Microbusiness Owner Personality as a Predictor of Business Start-Up

Abstract

This study looked at personality as a possible predictor of startup variables surrounding microbusinesses (entities with ten or less employees) using the Five Factor Personality aspect and adding startup variable questions to Lussier’s (1995) existing questionnaire investigating success and failure variables in microbusinesses. Seventy-one microbusiness owners answered the survey. Using a Mini-Marker personality test to assess personality types and questions assessing startup variables, a Pearson’s correlation was used to test the strength of relationship (Saucier, 1994). Of the five factors, only Conscientiousness was found to have a relationship with startup variables. Conscientiousness showed significant but small correlations with level of startup planning (r = .25, n = 67, p = .04) and also with level of record keeping (r = .28, n = 65, p = .02). Independent sample t-tests were used to test the means of personality factors against the norms. There was a significant difference in the scores for Extroversion in Microbusiness owners (M = 6.18, SD 1.35) than in the population (M = 5.7, SD = 1.31) conditions; t(66)=2.91, p = .01. Limitations and other opportunities for future research are discussed.