IMPROVING ENTREPRENERUIAL EDUCATION THROUGH SELF-REGULATORY SKILLS Peter Bryant

1. IMPROVING ENTREPRENERUIAL EDUCATION THROUGH SELF-REGULATORY SKILLS Peter Bryant University of Sydney Australia Presented to the 10th NCIIA Meeting Portland, Oregon, March 2006

2. Key Definitions • Self-regulation – Scholars define “self-regulation” as a systematic process of human thought and behavior that involves setting personal goals and steering oneself toward the achievement of those goals. • Entrepreneur – There are numerous valid definitions of “entrepreneurship” and “entrepreneur” (Davidsson, 2005). In this study I refer to entrepreneurs as founder managers of new ventures aiming to exploit growth opportunities. Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

3. Background & Significance • Scholars see entrepreneurial cognition as a key factor in many areas of entrepreneurship (Mitchell & Busenitz 2004; Baron, 2004). • Self-regulation is central feature of social cognition and important in goal setting, work motivation, learning, and education (Vancouver 2000; Higgins 2002). • Self-regulatory interventions are known to influence educational and learning outcomes (Wood, 2005). • A few researchers study entrepreneurial self-efficacy in relation to education (e.g., Bechard & Gregoire, 2005). This study also explores other aspects of self-regulation. Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

4. Research Questions • Do entrepreneurs possess a distinctive pattern of self-regulation? • What role does self-regulation play in entrepreneurial learning and education? • What is the scope for self-regulatory intervention and training to improve entrepreneurial decision making? Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

5. Mixed Methods • Purposive selection of a variation sample of 30 entrepreneurs as the main study group. • Plus opportunistic selection of 30 non-founder employee managers as a control group. • Both groups answered a survey which measured three aspects of self-regulation: chronic regulatory focus (or regulatory pride), entrepreneurial self-efficacy, and metacognition. • In addition, I interviewed all 30 entrepreneurs about numerous aspects of their decision making. Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

6. Survey Measures • Entrepreneurial Self-Efficacy: instrument developed by Scherer (1989) measuring sense of self-efficacy in the entrepreneurial task domain. • Regulatory Pride: instrument developed by Higgins (2001) measuring a person’s sense of regulatory pride defined as a person’s chronic future goal orientation derived from their history of achievement success. Either promotion pride (chronic focus on attaining gains) prevention pride (chronic focus on avoiding losses). • Metacognition: instrument based on Schraw’s (1994) Metacognitive Awareness Index (MAI). It measures Knowledge of Cognition and Regulation of Cognition. Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

7. Survey Results Survey Results for Entrepreneurs Survey Results for Managers Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

8. Entrepreneurial Regulation • Based on the survey results, I derived a single score for “Entrepreneurial Regulation” by combining normalized measures for promotion pride, metacognitive knowledge of cognition, and entrepreneurial self-efficacy. • After interview coding was complete, I ordered the 30 interviews into three groups of high, medium, and low Entrepreneurial Regulation scores (10 interviews in each group) Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

9. Interview Results • Entrepreneurs in low self-regulatory group more likely to refer to systematic learning and decision making. • Those in the high group more likely to refer to experiential learning and intuitive decision making. • Those in the high self-regulatory group were also more self-aware about their learning experiences and spoke about them more frequently. • These results broadly concur with the self-regulatory literature. Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

10. Key Findings • The survey results suggest that entrepreneurs possess a distinctive pattern of self-regulation consisting of three significantly inter-correlated factors: promotion pride, metacognitive knowledge of cognition, and entrepreneurial self-efficacy (α = 0.69). • The interview results suggest that entrepreneurs with stronger self-regulatory skills tend towards intuitive decision making and experiential learning, while those with lower self-regulatory skills tend towards systematic decision making and formal learning. Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

11. Implications for Research • Findings suggest that studies of entrepreneurial cognition and education should investigate multi-dimensional factors (such as multiple aspects of self-regulation) and not just single factors (such as self-efficacy alone). Researchers should also recognize and incorporate fundamental within-group heterogeneity. • Because self-regulation is both chronic and situational, studies of self-regulation in entrepreneurship education and decision making need to incorporate both inherent personal characteristics and situational contingency. Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006

12. Implications for Practice • Insofar as intuitive decision making and the use of heuristics are important skills for entrepreneurs, then educational interventions aimed at increasing relevant self-regulatory skills may improve the quality and effectiveness of entrepreneurial decision making. • All three self-regulatory skills – regulatory pride, self-efficacy, and metacognitive knowledge of cognition – can be enhanced or primed, and those existing techniques could be adapted for use in the education, training and mentoring of both potential and experienced entrepreneurs. Peter Bryant presentation to 10th NCIIA Conference, Portland, March 2006