A study of female business owners in Oklahoma and the association between specified entrepreneurial characteristics and financial performance based on the strategic profit model /

Abstract

The hypotheses tested asked a general question: Is there an association between entrepreneurial characteristics and financial performance using the ratios of the strategic profit model? Specifically, the confirmatory hypotheses stated that the average financial performance of female entrepreneurs with certain characteristics would be greater than the average financial performance of female entrepreneurs without these characteristics. Contrary to expectations, 7 of 10 confirmatory hypotheses were rejected. However 3 of the confirmatory 5 exploratory hypotheses were significant. Within the groups of exploratory hypotheses, 24 individual characteristics were significant.

The purpose of the study was to identify associations between specified characteristics of female entrepreneurs and financial performance based on the ratios of the strategic profit model.

The findings of the confirmatory and exploratory analyses indicated that there was some association between certain entrepreneurial characteristics and financial performance. In addition, margin management and asset management were the profit management strategies most frequently utilized by the female entrepreneurs.

The population consisted of 111 female business owners in Oklahoma. The primary data was collected by means of a self-explanatory mail questionnaire. The single independent variables were 5 groups of entrepreneurial characteristics (personal characteristics, firm characteristics, management factors, and obstacles), and the multiple dependent variables were the ratios of the strategic profit model (profit margin, asset turnover, rate of return on assets, leverage, and rate of return on net worth).