Entrepreneurs, Intuition, and Small-Business Performance

Abstract

The recognition by Western nation governments of the increasingly important role of small and medium-sized enterprises (SMEs) in job creation in post-Fordist economies has led to an expansion of public sector funding for training programs for owners or managers. Research into the cognitive style of entrepreneurs reflects that some researchers conclude that the more effective owners or managers are intuitive decision-makers. Based on these findings, researchers are recommending emphasis on intuitive thinking in government-funded owner or manager training programs. This study involved using research on small UK firms to gain further empirical evidence of the validity of the view that intuitive thinking is a preferred business style and relates to superior small-firm performance. Results illustrate that some owners or managers are intuitive thinkers but that individuals exhibiting an analytical decision-making style run successful firms. The results partially contradict earlier studies.