by Eden Abrahams
March 2010
Read on for an overview of the study and a synopsis of the findings.
Introduction
Entrepreneurs are vital to the health and well being of the U.S. economy. New business start-ups create a majority of the nation’s new jobs, drive market innovation and fuel growth, even during difficult economic times. More than half of the 2009 Fortune 500 companies and nearly half of the firms on the 2008 Inc. list of America’s fastest-growing companies were started in a recession or bear market (1). Advances in technology and changing socio-economic and demographic trends have made it easier and more attractive for individuals to try out entrepreneurship than ever before – and, as a result, the number and diversity of small business owners in this country has increased dramatically. According to a recent forecast, the white, middle-aged men who have traditionally dominated the ranks of entrepreneurs will be outnumbered by Gen Yers, women, immigrants and baby boomers in less than 10 years’ time (2). Given that the failure rate for start-ups continues to hover, unchanged, at about 50 percent, it’s clear that business ownership remains a highly risky undertaking.
Research Goals
Efforts to understand how and why some people recognize and exploit new business opportunities – as well as the cognitive and behavioral strategies that improve their odds of success – are driving much of the current research in the field of entrepreneurial psychology. However, very little has been written about the process of “becoming” an entrepreneur from the point of view of the individual who is experiencing it. This qualitative study addresses that gap by providing an in-depth look at the unique journeys of six entrepreneurs within the context of their participation in the In Good Company Workplaces community. (A slide presentation of the research can be accessed by clicking here; a description of the research methodology follows on page 3.)
Although their personal backgrounds and professional trajectories are all quite different, there are common elements of their experiences that shed light on some of the specific ways that peer coaching and support can help individuals acquire new skills, perspectives and identities during challenging career transitions. While the research findings are based exclusively on the personal experiences of the six study participants, some of the phases and themes described below are likely to resonate with anyone who has made a significant professional transition in his or her life. They may also prove useful to coaches, mentors, managers and others who help individuals harness change in their working lives to learn, grow and thrive.
(1) Stangler, D. (2009). The economic future just happened. Ewing Marion Kauffman Foundation.
(2) Intuit press release, Jan. 24, 2007
