Prediction of Entrepreneurial Success: The Development of a Rating Scale for Entrepreneurial Characteristics

Predicting entrepreneurial success is a complex task, which is performed more or less daily by consultants for small business firms. In this study, the development of an entrepreneurial rating scale designed to assist consultants in assessing the behavioural characteristics of starting entrepreneurs is reported. A model was formulated that incorporates two features of the prediction of entrepeneurial success: (a) entrepreneurial characteristics as well as aspects of the future job (present in the entrepreneurial plan) are appraised, (b) advising is part of the prediction issue, e.g. certain aspects of the entrepreneurial plan may be modified. The model is a variant of‘adaptive selection’, and is partly operationalized in the rating scale for entrepreneurial characteristics. Three studies were conducted with regard to the first feature: judgements on the relevance of situational and behavioural characteristics were obtained from several samples of consultants (N= 38, 23 and 48), and a sample of starting entrepreneurs (N= 61) was rated on behavioural characteristics. The findings indicate that consultants have a common opinion about the behavioural requirements for starting entrepreneurs and that some of these requirements covary with situational characteristics (i.e. general business features). Implications of these findings are discussed in relation to the possible design of a validation study.