Recognising Entrepreneurial Potential In Graduate Business Start-Ups: The Development Of A Behaviourally Based Assessment Tool

This paper presents the initial results of an investigation oriented towards developing a Behaviourally Anchored Rating Scale (BARS) system to assess the entrepreneurial potential of individuals who are either running their own business or are in the process of considering start-up.A review of the literature identified seven dimensions as necessary, if not exhaustive, attributes of a successful entrepreneur. They are vision, internal locus of control, achievement orientation, calculated risk taking, need for autonomy, creativity and innovativeness, and opportunistic.Previous psychological studies have focused primarily upon personality traits, attitudes, and more recently upon cognitive representations. The actual behaviour of the entrepreneur has been excluded from the analysis. The methodology developed within this paper seeks to overcome this deficit by developing the above mentioned BARS.16 graduates who are at various stages in the business start-up process were interviewed and data collected regarding the performance of the business. The interview was structured around critical incidents in the recent history of the business and focused specifically upon the individual responses in terms of the seven core dimensions. The interviews were video recorded and transcribed. Assessments of the performance of the business were made by a number of independent assessors who rated each of the sample in terms of progress and success.Initial findings indicate that the BARS do provide a valid measure of entrepreneurial potential as individuals who scored highly upon the BARS were those whose businesses were performing more successfully. As such, BARS could prove to be a very useful tool for research purposes and also in the selection and training of owner-managers and entrepreneurs. A longitudinal investigation is currently in preparation.