Presented at the 15th International Conference of the European Association of Work and Organizational Psychology, Maastricht, The Netherlands, May 25th-28th, 2011

1. STEP
Student Training for Entrepreneurial Promotion
The Effect of Self-Regulatory
Mechanisms on Business Success In
a Randomized Control Group
Experiment
Kim Marie Bischoff
Dr. Michael Gielnik
Prof. Dr. Michael Frese
Leuphana University of Lüneburg

2. The effect of self-regulatory mechanisms on
business success in a randomized control group
experiment
What is this study about?
We study the effect of self-regulatory factors in the
relationship between an action-oriented
entrepreneurship training and entrepreneurial action
/ entrepreneurial success.
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

3. Action Training and Entrepreneurship
Action is essential in the field of entrepreneurship
• Action plays a major role in entrepreneurship.
“(…) entrepreneurship implies that people act to
change the world (…)” (Frese, 2009, p.436).
• Literature assumes that an action training approach
leads to improvements in the field of entrepreneurship
(Barr, Baker, & Markham, 2009; Fiet, 2001)
Promoting entrepreneurship by action
training is useful.
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

4. Self-regulation and Entrepreneurship
Self-regulation is essential for promoting entrepreneurship
• Self-regulation has an important impact on
performance (Lord, Diefendorff, Schmidt, & Hall,
2010)
• Entrepreneurs are able to affect the success of their
businesses by means of self-regulatory mechanisms
(Frese, 2009; Frese et al., 2007)
Self-regulatory mechanisms may have an
impact on entrepreneurial action & success.
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

5. Promoting entrepreneurship by action training
and self-regulatory mechanisms
• We base our theoretical model on
action regulation theory (Frese, 2009;
Frese & Zapf, 1994; Karoly, 1993)
theory of planned behavior (Ajzen, 1991)
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

6. Promoting entrepreneurship by action training
and self-regulatory mechanisms
T1 T2 T3
H5: Mediation
Procedural
Knowledge H1
H2
Entrepreneurial
Action-
Self-Efficacy
Oriented Entrepreneurial
Entrepreneur Action
Strength of
ship Training
Entrepreneurial
H4
Intentions
H3
Action Planning
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

7. Promoting entrepreneurship by action training
and self-regulatory mechanisms
T2 T4
Business Owner
H6
Success (Sales,
H7 Growth)
Entrepreneurial
Self-Efficacy
Subjective
H8 Success
Satisfaction with
H9 work as business
owner
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

8. STEP
Student Training for Entrepreneurial Promotion

9. Action: The focal point of the STEP training
Unsuccessful Successful
Entrepreneurship
Action Entrepreneurship
1 Knowledge / Skills 2 Confidence / Self-efficacy
• Knowledge what to do
• Believing that “I can do it”
• Skills how to do it
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

10. STEP’s two general principles: Action Knowledge
and Action Training
1 Knowledge / Skills
• The STEP training teaches knowledge what to do in a way that the
trainees know how to do it.
• Principle I: Action Knowledge (Principles of Action)
2 Confidence / Self-fficacy
• The STEP training creates a mastery experience to strengthen
trainees’ belief of “I can do it”.
• Principle II: Action Training
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

11. The STEP training is an Action Training
• The STEP training comprises 12 weeks, including 12
sessions (3 hours each).
• The trainees form start-up teams in the first session and
engage in the start-up process of a real venture during the
12 weeks.
• They identify and evaluate new real-life business
opportunities.
• They plan and prepare the start-up of a their venture.
• Making real money means getting real experience which is
the basis for developing mastery and a belief of “I can do it”.
Trainees get real experience in starting and running a
venture; real experience is invaluable for future start-ups.
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

12. Teaching entrepreneurial skills requires an
interdisciplinary approach
• Entrepreneurship is a multifaceted field.
• 12 modules cover three relevant domains: business
administration, entrepreneurship, and psychology.
Business Entrepreneurship Psychology
• Finding Starting • Identifying • Leadership
Capital Opportunities • Planning
• Book-keeping • Writing a Business • Overcoming Barriers
• Marketing Plan
• Persuasion &
• Managing Finances • Registering a Negotiation
Business
• Strategic Management • Networking
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

13. Method: Data Collection
T1 Training T2 T3 T4
Feb 2009 Feb-May 2009 Jun 2009 Jan – Mar 2010 Aug – Nov 2011
395 students 352 students 319 students 227 students
Interview T1 Interview T2 Interview T3 Interview T4
• Procedure: face-to-face interviews & questionnaires
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

14. Method: Design and Sample
T1 Training T2 T3 T4
Feb 2009 Feb-May 2009 Jun 2009 Jan – Mar 2010 Aug – Nov 2011
395 students 352 students 319 students 227 students
Interview T1 Interview T2 Interview T3 Interview T4
• Randomized control group design: 197 students in training
group and 198 students in waiting control group
• Trainees: Non-business students of Makerere University and
Uganda Christian University (Kampala, Uganda), who were in
their last semester
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

15. Results
T1 T2 T3
H5 sign. Mediator H1
Procedural
Knowledge β=0.13*
H2
Entrepreneurial n.s.
Action-
Self-Efficacy
Oriented Entrepreneurial
Entrepreneur Action
Strength of
ship Training
Entrepreneurial
Intentions H4
β = 0.12 *
H3
Action Planning n.s.
Note. n= 319, * p <. 05
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

16. Results
T2 T4
H6
Business Owner
β=0.15*a
Success (Sales,
H7 Growth)
Entrepreneurial n.s.
Self-Efficacy H8 Subjective
β=0.34**b Success
H9 Satisfaction with
β=0.26*b work as business
owner
Note. an=227. bn=90, * p <.
05, **
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

17. Conclusions
Action-oriented training in entrepreneurship affects self-
regulation and enhances entrepreneurial action.
• Procedural knowledge geared towards action,
mediates the relationship between the action oriented
entrepreneurship training and entrepreneurial action.
Thus, learning what to do and how to do it is essential
for undertaking entrepreneurial actions.
• The interaction of strength of entrepreneurial
intentions and action planning predict entrepreneurial
action. Only in combination with action planning can
entrepreneurial intentions lead to entrepreneurial
action.
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

18. Conclusions
Self-regulation affects entrepreneurial start-ups and
success.
• Self-efficacy predicts:
• the start-up of entrepreneurial businesses
• subjective success
• satisfaction with being and working as a business
owner
Entrepreneurship trainings should be action-
oriented and train self-regulatory mechanisms
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

19. Acknowledgements
• Thanks to my colleagues at the Leuphana
University of Lüneburg and National University of
Singapore Business School
• Prof. Dr. Michael Frese
• Dr. Michael Gielnik
• to the students, who supported us in data collection
and rating:
• Melanie von der Lahr, Thorsten Dlugosch, Marie-Luise Lackhoff,
Kristina Zyla, Eike Hedder, Andreas Heese, Diana Breé, Svenja
Haskamp, Mona Mensmann
• and to our cooperation partners at the Makerere
University Business School (MUBS), Kampala, Uganda
The effects of self-regulatory mechanisms on business success in a randomized control group experiment
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Kim Marie Bischoff, Dr. Michael Gielnik, Prof. Dr. Michael Frese

20. STEP
Student Training for Entrepreneurial Promotion
Thank you very much for your
attention