Entrepreneurs: Their Impact on SME Performance

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The approach that an entrepreneur takes to his or her business is integral to the performance of that business. The purposes of this research were first, to determine the importance of the attributed and attained characteristics of the entrepreneur on the formation of his or her values and expectations, second, to determine the influence of those values and expectations on the choice of management practices, third, to determine the degree to which those management practices influence business performance, and last, to develop a scale of measurement for entrepreneur characteristics, values and expectations that can be used to predict business performance. This original research identifies unique predictive relationships between the characteristics, values and expectations of entrepreneurs in small and medium sized enterprises (SMEs) and the management practices they choose, and then, the relationships between those practices and business performance. It adds to the current understanding of the impact of entrepreneurs on the performance of their businesses and has led to the development of two new tools for assessing the performance of SMEs.