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Master Thesis Rijksuniversiteit Groningen

MSc BA Small Business & Entrepreneurship 23-06-2014

Another perspective on the drivers beyond

entrepreneurship: is knowing your abilities superior

to possessing abilities?

Author

Name : Simon Jansen

Student number : S2405164

Adress : Oude Deventerstraatweg 45, Zwolle

Email: : jansen.s.simon@gmail.com

First Supervisor

Name : prof. dr. P.S. Zwart

University : Rijksuniversiteit Groningen

Second Supervisor

Name : dr. A.J. Rauch

University : Rijksuniversiteit Groningen

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Table of Contents

1

 

INTRODUCTION   3

 

1.1

 

GOALS   4

 

1.2

 

METHODOLOGY   5

 

1.3

 

CHAPTERING   5

 

2

 

THEORETICAL  FRAMEWORK   6

 

2.1

 

ENTREPRENEURIAL  COMPETENCES  IN  E-­‐SCAN   6

 

2.2

 

SELF-­‐AWARENESS   7

 

2.3

 

ENTREPRENEURIAL  COMPETENCES  AND  SELF-­‐AWARENESS   8

 

2.3.1

 

Need  for  Achievement   8

 

2.3.2

 

Need  for  Autonomy   9

 

2.3.3

 

Dominance  (Need  for  power)   10

 

2.3.4

 

Need  for  Affiliation  (Social  orientation)   10

 

2.3.5

 

Internal  Locus  of  Control  (Self-­‐belief)   11

 

2.3.6

 

Endurance   12

 

2.3.7

 

Market  Orientation  (Market  awareness)   12

 

2.3.8

 

Creativity   13

 

2.3.9

 

Flexibility   14

 

2.3.10

 

Risk-­‐taking  Propensity   14

 

2.4

 

SOCIAL  DESIRABILITY  AND  SELF-­‐AWARENESS   15

 

2.5

 

GROWTH  INTENTIONS  AND  SELF-­‐AWARENESS   15

 

3

 

RESEARCH  DESIGN   18

 

3.1

 

SAMPLE   18

 

3.2

 

MEASURES   18

 

3.2.1

 

Measuring  Entrepreneurial  Competences   18

 

3.2.2

 

Measuring  Self-­‐Awareness   18

 

3.2.3

 

Measuring  Growth  Intentions   19

 

3.2.4

 

Measuring  Social  Desirability   20

 

3.3

 

DATA  ANALYSIS   21

 

3.4

 

VALIDITY  &  RELIABILITY   22

 

4

 

RESULTS   23

 

4.1

 

DESCRIPTIVE  FINDINGS   23

 

4.2

 

ANALYSIS   25

 

4.2.1

 

Entrepreneurial  Competences  and  Self-­‐Awareness   25

 

4.2.2

 

Social  Desirability  and  Self-­‐Awareness   31

 

4.2.4

 

Self-­‐Awareness  and  Growth  Intentions   32

 

5

 

CONCLUSION  &  DISCUSSION   34

 

5.1.1

 

Entrepreneurial  Competences  and  Self-­‐Awareness   34

 

5.1.2

 

Social  Desirability  and  Self-­‐Awareness   36

 

5.1.3

 

Self-­‐Awareness  and  Growth  Intentions   37

 

5.2

 

IMPLICATIONS  &  FUTURE  RESEARCH   37

 

5.3

 

LIMITATIONS   38

 

REFERENCES   39

 

APPENDIX  A   48

 

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1

Introduction

Small and medium sized businesses are the major agents of economic growth and employment (ECSB newsletter, 1997). Shane (2009) argues that institutions should focus on those start-ups that are more likely to increase growth. Empirical research shows that not all firms are willing to grow (Wiklund, Davidsson, & Delmar, 2003). Individuals start and operate their own firms for other reasons than just maximising economic returns (Wiklund & Shepherd, 2003). Empirical research found that there is a relationship between entrepreneurial traits and business success (Chell, Haworth & Brearley, 1991; Rauch & Frese, 2000). Driessen (2005) found that certain personality traits, defined as entrepreneurial competences, relate to higher firm growth. Rauch and Frese (2007) also found that personality characteristics are positively related to the success of ventures. Davidsson (1989) found evidence that entrepreneurs should have the intention to grow in order to realise growth. Entrepreneurs also must perceive that they have the ability to secure the resources needed for growth, as well as the capability of developing the organisation (Covin & Slevin, 1997; Sexton & Bowman-Upton, 1991). According to Davidsson (1991), these perceived abilities could consist of entrepreneurial traits, such as internal locus of control and confidence. So one who perceives to have the abilities may have the intention to grow.

According to Church (1997) self-awareness is the ability to reflect on and accurate assess one’s own abilities. The study of self-awareness is a scarce area in the field of entrepreneurship (Lans, Biemans, Mulder & Verstegen, 2010). Fleenor, McCauley, and Brutus (1996) argue that individuals with a lack of self-awareness may not be able to assess their strengths and weaknesses. Entrepreneurship and small business literature indirectly suggests that a lack of self-awareness could impede small business development (Lans, Biemans, Mulder & Verstegen, 2010). Meyer and Dean (1990) argued that founders often blindly rely on their own skills, whereas they actually should develop (or hire someone else with) additional abilities. Whereas, individuals with self-awareness are highly related to better performance, career success, and promotions (Church, 1997). The current literature indirectly addresses the issue of a lack of self-awareness. The entrepreneurs’ self-awareness may provide entrepreneurs with insights into their strong and weak skills (Fleenor, McCauley, & Brutus, 1997). Scott and Rosa (1996) state that small firms may not realise their growth, because of under-utilisation of resources. This implies that entrepreneurs should be able to acquire adequate resources in areas that are required in order to grow.

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negatively to the level of self-awareness (Mabe & West, 1982; Lindeman, Sundvik & Rouhiainen, 1995). Mabe and West (1982) concluded that three individual characteristics were positively associated with self-awareness: intelligence, achievement status, and internal locus of control. Fleenor, McCauley and Brutus (1997) found that people with high dominance are characterised to be over estimators, and therefore have lower self-awareness. According to Busenitz and Barney (1997), entrepreneurs exhibit a greater reliance on overconfidence bias. The latter findings show the relationship between individual characteristics and self-awareness is mixed. This study will investigate how the entrepreneurial competences according to Driessen (2005) relate to the level of self-awareness. This study regards entrepreneurial competences and self-awareness and may provide a deeper understanding of the characteristics of the entrepreneur.

Another individual characteristic that may influence the level of self-awareness is social desirability. According to Ganster, Hennessey and Luthans (1983), social desirability is generally viewed as the tendency for an individual to present him or herself, in test taking situations, in a way that makes the person look positive with regard to culturally derived norms and standards. Nunnally (1978) proposed that social desirability is influenced by an individuals his or her self-knowledge. Scholars use social desirability in order to determine the respondents’ reliability and validity (Gangster et al., 1983).

1.1 Goals

The goal of this research is three-pronged. First, how entrepreneurial competences influence the level of self-awareness will be investigated. Secondly, how social desirability influence the level of self-awareness. Thirdly, how the entrepreneurs’ self-awareness influences their growth intentions will be investigated. The following research questions have been developed in order to give answers to this research:

Research Question 1: How do entrepreneurial competences of the entrepreneur influence the entrepreneurs’ self-awareness?

Research Question 2: How does social desirability influence self-awareness? Research Question 3: How does the entrepreneurs’ self-awareness influence the

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1.2 Methodology

In order to give an answer to the research questions, the following methodology has been adapted to this research. The study adopts a theory testing approach, which will be performed using a quantitative analysis. The study makes use of the data of the entrepreneurscan (e-scan), which will be provided by Entrepreneur Consultancy B.V.. The entrepreneurscan is an online test which assesses individuals on ten entrepreneurial competences. Furthermore, individuals who performed the entrepreneurscan, were able to request 360-degree feedback. The 360-degree feedback data, together with the data of the entrepreneurscan itself will form the basis to measure self-awareness. The entrepreneurscan also contains a construct to measure social desirability. This current construct will be used to measure social desirability. Further, individuals who participated in the entrepreneurscan were able to indicate their growth intentions. The methodology will be developed inside the borders of the current dataset. The relationship will be analysed through SPSS and conclusions will be drawn from it.

1.3 Chaptering

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2

Theoretical Framework

In this theoretical framework all components important to the research will be elaborated. First the entrepreneurial competences according to the entrepreneurscan are discussed, which is followed by an explanation of the concept self-awareness. The link between the entrepreneurial competences and self-awareness will be explained, where each of the entrepreneurial competences and self-awareness will be further discussed. Furthermore the relation between social desirability and self-awareness is elaborated. Finally, the relation between self-awareness and growth intentions will be explained. This chapter ends with a conceptual model.

2.1 Entrepreneurial competences in e-scan

Several studies have linked the personality characteristics to the success of entrepreneurs through empirical studies (Driessen, 2005; Rauch & Frese, 2000; Rauch & Frese 2007; Zhao, Seibert & Lumpkin, 2010). Rauch and Frese (2007) found that personality characteristics are positively related to the success of ventures. Driessen (2005) also found that certain personal characteristics and capabilities were related to firm growth. Driessen (2005) calls these personal characteristics and capabilities the “entrepreneurial competences.” According to Man, Lau and West (2002), entrepreneurial competencies are considered as personality characteristics, capabilities and knowledge, and, therefore it can be seen as the ability of an entrepreneur to perform a job role successfully. Lathi (1999) indicates the set of knowledge, skills, characteristics and attitudes as indicators for competences, which are necessary for good performance. Driessen (2005) developed the entrepreneurscan in order to identify successful entrepreneurs. The entrepreneurscan measures the characteristics and capabilities of entrepreneurs.

The entrepreneurscan measures seven characteristics and three capabilities. The following paragraph will briefly describe the entrepreneurial characteristics and capabilities. The entrepreneurial characteristics are need for achievement, need for autonomy, need for power, social orientation, internal locus of control, endurance, and risk-taking.

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self-belief are people that are convinced that personal success depends on themselves (Laan et al., 2006). Endurance is defined as persons with perseverance who will never give up when faced with adversative situations (Laan et al., 2006). People who have a risk taking propensity are willing to take risky actions (Shane, 2003).

The entrepreneurial capabilities are marketing awareness, flexibility, and creativity. Market awareness stands for the ability to estimate the demands of customers (Laan et al., 2006). Creativity is the ability to recognise new opportunities (Laan et al., 2006). Flexibility is the capacity to adapt. When new developments in the area are identified, plans are easily changed (Laan et al., 2006).

These entrepreneurial characteristics and capabilities are indicators for the future success of an entrepreneur (Driessen and Zwart 1999; 2006), and will be referred as entrepreneurial competencies in this study.

2.2 Self-Awareness

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leadership, whereas the research regarding self-awareness in the field of entrepreneurship is scarce (Murphy & Young, 1996).

2.3 Entrepreneurial Competences and Self-Awareness

According to Atwater and Yammarino (1997) there are several sources of influence upon an individual's self-awareness: biographical characteristics, individual characteristics, and cognitive processes. They note how biographical characteristics, e.g. age, gender, educational level, and minority group membership, can influence self-awareness. Further, with regard to individual characteristics, relations have been found between intelligence and several personality traits. Several scholars found that internal locus of control is positively related to self-awareness (Fletcher, 1985; Levey, 1993). Likewise, Mabe and West (1982) show that individuals with a high level of intelligence, need for achievement, and internal locus of control provide more accurate self-evaluations. Roush and Atwater (1992) found that those with introvert personalities had a higher self-awareness. Scholars also found negative relations between personality traits and self-awareness. Brutus, Fleenor, and McCauley (1996) found that people with high dominance are characterised to be over estimators, and therefore have lower self-awareness. According to Russo and Schoemaker (1992), entrepreneurs with a risk-taking propensity are likely to be overconfident in their abilities.

Overall, these studies recognise that several personality characteristics have influence on the level of self-awareness. In this study, we are interested in how the entrepreneurial competences of the e-scan according to Driessen (2006) relate to the level of self-awareness. Therefore, the biographical characteristics and cognitive processes, which also influence the level of self-awareness, are not taken into account. Certain entrepreneurial competences may positively influence the level of self-awareness, whereas others may negatively influence the level of self-awareness. As recognised by empirical studies, self-awareness is highly related to performance. This study may enhance our understanding of the characteristics of entrepreneurs. Each of the entrepreneurial competences with their proposed relation to self-awareness is elaborated in the following paragraphs.

2.3.1 Need for Achievement

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(Hansemark, 2003). Need for achievement has shown importance for economic development; several scholars found it as a factor influencing business growth (Kock, 1965; McClelland, 1965).

Several scholars found that need for achievement and self-awareness are related to each other (Ashford, 1989; Chell, 2008; Mabe & West, 1982). Ashford (1989) argued that individuals with low self-awareness tend to ignore feedback, whereas Chell (2008) mentions that individuals with need for achievement like feedback. Mabe and West (1982) identified a high need for achievement as a correlate of accurate self-assessment. Other research also found that a high achievement status has also been associated with a more accurate self-evaluation of ability (Bailey & Lazar, 1976; Gaier, 1961; Kirk & Sereda, 1969; Kooker, 1974).

Thus, several scholars support the relationship between need for achievement and self-awareness. In this study, the relationship between need for achievement and self-awareness will be tested and whether this may be an adequate predicator of self-awareness in the entrepreneurscan is considered.

H1A: The higher the level of achievement, the higher the level of self-awareness.

2.3.2 Need for Autonomy

According to Rauch and Frese (2007) entrepreneurs with need for autonomy prefer to make decisions independent of supervisors and develop their plans by themselves. Individuals with a high need for autonomy prefer to be in control and avoid rules (Rauch & Frese, 2007). Individuals tend to prefer to follow their own independent actions rather than actions involving others (Lumpkin & Dess, 1996; Shane, 2003). Thus, entrepreneurs with high autonomy are more likely to rely on their own abilities.

Meyer and Dean (1990) mentioned that individuals relying on their own abilities could lead to negative effects. Entrepreneurs should seek external advice instead of relying on their own skills at certain areas. Locke and Baum (2007) describe people with a high level of autonomy as independent thinkers, who are less likely to seek for feedback. Whereas individuals with a high level of self-awareness are described as people who seek feedback.

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H1B: The higher the level of autonomy the lower the level of self-awareness.

2.3.3 Dominance (Need for power)

The need for power is the need to have control over others to influence their behaviour (Oosterbeek, van Praag & Ijsselstein, 2010). People who have a high need for power tend to act dominant. Individuals with dominance tend to enjoy the act of exerting control (Sinha, Mesmer-Magnus & Viswesvaran, 2012). People with need for power enjoy seeing people making steps in life due to their involvement (McClelland, 1961).

Various scholars in the field of psychology found that individuals who are high in dominance tend to inflate their self-ratings of various performance and personality characteristics compared to ratings provided by others (Barbaree & Davis, 1984; Djikic, Chan, & Peterson, 2007; Leising, Rehbein & Sporberg, 2006). According to Fleenor, McClauley and Brutus (1996) individuals with high dominance are characterised to be over estimators. People with a high level of self-awareness more likely to accurate assess themselves, whereas individuals who are dominant are more likely to overestimate themselves.

Thus, it is expected that people who score a high level of dominance will score lower on levels of self-awareness. Therefore, the following hypothesis is formulated.

H1C: The higher the level of dominance, the lower the level of self-awareness.

2.3.4 Need for Affiliation (Social orientation)

According to Lee (1997), the affiliation motive is basically the concern with maintaining warm and friendly relations with others. Murray (1938) describes the need for affiliation as the tendency to receive gratification from harmonious relationships and from a sense of communication. In general, individuals with a high need for affiliation tend to be more effective managers and helpers than those with a low need for affiliation (Lee, 1997). Individuals with a high need for affiliation like to be with people (Lee, 1997).

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found that individuals who are extroverted tended to overestimate their own intelligence. Roush and Atwater (1992) found that introversion individuals provided more accurate performance ratings. Other scholars found a positive relationship between extraversion and self-awareness. Judge, LePine, and Rich (2006) found that extraversion and agreeableness are positively related to self-awareness. Whereas, according to Shane (2003) agreeableness is a closely related concept to being social orientated. Furthermore, Visser et al. (2008) found a positive relationship between extraversion and self-awareness.

The literature provides contradicting evidence to the relation between the need for affiliation and self-awareness. However, Fletcher (1997) mentioned that self-awareness is important to successfully manage relations. People with a high need for affiliation have more contact with other people, and therefore may have a better image of how they are perceived by others. Therefore, is expected that the relation between social orientation and self-awareness is positive. Thus, the following hypothesis is formulated.

H1D: The higher the level of affiliation, the higher the level of self-awareness.

2.3.5 Internal Locus of Control (Self-belief)

According to Rotter (1966), internal locus of control is the person’s belief that he or she can influence the environment around him or her. People with an internal locus of control believe they have control over the environment, whereas people with an external locus of control believe the environment controls them. Shane (2003) found that entrepreneurs with internal locus of control have better performance at entrepreneurial activities than entrepreneurs with external locus of control.

Several authors also found the relation between internal locus of control and self-awareness (Fletcher, 1986; Levey, 1993). Fletcher (1986) argues that self-evaluation is the most effective for intelligent people who have a high internal locus of control. People with a high level of internal locus of control are associated with more accurate self-evaluations (Fletcher, 1985; Levey, 1993; Mabe & West, 1982). Individuals with an internal locus of control may be more likely to look in mirror. This may provide them a higher level of self-awareness. Individuals with external locus of control may blame the environment for their shortcomings.

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H1E: The higher the level of internal locus of control, the higher the level of self-awareness.

2.3.6 Endurance

Endurance is important, when there is a lot of uncertainty, entrepreneurs need to keep going on, even after setbacks. Individuals with endurance will never give up when faced with adversative situations (Laan et al., 2006). When there is a lot of uncertainty, entrepreneurs need to keep going on, even after setbacks. Driessen (2005) states that entrepreneurs need to have a lot of endurance. According to Mescon and Montanari (1981), entrepreneurs score higher in endurance when compared to managers. The literature about endurance is scarce, which has been acknowledged by Van Spijker (2012), who states that it is seen as a logical aspect of entrepreneurship.

No literature has been found about endurance in relation to self-awareness. Individuals with endurance may keep going on because they are aware of their ability to deliver results in the end. On the other hand, people with endurance may be ignorant of situations and keep walking on the same path. The relation between endurance and self-awareness may be double-edged. Based on the latter arguments, no relationship is expected between endurance is positively related to the level of self-awareness. Thus, the following hypothesis is formulated.

H1F: The level of endurance will have no influence on the level of self-awareness.

2.3.7 Market Orientation (Market awareness)

Market orientation is valuable for entrepreneurs, as it focuses on continuously collecting information about customers’ needs and competitors capabilities and using this information to create superior customer value (Slater & Narver, 1995). Driessen (2005) defined market orientation as the ability to emphasises the needs of potential customers and create a link to their own business. Slater and Narver (1995) argue that market orientation provides strong norms for learning from customers and competitors. Individuals with high market awareness are stingy to customer knowledge.

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themselves in a way to obtain as much as possible information about the environment. In order to obtain as much as information as possible, the individual must be aware how to present himself in way to gain this information. This may require a certain level of self-awareness. One should be able to adapt to the perception of others in order to win information. Customers should perceive him in a correct way in order to win information.

It is expected that individuals with a high level of market orientation, may have a high level of self-awareness. Therefore the following hypothesis is formulated.

H1G: The higher the level of market orientation, the higher the level of self-awareness.

2.3.8 Creativity

Buelens (2006) defined creativity as the process of developing something new. Schumpeter (1942) argued that a defining characteristic of an entrepreneur is his or her emphasis on innovation. Other recent scholars also noted the importance of creativity for entrepreneurs (Engle, Mah & Sadri, 1997). Furthermore, entrepreneurs need creativity in order to explore new business ideas, information, connect unconnected events, and explore opportunities (Zhao & Seibert, 2006).

According to Runco (1991), the level of creativity may reduce self-evaluation because it disrupts the divergent thinking processes needed for generating creative ideas. Despite this, a closely related concept has been found relating to self-awareness, openness to experience. Openness to experience characterises someone who is intellectually curious and tends to seek new experiences and explore novel ideas. According to McCrae (1987), openness to experience is positively correlated with intelligence and related to creativity. Openness to new experience has been found to be significant positively related with self-awareness (Kurtz and Sherker, 2003).

The findings indicate that creativity itself is negatively related to self-awareness, whereas openness to experience is positively related. Because creativity is investigated in this study, a negative relationship is expected. Therefore, it is expected that the higher the level of creativity, the lower the level of self-awareness will be. Therefore, the following hypothesis is formulated.

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2.3.9 Flexibility

Flexibility is defined as the capacity to adapt. When new developments in the area are identified, plans are easily changed (Laan et al., 2006). According to Rundh (2010), flexibility is the capacity to respond and adapt to change as well as to inflict change on others. Entrepreneurs mostly operate in a dynamic environment where flexibility is critical to adapt to the changing environment.

No scientific literature has been written on flexibility and self-awareness. Furthermore, there are no concepts in the self-awareness literature which relate to or are comparable to flexibility. Therefore, it is expected that there is no relationship between flexibility and self-awareness.

H1I: The level of flexibility is not related to the level of self-awareness.

2.3.10 Risk-taking Propensity

Entrepreneurs have been described as risk takers (McGrath, MacMillan & Scheinberg, 1992). According to Shane (2003), people who score high on risk-taking propensity are more likely to exploit opportunities than people who score low on risk-taking propensity According to Hills, Seibert and Zhao (2005), individuals with a higher risk propensity are more likely to feel confident that they can fulfil roles and accomplish tasks. Also, Russo and Schoemaker (1992) suggest that the risk-taking behaviour is related to the overconfidence of entrepreneurs. Furthermore, Sitkin & Weingart (1995) argue that individuals with high risk-taking propensity tend to feel more comfortable in situations of risk and in fact objectively perceive same situations as less risky than do others.

The latter implicates that individuals with risk-taking propensity tend to perceive situations more subjective, where they may be overconfident, than individuals without risk-taking propensity. It is expected that individuals with risk-taking propensity are more likely to be overestimating, and therefore have a lower self-awareness. Therefore, a negative relationship is expected between risk-taking propensity and the level of self-awareness. Thus, the following hypothesis is formulated.

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2.4 Social Desirability and Self-Awareness

Another interesting personal trait relating to self-awareness is socially desirable behaviour. According to Ganster, Hennessey and Luthans (1983), social desirability is generally viewed as the tendency for an individual to present him or herself, in test taking situations, in a way that makes the person look positive with regard to culturally derived norms and standards. One can interpret this as trying to “fake to look good.” Nunnally (1978) proposed that social desirability is influenced by various factors of the person, such as his or her self-knowledge, his or her level of frankness, and his or her psychological adjustment.

Podsakoff and Organ (1986) state that self-ratings tend to be inflated by socially desirable behaviour. Mersman and Donaldson (2000) also found that individuals with high social desirability tend to underestimate or overestimate their abilities. According these authors, social desirability is highly related to self-awareness (Podsakoff & Organ, 1986; Mersman & Donaldson, 2000). Entrepreneurs with high levels of self-awareness tend to learn and prefer accurate feedback in order to improve themselves. Therefore, individuals with self-awareness will try to avoid socially desirable behaviour.

H2: The higher the social desirability, the lower the level of self-awareness is in entrepreneurial competences.

2.5 Growth Intentions and Self-Awareness

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goals. On the other hand, entrepreneurs are more likely to pursue business goals, such as achieving profit and growth (Carland et al., 1984). These business goals where entrepreneurs seek to grow can also be distinguished through various types of growth. Various researchers acknowledge growth in sales, profit, financial ratios, employment market share, and income of entrepreneurs as distinctive motivations of entrepreneurs (Weinzimmer, Nystrom & Freeman, 1998; Wiklund and Shepherd, 2005). To conclude, some entrepreneurs want to grow. It is important to recognise whether an entrepreneur is willing to grow, because firms that grow are a valuable contribution to the economy (Kirchhoff, 1994; Reynolds & White, 1997).

According to Davidsson (1991), the growth motivation is determined by the perceived growth-related ability, need, and opportunity. Davidsson (1991) emphasises that growth motivation is entirely the result of the reality perceived. Boyd and Vozikis (1994) also recognise the importance of the perceived ability in order to obtain the intention to grow. Davidsson (1991) relates entrepreneurial traits such as internal locus of control, self-confidence, and optimism as indicators for the perceived ability to grow. Other scholars explain this phenomenon of growth intentions using the concept of self-efficacy (Boyd and Vozikis, 1994; Hills et al., 2005). Self-efficacy is a highly related concept to self-awareness (Lans et al., 2010). Self-efficacy is defined as a person’s belief in his or her capability to perform a task (Gist, 1987). Although scholars found self-efficacy as an explanation for when individuals perceive they possess the abilities to grow, studies did not investigate the concept of self-awareness in relation to growth intentions.

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external resources or delegate adequate decision making tasks, which may complement their skills and make them more likely to perceive the ability to grow. The perceived ability is, according to Davidsson (1991), required to have growth intentions.

This study will address the concept of self-awareness, which has not yet been investigated in relation to growth intentions. Individuals with self-awareness are aware of their strengths and weaknesses, which mean that individuals with self-awareness are more likely to recognise the resources required to grow. There the following hypothesis has been formulated.

H3: The higher the entrepreneurs’ self-awareness, the more likely the entrepreneur has growth intentions.

Based on the theoretical framework several hypotheses have been developed, which resulted into the following conceptual model (Figure 1).

Figure 1 Conceptual model

H1B −

Self-awareness

Need for achievement Need for autonomy

Need for power Need for affiliation

Locus of control Endurance Market orientation

Creativity Flexibility

Risk taking propensity Social desirability

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3

Research Design

In this chapter, the methodology of the research will be explained in four paragraphs: sample, measures, data analysis, and validity and reliability.

3.1 Sample

The sample consisted of 9543 participants who filled in the questionnaires from the time period of 2006 to 2012. All these questionnaires have been filled in by individuals who wished to start a company or who already had a company. After filtering the dataset based on the completion of the feedback data, a total of 1051 questionnaires of participants were left for the research. The filtering of the questionnaires has been based on the completion of the data regarding entrepreneurial competences, 360 degree feedback, social desirability, and growth intentions. Of all these dimensions the data was required in order to been taken into account for this study. Participants who requested 360 feedback were able to request a maximum of three feedbacks from other persons.

3.2 Measures

This paragraph consists of four sections. First, the measures of the entrepreneurial competences will be discussed. Second, the measures of self-awareness will be elaborated. Third, it will be explained how growth intentions will be measured. Finally, the measures of social desirability will be discussed.

3.2.1 Measuring Entrepreneurial Competences

The entrepreneurial competences are measured in ten dimensions: need for achievement, need for autonomy, need for power, need for affiliation, internal locus of control, endurance, risk-taking propensity, marketing awareness, flexibility, and creativity. By answering 111 questions about the individual personality on a 7-point Likert scale, individuals gain insight into their own entrepreneurial traits and characteristics (Driessen & Zwart, 2006). This results in scores of all the ten dimensions. These dimensions will be operationalised based on the scores obtained from the dataset that range from 0 to 100 for each entrepreneurial competence.

3.2.2 Measuring Self-Awareness

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a colleague or friend, to fill in the questionnaire to assess the skills of the entrepreneur. These individuals rated the entrepreneurs on the entrepreneurial competences regarding the entrepreneurscan. Participants requested feedback from a maximum of three persons. If participants had more than one feedback, the average rating was taken into account for calculating the self-awareness score.

In order to measure the degree of self-awareness, two methods are commonly used (Bailey & Fletcher, 2002). First, the congruence-r, which measures to what extent the assessors agree on the relative strengths and weaknesses of entrepreneurs. When this correlation is high, there is a strong agreement about the entrepreneurial competences; if it is low there is a little agreement. One drawback of this method is that it does not say anything about the absolute differences (Warr & Bourne, 1999).Second, the congruence-d, will measure the standardised absolute difference between two profiles of entrepreneurs’ means. The level of self-awareness is considered to be high when there are small “d” scores, and self-awareness is low when there are high “d” scores. Watt (1999) argues that almost every publication concentrated the two possible indicators of judgemental congruence, congruence-d and congruence-r.

In this study, both measures of congruence will be computed. Congruence-r is assessed by the Pearson product-moment correlation across the target persons and the judgements made by other ratings. The congruence-r is furthermore converted into a nominal score in order to test the relationships of congruence-r and the other variables. According to Taylor (1990) correlations ranging from 0,68 to 1,0 are strong or high correlations. Therefore, individuals with a Pearson correlation of 0,68 and higher are indicated with high self-awareness, whereas individuals who scored a Pearson correlation lower than 0,68 are indicated with low self-awareness. Congruence-d will be measured in terms of difference between the target person and the other rating. This second method will show if all assessors agree on the level of the entrepreneurial competences. If congruence-d is low, there is little difference and high self-awareness, if congruence-d is high there is strong disagreement about the absolute level of entrepreneurial competences, and therefore low self-awareness. Congruence-d is obtained by subtracting the average “other” score from the self-rating for each feedback questionnaire item, and then dividing by the pooled standard deviation of those scores (Warr and Bourne, 1999).

3.2.3 Measuring Growth Intentions

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profit orientated, revenue orientated, and employee orientated. The questionnaire contains a question regarding their business goals (see Appendix A). The entrepreneur can choose between: make as much profit as possible, strong growth in revenue and employees, continuity, making as much revenue as possible, and staying small. The responses make as much profit as possible, strong growth in revenue and employees, and making as much revenue as possible are indicators for growth intentions. Indicators for no growth intentions are continuity and to stay small.

3.2.4 Measuring Social Desirability

The entrepreneurscan contains questions regarding social desirability. These questions are intended to measure the level of social desirability. If an entrepreneur scores a certain score on these questions, he or she will be indicated by a message, which announces that the participant answered the entrepreneurscan in a socially desirable way. However, these questions have not yet been tested in relation to self-awareness. The most important reason for adopting these questions in the entrepreneurscan is in order to validate the results of the participant obtained by the entrepreneurscan.

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social desirability questions will be labelled as being socially desirable, whereas respondents who do not will be labelled as not socially desirable.

3.3 Data Analysis

All hypotheses will be tested on two levels, in relation to congruence-d and in relation to congruence-r, as explained in the section before. The relation between the variables and self-awareness is considered as significant if there is a significant relationship between the variables and self-awareness in congruence-d and/or congruence-r. Congruence-d indicates the absolute value, whereas congruence-r indicates the profile means. One could indicate a correct profile (congruence-r) but may not provide accurate scores in absolute differences (congruence-d), this also counts the other way around. In both situations it may be still seen as an accurate feedback, and therefore indicate self-awareness. For this reason if one of the two measures is significant, the hypothesis will be accepted.

First, the relationships of hypothesis 1A till 1J will be tested. These are relationships between the entrepreneurial competences and self-awareness. To test the relation between the entrepreneurial competences and self-awareness in congruence-d, three tests will be performed. The data of entrepreneurial competences is interval data, whereas also the data of self-awareness in congruence-d is interval data. First, a Pearson Correlation test will be performed to indicate whether there is a relation between the each of the variables. Attention should be paid to the results of the Pearson correlation test, because the lower the level of congruence-d, the higher the self-awareness. So a negative Pearson correlation is related to a higher level of self-awareness. Furthermore, a Linear Regression analysis will be performed in order to test if the significant related entrepreneurial competences also have a linear relationship. Finally, a stepwise regression will determine the best combination of entrepreneurial competences that predict the level of self-awareness. Further on, the entrepreneurial competences will be tested in relation to the self-awareness measured by congruence-r. Congruence-r is indicated by whether an individual has self-awareness or not. Performing a Logistic Regression analysis will test the relationship between the entrepreneurial competences and self-awareness on congruence-r.

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The final relationship tested is hypothesis 3, which measures the relationship between self-awareness and growth intentions. Performing two analyses will test the relationship between self-awareness and growth intentions. First, self-awareness in congruence-d will be tested to growth intentions by performing a Logistic Regression analysis. Then, self-awareness in congruence-r will be tested in relation to the growth intentions. Performing a Chi-Square of independence test will test this relationship.

3.4 Validity & Reliability

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4

Results

This chapter presents the results of the statistical analysis performed. First, the descriptive findings will be presented. Second, the outcomes of the performed tests will be presented.

4.1 Descriptive Findings

Table 1 presents the descriptive findings of the entrepreneurial competences. As shown in the table, need for achievement, social orientation, endurance, market orientation, creativity, and risk-taking propensity have the highest score (M = 100). The dimension of risk-taking propensity also contains the scores lowest (M = 8,3). Further, risk-taking propensity has the lowest mean score (M = 55,14, SD = 9,64), followed by dominance (M = 59,47, SD = 13,14). The competence creativity had the highest mean (M = 79,53, SD = 13,42) and the second highest mean is need for achievement (M = 79,30, SD = 10,36).

Table 1 Descriptive Findings of Entrepreneurial Competences

N Minimum Maximum Mean Std.

Deviation Need for Achievement 1050 35,2 100,0 79,30 10,36 Need for Autonomy 1050 19,4 97,2 66,09 12,8 Dominance 1050 15,8 97,9 59,47 13,14 Need for Affiliation 1050 28,6 100,0 75,99 13,21 Internal Locus of Control 1050 33,3 95,8 70,34 11,13 Endurance 1050 16,6 100,0 75,89 12,58 Market Orientation 1050 20,8 100,0 71,84 13,43 Creativity 1050 19,4 100,0 79,53 13,42 Flexibility 1050 38,1 95,2 73,29 9,64 Risk-taking Propensity 1050 8,3 100,0 55,14 17,32

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indicates the lowest level of self-awareness measured. The congruence-d had a mean score of M = 12,92 with a standard deviation of SD = 4,11.

Table 2 Descriptive Findings of Self-Awareness in Congruence-d

N Minimum Maximum Mean Std.

Deviation Self-awareness

(Congruence-d)

1050 3,46 37,74 12,92 4,11

Table 3 presents the descriptive findings of self-awareness measured by congruence-r. The level of awareness was high in 33,1% of all participants (N = 348). The level of self-awareness was low in 66,9% of all participants (N = 702). These results show that numerically fewer participants are indicated with a high level of self-awareness as measured in congruence-r.

Table 3 Descriptive Findings of Self-Awareness in Congruence-r

Yes/No N Percentage Total (N)

Self-awareness (Congruence-r)

Yes 348 33,1% 1050

No 702 66,9%

Table 4 presents the descriptive findings of social desirability. The level of social desirability was high with 16,0% of all participants (N = 168). The level of social desirability was low with 84,0 % of all participants (N = 882). So, a numerically smaller amount of participants has responded in a socially desirable way.

Table 4 Descriptive Findings of Social Desirability

Yes/No N Percentage Total (N)

Social Desirability

Yes 168 16,0% 1050

No 882 84,0%

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Table 5 Descriptive Findings of Growth Intentions

Yes/No N Percentage Total (N)

Growth Intentions

Yes 313 29,8% 1050

No 737 70,2%

4.2 Analysis

The following section contains three parts. First, the results relating to the hypotheses 1A-J will be presented. Second, the results of the hypothesis 2 will be shown, and lastly the results regarding hypothesis 3 will be presented.

4.2.1 Entrepreneurial Competences and Self-Awareness

This section will present the results of the relationship between entrepreneurial competences and self-awareness. A Pearson-product moment correlation and a Linear Regression analysis have been performed to analyse the relationship between the entrepreneurial competences and congruence-d (self-awareness in terms of absolute differences in profile means), and secondly a Logistic regression has been performed to analyse the relationship between the entrepreneurial competences and congruence-r (self-awareness in terms of agreeing on relative strengths and weaknesses of the individual). Table 6 presents the results correlation between the entrepreneurial competences and self-awareness in congruence-d and congruence-r.

Table 6 Pearson-Product Moment Correlation and Logistic Regression Results

Congruence-d Congruence-r

Pearson-correlation

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Market Orientation -,098 ,001** 1,037 ,000** Creativity -,094 ,002** 1,023 ,000** Flexibility -,018 ,520 1,025 ,001** Risk-taking Propensity ,178 ,000** ,973 ,000**

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.005 level (2-tailed).

Table 7 presents the results obtained from the Linear Regression analysis. These results indicate whether the relationships between the variables are linear.

Table 7 Linear Regression analysis results

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4.2.1.1 Need for Achievement

A Pearson product-moment correlation coefficient was computed to assess the relationship between need for achievement and the self-awareness in congruence-d of an individual. There was no significant correlation found between the two variables, r = -,038 and p = ,215. The Linear Regression analysis indicated no significant linear relationship, R2 = ,001, B = ,015, t = -1,240 and p = ,215. Further, a logistic regression was performed in order to assess the relationship in relation to congruence-r. A significant correlation between the two variables was found, exp (B) = 1,034, p = ,000 (p < ,01). For any additional point in need for achievement, the level of self-awareness increases by 3,4% (exp (B) = 1,034). From the latter tests, it can be concluded that there is a significant relationship between the need for achievement and self-awareness in congruence-r. Therefore, the need for achievement is related to the level of self-awareness. So, we can accept H1A.

4.2.1.2 Need for Autonomy

For need for autonomy, a Pearson-product moment correlation was also computed to assess the relationship between need for autonomy and self-awareness as measured by congruence-d. There was a found a significant correlation between the two variables, r = ,114, p = ,000 (p < ,001). Furthermore, the Linear Regression analysis indicated a significant and linear relationship, R2 = ,013, B = ,010, t = 3,713, and p = ,000. A logistic regression assessed the

relation between the need for autonomy and congruence-r. The correlation between the need for autonomy and self-awareness in congruence-r was not significant, exp (B) = ,994, p = ,257 (p < ,01). The results provide evidence to support the relation between the need for autonomy and self-awareness. This indicates the higher the need for autonomy, the lower the self-awareness. Thus, H1B is supported.

4.2.1.3 Dominance

First, a Pearson-product moment correlation indicated a significant relationship between dominance and self-awareness measured by congruence-d. These results presented the following correlations, r = ,082, p = ,008. The Linear Regression analysis also indicated a significant relationship, R2 = ,007, B = ,026, t = 2,652, and p = ,008. Furthermore, a logistic

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4.2.1.4 Need for Affiliation (Social Orientation)

The Pearson-product moment correlation found a significant correlation for the relationship between the need for affiliation and self-awareness measured by congruence-d, r = .-084, p = ,006 (p < ,01). Further, the Linear Regression analysis also indicated a significant relationship, R2 = ,007, B = -,026, t = -2,731, and p = ,006. Likewise, the logistic regression assessed the correlation between the need for affiliation and self-awareness measured in congruence-r. This analysis also showed a significant relationship exp (B) = 1,028, p = ,000 (p < 0,05). For any additional point in need for affiliation, the level of self-awareness increases by 2,8% (exp (B) = 1,028). The relationship between social orientation and self-awareness is significant. For this reason the higher the level of affiliation, the higher the level of self-awareness. Thus, H1D is supported.

4.2.1.5 Internal Locus of Control

To test the correlation between the internal locus of control and self-awareness measured in congruence-d, a Pearson-product moment has been performed. No significant relationship between the two variables was found, r = -,037, p = ,228 (p > ,005). The Linear Regression analysis also did not indicate a significant relationship, R2 = ,001, B = -,014, t = -1,206, and p

= ,228. Further a logistic regression tested the relationship between the internal locus of control and self-awareness measured by congruence-r. These results do indicate a significant relationship exp (B) = 1,017 p = ,004. For any additional point in internal locus of control, the level of self-awareness increases by 1,7% (exp (B) = 1,017). A significant relationship between the internal locus of control and self-awareness has been found. This means the higher the internal locus of control, the higher the level of self-awareness. Thus, H1E is supported.

4.2.1.6 Endurance

For the relation between endurance and self-awareness measured in congruence-d, a Pearson-product moment correlation has been computed. A significant relation between the two variables has been found, r = -,094, p = ,002 (p < ,005). The Linear Regression analysis indicated a significant relationship, R2 = ,009, B = -,031, t = -3,069, and p = ,002. Likewise, a

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4.2.1.7 Market Orientation

A Pearson-product moment correlation has been computed to assess the correlation between market orientation and self-awareness measured in congruence-d. A significant relationship between the these variables was found, r = -,098, p = ,001 (p < ,001). The Linear Regression analysis also indicated a significant relationship, R2 = ,010, B = -,030, t = -3,197, and p = ,001.

The logistic regression analysis also supported this significant relationship between market orientation and self-awareness measured by congruence-r, exp (B) = 1,037, p = ,000 (p < ,001). For any additional point in market orientation, the level of self-awareness increases by 3,7% (exp (B) = 1, 037). The results showed a significant relationship between market orientation and awareness. So the higher level of market orientation, the level of self-awareness. Therefore it supports H1G.

4.2.1.8 Creativity

In order to assess the correlation between creativity and self-awareness measured in congruence-d, the Pearson-product moment correlation has been performed. A positive relationship between the two variables has been found, r = -,094, p = ,002 (p < 0,05). The regression analysis indicated a significant relationship, R2 = ,009, B = -,029, t = -3,067, and p

= ,002. In addition, a logistic regression assessed the relationship between creativity and self-awareness measured in congruence-r. This test also indicated a significant relationship, exp (B) = 1,023, p = ,000 (p < ,01). For any additional point in creativity, the level of self-awareness increases by 2,3% (exp (B) = 1,023). All tests indicate a positive relationship between creativity and self-awareness. Therefore, there can be concluded that the higher the level of creativity, the higher the level of self-awareness. This is in contrast to the hypothesis, which proposed a negative relationship between creativity and self-awareness. Therefore, H1H is rejected.

4.2.1.9 Flexibility

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relation between flexibility and self-awareness measured in congruence-r. The higher the flexibility, the higher the level of self-awareness. Therefore, it can be concluded that the hypothesis, which proposed no relationship, can be rejected. Thus, H1I is not supported.

4.2.1.10 Risk-taking Propensity

Lastly, risk-taking propensity was assessed in relation to self-awareness measured by congruence-d. The correlation between these variables has been found significant, according to the Pearson-product moment correlation test, r = ,178, p = ,000 (p < ,01). In addition, the Linear Regression analysis indicated a significant relationship, R2 = ,032, B = ,042, t = 5,852,

and p = ,000. Furthermore, a logistic regression analysis was performed to assess the relation between risk taking propensity and self-awareness measured in congruence-r. This analysis also indicated a significant relationship, exp (B) = ,973, p = ,000 (p < ,001). For any additional point in risk-taking propensity, the level of self-awareness decreases by 2,7% (exp (B) = ,973). All results indicate a significant negative relationship between risk-taking propensity and self-awareness. Thus, it can be concluded that the higher the risk-taking propensity, the lower the level of self-awareness. Therefore, H1J is supported.

4.2.1.11 Best Predictors of Self-Awareness

A stepwise regression analysis has been performed in order to determine what the best combinations of entrepreneurial competences are to predict the level of self-awareness. Table 8 presents the results of the stepwise regression analysis.

Table 8 Stepwise Regression Analysis

Model R R2 Std. Error of the

Estimate a ,178 ,031 4,05 b ,225 ,049 4,01 c ,267 ,069 3,97 d ,292 ,082 3,94 e ,306 ,089 3,92 f ,316 ,095 3,91

a. Predictors: (Constant), Risk-taking Propensity

b. Predictors: (Constant), Risk-taking Propensity, Creativity

c. Predictors: (Constant), Risk-taking Propensity, Creativity, Need for Autonomy

d. Predictors: (Constant), Risk-taking Propensity, Creativity, Need for Autonomy, Endurance

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The results of the stepwise regression analysis indicate that six of the ten entrepreneurial competences have been taken into account. The combination of risk-taking propensity, creativity, need for autonomy, endurance, dominance, and social orientation are significant entrepreneurial competences to predict self-awareness. The combination of these six entrepreneurial competences explain 9,5% of the outcomes of self-awareness (R2 = ,095).

Further, the results show that risk-taking propensity count has the biggest impact of the significant predictors, whereas social orientation has the smallest impact of the significant predictors.

4.2.2 Social Desirability and Self-Awareness

In order to assess the relation between social desirability and self-awareness, two tests were performed. First, in order to test the relation between social desirability and self-awareness measured in congruence-d, an independent t-test will be performed. Second, a Chi-square of independence test assesses the relation between social desirability and self-awareness measured in congruence-r.

Table 9 Descriptive Findings

N N (total) Percentage Total perc. Social Desirability and Self-Awareness 69

168

41,1%

Social Desirability and No Self-Awareness 99 58,9% 100%

No Social Desirability and Self-Awareness 279

882

31,6% No Social Desirability and No

Self-Awareness

603 68,4% 100%

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Table 10 Independent T-test

Levene’s Test for Equality of Variances

T-test for Equality of Means

F Sig. Df Sig (2-tailed)

Self-Awareness (congruence-d)

19,545 ,000 1048 ,281

To test whether the people with social desirability and non-social desirability are associated with a statistically significant different level of self-awareness, an independent t-test was performed (see Table 10). Additionally, the assumption of homogeneity of variances was tested and did not satisfy via Levene’s F test, F(1048) = 19,545, p = ,000. The independent samples t-test was associated with a non-significant effect, t(1048) = -1,079, p = ,281. Thus, this test presented no significant relationship between social desirability and the level of self-awareness measured in congruence-d.

Table 11 Chi-Square Test of independence Test & Descriptive Findings of Social Desirability and Growth intentions

Value df Significance

Self-Awareness (congruence-r) 5,674 1 ,017

Furthermore, a Chi-Square test of independence showed a significant relation between social desirability and self-awareness measured in congruence-r (x2 (1) = 5,674, p = ,017 (p < .05)). The results are presented in Table 11. However, the expected relationship was not found. The hypothesis suggests that the higher the social desirability, the lower the level of self-awareness. However, the results show a significant relationship, whereas the higher the level of social desirability, the higher the self-awareness. This concludes that H2 can be rejected. 4.2.4 Self-Awareness and Growth Intentions

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Table 12 Pearson-product Moment Correlation of Self-Awareness and Growth Intentions

Significance Exp (B)

Self-Awareness (congruence-d)

,297 ,983

Table 12 presents the results of the Pearson-product moment correlation test. The results indicate that no significant relationship between self-awareness measured in congruence-d and growth intentions has been found, exp (B) = ,983, p = ,297.

Table 13 Descriptive Findings of Self-Awareness and Growth Intentions

N N (total) Percentage Total perc. Self-Awareness and Growth Intentions 118

348

33,9%

Self-Awareness and No Growth Intentions 230 66,1% 100%

No Self-Awareness and Growth Intentions 196

702

27,9% No Self-Awareness and No Growth

Intentions

506 72,1% 100%

Table 13 presents the descriptive findings of the Chi-Square test. The total amount of individuals with self-awareness is 348, where 118 (33,9%) individuals had growth intentions and 230 (66,1%) had no growth intentions. The amount of individuals with no self-awareness is 702, where 196 (27,9%) had growth intentions and 506 (72,1%) had no growth intentions. It can be concluded from the descriptive findings that individuals with self-awareness are numerically more likely to have growth intentions.

Table 14 Chi-Square of Independence Test

Value df Significance

Self-Awareness (congruence-r)

3,980 1 ,046

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5

Conclusion & Discussion

In order to answer the research questions of this study, several analyses have been performed. This section will draw conclusions about the results, which will be discussed in order to answer the research questions. Each research question will be discussed. Furthermore, suggested implications and further research will be presented that this study could be used for. Finally, the limitations of this study will be discussed.

5.1.1 Entrepreneurial Competences and Self-Awareness

All of the ten entrepreneurial competences according to Driessen (2005) have been analysed, and for all ten a significant relationship has been found relating to self-awareness. However, the explained variance of very small at all results. The results of the relationship between entrepreneurial competences and self-awareness presented some remarkable findings. These findings will answer the first research question:

How do entrepreneurial competences of the entrepreneur influence the entrepreneurs’ self-awareness?

The first hypothesis, 1A, proposed a positive relationship between the need for achievement and self-awareness. The results indicate a significant relationship between the need for achievement and self-awareness. Multiple scholars support this relationship between the need for achievement and self-awareness (Bailey & Lazar, 1976; Mabe & West, 1982). Therefore, hypothesis 1A is supported.

The second hypothesis, 1B, proposed a negative relationship between need for autonomy and self-awareness. The results indicated a significant negative relationship between the need for autonomy and self-awareness. Individuals who tend to rely on their own abilities are less likely to be self-aware. This is consistent with the literature of self-awareness, whereas Meyer and Dean (1990) stated this as one of the consequences of not being self-aware. One cannot be the best performer at all tasks, but will need to delegate tasks. Individuals with a low level of autonomy may be more likely to acquire external resources for fields where they lack skills. Therefore, hypothesis 1B is supported.

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likely to seek out feedback from others; they prefer to dominate other people. As mentioned earlier in this paper, individuals with self-awareness prefer asking for feedback, whereas individuals who have dominance act in the opposite manner by making decisions by themselves. Thus, hypothesis 1C is supported.

The fourth hypothesis, 1D, proposed a positive relationship between a need for affiliation and self-awareness. The results indicated a significant positive relationship between a need for affiliation and self-awareness. People who are socially orientated (need for affiliation) are good at maintaining relationships with others. Self-awareness is acknowledged as being important in order to maintain relationships (Fletcher, 1997). Therefore, hypothesis 1D is supported.

The fifth hypothesis, 1E, proposed a positive relationship between internal locus of control and self-awareness. The results indicated a significant positive relationship between the internal locus of control and self-awareness. These results are in line with various scholars who found a significant relation between internal locus of control and self-awareness (Fletcher, 1985; Mabe & West, 1982). People with an internal locus of control can better reflect on themselves. They may see they are responsible for the outcomes of their actions, whereas people with an external locus of control blame the environment for certain outcomes. Therefore, hypothesis 1E is supported.

The sixth hypothesis, 1F, proposed no relationship between endurance and self-awareness. The results indicated a significant positive relationship between endurance and awareness. No empirical research indicated signs of this relation between endurance and self-awareness. Thus, no explanation can be given for this relation. Hypothesis 1F is rejected.

The seventh hypothesis, 1G, proposed a positive relationship between market orientation and self-awareness. The results indicated a significant positive relationship between market orientation and self-awareness. People who are market orientated are continuously collecting information about customers and competitors (Driessen, 2005). In order to understand customers and competitors correctly, self-awareness may be very important. Therefore, people who are market orientated are more likely to have a higher level of self-awareness. Therefore, hypothesis 1G is supported.

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self-awareness. However, a closely related theory indicated this relationship, whereas openness to experience is found to relate to self-awareness by several scholars (Kutz & Sherker, 2003; McCrae, 1987). Thus, hypothesis 1H is rejected.

The ninth hypothesis, 1I, proposed no relationship between flexibility and self-awareness. The results indicated a significant positive relationship. People who are flexible can easily adapt to their environment. No scientific literature has been found to explain this relationship. However, individuals who are flexible may be more likely to respond to the needs of others, which may explain the involved level of self-awareness. Therefore, hypothesis 1I is rejected.

The tenth hypothesis, 1J, proposed a negative relationship between risk-taking propensity and self-awareness. The results indicated a significant negative relationship between the two variables, which supports the hypothesis. Russo and Schoemaker (1992) suggested that entrepreneurs with risk-taking behaviour are likely to have overconfidence. Thus, this overconfidence may have resulted in the overestimation of their competences. Hypothesis 1J is supported, individuals with high risk-taking propensity tend to have lower self-awareness.

The findings between the entrepreneurial competences and self-awareness presented positive and negative relationships. A remarkable finding is that all of the entrepreneurial competences are found to significantly relate to self-awareness. The findings indicate that that seven of the ten entrepreneurial competences are positively related to self-awareness, whereas three of the ten entrepreneurial competences are negatively related to self-awareness. Furthermore, the Stepwise Regression Analysis indicated that, risk-taking propensity, creativity, need for autonomy, endurance, dominance, and social orientation together are the best predicators for awareness. Certain types of profile may indicate a high level of self-awareness, whereas other profiles may be related to a lower level of self-awareness. The results have shown that all entrepreneurial competences influence the level of self-awareness of individuals.

5.1.2 Social Desirability and Self-Awareness

The second hypothesis 2 proposed a negative relationship between social desirability and self-awareness. This hypothesis has been developed in order to answer the following research question:

How does the social desirability influence self-awareness?

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