“Who Done It?” Attributions by Entrepreneurs and Experts of the Factors that Cause and Impede Small Business Success

Abstract

Attribution theory deals with how individuals infer causality between events and has been used to explain various social psychological phenomena such as achievement, sex stereotyping, and the impact of reward on behavior. But the direct application of the theory to entrepreneurship has been made only recently. The present study tests for the existence of a self-serving attribution bias among entrepreneurs when they enumerate the factors that contribute to or impede their business success as well as for the presence of an actor–observer attribution bias. Three samples are compared. Two are samples of entrepreneurs: one of independent pharmacists and the other a broadly based sample of business owners. A third sample is of experts. The presence of a self-serving attribution bias is shown in the two business owners’ samples. In addition, clear differences are shown between the entrepreneurs and the experts, confirming the expectation of an actor–observer attribution bias.

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