Personal characteristics, business relationships and entrepreneurial performance: Some empirical evidence

Abstract

Purpose

The purpose of this paper is to examine the influence of individual and relational factors on new ventures’ performance. Particular emphasis is given to entrepreneurs’ personal attributes and business relationships (both social and institutional).

Design/methodology/approach

Drawn upon a quantitative methodological approach, the current study relies on a survey questionnaire applied to a sample of entrepreneurial firms which were set up in the last four to five years in different industries.

Findings

This study found that support from central government, from sector associations and from a financial institution evidenced a difference of means along three categories of entrepreneurial performance (low, moderate and high). The same result was found in the case of the entrepreneur's family support, previous knowledge about potential customers and previous experience in business. Influence from entrepreneur's personal characteristics, such as personal qualities; intuition that he/she is in the presence of an innovative and unique business and need for self-achievement, was also observed.

Practical implications

Since entrepreneurial activity is considered an important driver of a country's economic development and growth, it is hoped that governments and sector associations put in place suitable policies and incentives to develop an entrepreneurial culture and mainly reduce the burden of bureaucracy for new ventures.

Originality/value

The present study suggests that entrepreneurial performance is the result of a combination of personal and context-based factors and neither can be explained by a single set of entrepreneurial personal characteristics nor a set of more or less institutional relationships.

Citation

Carlos Pinho, J. and Sampaio de Sá, E. (2014), "Personal characteristics, business relationships and entrepreneurial performance: Some empirical evidence", Journal of Small Business and Enterprise Development, Vol. 21 No. 2, pp. 284-300. https://doi.org/10.1108/JSBED-10-2013-0150