0EDS-1.DOC/DRAFT #6

November 18, 1996

CODEBOOK FOR THE ENTREPRENEURIAL DEVELOPMENT STUDY

Research Design and Data Collection

Information for the first wave of the study was collected between June, 1990 and February, 1991, in a two phase approach. Participants were located in the Research Triangle area, a geographic region in the middle of North Carolina formed by the cities of Chapel Hill, Raleigh, and Durham. We wanted to study individuals in the early stages of organizational formation, as well as established organizations with a transaction history, and so in an exploratory phase of our project we located voluntary and non-profit organizations of interest to entrepreneurs. Organizations differed in sex composition, purpose, and membership interests, but they all focused on entrepreneurial or business activity: (1) the Council for Entrepreneurial Development (CED) included both entrepreneurs and service providers; (2) six networking organizations, all of which included both entrepreneurs and employees, and questionnaires were given to members of these networking organizations during their meetings; (3) participants at Wake Tech Small Business Center classes, including entrepreneurs in very early stages of business start-up; and (4) the National Association of Women Business Owners (NAWBO), which is restricted to women entrepreneurs. We added another sub-sample, randomly selected from business start-ups, to use as a reference. This sample was selected from new businesses that filed registration forms in Wake County, indicating their intention to start a business.

Table 1 provides information on questionnaire returns and interview rates of the organizations sampled.

Table 1. Sample Size and Response Rates

Time 1 / Time 2
(1990 - 1991) / (1992)
Questionnaire / Follow-Up
Phone
Interviews / Question-naire / Questionnaire and
Phone Interview
Sample Source / Number
Distributed / Percent
Returned / Percent of
Return
Completing
Interview / Number
Mailed / Fully
Completed / Partially
Completed / Combined
Completion
CED members / 339 / 76% / 82% / 250 / 53% / 37% / 90%
Networking organiza-
tion members / 67 / 78% / 83% / 49 / 43% / 43% / 86%
Wake Tech students / 78 / 68% / 79% / 52 / 25% / 58% / 83%
Wake business sample / 150 / 41% / 64% / 61 / 39% / 45% / 84%
NAWBO sample / 25 / 76% / 84% / 19 / 63% / 32% / 95%
Total Percent / -- / 67% / 80% / -- / 64% / 24% / 88%
Total Number / 659 / 444* / 353 / 431* / 203 / 177 / 380

*Note: The difference between the 444 questionnaires returned at Time 1 and the 431 respondents followed up at Time 2 is due to people who refused to participate further at the end of Time 1 or who were lost to the sample during interviewing for Time 1 for other reasons.

Our decision to use multiple sub-samples was based on a concern that using any one sample source narrowed the range of people and businesses covered due to selective recruitment. Reducing the heterogeneity of a sample increases the risk of introducing an unknown selection bias that can affect the validity of the results. Taking all the sub-samples together, 659 questionnaires were distributed, with 444 returned in a usable form, for a response rate of 67 percent. Response rates across the sub-samples ranged from 41 percent to 78 percent.

We collected the initial (Time 1) data in two phases. Phase I was a short questionnaire, which could be completed in about five minutes. Phase II involved in-depth, 30-45 minute telephone interviews that included structured and work open-ended questions. We collected the time 1 questionnaires and conducted interviews during a nine month period in 1990 and 1991. People who returned questionnaires were called for a telephone interview, unless they indicated on the questionnaire that they were unwilling to participate further in the research. We completed interviews with 353 respondents, yielding completed interviews for 54 percent of those who received questionnaires and 80 percent of those who returned their questionnaires. The telephone interviews averaged 30 to 45 minutes.

A second wave of data was collected in 1992, and details of that study are in another codebook.

First Wave of Data Collection: Study design

Var N Variable Description: Question and codes

Name

ID Identification number

Numbered beginning with 2 - last number 658

GROUP Group or organizational affiliation:

52 NET Networking organizations

259 CED Council for Entrepreneurial Development

53 WAKE Wake Tech Small Business Center students

61 BUS Sample of business registered at courthouse

19 NAWBO National Association of Women Business Owners

DATE Date questionnaire distributed (yr/mo/da)

Dates range from 90/06/07 to 90/12/11

RECD Date questionnaire returned (yr/mo/da)

Dates range from 90/06/07 to 91/02/17

INTER Date of interview (yr/mo/da)

Dates range from 90/06/15 to 91/02/27

CALLS Number of contacts made

Range: 1-14

Mean: 3.57

S.D.: 2.14

SCHED Interview scheduled:

115 0 = No

237 1 = Yes

92 . = Missing

REFUSE Phone interview was not completed because:

(NOTE: 90 people completed the mail questionnaire but

not the phone interview)

13 1 No call specified on the questionnaire

24 2 Refused after a phone contact

10 3 Moved

10 4 Long distance phone number

7 5 Blank questionnaire or 2/3 or more of missing data

6 6 No name specified or no telephone number provided

20 7 Failed; at least 10 attempts made to contact the respondent

354 . Missing (i.e., completed interview)

I. Business Contacts - mailed questionnaire

please think of the person you could contact if you needed a particular type of help.

"Do you know someone you could go to for:"

Q1 Legal assistance in business matters?

41 0 = No

388 1 = Yes

15 . = Missing

Q2 Financial or accounting assistance (such as taxes, records, capital flow)?

28 0 = No

402 1 = Yes

14 . = Missing

Q3 Assistance in obtaining business loans or investors?

94 0 = No

336 1 = Yes

14 . = Missing

Q4 Assistance in locating business property?

94 0 = No

333 1 = Yes

17 . = Missing

"Do you know someone you could go to who:"

Q5 Has several years of experience in your line of business?

116 0 = No

313 1 = Yes

15 . = Missing

Q6 Is a supplier or vendor in your line of business?

96 0 = No

317 1 = Yes

31 . = Missing

From time to time, most people discuss important business matters or business plans with other people. Looking back over the past month:

NETNUM Please estimate the number of people with whom you have discussed aspects of starting a new business or operating your current business [over the last month]

Range from 0-200; n/a coded 0; mid-point used if range is given; if > # is given, # is coded; mean: 8.75; S.D. 16.91.

Range: 0-200

Mean: 8.75

S.D.: 16.91

In a typical week, how many hours do you spend:

Developing contacts (meeting new people) with whom you can discuss business matters?

Maintaining contacts (talking to people you already know) about business matters?

HRSDEV Hours per week spent developing contacts

Range from 0 -70; n/a coded 0; mid-point used if range is given; if > # is given, # is coded; mean: 5.70; S.D. 8.44.

Range: 0-70

Mean: 5.70

S.D.: 8.44

HRSMAN Hours per week spent maintaining contacts

Range from 0- 50; n/a coded 0; mid-point used if range is given; if > # is given, # is coded; mean: 7.46; S.D. 8.10.

Range: 0-50

Mean: 7.46

S.D.: 8.10

II. Organizational Background - mailed questionnaire

"Are you a member of any of the following organizations?" (Circle answer)

Q10 Civic organizations (such as Rotary, Optimist, Jaycees)

348 0 = No

82 1 = Yes

14 . = Missing

Q11 Council for Entrepreneurial Development (CED)

177 0 = No

254 1 = Yes

13 . = Missing

Q12 Business organizations (such as Chamber of Commerce, Business and Professional Women, National Association of Women Business Owners)

195 0 = No

236 1 = Yes

13 . = Missing

Q13 Networking organizations (such as Connections, Networkers, Leads, Triangle Referrals)

332 0 = No

98 1 = Yes

14 . = Missing

Q14 Have you taken business related short courses or seminars?

110 0 = No (IF NO, GO TO Q16)

317 1 = Yes (IF YES, GO TO Q15)

17 . = Missing

Q15 (If Yes) Were these offered by the Small Business Centers at Wake Tech or Durham Tech?

213 0 = No

102 1 = Yes

129 . = Missing (NO TO Q14)

Q16 Have you taken a business related course for credit from a college or university?

206 0 = No (GO TO RUN)

219 1 = Yes (IF YES, GO TO Q17)

19 . = Missing

Q17 (If Yes to Q16) Do you have a business related degree from a college or university?

90 0 = No

129 1 = Yes (IF YES, GO TO Q18)

225 . = Missing (NO TO Q16)

Q18 (If Yes to Q17) What is the highest business related degree you have earned?

5 1 Associates degree in business

1 2 Minor in business

24 3 Bachelor's degree unspecified

29 4 Bachelor's degree in business administration

9 5 Master's degree in accounting, economics, management, or public health management

50 6 MBA

1 7 Doctorate in business administration

4 8 Law

321 . Missing (NO TO Q17)

III. Business Status - mailed questionnaire

Please answer the questions in the box (or boxes) that

match your business status.

RUN I am currently running a business:

*SHOULD HAVE SAID “DO YOU RUN A BUSINESS THAT YOU OWN?”

120 0 = No (GO TO START AND MAKE MISSING

DATA OF NEXT SET OF QUESTIONS)

320 1 = Yes (GO TO Q19)

4 . = Missing

Q19C What does your company do? (products and services)

NOTE: SIC code to 3 digits, with one decimal place

10 MANUFACTURING, HIGH TECH

9 10.1 ELECTRONICS, TELECOMMUNICATIONS

3 10.2 CHEMICAL PROCESSING

8 10.3 MEDICAL OR RESEARCH EQUIPMENT

15 MANUFACTURING, LOW TECH

6 15.1 LIGHT PRODUCTION REQUIREMENTS

4 15.2 HEAVY PRODUCTION REQUIREMENTS

20 RESEARCH AND DEVELOPMENT

14 20.35 TO 28.35 ALL RESEARCH AND DEVELOPMENT

30 COMPUTER RELATED

4 30.1 GENERAL CONSULTING AND TRAINING

20 30.2 PROGRAMING, SYSTEM DESIGN AND SOFTWARE CONSULTING

6 30.5 COMPUTER SALES AND SERVICE

1 30.6 [???Description Needed???]

10 30.8 SPECIALIZED COMPUTER APPLICATIONS

40 BUSINESS SERVICES

11 40.1 LEGAL SERVICES

17 40.2 ACCOUNTING AND TAX SERVICES

4 40.3 CLERICAL, BOOKKEEPING, DATA ENTRY, BUSINESS MANAGEMENT

12 40.4 PRINTING AND GRAPHIC SERVICES

6 40.5 ADVERTISING AND PUBLIC RELATIONS

6 40.6 MARKETING AND DIRECT MAIL

5 40.7 TECHNICAL WRITING, EDITING, RESEARCH DESIGN

9 40.9 OTHER BUSINESS SERVICES

42 CONSULTING SERVICES

8 42.0 GENERAL OR UNSPECIFIED CONSULTING

4 42.1 SEMINARS, MOTIVATIONAL, HUMAN RESOURCES, SALES, MARKETING

14 42.3 TECHNICAL, ENGINEERING OR MANUFACTURING CONSULTANTS

12 42.4 FINANCIAL CONSULTING

15 42.7 MANAGEMENT AND ORGANIZATIONAL CONSULTANTS

6 42.9 OTHER SPECIALIZED CONSULTING

43 CONSUMER AND RETAIL SERVICES

7 43.1 FOOD SERVICES

17 43.2 RETAIL SERVICES REQUIRING FIXED LOCATION

13 43.3 RETAIL SERVICES NOT REQUIRING SPECIALIZED OR SEPARATE FIXED LOCATION

19 43.5 CONSTRUCTION SERVICES

5 43.6 HEALTH CARE SERVICES

50 REAL ESTATE

9 50.1 COMMERCIAL REAL ESTATE

8 50.2 RESIDENTIAL OR UNSPECIFIED REAL ESTATE

60 RETAIL SALES

11 60.1 LARGE FIXED SPACE REQUIREMENTS OR SHOWROOM SPACE REQUIRED

15 60.2 LIMITED FIXED SPACE REQUIREMENTS; OFFICE RATHER THAN SHOWROOM SPACE

88 DON'T KNOW

99 GOVERNMENT OR EDUCATIONAL INSTITUTION

126 . Missing

Q19SICD Standard Industrial Classification (SIC) division codes:

1 A Agriculture

1 B Mining

15 C Construction

37 D Manufacturing

7 E Transportation, Communications, Electric, Gas and Sanitation

12 F Wholesale Trade

29 G Retail Trade

29 H Finance, Insurance and Real Estate

187 I Services

0 J Public Administration

126 . Missing

Q19SIC2 Standard Industrial Classification (SIC) code modified so that two digit code appears as an integer; tens and hundreds place contains the 3rd and 4th digits, where information is available. [Standard four digit code is obtained by multiplying by 100.] (Decimal point after first two digits.)

00 indicates insufficient information available to classify

How many people does your business employ, other than

yourself?

____ Full-time employees

____ Part-time employees

How many employees, other than yourself, are family

members?

____ Full-time employees

____ Part-time employees

Q20A Number of full-time employees

Range: 0-330

Mean: 9.45

S.D.: 29.05

Q20B Number of part-time employees

Range: 0-150

Mean: 2.73

S.D.: 11.34

Q21A Number of family members employed full-time

Range: 0-7

Mean: .29

S.D.: .75

Q21B Number of family members employed part-time

Range: 0-3

Mean: .20

S.D.: .50

How long have you owned your current business?

Q22 Length of ownership of business:

Number of years; months as tenths of a year

Range: .1-36

Mean: 4.73

S.D.: 5.16

Q23 Is this your first business?

108 0 = No

212 1 = Yes

124 . = Missing (NO TO RUN)

Q24 Is your business location in your home?

209 0 = No

111 1 = Yes

124 . = Missing (NO TO RUN)

Q25 Did you start this business?

44 0 = No

276 1 = Yes

124 . = Missing (NO TO RUN)

Q26 Are you employed in addition to running your business?

261 0 = No

58 1 = Yes

125 . = Missing (NO TO RUN)

Q27 Has your business grown significantly since it started?

66 0 = No

249 1 = Yes

129 . = Missing (NO TO RUN)

Q28 Business form: Is your business a (check one):

100 1 SOLE PROPRIETORSHIP

29 2 PARTNERSHIP

190 3 CORPORATION

125 . Missing

Q29 Would you describe the current financial performance of your business as (check one):

165 1 PROFITABLE

87 2 BREAKEVEN

68 3 LOSS

124 . Missing

What is the name and address of your business?

______

______

If you are starting, or thinking about starting, another business, please continue at B on the next page.

If you have no plans to start another business, please turn the page and continue at IV. BUSINESS PLANS [Q41].

B. I am starting, or thinking about starting, a business (or another business) in the next year or two.

____ Yes ____ No (Go to C below)