Strategic Decision-Making in Small Firms: Towards a Taxonomy of Entrepreneurial Decision-Makers

Abstract

Most changes in firms take place after a decision has been made. Despite that small firms are no exception to this, previous research into decision-making processes have left this subject uncharted. There are many studies with a focus on the decision-making process by managers in large firms, but only a few have paid attention to entrepreneurs in small businesses. The current study empirically investigated and identifies different types of entrepreneurial decision-makers. Drawing on a database of 646 entrepreneurs, five types of decision-makers are distinguished: Dare Devils, Lone Rangers, Doubtful Minds, Informers? Friends and Busy Bees. Implications for future research are discussed.