on the work and developing it. Beside this,
et al.,1982), (Stoner & Freeman, 1992), entrepreneurship includes characteristics
(Ufuk & Ozgen, 2001). The desire of in such as risk taking, autonomy, having control
depended working should be appraised as of his own work and having success
connecting with risk taking in entrepreneur confidence despite each kind of ambiguity.
treat. Not working wish as connecting with While the characteristics of
other people, such as dislike receiving orders entrepreneurship are being appraised, only
from, risk taking with something and personality characteristics shouldn’t be
deciding about his own future carries considered. In addition to this, entrepreneur
together. When it is appraised from this traits should also be appraised. According to
point, personality characteristics such as risk Robbins and Coulter: entrepreneurs are
taking, the desire of doing innovations, motivated by independence and the
autonomy and directing his own future come opportunity to create financial gain (Robbins
H.Tagraf / SJM 4 (2) (2009) 239 - 257 243
& Coulter,1996). But Schermerhorn’ added locus of control, high energy level, high need
an additive to the characteristics of for achievement, tolerance for ambiguity,
entrepreneur from behavior perspective. self confidence and action oriented
Characteristics of entrepreneur’s are, internal (Schermerhorn,1999). Showing traits aimed
at the action has also been stressed as opportunity, job insecurity, entrepreneurship,
entrepreneur traits. inheritance, status and others (Cromie,
In the same way, having creative 1987). The pattern which Cromie brought up
characteristics has also appeared as an has reflected very different reasons about
entrepreneur act. The entrepreneur is a owning business enterprise. The variety in
creative person in the sense that he has to people’ s aims naturally differentiate their
create a new product or service in the reasons for owning a business enterprise.
imagination, and then must have the energy While the Cromie’s reasons are being
and self-discipline to transform the new idea appraised, it can be thought that he reflected
into reality (Lynn, 1969). this point of view.
We must pay extra attention to the Many people will naturally conclude that
proactive behavior about the characteristics the prime reason for any business startup will
of entrepreneur. Having an entrepreneur be the desire for increased financial reward.
vision, evaluating marketing opportunities Whilst this may be one of the initial reasons
and showing proactive behavioral skills for start-up for many owner managers, there
reflect the characteristic of the are a number of other very important
entrepreneur’s being proactive. Because reasons, amongst which are the desire for
proactivity is related to taking the initiative, greater independence/ autonomy, and the
anticipating and carrying out new desire to escape the control mechanisms of
opportunities and creating or participating in larger organizations and bureaucratized
emerging markets (Entrialgo et al., 2000). hierarchies. New business proprietors and
Table 1 summarizes the analysis of the partnerships will obviously benefit from
entrepreneurship texts to show that the most greater independence and freedom with their
popular conceptual building blocks of this suppliers and employees.
term are: risk acceptance, innovation, high The reasons for a new business start-up
need for achievement belief in control over will almost certainly be both highly
events, initiator of new activities, ambiguity individual and diverse. Shown in Table 2 are
tolerance, need for independence and some of the reasons for business start-up
identification of market opportunities. found in a survey undertaken by Storey
(1989)
2.2. Business Settup Goffee and Scase (1995) found in a recent
survey of 324 managers, aged 25-65, that
It is seen that different reasons have been
suggested by the investigators about the kind Table 2. Motivations for Starting Businesses
of owning an administration. According to Motivations for Starting Businesses
Stanley Cromie; who research in Northern Particular Percentage
Ireland that using the method outlined 14 Unemployment 35%
response categories regarding the sample’s Low pay at work 4%
motives for founding were created and they Sought independence 43%
are defined as fallows: autonomy, Had a good idea 8%
achievement, job dissatisfaction, money, Sought other financial rewards 7%
career dissatisfaction, child rearing, outlet Other 3%
for skills, offer employment, market Source: Storey, 1989
H.Tagraf / SJM 4 (2) (2009) 239 - 257 245
75 % had considered proprietorship, and of “Everyone has dreamed of owning a
these, two – thirds saw work (rather than business. At one time or another, we all have
family or leisure pursuits) as the major ideas that come into our minds but never
source of satisfaction in their lives (Quader, quite make it into the marketplace. It has
2007). been said that an entrepreneur can best be
Brandstatter have pointed that, family defined by the following thought: All people
relations are more important factors to have have great ideas while in the shower. Most of
business ownership than the others. Owners us get out of the shower and forget about
who had taken over their business from them. The entrepreneur is the person who
parents, relatives, or by marriage. The gets out of the shower and acts on those
personality characteristics of people ideas. Begin with examining why you want
interested in setting up their own business to start a business. People come to business
were similar to those of founders ownership for a variety of reasons. They
(Brandstatter, 1997). want to be their own boss, build a future,
Similarly Cooper and Dunkelberg’ have follow the American dream, earn lots of
also pointed that this period is a kind of flag Money” (Pinson, 2006).
race which passes from one generation to Another important form of behavior about
other. The background characteristics of business ownership is working at a branch of
entrepreneurs and consider how these might work for a certain time and after that, as a
be related to paths to ownership. Individual result of experiences acquired, leaving that
attributes which seem associated with work and showing a behavior aimed at
entrepreneurship include the following: establishing and running that work by
1. whether the parents owned a himself. Founders often start new businesses
business; in fields they already know, drawing upon
2. whether the entrepreneur or his/her technical and market knowledge acquired in
parents were born outside the United States; the incubator organization. Prior research,
3. the entrepreneur's education and primarily with high-technology firms,
number of previous full-time jobs; suggests that founders usually start new
4. the entrepreneur's age when businesses where they are already living and
becoming owner (Cooper & Dunkelberg, working. The proportion of new companies
1986). Taking over the business at a suitable started which involved at least one founder
time after having necessary education and who was already working in the area was
experience for going on family business is a 97.5 per cent in Palo Alto, 90 per cent in
way that is often seen. Because of that, the Austin and 90 per cent in England (Cooper,
behavior of owning business is considered as 1970; Susbauer, 1972; Watkins, 1973).
an effort aimed at continuing a commercial If we want to summarize the reasons for
activity that started inside the family rather business ownership which have been
than a situation which appeared with the explained by different investigators
individual’s entrepreneur characteristics. systematically, the desire of autonomy,
About owning a business, we can talk confidence and earning, not having the
about the entrepreneurs’ dreams and their opportunity of salaried working, the desire of
vision. Pinson also shows the importance of presenting a new idea or a product to the
dreams about owning a business like this: market, heritage, social respect and prestige
246 H.Tagraf / SJM 4 (2) (2009) 239 - 257
Table 7. The Means of The Clusters and Variance Analysis According to The Mean Values
Entrepreneurial Characters Clusters
higher lower F Value Sig.
entrepreneurial entrepreneurial
characters characters
When taking a new business opportunities, one should avoid making
3,86 2,92 30,317 ,000
steps based on intuitions
Even if there is a risk in a new business, one should take it. 3,63 2,89 19,619 ,000
One should follow different business branches and start new
4,04 2,75 87,168 ,000
business in new fields
New fields of business and success have always attracted my
4,27 2,77 158,439 ,000
attention
I do not like receiving orders when doing a job 4,00 3,13 32,423 ,000
The real aim of us is to provide the best quality product with the
4,57 4,19 13,442 ,000
most reasonable price to our costumers
I always dream that I will have great success in other sectors in the
4,31 2,67 160,498 ,000
future
I decide when, where and how for all the activities in my company 4,15 3,30 33,208 ,000
In spite of the difficulties in business one should put all kind of effort
4,43 3,97 13,517 ,000
for success
I do my best to finish a business I take over 4,59 4,20 12,961 ,000
I do not like rendering account about the process and results of my
3,79 2,73 42,506 ,000
business
When running a business, one should avoid taking steps based on
3,62 2,84 26,151 ,000
intuitions
It is not important for a job with new opportunities to be safe or
3,19 2,27 29,268 ,000
risky
I have always dreams about my sector and future success 4,37 3,72 26,313 ,000
In our activities social benefit always comes before individual ones 4,28 3,67 21,080 ,000
I do take over every kind of responsibility about the job I do 4,49 4,03 16,656 ,000
I am pretty careful while doing activities at workplace 4,51 4,00 29,124 ,000
I can foresee the events that might happen in my environment and I
4,09 3,46 26,918 ,000
determine the most suitable type of behavior before it happens
My employees think that I am guiding them 4,04 3,46 25,040 ,000
I know the developmental process, market, opportunities, potentials
4,24 3,52 42,423 ,000
and likely problems of my sector pretty well
I think money we spent for some of the activities in the past is waste 3,33 2,87 6,196 ,014
In running my business I was successful due to the steps I took
3,78 3,06 27,561 ,000
according to my intuitions
The other managers in the enterprise can make decisions and apply 3,72 2,97 19,572 ,000
them without acknowledging me.
252 H.Tagraf / SJM 4 (2) (2009) 239 - 257
Table 8. The Relation between the way of Starting Business and Relative Entrepreneurial
Character
The groups According to Entrepreneurial Characters Total
Relatively high Relatively lower
entrepreneurial characters entrepreneurial characters
134 79 213
Total
62,9% 37,1% 100%
entrepreneurial characters, while 37,8 % literature it was thought that the enterprisers
have relatively lower entrepreneurial with entrepreneurial character will be
characters. When the survey participants different from the enterprisers who start
who seem to be entrepreneurial in terms of business in a traditional way, that is, without
the way of starting business are examined, it their entrepreneurial characters coming
is seen that while 63,8 % have relatively front; however, the result is contrary to the
higher entrepreneurial character, 36,2 % expected one. This result is the first of the
have relatively lower entrepreneurial important results acquired. The second
characters. As it can be concluded from important result is that the enterprise owners
similar rates, there is not a significant generally have high level of entrepreneurial
difference between the groups, which is character. Another result is that the way of
verified by chi-square analysis. Therefore, in starting a business is not indicator of having
terms of entrepreneurial characters there is high entrepreneurial character. These there
not a significant difference between groups important results are to be dwelled upon.
classified according to the way of starting Although the variables used to determine
business. As a result the H2 hypothesis that, the entrepreneurial character of enterprise
owners are used in many studies in the
“There is a relation (at a significance literature and are basis for many studies, its
level α=0,05) between groups which come leading high results in all participants brings
into being according to entrepreneurial up three different possibilities. The first of
characters and with the type of ownership these is that today entrepreneurial character
being either traditional or entrepreneurial” is seen in many enterprise owners. This case
is rejected. can be accounted for the widening horizons
of people due to the importance given to
business administration, common business
5. RESULT AND ASSESSMENT administration education, advanced
communication technology. The second
While conducting the research, in line possibility is -again related to the first
with the information provided in the possibility- that the variables which were the
H.Tagraf / SJM 4 (2) (2009) 239 - 257 253
basis for the previous studies lost their although the type of starting business is
entrepreneurial character discriminating accepted as an indication of entrepreneurial
feature. The third possibility is based on the character in the literature, there was not
attitude and behavior order. The attitudes found any result related to this. The fact that
which come into being due to common there have not been serious and
acceptance affect behaviors. However, it comprehensive studies in this area appears to
must also be considered that the behaviors be an important fallacy. Therefore, it was
which come into being as a result of different concluded that the thesis that the type of
reasons can also affect attitudes in time. starting a business is an indicator of
Therefore, an individual who have entrepreneurial character appears to have
established an enterprise for any reason can risen not from detailed investigation and
in time develop entrepreneurial tendency as a analysis mostly out of observations. Besides,
requirement of the business environment. although the reality of this thesis is verified
These three possibilities make three in the previous studies, based on the results
different assumptions compulsory. These of this study it can be said that starting a
assumptions are that enterprise owners have business can no longer be accepted as an
high entrepreneurial characters or the indicator entrepreneurial character.
variables used to determine entrepreneurial
character are no longer valid. The possibility
that enterprise owner are of high the 6. FURTHER DISCUSSION AND
entrepreneurial character is a more optimistic SUGGESTIONS
point of view. In line with this point of view,
the need for the enterprise owners to take According to the suggestions put forward
best advantage of their entrepreneurial in this study and mentioned in the results
character in social and economic fields come part, in order to test whether variables
front. Naturally, it is up to concerning continue to have distinguishing feature more
chambers, unions and public institutions. comprehensive studies can be carried out. In
The fact that entrepreneurial characteristics the studies to be conducted, the groundwork
do not always lead to correct steps doubles for further studies can be laid by testing the
the importance of the education of the distinguishing character of the new variables
enterprisers with entrepreneurial spirit. In reflecting developing business
line with the second assumption, that is the administration understanding. Besides, the
assumption that these variables can no longer discussion whether way of starting business
reflect entrepreneurial character accurately is an indicator of entrepreneurial character or
requires the development of new variables not is another important issue to be dwelled
capable of determining entrepreneurial upon and further studies on this issue can
character more accurately. Forasmuch as, the lead reasonable benefits. With more
new business administration understating is comprehensive studies to be carried out,
process which is administrated with much whether starting a business is still a valid
more dynamism, innovativeness and indicator of entrepreneurial character or not
increasing uncertainty compared to classical is to be tested. In further studies, the factors
business administration understanding. in starting the business are to be emphasized.
The third point to be emphasized is that That is to say the issue whether “the
254 H.Tagraf / SJM 4 (2) (2009) 239 - 257
enterprise owner started the business because
of his/her entrepreneurial character or started
a business due to the existing conditions and
then acquired entrepreneurial characters by
time” is to be focused on with great care.
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