Literature Review On Entrepreneurial Performance

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Literature review and Critical analysis VITAL FACTORS This study aimed to explore the most influencing factors in an entrepreneurial business creation. A review of literature identified three main schools of thought in regard to entrepreneurship and SMEs. First, a humanistic school of thought focuses on the entrepreneurs and their personal respective concerns. Accordingly, the entrepreneur's personalities and backgrounds including family, education, work experience and entrepreneurship, gender, age etc., play decisive roles in creating successful new. Second, the environmental factors were forwarded as influencing factors, referring to macro-environmental factors, such as politics, economics, society-culture and technology in creating an effective…show more content…
The theoretical part indicates that the importance of small- and medium-sized enterprises (SMEs) considers the role of entrepreneur in the business process and provides an overview of theoretical and empirical findings in the main determinants of business start-ups. The empirical part is based on quantitative survey results from a model of business start-up factors and relations with the entrepreneurs' performance. The data were analysed using the statistical package for data analysis SPSS for Windows. The factor analysis was performed separately for the set of variables that have measured the reasons for founding the start-up, the personality traits, environmental factors and performance. The paper used a multiple linear regression model to identify the strength, direction and impact of different factors on the start-up performance. Findings - In general, the study identifies which indicators influence entrepreneurs' performance (personal and business) in the first years of their companies. The paper revealed the heterogeneity of the measures for performance and their different natures (from financial indicators to those related to the entrepreneur satisfaction). Consequently, one of the most significant findings of the research is that, in spite of the fact that the most commonly used indicators for the firm performance in the literature are financial, the…show more content…
As previously mentioned, the results demonstrate that risk propensity, self-efficacy and need for independence are the most significant (and also statistically significant) factors influencing personal performance. The researchers did not find any environmental factor as being more important than the personal performance of the entrepreneur. For the business performance, we determined that, besides personal factors (specifically risk propensity, the need for independence and personal reasons), the market conditions are also crucial. The researcher finally establishes that the personal performance is affected only by personal factors, while the perceived business performance is affected both by personal as well as environmental

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