ONLINE
COACHING
FOR
NEW
VENTURES
Critical and important online coaching services for new venture
survival and success
Name J.C. Kartomihardjo
Student number VU 2028131 Student number UVA 11399694
Contact information Jckartomihardjo@gmail.com
Thesis supervisor Dr. N.Ugur
Universities Universiteit van Amsterdam and Vrije Universiteit Faculty Economics and Business
MSc Program MSc Entrepreneurship (joint degree UVA and VU) Application date January 2017
2 TABLEOFCONTENTS PREFACE 4 ABSTRACT 4 ACKNOWLEDGEMENTS 4 1 INTRODUCTION 6
1.1 Problem definition and sub-questions 7
1.2 Theoretical and practical implication 8
1.3 Research structure 8
2 THEORETICAL FRAMEWORK 9
2.1 Online coaching 9
2.1.1 Definition of online coaching, entrepreneurial coaching and business coaching 9
2.1.2 Role of the coach 11
2.1.3 Coaching process 11
2.1.4 Online coaching benefits for new ventures 14
2.1.5 Effective online coaching process conditions 15
2.1.6 Online coaching obstacles 16
2.2 New venture survival and success 17
2.2.1 Definition of new venture survival and success 17
2.2.2 Variables influencing new venture performance 17
2.2.3 Business life cycle 19
3 METHODOLOGY 23
3.1 Research design 23
3.2 Data collection 24
3.2.1 Research context 24
3.2.2 Data collection method 24
3.3 Data analysis 25
4 RESULTS AND ANALYSIS 27
4.1 Online coach profile 27
4.1.1 Expertise of online coach 27
4.1.2 Online coaching tool 30
4.1.3 Form of assistance 33
4.1.4 Coaching process 35
4.2 New venture success and failure 39
4.2.1 New venture performance factors and the influence of online coaching 39 4.2.2 Coaching the entrepreneur during the business life cycle 44
3 5.1 Sub-question one 49 5.2 Sub-question two 51 5.3 Sub-question three 53 5.4 Sub-question four 54 5.4.1 Development 54 5.4.2 Start 54 5.4.3 Growth 55 5.5 Sub-question five 55
5.6 Limitations and recommendation 56
6 REFERENCES 58
4 PREFACE
The copyright rests with the author. The author is solely responsible for the content of the thesis, including mistakes. The university cannot be held liable for the content of the author’s thesis.
ABSTRACT
This qualitative research combines the fields of online coaching and the survival of new ventures. The leading research question is: “Which online coaching services are more critical
and important for new ventures?” The theoretical framework describes the mechanics of online
coaching for entrepreneurs and new ventures. It includes a description of entrepreneurial coaching, business coaching, the coaching process, role of the coaching, benefits of e-coaching and challenges of the service. The second part of the literature is dedicated towards new ventures and the business owner. Factors that influence new venture survival and success are organizational (strategy and structure) and individual (characteristics of the entrepreneur, venture-creation experience, work-related experience and behaviours). The business life cycle indicates how these factors are integrated and what type of issues may arise in each phase. Results reveal that (nascent) entrepreneurs need coaching with developing a strategy and organizational structure. On an individual level nascent entrepreneurs are insecure, may show procrastinating behaviour and lack venture-creation experience. Primary data is collected through interviews with nine online coaches in the Netherlands that target their service offering towards new ventures in the development, start and growth phase. Online tools used by these e-coaches are interactive webinars, Skype, independent online courses, mail, telephone, WhatsApp and online group coaching.
ACKNOWLEDGEMENTS
I want to thank all online coaches, the contributors, that dare to be the first movers of coaching new ventures via innovative online channels. They have granted me the opportunity to catch a glimpse of their expertise, insights and experiences. Without their participation I could not present anything worthy. Their in-depth stories contributed to the development of a framework that should benefit new business owners with their online coaching experience. In addition, my aspiration is that all coaches continue to innovate and develop their craft of online coaching in order to assist new businesses in their pursuit of success.
I also want to thank Dr. Nazlihan Ugur. Without her guidance, positive feedback and immense amount of patience I doubt whether I could manage to present such captivating and original ideas. Her experience and skill to easily grasp the bigger picture and construct new
5 relationships encourages to think outside the box. Next to that she also ensured me that master students have the ability to create academic work that allows the empowerment of practitioners with their art of coaching.
6 1 INTRODUCTION
Sixteen years ago Evans and Volery (2001) stated that online coaching is a suiting technology-based solution for the future that leverages skills, experience and methodologies within the industry to a broad cross-section of entrepreneurs. Three years prior to that statement Katz & Murray (1998) conclude that Business Development Service (BDS) organizations should use the Internet to deliver services to Small and Medium Enterprises (SMEs). One positive argument for online BDS organizations in their research is that the expertise in one location is made available to SMEs worldwide. Fast forward to 2017, there is however still a huge gap in connecting the effectiveness and the outcome of online coaching on entrepreneurship in academic literature. Hence, main topics addressed in this research are entrepreneurial and business online coaching services for entrepreneurs and its connection to new venture survival and success.
Coaching in this research is defined as “a relationship between a coachee and a coach,
wherein the support structure is based on mutually identified sets of goals and objectives that has a focus on the learning and development of the client to improve their professional performance.” (Kilburg, 2004; Conte, 2002; Audet & Couret, 2012). Coachees in this context
are clients of the online coach, thus the business owner (Fielden & Hunt, 2011). Whereas coaches are external hired professionals by coachees that provide online coaching for new ventures and entrepreneurs. Online coaching is a novel form of coaching and includes the Internet enabling coaching from a distance. Face-to-face interactions are excluded and replaced by web based tools such as; e-mail, discussion forums, chat rooms, virtual classrooms, audio conferences, video conferences, instant messaging, coaching applications (Taranovych, 2013), telephone conversations, Skype sessions, online tutorials/ courses, webinars and (personal) videos.
Online coaching speeds up the coaching process and enables coachees to be more prepared for the next coaching session compared to ‘regular’ offline coaching. These results are derived from SCORE, a local community of counsellors that monitor small business’ and give advice for free through e-mail services or through face-to-face meetings (Katz & Murray, 1998). Fielden and Hunt (2011) concluded that social support, through e-coaching, can only be effectively delivered to entrepreneurs if that support is tailored to individual needs. Support can be accessed at any time and location which is the most convenient for entrepreneurs (Fielden et al., 2003; Schmidt & Parker, 2003). Other most up-to-date research findings e.g. Audet and Couteret (2012) successfully explored the effectiveness of coaching as a support measure for
7 young entrepreneurs. They identified ‘winning conditions’ that likely impact the success of coaching initiatives. Unfortunately, these conditions and the research itself are based on offline coaching methods.
Beside the need of online coaching theory and internal business issues, this topic also flows from external problems that entrepreneurs encounter. The environment becomes increasingly turbulent and global, driving continual change to business processes, and creating entirely new ways of ‘doing business’. Internal factors e.g. speed, complexity and scope of knowledge required in new venture creation also tend to increase. This puts limitations on the traditional face-to-face interaction within a local network (Evans & Volery, 2001) and gives online coaching the opportunity to supplement business development of new ventures.
1.1 PROBLEM DEFINITION AND SUB-QUESTIONS
Since research in the e-coaching field is in a starting phase, theoretical and empirical background has yet to be elaborated (Ubben, 2005). The aim of this research is therefore to contribute to this field in terms of explaining how online coaching for new ventures and entrepreneurs works and to create a deeper understanding of its influence on new business’ survival and success. Hence, the research question:
“Which online coaching services are more critical and important for new ventures?”
To provide a sufficient answer, this question is divided into the following sub questions: 1. How does online coaching for new ventures work?
2. Why does a new venture need online coaching?
3. How does online coaching influence the business survival and success of new ventures? 4. When does a new venture need online coaching?
5. What type of online coaching service is best suited in different life cycles phases of new ventures?
These questions are answered via qualitative research and includes the discussion of existing literature compared to data gathered through interviews with nine online new venture coaching firms in the Netherlands.
8 1.2 THEORETICAL AND PRACTICAL IMPLICATION
The theoretical and practical relevance of this research’s outcome is applicable to both; entrepreneurial and business online coaches; and new venture owners. E-coaches benefit from the results in the sense that they will get an overview of (nascent) entrepreneurs seeking online coaching services. This includes common challenges of the entrepreneur and their business (e.g. firm age, firm size, business life cycle and experience of business owner). Examples of current e-coaching practices and the analysis of its effectiveness are given which creates insights in the opportunities and possibilities of online coaching.
Benefits for new venture owners in studying this research includes; (1) an explanation of how online coaching for new ventures work in terms of the coaching process and the role of the coach; (2) an indication of a suiting type of e-coach for their challenges and a recommendation of e-coaching service (e.g. entrepreneurial coaching via Skype, online courses or webinars); (3) the moment when to hire an online coach; and (4) an indication of the outcome of going through an online coaching program.
The theoretical contribution is in describing practical examples of online entrepreneurial coaching and online business coaching. This means that theory of coaching, online coaching and new venture creation are merged for the first time. This will narrow the gap between the effectiveness and the outcome of online coaching in entrepreneurship scientific literature.
1.3 RESEARCH STRUCTURE
This qualitative research will start off with a theoretical framework by elaborating the constructs of online coaching and new venture survival and success. The later includes a description of business owner characteristics, organizational characteristics and the business life cycle of new ventures. Thereafter, a section is dedicated to the methodological fit of this research leading to research findings. Ultimately, the combination of online coaching theory, new venture theory and the inclusion of primary qualitative data generates a fitting framework of online coaching services and new ventures in terms of critical and important factors. The paper ends with a discussion, conclusion, implications and a suggestion for future research.
9
2 THEORETICALFRAMEWORK
The aim of this research is to explore which online coaching services are most critical and important for new ventures in order to survive and thrive throughout the business life cycle. The terms ‘online coaching’ and ‘new venture’ therefore serve as the two most important key constructs throughout this thesis. The scope of both constructs are determined by defining key terms and review relevant theories, starting with ‘online coaching’ and ending with ‘new venture survival and success’.
2.1 ONLINE COACHING
Entrepreneurs and small business owners bring in coaches to the firm for different reasons. An often reoccurring moment is when a business owner, management team or entrepreneur seeks to improve their current situation. This subchapter describes such a coaching process and describes the benefits and obstacles of new venture e-coaching services.
2.1.1 Definition of online coaching, entrepreneurial coaching and business coaching Helping people change is the purpose of coaching. It is one person, the coachee, that wishes to improve his or her skills assisted by another person, the coach (Bacon, 2003). Here, coaching can be defined as: “a process that enables learning and development to occur and thus
performance to improve” (Parsloe, 1999). In a business setting, it is the client’s current state
that is assessed.
Kilburg (2004) defines coaching within a business context, as: “a helping relationship
between a coachee and a coach, adopting a variety of behavioural techniques to enable the coachee to achieve the mutually identified sets of goals and objectives to improve their professional performance and personal satisfaction.” The International Coaching Federation
(Conte, 2002) highlights this relationship between the coach and coachee in their definition: “an ongoing partnership that helps clients produce fulfilling results in their personal and
professional lives. Through the process of coaching, clients deepen their learning, improve their performance and enhance their quality of life.” One last reference formed by Audet and
Couret (2012) is: “A support structure based on a close interpersonal relationship leading to
10 Because a consistent definition is missing in current scientific literature, combining these coaching definitions into one formulates the definition adherent in this thesis:
2.1.1.1 Online coaching
By adding the internet, coaching can be combined and delivered as an online service naming it ‘online coaching’. This term is interchangeably formulated as ‘virtual coaching’ (Knouse, 2001), ‘internet coaching’, ‘e-coaching’ and ‘distance coaching’ (Knouse, 2001; Rossett & Marino, 2005). It is thus a coaching form on distance and an alternative to face-to-face interactions. Communication methods and support structures are enabled by web based tools such as; e-mail, discussion forums, chat rooms, virtual classrooms, audio conferences, video conferences, instant messaging, coaching applications (Taranovych, 2013), telephone conversations, Skype sessions, online tutorials/ courses, webinars and (personal) videos.
2.1.1.2 Entrepreneurial coaching
Entrepreneurial coaching, on the other hand, is a customized way to help novice owner-managers develop their managerial skills (Bisk, 2002; Deakins et al., 1998; Graham & O’Neil, 1997). The focus is on the entrepreneur as an individual instead of the business. Entrepreneurial coaching is defined as “individual support for entrepreneurs whose firms are at the start-up or
early growth stages.” With this specific targeted client type the objective is the acquisition or
development of skills through learning in one or more management-related fields. The aim is to become independent in the field concerned by the protégé (Audet & Couteret, 2012). If the client wishes a focus on business development than the coaching type should be characterized as business coaching (Taranovych, 2013).
2.1.1.3 Business coaching
Business coaches focus on business performance and assist firms in defining and pursuing organization’s goals (Conte, 2002), increasing profits, strategizing marketing, implement new business ideas and work more effectively in less time (Taranovych, 2013). The reason for including entrepreneurial coaching and business coaching to the construction of ‘online
“coaching is a relationship between a coachee and a coach, wherein the support structure is based on mutually identified sets of goals and objectives that has a focus on the learning
and development of the client to improve their professional performance and produce fulfilling results.”
11 coaching’ is because all mentioned coaching forms are applicable to entrepreneurship and can be delivered through online platforms as an online new venture coach.
2.1.2 Role of the coach
To improve professional performances of novel firms it is the coach’s obligation to develop a coaching strategy and to realize it (Taranovych, 2013). The coach can do so by offering a support structure, giving advice and provide non-material assistance to their clients (Evans & Volery, 2001; Alstrup, 2000). Non-material assistance are his or her actions, ability to listen (Conte, 2002; Simon & Kumar, 2001; Sullivan, 2000) and observe so that they can customize their approach to individual client needs (Conte, 2002). Asking questions, exploring and probing allows the coachee to solve the problem themselves (Bacon, 2003; Audet & Couteret, 2012) which suits the second role of the coach; outlining potential strategies to solve a problem and to work with the entrepreneur to discover the most suitable solution (Alstrup, 2000).
The overall objective of the coach’s approach and strategy is to unlock an individual’s potential and maximize performance by focusing on individual development (O’Connor & Lages, 2004), business development (Jarvis, 2004) and resolving issues (Galleway, 1986).
Coaching support should therefore remain narrowly focused and related to the individual in the form of specific job tasks, responsibilities and skills (Hopkins-Thompson, 2000) to overcome challenges. Additional examples of assistance and support by coaches are; giving performance feedback, teaching an employee how to use certain equipment, brainstorming with the entrepreneur or employees on how to improve quality, advising clients on how to improve customer relationships, and helping a young entrepreneur with their career options and the thought process (Bacon, 2003).
2.1.3 Coaching process
As it is emphasized that the role of the coach is only to guide and accommodate the entrepreneur in discovering solutions for his or her specific situation (Alstrup, 2000), the coach has to create a learning context that equips protégés to find answers themselves (Katz & Miller, 1996; Conte, 2002). This approach is characterized as a nondirective approach (Bacon, 2003) where it is common for the coach to structure the problem(s) faced by the entrepreneur during the first intervention. Coaches can choose between several processes. Nonetheless, there are a set number of steps within the process that are considered universal. Figure 1 below is a graphic presentation of the coaching process used in this research. All phases except for ‘Evaluation’ and ‘Closure’ are part of Bacon’s (2003) nondirective approach. The two additional phases are
12 from Rauen’s (2002) coaching process which is considered to be the most universal and suitable according to Taranovych (2013).
The nondirective coaching process starts with creating awareness of the need to change. A coach may ask the following questions when the coachee is unaware of this need; How do you need to change? What could you be doing better? What problems are you having? What opportunities are being missed? This phase if followed by an urgency that needs to be high enough to prompt action. The decision to change can then be found by asking why are you doing this? What is the ideal outcome? When will you start and when do you expect to be finished with the change? The problem solving phase is the foundation of translating these answers into an action plan and must lead to the commitment and action phase. Typical questions for this phase are; are you committed to doing it? What if things are harder than you imagined and things do not turn out the way you whished? This indicates a focus on changing habits in order to strengthen the coachees commitment to change (Bacon, 2003). The goal of the evaluation phase is to assess the effects of the coaching interventions and to review the degree of goal achievement. The process finishes with a formal closure and detailed coaching report. (Taranovych, 2013). Bacon (2003) ends the process with the reinforcement phase where coachees are advised to find a continued support network so that their effort remains in tact.
Note that Taranovych (2013) defends the statement that e-coaching processes use the same steps as regular coaching processes with the addition of technical tools and technical competences that concern both coach and coachee. While in fact, an internet-coaching process in general and an e-coaching process for new ventures is currently missing in scientific research.
13 Figure 1: The coaching process (Bacon, 2003; Rauen, 2002 in Taranovych, 2013)
Reinforcement Finding a source of continued support network in their environment for people trying to change. E.g. friends, colleagues, spouses, significant others, other coaches and mentors etc. Closure The formal closure of the coaching Evaluation Reviewing the achievement of the goals Commitment and Action Commitment to change and initiating action Problem Solving
Ask the right questions and let client think through what change actually means and what needs to be different. 3 parts: 1. Alternate future (what coachees need to do differently to achieve the goal) 2. Exploring potential barriers 3. Developing an action plan Decision Make a decision to change Urgency Client and people must have a need that is urgent enough to take action Awareness Create awareness of the need to change
14 2.1.4 Online coaching benefits for new ventures
Several authors (Bacon, 2003; Knouse, 2001; Rossett & Marino, 2005; Miller et al., 2000; Taranovych, 2013) mention numerous advantages for new ventures to opt for an online coaching program. One of the e-coaching benefits that is observed first by most authors is the opportunity for coachees to prepare for coaching sessions in advance. Referring back to coaching emails and feedback enables a focus on key issues over the length of the coaching process and even thereafter (Bacon, 2003).
A benefit from the coach’s perspective is instant access to client information via their offered online platforms. Assessments, goals and previous coaching calls and emails along with other information resources (Knouse, 2001; Rossett & Marino, 2005) can be studied in preparation for planned sessions with their clients. This creates the opportunity for more effective and efficient coaching as goals are achieved more quickly and in fewer sessions compared to traditional offline coaching (Taranovych, 2013). Individuals can track their results and major themes through an online platform (Bacon, 2003) and enables the convenience of skipping parts of online courses that are less relevant, which makes e-coaching a more tailored fit approach (Taranovych, 2013).
A community platform benefit from e.g. chatrooms and web pages is the opportunity to receive advice and feedback from coaches with varying backgrounds (Knouse, 2001) as some platforms are accessible for multiple coaches and experienced business owners.
Additional benefits for both parties are cost effectiveness and affordable coaching. Some coaching programs allow the entrepreneur to use in-house software e.g. e-mailing and chatrooms (Miller et al., 2000). Furthermore, coaches can decide to remove overhead costs and traveling fees by working from free work spaces or from home (Bacon, 2003).
Since traveling constraints are eliminated, domestic and foreign barriers are removed, allowing entrepreneurs to be coached by individuals who would otherwise not be considered as clients (Knouse, 2001; Evans & Volery, 2001; Fielden et al., 2011; Katz & Murray, 1988; Rossett & Marino, 2005; Taranovych, 2013). Coachees can now be guided by e-coaches in their development process without face-to-face meetings and provides the opportunity for entrepreneurs in third world countries to benefit from the same resources and relationships as developed countries (Bacon, 2003). In terms of the e-coach, their offering is scaled by technology since their guidance can be accessed at several places within the client’s company at the same time.
15 2.1.5 Effective online coaching process conditions
Since the discipline of virtual coaching is still very new (Knouse, 2001) only a suggestion can be made on establishing an effective e-coaching program.
An important element for effective coaching is the willingness to start the process together. The entrepreneur needs to be willing to be coached and change; and the coach must be willing to provide his or her services to that specific entrepreneur (Audet & Couteret, 2012; Rossett & Marino, 2005; Taranovych, 2013). Willingness to cooperate should be followed-up by commitment from both parties (Clutterbuck, 1991; Gibb, 1997).
To create a match between both parties and engage in a successful relationship, communication on the same level is required (Simon & Kumar, 2001; Sullivan, 2000; Rossett & Marino, 2005; Dalley & Hamilton, 2000). Hence, small business owner-managers favour advisors whose views are compatible with their own beliefs about their firms. Empathy and the ability to listen as a coach (Simon & Kumar, 2001; Sullivan, 2000) are a necessity in that process. The coach must overcome the role of being a “stranger” and become an “insider” of the entrepreneur’s world. In an entrepreneurial coaching program, it is a must for the coach to be familiar with the small business world (Gibb, 2000) and to be able to think and behave like an entrepreneur (Thompson & Downing, 2007) for it to be effective.
Another condition for an effective e-coaching program that cannot be neglected is the presence of high trust levels. It empowers the coachee to open up and share their experiences, emotions, beliefs, fears and failures (Hinde, 1997).
In terms of technical aspects, a critical success factor for providing a virtual service is a present effective Internet site, program management and exploitation of other online resources (Evans & Volery, 2001).
One final aspect to take into account is designing detailed guidelines on which both parties should agree on during the support process. It should the goals of the process, the means of achieving them, the respective roles of both parties and a scheduled plan of action (Covin & Fisher, 1991; King & Eaton, 1999; Audet & Couteret, 2012). Essentially, it allows managing and structuring their relationship, while leaving enough flexibility for adjustments as is sometimes required (Audet & Couteret, 2012).
16 2.1.6 Online coaching obstacles
To overcome obstacles with online tools it is a necessity for all stakeholders to know how to use technology and high-quality coaching tools (Evans & Volery, 2001). The problem is when implementing new advanced tools people need to be trained which costs time. Bacon (2003) explains that the solution is to use company’s in-house communication channels to quickly establish trust and credibility as a coach to launch the coaching process. However, the e-coach’s responsibility to provide high-quality coaching tools that take advantage of new technology should not be disregarded (Taranovych, 2013). The second step is to leverage technology and implementing more than just emails and messages (Bacon, 2003).
A more general obstacle that both online and offline entrepreneurial coaches encounter is the negative perception of professional advisors coming from small business owner-managers (Audet & Couteret, 2012). The foundation of this belief lies in the assumption that the advice given is not practical or not tailored enough for their situation. Coachees assume that the coaches’ fee is too high and that they do not understand small businesses (Curran et al., 1993; Devins, 1999; Zinger et al., 1996).
Audet & Couteret’s (2012) research state that obstacles appear in miscommunications through messages and emails due to left out emotions. They mention that ‘voice’ communication is easier for building reports. A solution to this problem is establishing trusting relationships before transferring to text-only communication (Bacon, 2003).
Lastly, when designing online services constraints may come from: financial (e.g. economic viability) and cultural (e.g. trust) ends (Evans & Volery, 2001).
To summarize this online coaching chapter, online coaching is defined as a coaching form on distance facilitated by online tools. E-coaching in entrepreneurship can be targeted towards the entrepreneur and/ or the new venture. The main goal and role of the coach is to unlock an individual’s potential and to maximize performance by guidance and assistance. One of the major benefits for both the coach and coachee is instant access to coaching material and feedback which is one of many elements that ensures effective online coaching. Offering such an effective online coaching program requires a critical view and implementation of its conditions such as the development of trust, a match between both parties and an understanding of technologies used. Considering the novelty of online coaching there are yet a few obstacles to overcome.
17 2.2 NEW VENTURE SURVIVAL AND SUCCESS
Now that a theoretical foundation of online coaching is established, the objective of this subchapter is to devote attention to new venture survival and success. The explanation of when and why (pre) start-ups need online coaching is in this chapter derived from an examination of the business life cycle. With the addition of the characteristics of the business owner, organizational and entrepreneurial factors are exposed that influence new venture survival and failure. The opportunity exploitation for the e-coach is to recognize these factors and issues; and adhere their service accordingly which may potentially lead to thriving new ventures during and after the coaching process.
2.2.1 Definition of new venture survival and success
A new venture is defined as an organization in its early years of existence, initiated by or independent from an established organization (Zimmerman & Zeitz, 2002). This indicates that new ventures can take several forms: a joint venture between established firms, a corporate venture initiated as a self-contained organizational unit within the boundaries of an established company or an independent venture initiated and controlled by one or more individuals acting in their own self-interest (Vesper, 1980). The time to reach the maturity point depends on growth factors and varies between three or five years after its establishment (Kazanjian & Drazin, 1990).
A venture fails when it ceases to exist as an economic entity (Chrisman, Bauerschmidt, & Hofer, 1998). Shepherd et al. (2000) relate mortality risk to venture failure. Mortality risk is defined as the probability that a firm will become insolvent and unable to recover from that insolvency before being bankrupted and ceasing operations. The opposite of failure is also true. A venture succeeds when it creates value for its customers in a sustainable and economically efficient manner (Barney, 1991; Coyne, 1986; Schumpeter, 1934).
2.2.2 Variables influencing new venture performance
It is apparent that venture success and failure are functions of factors influencing business performance. Fortunately, this makes organizational survival manageable. The entrepreneur, strategy (Brüderl et al., 1992; Gilbert et al., 2006; Chrisman et al., 1998; Sandberg, 1986) and organizational structure, processes and systems (Gilbert et al., 2006; Chrisman et al., 1998; Churchill & Lewis, 1983) are all proven business performance factors and determinants of survival chances of new businesses (Brüderl et al., 1992).
18
2.2.2.1 Characteristics of the entrepreneur
In a new venture, the founder is key to organizational success (Brüderl et al., 1992), because the entrepreneur’s individual characteristics (Brüderl et al., 1992; Gilbert et al., 2006; Chrisman et al., 1998), educational background (Sapienza & Grimm, 1997; Shepherd et al., 2000; Roper, 1998), industry-specific experience (Brüderl et al., 1992), general work experience and new venture experience (Shepherd et al., 2000; Baum et al., 2001; Box et al., 1993; Cooper et al., 1994; Eisenhardt & Schoonhoven, 1990; Siegel et al., 1993; Roper, 1998) have strong direct effects on organizational survival. Knowledge gained from self-employment experience, whether successful or not, may even be the best preparation for entrepreneurship (Brüderl et al., 1992).
The acquisition of information and knowledge via e.g. training, education (Parkhe, 1991; Shepherd et al., 2000) and interactions among organizations are recommended as it fosters new organization’s chance of adaptation (Davis, 1991; Burns & Wholey, 1993; Haunschild, 1993). The entrepreneurs skills, personality, values, beliefs, behaviours and decisions also affect new venture performance (Chrisman et al., 1998; Gilbert et al., 2006). Believing that he or she can achieve their goals for instance and manage growth is important to execute and realize growth (Box et al., 1993; Baum & Locke, 2004). Appendix 1 gives an overview of additional entrepreneurial variables affecting new venture performance (Chrisman et al., 1998) and summarizes the above.
2.2.2.2 Organizational characteristics
Organizational characteristics encompasses the organization’s structure, systems and processes; and business strategy. Both factors directly affect organizational survival (Brüderl et al., 1992; Gilbert et al., 2006; Chrisman et al., 1998).
Strategy
Formulating a strategy to align a firm’s resources is necessary to exploit opportunities and to design an organization capable of putting the strategy into action in the chosen industry. Before this alignment a strategy argues what resources are needed and how they shall be obtained. Goals and objectives are defined as well as a strategic direction. A nascent entrepreneur has additional strategic elements that need to be assembled. Such as the development of an entry strategy; investment strategy; defining competitive weapons; and a definition of the scope of services, products and customer groups served by its segmentation (Chrisman et al., 1998).
19 In the early stages of the venture, resources are controlled because the only resources available are those of the entrepreneur (Schumpeter, 1934; Chrisman et al., 1998). As a venture grows and develops, strategy continues to be critically important. Across stages of growth, the strategic problem is more important in the first and last stages than it is in a venture’s intermediate stage. In primary stages, growth is concerned with problems of securing and deploying recourses. In later stages this concern shifts to the manner in which those resources should be redeployed (Hofer & Charan, 1984; Kazanjian, 1988; Chrisman et al., 1998). Sandberg and Hoger (1987) conclude that broad, differentiated strategies are marginally more effective than focused strategies when the venture is in the early entrant phase. Focused strategies tend to be more effective for late entrants (Chrisman et al., 1998).
Organizational structure, processes and systems
Organizational structure, processes and systems are the coordination and integration of internal functions; the facilitation of information flows; the management of recruitment, succession and training; and motivating, measuring and controlling behaviours of employees (Andrews, 1971; Galbraith & Kazanjian, 1986; Chrisman et al., 1998). New ventures start with a lack of (formal) structure, as the often are operated by one individual. This makes the decision-making structure central and flexible. As the venture grows and develops its structure, processes and systems need adjustments as well. Their decision making must become increasingly decentralized, since more individuals are now actively involved within the firm. On the contrary, the entrepreneurs must maintain a level of control somehow (Gilbert et al., 2006). Lastly, at the beginning of the venture, the entrepreneur also lacks the idea of what structure, processes and systems are needed to support the business strategy; and lacks an objective and systematic method to measure performance (Scott, 1971, Chrisman et al., 1998).
2.2.3 Business life cycle
The previously mentioned organizational and entrepreneurial performance factors are differently aligned throughout the evolution of a venue. This becomes apparent by examining the business life cycle. There is however no standard linear sequence of stages, problems and growth that firms go through, making the persistence of one standard life cycle for small and medium-sized enterprises (SMEs) difficult. Nonetheless, Masurel and van Montfort (2006) developed a classical SME life cycle model (Start à Growth à Maturity à Decline) that SMEs may go through when growing their firm. This model is established after an extensive research on business life cycle models and the conclusion that most models are based on the
20 development model of Greiner (1972) and the five growth stages model by Churchill and Lewis (1983). For this research a pre-start-up phase i.e. development phase is added in front of the start phase. The new venture life cycle in this research is thus as follows:
Figure 2: Business life cycle
2.2.3.1 Development
In the development phase the nascent entrepreneur still has to convert an idea to actually developing and launching the business. He or she has not yet invested in the infrastructure to begin production and sales (Masurel & van Montfort, 2006) neither are revenue and net income created (Smith et al., 2011). The establishment of the firm is dependent on the owner’s ability to give life to the business with their own talents to sell, produce and invent products and/ or services (Churchill & Lewis, 1983).
Moreover, nascent entrepreneurs have the belief that they possess insufficient skills in marketing and management to launch and develop the business. This reflective and decision making process e.g. choice of legal structure, financial evaluation and communication planning is best suited for asynchronous coaching technologies (Evans & Volery, 2001) such as coaching via email. In addition, this ‘incapable perception’ is further worsened by the entrepreneur’s lack of knowledge on business start-ups and the feeling that they have no one to approach that listens to them (Volery et al., 1997). The increase in emotional proximity and encouragement in creative debating and thinking i.e. opportunity recognition and idea generation demands synchronous systems (Evans & Volery, 2001) such as skype calls to overcome them in an e-coaching service.
2.2.3.2 Start
In the starting phase the entrepreneur has set his/ her initial steps to start the business and has officially launched the venture with the sole strategy to stay alive. Business performance depends on the entrepreneur as he or she is working alone (Churchill & Lewis, 1983; Masurel & van Montfort, 2006). Time commitment of the owner during this period is excessive (Churchill & Lewis, 1983). Initial investments, acquiring facilities and equipment, are made to start producing (Smith et al., 2011). This means that systems used are minimal to non-existent. Main problems are obtaining customers and delivering the product (Churchill & Lewis, 1983;
21 Masurel & van Montfort, 2006). If the company never gains sufficient customer acceptance, start-up capital runs out and/ or lacks product capability to become viable the business needs to be closed down (Churchill & Lewis, 1983) and will therefore be a failure.
To attain growth and development ads different implications to new businesses. However, when growth is absent in start-ups their survival might be significantly reduced due to liability of newness (Buderal, Preisendoerfer, & Ziegler, 1992) and liability of smallness (Freeman, Carrol, & Hannan, 1983). When ventures are confronted with development difficulties and need to prevent the business from failing it is time to learn and hire a coach to improve professional performances (Taranovych, 2013). This need to improve performances is also the highest scoring motivation (78%) for organizations to start with coaching in a survey conducted by Chartered Institute of Personnel and Development (CIPD, 2008 in Taranovych, 2013). Specifically the phases before (Hanlon & Saunders, 2007) and during the business start-up process demand even more support as they are intrinsically linked to business’ success (Fielden & Hunt, 2011).
2.2.3.3 Growth
After the start and survival phases the firm starts growing. This stage is defined as the growth stage and is focused on exploiting the company’s accomplishments and thereby expanding with first professional staff members. In the beginning of this phase the venture still has a limited number of employees. The enterprise may grow in size and profitability to become a success (Churchill & Lewis, 1983). Eventually the firm has enough customers and is able to satisfy them with their product and/ or service offering. Key problems than shift to the relationship between revenues and expenses (Chirchill & Lewis, 1983; Masurel & van Montfort, 2006). During the path to success the company is healthy and training becomes important to meet the needs of a growing business. How to grow rapidly, how to finance growth (Masurel & van Montfort, 2006; Churchill & Lewis, 1983) and how to delegate are becoming key problems in the venture (Churchill & Lewis, 1983).
More objective reasons to start with coaching, mentioned in the CIPD (2008 in Taranovych, 2013) survey, are dealing with underperformance (placed second) and improving productivity (placed third). The following motivations to hire a coach are a variety of training and staffing reasons and are all respectively in the same order given; career planning, growing future senior staff, fostering a culture of learning and development, motivating staff, accelerating change in organization, organization’s commitment to staff, improving staff
22 retention, reducing costs of sending staff to external courses, helping staff to achieving better work-life balance and satisfying demand for coaching from employees (Taranovych, 2013).
When virtual coaching is executed effectively by the coach and coachee, new ventures improve their performance, make better choices, encourage different approaches, avoid ineffective behaviours and change their attitude or perspective (Bacon, 2003).
2.2.3.4 Maturity
When the venture reaches the maturity phases is ceases to grow. Decentralized management and adequate staff are present. Systems are expensive but well developed. After this stage there are two possibilities: continued performance or decline. (Masurel & van Montfort, 2006; Churchill & Lewis, 1983). This means that the greatest concerns of a firm is to control financial gains brought on by rapid growth and to retain the advantages of small size, including flexibility of response and entrepreneurial spirit (Churchill & Lewis, 1983).
2.2.3.5 Decline
The final phase of the new venture life cycle is ‘decline’. Decline can result in a venture’s exit and thus business failure where it ceases to exist as an economic entity (Chrisman et al., 1998).
In short, this ‘new venture survival and success’ chapter elaborated a long list of factors that influence business performance and simultaneously affects its survival and success. The chapter started with a definition of a new venture: a business in its early years of existence, initiated by or independent from an established organization that can take several forms. And the definition of business survival (when it creates value for their customers in a sustainable way) and venture failure (unable to recover from insolvency). These definitions were followed by a portrayal of a classical new venture growing process, where a nascent entrepreneur may go through the phases of idea generation (i.e. development), its initial establishment (i.e. start), growth, maturity and decline. During this process the business owner is exposed to many organizational and personal issues discussed in the final section of the chapter and summarized in table 1.
Entrepreneur characteristics Organizational characteristics
Education Strategy
Venture creation experience Structure, systems and processes Work-related experience
Industry-related experience
23 3 METHODOLOGY
In order to justify the chosen methodology Edmondson’s and McManus’ (2007) model is consulted. Both authors mention four key elements that should be well-integrated and internally consistent for this methodological fit. These elements are the research question, prior work, research design and theoretical contribution and are all discusses in order to give the reader an insight in the data collection method and the justification of this research’s outcome. The chapter ends with the application of Gioia et al. (2012) to justify the data analysis method.
3.1 RESEARCH DESIGN
The analysis of the methodological fit by Edmondson and McManus (2007) starts with the state of prior research of the chosen topic. Literature on online coaching and the combination of online coaching and entrepreneurship are all categorized as nascent since both constructs currently lack much prior work. In this state, the best fitting research question is an open-ended one (Edmondson & McManus, 2007). Therefore, it justifies the research question of this thesis:
“Which online coaching services are more critical and important for new ventures?”
By examining the research question and sub-questions the type of study is classified as descriptive since it tries to find answers to the what, who, when, where and how-questions by observing and describing a subject or event and by creating a profile of a group of problems, people or events. The assessment may involve an interaction between two variables (Blumberg et al., 2014). In this case the subject of online coaching new ventures is observed and described by creating a profile of the e-coach, the coachee him/herself, the coachees new venture and the process of online coaching, leading to the assessment of the interaction of all these variables.
The research and learning journey has been non-linear and iterative which is common for Edmondson’s and McManus’ (2007) model:
24 3.2 DATA COLLECTION
To develop a fit between the nascent nature of this research and the open-ended research question, data should be qualitatively collected. The logic behind this is to interpret the open-ended data for meaning by identifying patterns. Conducting interviews in this research is the most appropriate communication approach (Edmondson & McManus, 2007).
3.2.1 Research context
Interviews were held in May 2017 and June 2017 with nine owners of online coaching companies based in the Netherlands. Appendix 2 provides an overview of the selected online coaches and their pseudonym (Coach A, B, C, D, E, F, G, H and I). These are conducted once via telephone or Skype with live video, making it a cross-sectional study, representing a snapshot of a point in time (Blumberg et al., 2014). Telephone and Skype interviews were most suiting in order to include participants out of a population that is scattered all over the Netherlands.
3.2.2 Data collection method
In order to compose the previously described data sample Google search is used with the following keywords: ‘online business coach’, ‘online bedrijfscoach’, ‘online ondernemerscoach’, ‘coaching beginnende ondernemers’, ‘e-coach beginnende ondernemer’ and ‘starters coach’. To make the research generally applicable, a variety of the expertise of the online coach and the e-coaching tool are present. In total, the sample consists of 27 approached firms. With nine cooperative firms the response rate is approximately 33 percent. All coaches are approached via a phone call and/ or an email. If the coach did not respond to an invitation via email or phone, they have been contacted that same day via a second call and a reminder via email several days later.
3.2.2.1 Sample conditions
Approaching new ventures randomly and asking whether they are in an online coaching process or have completed one would not have been viable. Constraints would have been in time and a lack of database. In addition, online coaches are bound not to share information of their clients. Asking for new ventures that have been coached by the respective online new venture coach would therefore be unethical, ineffective and unreasonable. Moreover, the online coach has a better understanding of a successful coaching process and has insights to the profile of new ventures and the type of entrepreneurs that they have enrolled in their virtual coaching program. Conditions for being included in the sample are;
25 1. The interviewee must be a coach in the online coaching firm,
2. The interviewee must be the owner of the online coaching firm in order to provide a holistic answer; and
3. The interviewee must practice online coaching methods in their online coaching firm.
It is important to mention that coaching company I is out of business and has survived for one year. He and his associates coached approximately 30 (nascent) entrepreneurs in that timeframe. The researcher still finds the experience and knowledge of this coach highly valuable for the outcome of this study. Other online coaches can learn from threats and youthful field of online coaching the new venture.
3.2.2.2 Semi-structured interview
Depth of information and detail are secured due to the semi-structured interview with open questions and probing questions which reinforces supplemental information (Blumberg et al., 2014). The semi-structured interview consisted of two categories: (1) the online coach and (2) the new venture. Questions are open to gather detailed answers about online coaching services, methods and activities on the one hand; and answers about why and when new ventures need to hire an e-coach on the other.
Specific entrepreneurial terms have been avoided during the interview to prevent misinterpretations and to leave the answers subjective to the personal insight of the coach. Broader definitions and explanations have been used instead.
Each interview lasted between 25 and 70 minutes and were held in Dutch so that interviewees could express themselves freely without taking into account words lost in translation. The interviews were recorded for personal use in order to make transcripts for later use in the data analysis process. To build trust with the coach the anonymity of their company name is ensured, which may possibly lead to a higher probability of covering sensitive data.
3.3 DATA ANALYSIS
Coding is applied to identify a dominant pattern, which is the goal of data analysis in nascent research. As mentioned in the introduction of this sub-chapter, the chosen inductive coding approach is from Gioia’s et al. (2012) by using NVIVO a qualitative software. Figure 4 below shows the data structure of the inductive approach by Gioia et al. (2012). Ultimately, the contribution of this research is in the form of a suggestive theory and is simultaneously an invitation for further work on the issue opened up by the study (Edmonson & McManus, 2007).
26 First, open coding is performed to maintain the integrity of first-order (informant-centric) terms. The initial coding scheme contained 161 codes. After combining somewhat similar codes the data analysis process ended with 112 codes. These first order codes are organized into second-order (theory-centric) themes and eight aggregated dimensions (result of online coaching; business life cycle; strategy; structure, processes and systems; entrepreneurial variable; organizational variable; online coaching program; role of coach). The two later themes and dimensions involve consultation of additional literature to refine articulation of emergent concepts and relationships (Gioia et al., 2012). The upcoming results and analysis chapter showcases examples in each sub-chapter of coding schemes including quotes, 1st-order concepts, 2nd-order themes, number of sources and the frequency of the code which is needed to compare the data to previous literature and form a conclusion.
27 4 RESULTSANDANALYSIS
While the previous chapter devoted attention to the data collection method, this chapter continues with an in-depth analysis with a comparison of collected primary data and current literature. The structure of this chapter uses the same format as the theoretical framework: the online coach first and the new venture last. Each section is supplemented with coding schemes existing of quotes from interviews, first order concepts, second order themes, aggregated dimensions, number of sources (s) and frequency (f).
4.1 ONLINE COACH PROFILE
This subchapter analyses the expertise of different coaches; online tools used; form of assistance; and the construction of the coaching process.
4.1.1 Expertise of online coach
All interviews started off with the question: “Please briefly describe what type of online coach
you are (in terms of expertise if a specific term is missing)”. This resulted in four out of nine
coaches stating that they do not have a specific coaching type. Instead, they mention what type of assistance they carried out leading to three types of online coaches: entrepreneurial coach, business coach and an online business strategy coach.
Quote 1st-order concept 2nd-order theme Aggregated dimension S F “It is purely based on the entrepreneur. It
is not about the venture; it is about the person.” – Company A Entrepreneurial coaching Expertise of coach Role of coach 5 17
“I mainly focus on online business strategy” – Company F Online business strategy coaching Expertise of coach Role of coach 2 6
“We are a coaching company for all entrepreneurial aspects in starting companies and entrepreneurial companies.” – Company B Business coaching Expertise of coach Role of coach 7 14
“I do not have an expertise. I am a master practitioner coach affiliated with NOBCO (Nederlandse orde van beroepscoaches” – Company H No expertise Expertise of coach Role of coach 1 1
28
4.1.1.1 Entrepreneurial coach
Four coaches are defined as entrepreneurial coaches. Two (C and G) out of this group describe themselves as “person-oriented” coaches and coach (A) describes his approach as a personal development category. These experts are however entrepreneurial coaches when consulting the definition of Audet and Couteret (2012): “individual support for entrepreneurs whose firms are
at the start-up or early growth stages.” Each entrepreneurial coach assists in the development
of the coachee in beginning phases of the business, but have their own focus and emphasis in the coaching process: “I am a coach that is person oriented. I look at the fears and barriers of people. What makes them a starter and why does it take so long to start.” – Company G.
Coach C has an expertise in the personal approach and helps starters with creating structure. His coaching is therefore labelled as entrepreneurial with an emphasis on structure: “I help
start-ups with creating structure because they often have an idea what they want. But they have difficulties with thoughts I need to do this and that. (…) My expertise is in the personal approach.” – Company C.
Coaching company A says that he prefers an entrepreneur that is past the development stage, but aims his assistance towards the development of the individual: “It is never about the project itself, it is about the deep desire of the person. That is on an identity level. Who is he and who does he want to be in the future.” – Company A.
The online service offering of coach D consists of three programs directed at starters in different phases of the business life cycle; pre-starter (i.e. development); post-starter (i.e. start); and early-growth. The emphasis of his coaching is in changing the mind-set of the (nascent) entrepreneur: “My expertise is mind-set. It is the most important thing as an entrepreneur to
know what you’re doing and why you’re doing it. (…) We have 3 programs: (1) Pre-starter, that is the person that thinks about being an entrepreneur and questions whether it is for her, him. And is curious about what it all entails. (2) Post-starter, that is I am going to be an entrepreneur and I have some questions to ask. And (3) growth: An entrepreneur that has already started and want to know how to grow the business.” – Company D.
4.1.1.2 Business coach
The second type of coach in the data set is ‘business coach’. As a business coach the goal is strengthening business performance and achieve organizational goals (Byrd, 2001; Conte, 2002; Taranovych, 2013). There are no boundaries in what elements of the business needs to be strengthened. It can be marketing related, such as strengthening the ventures position on social media, or learning additional sales skills to increase revenue. Coaching company B
29 provides webinars for different business issues: “We are a coaching company for all entrepreneurial aspects in starting companies and entrepreneurial companies. We do this with training and coaching online. (…) We have a coaching program for all issues that self-employed entrepreneurs, young companies and small business owners encounter.” – Company B.
Coach E is a “Broad oriented coaching of highly educated people (…). For diverse target groups. Self-employed entrepreneurs, small business owners, etc.” Just as a business coach her
coaching is not limited to a specific dilemma. The overall goal in this target group is venture creation by (pre-)starters: “What they are often not aware of is that entrepreneurship is a field in itself. They are very comfortable in their own service or product, but not always good in entrepreneurship itself. Managing your company, positioning, doing your own administration, personal development and every year evaluating am I on the right track? Marketing and networking etc. Those are things that belong to entrepreneurship but not every expert has it in their arsenal. That is very often present in the coaching process. There I also coach them with entrepreneurship. What is it, what do I need, if I do not have it myself how do I organize it for myself?” – Company E. The categorization of her expertise should not be confused with entrepreneurial coaching even though she teaches her coachees about the mechanics of entrepreneurship, the definition of entrepreneurial coaching still remains: “The coach can play
the role of facilitator and catalyst. It implies a personalized approach to coaching, focusing not on the business but on the entrepreneur as an individual.” (Audet & Couteret, 2012) and
therefore is not as highly present in her description of e-coaching methods as business coaching is.
4.1.1.3 Online business strategy coach
Online business strategy coaches also enhance the business performance of coachees, just as a business coach. The focus however is on creating an online presence of the business by means of a strategy. Coach F aims his offering towards new ventures that are in the growth phase: “I mainly focus on online business strategy. (…) I focus on entrepreneurs who are already busy. I do not learn them the subject of entrepreneurship. (…) So, I'm especially concerned with the strategy, the structure of online business.” – Company F.
Coaching company I is as mentioned out of business. His coaching service was offered towards entrepreneurs that want to have online components in their business: “Help with developing strategy, business models, up to marketing strategy. Strategy was the umbrella.
30
Online strategy was the focus. (…) There absolutely needs to be an online component and that needs to be well structured together. And that is my expertise.” – Company I.
4.1.2 Online coaching tool
Table 3 below summarizes applied online communication methods and learning channels by e-coaches in their online practices. Beside the web based tools mentioned by Taranovych (2013), this data set shows that coaching via telephone and Skype exists in the service offering in five out of nine coaches. Next to that, learning for the coachee also happens through online tutorials and personal videos coded as ‘online independent course’ in the scheme below.
Two major benefits are derived that makes coaches opt for (sometimes additional) online coaching in contrast to regular ‘offline’ coaching. One) online coaching is cheaper coaching, mentioned by companies A, F, H, D, E (see table 3, first-order concept ‘telephone). And two) online coaching is easier, more structured and provides more clarity than offline coaching (cited by Coaches F, D and G). The reason why regular coaching is more expensive compared to an online training is because it requires more guidance by the coach, which requires more time and therefore higher hourly fees. This goes hand in hand with the simplicity of a structured online training offered by company F. In this context a less expensive coaching via an online independent course is associated with a cheaper and structured virtual offering: “An online training makes it easier. It is structured, you can watch it, listen to it. That consumption is easier than books. With the coaching project I work more one-on-one and then you will take away from my hours and my hours are worth something and that thus makes it more expensive. (…) the more guidance, the more expensive it is, that is what it is all about”. – Company F. Coach D also reflects this point of view: “Why I do this online? because it easier accessible. In terms of money it is cheaper. Knowledge is obtained via a structured manner. And comfort because you can do it in your own time and at your own pace. In a good training there is a good structure. If the subject is difficult you can watch the video again. That is an advantage and you can start right away.” – Company D. Professionals can decide to remove overhead costs and traveling fees by working from free work spaces or from home (Bacon, 2003) to make e-coaching cheaper just as coach A says: “I do not get happy from physical coaching it has a different price tag. We do not have an office, so that means that we do not have these overhead costs. Having an office is not profitable. So the benefit of online coaching is to offer it relatively cheaper.”
Online group coaching is also associated with a lesser costly coaching, compared to individual online and offline coaching. Three coaches offer online peer-2-peer learning. This is
31 in the form of an interactive webinar, Google Hangouts and an online community platform. Coachees get the chance to learn from the coach but also benefit from the experiences, knowledge and solutions from other entrepreneurs participating in that same conversation:
“With the online community, training platform you get 24/7 access to videos and extra content as reference work. In that community entrepreneurs can connect with each other and ask questions.” - Company B. The second argument given for this conclusion is given in first-order concept ‘Online live peer-2-peer learning’ in table 3.
Another less frequent mentioned benefit in the data set is the scale and location benefit i.e. not being restricted to one physical place and to reach other people. “The benefit of online is that it is not stick to one place. (…) Skype is a good alternative for when they are living further away.”- Company D. “With online courses I can reach other people.” - Company G. This aligns with previous literature concluding that traveling barriers are removed due to e-coaching, allowing entrepreneurs to be coached by individuals who would otherwise not be considered as clients (Knouse, 2001; Evans & Volery, 2001; Fielden et al., 2011; Katz & Murray, 1988; Rossett & Marino, 2005; Taranovych, 2013).
Another finding which is not present in previous literature is that there are also coaches offering blended coaching. This means that their assistance is not limited to online channels.
“With online courses I can reach other people. It is supplementary to personal contact. To make it easier for people there is an online program with online videos and pdf files. I want these people to start asynchronously. So no webinars and Facebook but a roadmap they go through.” – Company G. After asking what she means by personal contact the coach adds: “That is at my place or via Skype or telephone. It gives added value than just doing it alone. Live coaching helps with creating insight and to see for themselves what they can do. So I give practical information in online coaching.” – Company G.
Moreover, email, telephone calls, WhatsApp, Facebook and LinkedIn are used by coachees to ask quick questions. Online coaches do this to prevent the coachee from getting stuck somewhere in the process (see scheme below, first-order concept ‘email’). How coaches assist their coachees will be more discussed in the upcoming two subchapters: ‘form of assistance’ and ‘coaching process’.
There is however again a challenge in online courses that do not include personal contact with the coach. Coaches cannot get a hold off the coachee and this may influence the outcome of the coaching process (“You cannot see if they are committed... cannot get a hold of their progress in a course.” – Company F). The problem with an independent online training is that
