The Big-Five Personality Model: comparing male and female entrepreneurs.

Envick, Brooke R. ; Langford, Margaret

ABSTRACT

This study differentiates female entrepreneurs from male entrepreneurs using the Big-Five Personality Model. The five factors include adjustment, sociability, conscientiousness, agreeableness, and intellectual openness. Adjustment determines confidence versus instability. Sociability measures extraversion versus introversion. Conscientiousness determines impulsiveness versus cautiousness. Agreeableness measures team-orientation versus self-interest. Intellectual openness involves practicality versus originality. Results indicate that female entrepreneurs are significantly more open than male entrepreneurs. They are also more adjusted, social and agreeable, but not to a significant degree. Male entrepreneurs are significantly more conscientious than female entrepreneurs.

INTRODUCTION

Today, women are starting businesses at a rate twice that of men (Allen, 1999). The Small Business Administration estimates that by the end of the year 2000, more than 40% of all businesses will be owned by women (Bygrave, 1997). Women-owned businesses employ more than 15 million workers in the United States and the sales generated amount to approximately $1.4 trillion (Nelton, 1996). With these demographic trends, interest continues to grow in the personal characteristics of female entrepreneurs, especially those factors that might explain their success. Research has predominantly focused upon the similarities and differences between male and female entrepreneurs demographically as well as psychologically.

The purpose of this paper is to continue the study of female versus male entrepreneurs. The Big-Five Personality Model (Goldberg, 1990; Goldberg, 1992; Goldberg, Sweeney, Merenda, & Hughes, 1998) that has recently emerged from the field of psychology into business applications is used to analyze both genders. The paper compares female entrepreneurs to male entrepreneurs on each of the five factors. First, we describe the Big-Five Personality Model and discuss its recent applications to business research and gender differences. Next, we review research regarding similarities among and differences between male and female entrepreneurs and suggest hypotheses regarding the Big-Five Model. Then, we describe our research methodology. Finally, we discuss results of the study and draw conclusions.

LITERATURE REVIEW

With some controversy in the psychological community, the Big-Five Personality Model emerged in recent years as a "robust model" or "Great Theory" of personality. While a discussion of the theoretical arguments pertaining to the Big-Five is beyond the scope of this paper, its proponents believe that the model is robust in that the personality of every human being, regardless of his or her culture, can be described utilizing the five dimensions (see Costa & McCrae, 1995; Digman, 1990; Goldberg, 1990, 1992; Goldberg, Sweeney, Merenda, & Hughes, 1998; Wideger & Trull, 1997).

Disagreement exists regarding the exact vocabulary of the five factors (or superfactors); however, conceptually, the factors are these: (1) adjustment (on a continuum from stable to neurotic), (2) sociability (from extroverted to introverted), (3) intellectual openness (from imaginative and interested in many things to practical and narrowly focused), (4) agreeableness (from benevolent to belligerent), and (5) conscientiousness (from dependable and goal-oriented to undependable and impulsive). The interest of psychologists is not in describing a universal "right" personality (there is none), but rather in examining a person's "score" on each of the five factors in conjunction with other factors (e.g., education, age, gender, job). Recently, researchers have reported the Big-Five results contain implications for the workplace.

The Big-Five in the Workplace

In jobs involving personal interactions, one study reported that the factors of conscientiousness, agreeableness, and adjustment were related to job performance. Not surprisingly, emotional stability and agreeableness were found to be especially important in jobs involving teamwork (Mount, Barrick, & Stewart, 1998).

With business franchise owners as subjects, Morrison (1997) examined the relationships between the Five-Factor Model and other psychological constructs (e.g., Self-Monitoring, Type A Behavior, Locus of Control, and Subjective Well-being). Results indicate that franchise owners tend to be Type A persons who are more sociable and conscientious than not. They are relatively more agreeable than not, slightly less open to new experiences than average. As a group, franchise owners tend to have an internal locus of control, which is also strongly associated with adjustment.

The results of a study by Collins and Gleaves (1998) regarding job applicants indicated no significant differences in the Big-Five Personality Model between African American and Caucasian applicants, although both groups tended to provide socially desirable survey responses regarding the Big-Five dimensions. Another study reported that applicants who were more sociable, open to experience, and relatively conscientious tended to employ more effective job search strategies and were more successful in obtaining second interviews than those who did not (Caldwell & Burger, 1998).

Although each factor represents a collection of traits, the link between personality and behavior becomes clearer when only one trait is the focus rather than one factor. There are several common personality traits that render a natural fit into one of the five factors. For example, locus of control is considered to be a part of the conscientiousness factor as it relates to job performance behaviors regarding dependability and responsibility (Lefcourt, 1992; Black, 1990). Another example is self-esteem. People with high self-esteem are more likely to take risks and enter difficult and unconventional occupations because they believe in their abilities. This is an important part of the adjustment factor as it relates to stability and confidence (Ellis & Taylor, 1983; Hollenbeck & Brief, 1987).

Other workplace-related studies utilized the Five-Factor Model include those involving employee absence (Judge, Martocchio, & Thoresen, 1997), expatriate success (Ones & Viswesvaran, 1997), job performance in the European Community (Salgado, 1997), and teamwork (Neuman, Wagner, & Christiansen, 1999). The Big-Five has also been applied in gender studies.

The Big-Five and Gender

Pertinent to the current research, Lippa (1995) found that sociability, openness, and low levels of adjustment were the factors most linked to "masculinity," while agreeableness and conscientiousness were linked to "femininity" (note: not all males in the study measured as "masculine" and not all females as "feminine"). In a similar study, Marusic and Bratko (1998) stated that sociability was highly associated with "masculinity" and agreeableness with "femininity." A low adjustment score was associated with both high "feminine" and low "masculine" subjects. Using data collected in an on-going longitudinal research study (over twenty years), Pulkkinen (1995) reported adult females who had been identified previously as "conflicted" tended to be less adjusted, more introverted and less conscientious and open to experience than females identified as "adjusted." "Conflicted" males were less adjusted and conscientious than "adjusted" males. Direct comparisons between females and males were not made. In an extensive study examining many demographic variables (e.g., age, race) including gender, Goldberg et al. (1998), reported that men tended to be less agreeable than women, but found no significant differences in the other four factors.

Female Versus Male Entrepreneurs

Past research reveals both similarities among and differences between male and female entrepreneurs. For example, early studies exploring why females become entrepreneurs found they gave similar responses to their male counterparts such as need to achieve and independence (Cook, 1982; Schwartz, 1976). Contemporary research also supports similarities. For instance, Smith, Smits, and Hoy (1992) report females in traditionally dominated male-industries gave similar reasons for operating their own businesses such as the desire for independence. Another study reports that no differences exist regarding personal goals such as independence, achievement, and economic necessity (Hisrich, Brush, Good, & De Souza, 1996). Fagenson (1993) found that both males and females value self-respect, freedom, a sense of accomplishment, and an exciting life. Cooper and Artz (1995) discovered both males and females held initial optimistic expectations regarding their ventures. Sexton and Bowman-Upton (1990) found that both males and females were low in their need for conformity with others, need for "succorance" (seeking advice or sympathy), and need for avoiding harm. Male and female entrepreneurs were both high in "interpersonal affect" (they displayed compassion, were not aloof, and related well to others), and "social adroitness" (they were skillful at persuading others, diplomatic but somewhat manipulative). On the other hand, several studies contend there are differences between male and female entrepreneurs.

Envick and Langford (1998) found that female entrepreneurs engage in controlling, internal communication, human resource management, and work-related task behaviors more often than male entrepreneurs. The National Foundation for Women Business Owners found women define success very differently from men. Women see success as having control over their own destinies, building ongoing relationships with clients, and doing something fulfilling, while males define success in terms of achieving goals (Romano, 1994). Smith et al. (1992) found that female entrepreneurs employ more females than male entrepreneurs in male-dominated industries and select females with whom they share similar attitudes. Fagenson (1993) reveals that females value equality and world peace more than males. A longitudinal study conducted by Gatewood, Shaver, and Gartner (1994) found female entrepreneurs have higher internal attributions for starting their ventures than males. However, Brandstatter (1997) found that male entrepreneurs made internal attributions regarding either failure or success of a venture and were significantly less likely than women to make external attributions (e.g., the prevailing economy) for either failure or success. One study investigated entrepreneurs and family-career conflict (Parasuraman, Purohit, Godshalk, & Beutell, 1996) and found that females reduce family-career conflict by spending less time at work, while males increase their time at work. Sexton and Bowmen-Upton (1990) found male and female entrepreneurs to differ significantly in four traits. Males had higher sustainable energy levels and were more risk-taking than females. Female entrepreneurs desired autonomy more and were more open to new experiences than males.

HYPOTHESES

The hypotheses are generated based upon empirical findings regarding the Big Five Model and previous research regarding similarities among and differences between female and male entrepreneurs. There is one hypothesis for each of the five factors.

[H.sub.1]: Female entrepreneurs will score higher than male
 entrepreneurs on the sociability factor.

Behavioral research reveals that female entrepreneurs engage in communication activities more often than male entrepreneurs (Envick & Langford, 1998). Other findings indicate that women are more likely to encourage participation, share information and have good interpersonal skills (Rosener, 1990; Eagly, Makhijani, & Klonsky, 1992; Offermann, & Beil, 1992). Showing concern and being relationship-oriented are more characteristic of females than males (Coppolino & Seath, 1997; Porter, Geis, Cooper & Newman, 1985; Vroom & Jago, 1982). The Big-Five research suggests that while masculinity is related to extroversion, not all males are considered 'masculine', while not all females are considered 'feminine' (Lippa, 1995).

[H.sub.2]: There will be no significant difference between male and
 female entrepreneurs regarding the adjustment factor.

No previous research regarding the adjustment factor suggests a gender difference. Lippa (1995) found that a low adjustment score was related to 'masculinity', while Marusic and Bratko (1998) found low adjustment relating to 'femininity. Again however, not all male subjects are considered 'masculine', while not all female subjects are considered 'feminine'. Therefore, no rationale exists to hypothesize a significant difference in either direction.

[H.sub.3]: Female entrepreneurs will score higher than male
 entrepreneurs on the openness factor.

Sexton and Bowman (1990) found that female entrepreneurs desired more autonomy and were more open to new experiences than male entrepreneurs. Fagenson (1993) discovered that female entrepreneurs had a much broader vision involving their desires including total equality and world peace. Therefore, it is logical to assume that female entrepreneurs will be more open than male entrepreneurs.

[H.sub.4]: There will be no significant difference between male and
female entrepreneurs regarding the conscientiousness factor.

While conscientiousness is linked to 'femininity' (Lippa, 1995), no rationale exists to hypothesize a significant difference in either direction. Femininity is used to describe both males and females. No other findings suggest a difference in gender-related or business research.

[H.sub.5]: Female entrepreneurs will score higher than male
 entrepreneurs on the agreeableness factor.

Goldberg (1998) found that, in general, females are more agreeable than males. Previous research suggests that female entrepreneurs are more supportive, encourage participation, and adopt a more democratic style than male entrepreneurs (Tannen, 1991; Offermann, & Beil, 1992; and Rosener, 1990). Smith, Smits, & Hoy (1992) found that female entrepreneurs actively seek female employees with whom they share similar attitudes. Fagenson (1993) contends that female entrepreneurs value equality more than their male counterparts.

METHODOLOGY

The hypotheses are tested using ANOVA to determine if significant differences exist between entrepreneurs and managers on all five factors. One hundred and nineteen subjects represent the findings, 86 males and 33 females. Although these two comparisons are disproportional in number, it is representative of the entrepreneurs in this geographical area (approximately one-third females, two-thirds male). The Chamber of Commerce in a large Southwestern city generated a list of entrepreneurs, and 650 were randomly selected from this list to receive the survey. With a response rate of over 20%, 130 surveys were returned, and 119 were usable.

All subjects received a survey containing background questions regarding their job role and type of business. The Big-Five Model was tested using the questionnaire developed by Howard, Medina, and Howard (1996), which is commonly used by consultants and trainers and published in textbooks (Hellriegel, Slocum & Woodman, 1998). The survey included twenty-five sets of descriptive words on opposite ends of a continuum. Respondents were asked to circle the number on the continuum that most closely describes their personality. Each of the five factors is measured by the sum of scores received on a total of five questions. The highest score possible is a 35, while a 5 is the lowest score possible.

RESULTS

ANOVA was used to test all five hypotheses in order to compare entrepreneurs to managers on each personality factor. The first hypothesis tests sociability. The second tests adjustment. The third hypothesis tests openness. The fourth one tests conscientiousness. And the fifth hypothesis tests agreeableness. Table 1 presents the all means, standard deviations, and p-values.

The first hypothesis, regarding sociability, is not supported. However, the general direction of the hypothesis holds true with females scoring higher (M=18.061) than males (M=16.977). The second hypothesis is supported. No significant difference exists between males and females regarding adjustment. The third hypothesis is supported. Females (M=16.333) are significantly more open [F(1,118) = 1.950; p<.01] than males (M=14.407). The fourth hypothesis is not supported. Males (M=19.093) scored significantly higher on the conscientiousness factor [F(1,118) = 3.262; p<.05] than females (M=17.455). The fifth hypothesis is not supported. However, the general direction appears to hold some merit. Females are more agreeable (M=19.667) than males (M=18.884).

DISCUSSION

This paper makes a contribution by further identifying psychological traits that illustrate similarities among and differences between female and male entrepreneurs. While several psychological characteristics have been analyzed in order to identify the two groups, the Big-Five Model provides another avenue to further define and describe each group.

Two of the five hypotheses are supported. Neither male nor female entrepreneurs are more adjusted than the other. Female entrepreneurs are significantly more open than their male counterparts. While hypotheses one and five are not supported, the general direction holds true. Female entrepreneurs are more sociable and agreeable than male entrepreneurs, but not to a significant degree. The fourth hypothesis is not supported suggesting that no differences would be present on the factor of conscientiousness. However, male entrepreneurs scored significantly higher on this factor, meaning that they were more cautious and less impulsive than females. This is a mystery, since the only explanation in the literature is that both male and female groups that score high on adjustment also obtain high scores on conscientiousness (Pulkkinen, 1995). This is not the case in this study. Females actually scored slightly higher on adjustment. Perhaps, this finding is unique to entrepreneurs.

This study does provide more insight into the psychological profile of male and female entrepreneurs. While most of the findings are not surprising, an interesting research question presents itself--why did male entrepreneurs score significantly higher on the conscientious factor than female entrepreneurs, when females did obtain the higher adjustment scores? Further research is certainly needed regarding the Big-Five and entrepreneurs.

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Brooke R. Envick, St. Mary's University

Margaret Langford, St. Mary's University

Table 1: The Five Factor Model: Means, Standard Deviations,
and p-Values

Factor Group Mean SD p-value

Sociability Males 16.977 3.045 .1173
 Females 18.061 3.807
Adjustment Males 13.384 2.460 .4682
 Females 13.788 3.333
Openness Males 14.407 3.948 .0099 **
 Females 16.333 3.722
Conscientiousness Males 19.093 4.126 .0380 *
 Females 17.455 4.047
Agreeableness Males 18.884 3.756 .2811
 Females 19.667 3.379

* Significant @ .05

** Significant @ .01