Big Five Personality Dimensions and Business Phases
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Big Five Personality Dimensions (Vecchio, 2003)
- Need for Achievement (importance of parental influences)
- Need for Autonomy
- Locus of Control: Internal (control of own destiny)/ External (others control my destiny)
- Risk Taking Propensity
- Entrepreneurial Self Efficacy (ESE)
PHASE 1: Start Up
Pitfalls
- The owner works for free.
- Less attention to financial aspects.
- Everybody feels responsible, no one is responsible.
- Too much excitement. Down to earth!
Skills
- Accounting skills
- Leadership skills
- Capability to slow down
PHASE 2: Steadying the Ship
Pitfalls
- Less attention for management of the company.
- Conflicts among managers and departments.
- Working in the company instead of working at the company.
Skills
- Managerial skills
- Able to analyze changes in the business environment
PHASE 3: Business Consolidation
Pitfalls
- The company is too heavy and slow.
- Too many departments.
- Conflict between new staff members and established staff about the company culture
Skills
- Managerial skills
- Able to analyze changes in the business environment
- Strategic thinking
Why Does Being Internationally Active Increase SME Performance?
- Reinforce growth: Bigger market; make niche market profitable (enough scale)
- Enhance competitiveness: More competition makes you stronger
- Support long-term sustainability: Less dependent on just one market (and related state of economy)
Better Results for Internationally Active SMEs
- Create more jobs
- More innovative
- Import is a stepping stone
- Public support goes largely unnoticed
Distinctive Characteristics of Micro & Small Enterprises with Regard to Employment Relations
- Central role of the entrepreneur (owner, manager, worker,...)
- Close relation employer-employee (not always harmonious)
- Employees more visible to employer (and vice-versa)
- Family involvement within the firm and its employment
- Informality of management and lack of procedures
- Distinctive employment characteristics (gender, education, skills, contracts,...)
- SME's are more economically vulnerable
Three Primary Functions of a Leader
- The achievement of the task.