Prediction of the success level of entrepreneurial ventures by means of biographical and business variables in a third world setting

Abstract

A study to determine the degree to which biographical and business variables can predict entrepreneurial success is described. Archival data obtained from the records of a venture capital organization were used. Data were obtained for two cohorts, each of which represented individuals to whom financial assistance was provided in a given financial year. Criterion data consisted of the entrepreneurs' accounts three or four years later. The total sample consisted of 569 small business owners in 435 business firms. Data were captured on 14 biographical and 16 business variables. A statistical analysis strategy to limit capitalization on chance was implemented. The results indicated that the number of loans granted, nationality of entrepreneurs, security cover, education level, economic sector, number of dependants, language preference, and race appeared as predictors of success.