Gianna Rosenbaum Ericksen, Marriott School of Management

Many believe that entrepreneurs are born and not taught. There is speculation that success is personality-based rather than skill-based. The stream of research in this area, though, has indicated that skill plays a crucial role in the success of entrepreneurs. Successful ventures also depend on the right combination of entrepreneurial skill and a favorable environment.

There is a strong correlation between successful new venture formation and increased employment in an economy. If basic entrepreneurial skill could be found and eventually taught, great benefits could be added to any economy.

Researchers in the area of entrepreneurship have discovered that there is an association between skill and expertise that is also related to new venture formation and success (Bull & Willard, 1993). Mitchell (1994) found a set of skills and expertise that strongly differentiates between entrepreneurs (new venture experts) and managers (new venture novices). This leads to the conclusion that different skills are needed by managers and entrepreneurs.

This phenomenon has been studied across cultures and economic development levels (Mitchell & Seawright, 1995). However, similar religious beliefs can create common values and other cultural elements. This stream of entrepreneurial research has never controlled for religion. The purpose of this study was to examine the differences between managers and entrepreneurs within the Latter-Day Saint religion based on the set of new venture formation skills identified by Mitchell. The shared values may make the two groups similar.

Methodology

This project examined entrepreneurs and managers who have continuing affiliation with the Marriott School of Management. The new venture experts involved were the Entrepreneurs Founders and the new venture novices were alumni who are successful managers in mid-level or higher positions. All are members of the LDS church.

Data was collected by means of a survey instrument developed by Mitchell (1994). This is a validated instrument that has been used for multiple studies. The surveys were administered to subjects on a voluntary basis during campus visits.

Prior research has identified three constructs in entrepreneurs: (1) the ability to identify and protect opportunities, (2) the ability to make arrangements for new venture formation and success, and (3) the willingness to venture. Responses were tabulated according to these three constructs. Because there are three variables, the differences between entrepreneurs and managers were examined using a Hotelling’s T-test.

Results

I tested the following null hypothesis: There is no significant difference between new venture novices and new venture experts within the LDS community. I found significant differences between new venture experts and new venture novices within the LDS community based upon the three constructs listed above.

When all of the constructs were considered jointly, the two groups were significantly different. The results of the Hotellings T-Tests show a probability of .000 as seen in Table 1.

The Univariate Analyses of Variance, as seen in Table 2, is a test of differences between groups for each of the constructs. This test analyzes Arrangement, Opportunity, and Willingness individually within the two groups, new venture novices and new venture experts, and the results show a significant difference on each construct.

The Null Hypothesis was rejected in the Multi variate and univariate analyses. The tests were conclusive in the determination of a significant difference between the two groups and the three constructs.

Discussion

I found that the common values shared by LDS entrepreneurs and managers does not extend to a homogenous grouping on new venture skills. Even though values are important, entrepreneurial skills are still needed for new venture success.

Identification of new venture skills that encourage success will enable practitioners to obtain these skills and or educate novices to assist in their skill attainment. Prior research, cited earlier, has examined new venture skills in some developing countries. This research extended knowledge about LDS entrepreneurs and managers and identified skills specific to this population.

The long-term implication for practical usage is an increased ability to assist church members  throughout the world to improve new venture performance. This should contribute to improvements in the economic lives of church members living in countries with developing economies.

References

• Bull, I., & Willard, G.E. (1993). Towards a theory of entrepreneurship. Journal of Business Venturing , 8 (3), 183-195.
• Mitchell, R.K. (1994). The composition, classification, and creation of new venture formation expertise. Dissertation. Salt Lake City UT: University of Utah
• Mitchell, R.K. & Seawright K.W. (1996). “Implications of multiple cultures and entrepreneurial expertise for international public policy”. Frontiers in Entrepreneurship Research.