The entrepreneur and the financial performance of micro and small companies
Keywords:
personality of the entrepreneur, financial performance, micro and small companies, EcuadorAbstract
The objective of this study was focused on identifying the relationship between the personality traits of the entrepreneur and the financial performance of micro and small family businesses in the province of Carchi-Ecuador, this due to the lack of economic sustainability - financial that occurs in this type of companies, for which a quantitative, cross-sectional approach and correlational-explanatory scope was applied;To validate the proposed model, hierarchical regression analysis was used using SPSS software, the results allowed us to determine which personality traits of the entrepreneur are positively or negatively related to financial performance in micro and small companies, it was possible to identify that the trait of Entrepreneur personality that has the highest negative and significant correlation with financial performance is extraversion, on the contrary, the entrepreneur with kindness traits presents a positive and significant correlation, the other traits analyzed do not present significant results;As a main conclusion, it can be highlighted that the results will contribute to the selection processes, allowing the identification of criteria based on personality traits to recruit the ideal person who contributes to the financial performance of this type of company.
References
Akhzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
Bandura, A. (1971). Social Learning Theory. General Learning Press.
Barrick, MR, & Mount, MK (1991). The big five personality dimensions and job performance: a meta‐analysis. Personnel psychology, 44(1), 1-26.
Barringer, BR, & Greening, DW (1998). Small business growth through geographic expansion: A comparative case study. Journal of business venturing, 13(6), 467-492.
Bernardino, S., Freitas Santos, J., & Cadima Ribeiro, J. (2018). Social entrepreneur and gender: what's personality got to do with it? International Journal of Gender and Entrepreneurship, 10(1), 61–82. https://doi.org/10.1108/IJGE-07-2017-0040
Bilgiseven, EB, & Kasimoǧlu, M. (2019). Analysis of Factors Leading to Entrepreneurial Intention. Proceeds Computer Science, 158, 885–890. https://doi.org/10.1016/j.procs.2019.09.127
Bird, B. (1988). Implementing Entrepreneurial Ideas: The Case for Intention. The Academy of Management Review, 13(3), 442. https://doi.org/10.2307/258091
Bird, B., & Jelinek, M. (1989). The operation of entrepreneurial intentions. Entrepreneurship theory and practice, 13(2), 21-30.
Brandstätter, H. (2011). Personality aspects of entrepreneurship: A look at five meta-analyses. Personality and individual differences, 51(3), 222-230.
Bucciol, A., & Zarri, L. (2017). Do personality traits influence investors' portfolios? Journal of Behavioral and Experimental Economics, 68, 1-12.
Cable, D. & S. Shane (1997). A prisoner's dilemma approach to entrepreneur-venture capitalist relationships. Academy of Management Review, 22(1), 142–176.
Ciavarella, MA, Buchholtz, AK, Riordan, CM, Gatewood, RD, & Stokes, GS (2004). The Big Five and venture survival: Is there a linkage? Journal of Business Venturing, 19(4), 465-483.
Costa, PT and McCrae, RR (1992). Four ways five factors are basic. Personality and Individual Differences, 13(6), 653-665.
Cohen, H., Kaspi-Baruch, O., & Katz, H. (2019). The social entrepreneur puzzle: the background, personality and motivation of Israeli social entrepreneurs. Journal of Social Entrepreneurship, 10(2), 211–231. https://doi.org/10.1080/19420676.2018.1541010
De Bortoli, D., Da Costa, N., Goulart, M., & Campara, J. (2019). Personality traits and investor profile analysis: A behavioral finance study. PLoS ONE, 14(3), 1–18. https://doi.org/10.1371/journal.pone.0214062
Dehkordi, KG, Reza, H., & Dehkordi, J. (2021). Investigating the Mediating Role of Excessive Overconfidence on the Effect of Personality Traits of Senior Managers on the Financial Distress of Companies Listed on the Tehran Stock Exchange. 12(2020), 269–292. https://doi.org/10.22099/JAA.2021.36423.1996
Digman, JM (1990). Personality Structure: Emergence of the Five-Factor Model. Annual Review of Psychology 41(1), 417-440.
Exley, Jim; Doyle, Patrick; Snell, Michael & Campbell, W. Keith (2021). OCEAN: How does personality predict financial success? Journal of financial planning.https://www.financialplanningassociation.org/article/journal/OCT21-ocean-how-does-personality-predict-financial-success
Franco, M., & Prata, M. (2019). Influence of the individual characteristics and personality traits of the founder on the performance of family SMEs. European Journal of International Management, 13(1), 41–68.https://doi.org/10.1504/EJIM.2019.096498
Hermann, E. (2019). Entrepreneurial Intention among Engineering Students and Its Main Determinants. Procedia Manufacturing, 32, 318–324. https://doi.org/10.1016/j.promfg.2019.02.220
Hoyte, C. (2019). Artisan entrepreneurship: a question of personality structure? International Journal of Entrepreneurial Behavior and Research, 25(4), 615–632.https://doi.org/10.1108/IJEBR-02-2018-0099
Hurtz, GM & Donovan, JJ (2000). Personality and job performance: The Big Five revisited. Journal of Applied Psychology, 85(6), 869–879. https://doi.org/10.1037/0021-9010.85.6.869
Hussein, SNA, & Aziz, HHA (2017). The big five personality dimensions as a predictor of entrepreneurial status in Egypt. International Journal of Entrepreneurship and Small Business, 32(4), 423-443.
John, OP, Naumann, LP, & Soto, CJ (2008). Paradigm shift to the integrative Big Five trait taxonomy: History, measurement, and conceptual issues. In OP John, RW Robins, & LA Pervin (Eds.), Handbook of personality: Theory and research (pp. 114–158). The Guilford Press.
Judge, TA, Higgins, CA, Thoresen, CJ, & Barrick, MR (1999). The big five personality traits, general mental ability, and career success across the life span. Personnel psychology, 52(3), 621-652.
Judge, TA, & Zapata, CP (2015). The person–situation debate revisited: Effect of situation strength and trait activation on the validity of the Big Five personality traits in predicting job performance. Academy of Management Journal, 58(4), 1149-1179.
Karabulut, AT (2016). Personality Traits on Entrepreneurial Intention. Procedia - Social and Behavioral Sciences, 229, 12–21. https://doi.org/10.1016/j.sbspro.2016.07.109
Krueger, NF, Reilly, MD, & Carsrud, AL (2000). Competing models of entrepreneurial intentions. Journal of Business Venturing, 15(5), 411–432. https://doi.org/10.1016/S0883-9026(98)00033-0
Liñán, F., Rodríguez-Cohard, JC, & Rueda-Cantuche, JM (2011). Factors affecting entrepreneurial intention levels: A role for education. International Entrepreneurship and Management Journal, 7(2), 195–218. https://doi.org/10.1007/s11365-010-0154-z
Mat, SC, Maat, SM, & Mohd, N. (2015). Identifying Factors that Affecting the Entrepreneurial Intention among Engineering Technology Students. Procedia - Social and Behavioral Sciences, 211(September), 1016–1022.https://doi.org/10.1016/j.sbspro.2015.11.135
Obschonka, M., & Stuetzer, M. (2017). Integrating psychological approaches to entrepreneurship: the Entrepreneurial Personality System (EPS). Small Business Economics, 49(1), 203-231.
Parente, R., ElTarabishy, A., Vesci, M., & Botti, A. (2018). The Epistemology of Humane Entrepreneurship: Theory and Proposal for Future Research Agenda. Journal of Small Business Management, 56(1), 30–52. https://doi.org/10.1111/jsbm.12432
Shapero, A., & Sokol, L. (1982). The Social Dimensions of Entrepreneurship. In Encyclopedia of Entrepreneurship (pp. 72–90).
Shen, J., Zheng, D., Zhang, X., & Qu, M. (2020). Investigating Rural Domestic Waste Sorting Intentions Based on an Integrative Framework of Planned Behavior Theory and Normative Activation Models: Evidence from Guanzhong Basin, China. International Journal of Environmental Research and Public Health, 17(13), 1–14. https://doi.org/10.3390/ijerph17134887
Solarte Solarte, Claudia Magali, Solarte Solarte Martha Lida & Arcos Guerrero, Carlos (2017). Colombian Entrepreneurial Ecosystem. Case Ciudad de Pasto, San Juan de Pasto: María Goretti Center for Higher Studies University Institution, DOI: 10.15658/CESMAG17.01.0807
Sondari, MC (2014). Is Entrepreneurship Education Really Needed?: Examining the Antecedent of Entrepreneurial Career Intention. Procedia - Social and Behavioral Sciences, 115(Iicies 2013), 44–53.https://doi.org/10.1016/j.sbspro.2014.02.414
St-Jean, E. and Duhamel, M. (2020). Employee work–life balance and work satisfaction: an empirical study of entrepreneurial career transition and intention across 70 different economies, Academia Revista Latinoamericana de Administración. https://doi.org/10.1108/ARLA-02-2019-0054
Sumbal, D.A. (2018). Relationship between HR Practices & Employee Turnover Intentions by Taking Moderating Effect of Neuroticism and Extroversion. SEISENSE Journal of Management, 1(3), 1–27. https://doi.org/10.5281/zenodo.1257911
Van Ness, RK, Seifert, CF, Marler, JH, Wales, WJ, & Hughes, ME (2020). Proactive Entrepreneurs: Who Are They and How Are They Different? Journal of Entrepreneurship, 29(1), 148–175. https://doi.org/10.1177/0971355719893504
Wajidi, F., & Widyarfendhi (2019). Pengaruh Orientasi Kewirausahaan, Extraversion, Agreeableness, Conscientiousness, Neuroticism, dan Openness to Experience terhada[ Kinerja Bisnis pada UMKM Sasirangan di Kota Banjarmasin. Jurnal Sains Dan Manajemen Kewirausahaan, 3(2), 70–81.http://ppjp.ulm.ac.id/journal/index.php/jsmk%0APENGARUH
Woo, H.R. (2018). Personality traits and intrapreneurship: the mediating effect of career adaptability. Career Development International, 23(2), p. 145-162. https://doi.org/10.1108/CDI-02-2017-0046
Zhao, H. & Seibert, SE (2006). The Big Five personality dimensions and entrepreneurial status: A meta-analytical review. Journal of Applied Psychology, 91: 259-271.
Zhao, H., Seibert, SE, & Lumpkin, GT (2010). The relationship of personality to entrepreneurial intentions and performance: A meta-analytic review. Journal of management, 36(2), 381-404.
Downloads
Published
Versions
- 2023-06-30 (3)
- 2023-06-30 (2)
- 2023-06-30 (1)
Issue
Section
License
Authors who publish in this journal agree to the following terms:
a. Authors give their rights to the article in a non-exclusive way for the magazine to be published for the first time by the journal as well as licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of authorship of work and initial publication in this magazine.
b. Authors can establish separate additional agreements for non-exclusive distribution of the version of the work published in the journal (for example, to an institutional repository or to publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are allowed and encouraged to disseminate their work electronically (e.g., in institutional repositories or your own website) prior to and during the submission process, as it can lead to productive exchanges, as well as a citation more early and most of published work (See the Effect of Open Access) (in English).
