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article in press hospitality management 24 2005 219­242 www.elsevier.com/locate/ijhosman growth and profit-oriented entrepreneurship among family business owners in the tourism and hospitality industry donald getza,Ã tage petersenb a haskayne school of business faculty of management university of calgary 2500 university drive nw calgary alberta canada b regional and tourism research centre stenbrudsvej 55-3730 nexo bornholm denmark abstract surveys were conducted among family business owners in the tourism and hospitality industry in two resort areas one in canada and one in denmark with a view to identifying growth and profit-oriented entrepreneurs analysis of owners attitudes and goals reveals the predominance of lifestyle and autonomy orientations but also profiles those who are more profit and growth oriented this small sub-group differs somewhat in the two resorts in both cases profit and growth orientation is significantly higher among those who purchased their business particularly accommodation establishments and restaurants bed and breakfast and arts and craft businesses are clearly associated with lifestyle and autonomy theoretical management and policy implications are discussed r 2004 elsevier ltd all rights reserved keywords entrepreneurship growth and profit orientation bornholm denmark canmore canada 1 introduction growth and profit-oriented entrepreneurs are highly valued from the perspective of economic development and tourism industry competitiveness a typical goal is to Ãcorresponding author tel +1-403-220-7158 fax +1-403-282-0095 e-mail address don.getz@haskayne.ucalgary.ca d getz 0278-4319 see front matter r 2004 elsevier ltd all rights reserved doi:10.1016/j.ijhm.2004.06.007

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article in press 220 d getz t petersen hospitality management 24 2005 219­242 attract and cultivate businesses that can compete grow and create jobs in this policy context not all entrepreneurs are equal for example the emphasis in regional development in the european community has shifted towards support for areas ythat demonstrate an understanding of the need to reinforce the local economic environment in order to contribute to job creation leat et al 2000 there will likely always be an emphasis on growth and job creation in economic development programs even though this tends to undervalue the majority of tourism-related businesses that remain small this research therefore aimed to identify growth and profit-oriented entrepreneurs among a sample of family business owners in two resort settings it was hypothesized that a segment of owners would a reveal profit and growth-oriented attitudes and goals that clearly separate them from autonomy and lifestyle-oriented respondents and b growth and profit-oriented entrepreneurs would display different business characteristics such as type of business by identifying the growth-oriented group and characteristics of their businesses tourism and economic development agencies should be able to evaluate the competitive and growth prospects of destinations and formulate programs conducive to attracting and sustaining growth-oriented investors the paper begins with a review of pertinent literature concerning growth orientation among entrepreneurs both generically and specific to tourism and hospitality evidence is then presented from two surveys in canada and denmark that tests four hypotheses on growth versus lifestyle and autonomy orientations among family business owners data were obtained on motives and goals for starting or purchasing the business and on attitudes and goals for the future of the business both theoretical and policy-related implications are drawn in the conclusions 1.1 growth and profit-oriented entrepreneurship there does not exist an accepted universal definition of entrepreneur or entrepreneurship ucbasaran et al 2001 let alone agreement on the existence of particular sub-types therefore it is useful to refer to the eight themes of entrepreneurship literature and theory that gartner 1990 identified from a delphi survey of experts personality traits innovation creation of organizations value creation profit versus not-for-profit organizations growth uniqueness and the owner-manager specific ideas on profit and growth-oriented entrepreneurship are found in two particular themes the first pertinent theme focuses on the entrepreneur s personality traits although many authors e.g sexton and kent 1981 gartner 1988 brockhaus 1994 risker 1998 have rejected the personality traits approach concluding that it has failed to identify a set of common traits for entrepreneurs or to differentiate them from managers within this theme katz 1995 identified growth entrepreneurs as those who measure their success by business size and growth and contrasted these people with autonomy-seeking business owners the kind who want to be their own boss or occupy their own place smith 1967 separated craftsmen from opportunistic entrepreneurs with major differentiating factors being the craftsman s aversion to

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article in press d getz t petersen hospitality management 24 2005 219­242 221 risk less growth and a focus on making a comfortable living small business owners are often portrayed as being craftsmen or lifestyle entrepreneurs and family businesses in particular are frequently assumed to be risk averse because they must place family security ahead of potential growth the growth theme is also controversial carland et al 1984 claimed that to be an entrepreneur requires establishment of a business for the principal purpose of profit or growth plus accompanying strategic management but what exactly is growth growth and value-adding are not the same katz 1994 value can be added to a business through contracting out or by mechanization without growth in capitalization scale or output the kind of growth desired by economic development agencies is normally expressed in terms of wealth which is linked to profitability and jobs created in tourism growth is also measured by demand i.e increasing volumes of tourists or yield greater tourist expenditure in the destination ambitions to increase wealth and grow the business are not always present among small or family business owners vesper 1980 growth is often not easy or feasible owing to a lack of capital and might consciously be avoided because of its implications for increased debt more work or risk smith 1967 argued that among autonomy-oriented owners growth is secondary to achieving a consistent living westhead and cowling 1998 said that some family firms defer investments and job creation thereby becoming less competitive in order to minimize tax liability these authors also referred to a number of studies that have revealed that family firms tend to be sma1ler in terms of sa1es and employees hoy and verser 1994 p 17 said that in family businesses the growth goals of the founder may be in direct conflict with the desire for wealth accumulation by the family employment growth has been observed to be more prevalent among businesses owned by habitual entrepreneurs especially in rural areas compared to novice business owners ucbasaran et al 2001 katz 1994 also noted that growth can be designed into a business by way of its structure such as through legal incorporation to facilitate capitalization the literature although controversial does support the notion that some business owners are more growth and profit-oriented it is also apparent that growth is frequently not desired by nor achieved among family business owners what is uncertain is the prevalence of growth and profit-oriented entrepreneurship in various industries and settings and how best to identify growth potential 1.2 entrepreneurship in the tourism and hospitality literature there can be little doubt that in many countries small tourism and hospitality businesses predominate and most are owned by sole proprietors and families see for examp1e shaw and williams 1990 buhalis and cooper 1998 morrison et al 1999 thomas et al 1999 getz and carlsen 2000 the national survey of small tourism and hospitality firms in the uk cited in thomas 1999 found that at least 80 of the firms were independently owned single outlets and 80 of respondents were sole or joint owners nevertheless roberts and hall 2001 p 206 observed

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article in press 222 d getz t petersen hospitality management 24 2005 219­242 that a ypaucity of information on the behavior of small tourism firms means that entrepreneurial activity in the tourism sector is poorly understood shaw and williams 1998 drawing on their own earlier work in cornwall england as well as other studies of the industry concluded that many owners were non-entrepreneurs or constrained entrepreneurs under-capitalization was a serious constraint resulting in little if any improvement or development of small accommodation businesses and business failure is frequently observed to be high in this sector shaw and williams also characterized small-scale entrepreneurs in tourism in these ways having little or no formal qualifications using mostly family resources and labor lacking business planning and growth strategies doing little if any marketing and possessing non economic motives typically such owners moved to resorts for semi-retirement and other lifestyle reasons true entrepreneurship was associated with non-personal sources of capital and innovative management skills several researchers have identified the prominence of lifestyle motives among tourism and hospitality business owners getz and carlsen 2000 from analyzing a survey of 200 family businesses in tourism and hospitality in western australia determined that the predominant motive for starting or buying the business was that of lifestyle enhancement including moving to or remaining in a rural area middleton 2001 examined the importance of micro businesses defined as those employing fewer than ten people in european tourism he believed p.198 they ycomprise a seedbed of entrepreneurial and enterprise `culture on which much of the profit and employment prospects of big businesses ultimately depends they constitute 95 of tourism businesses and generate a third of total tourism revenue p.199 earn money that tends to stay in the local economy and are a vital part of new job creation especially in areas of rural and urban regeneration they also perform a vital role in stabilizing fragile economic areas even if few jobs are created middleton also noted that many microtourism businesses are formed for lifestyle reasons and consequently do not want to grow the business a number of researchers have made explicit reference to the weaknesses associated with small and family business ownership in the tourism industry for example dewhurst and horobin 1998 noted that lifestyle entrepreneurs face long-term survival problems that can negatively impact on the economic health and social fabric of their communities harrison and leitch 1996 based on analysis of small and medium-sized enterprises in northern ireland concluded that individual selfemployment in the tourism industry might not make much of a long-term contribution to local development russell 1996 examined small irish tourism businesses and concluded that few owners had identified substantial growth as a key goal and innovation was not an integral part of most enterprises in the context of research on the tourism industry in a peripheral part of sweden klenell and steen 1999 correlated lifestyle and the motive not to grow a business with insolvency shaw and williams 1998 believed that small business owners can be unresponsive to policy initiatives designed to foster economic development or industry competitiveness.

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article in press d getz t petersen hospitality management 24 2005 219­242 223 drawing on both the generic and tourism-specific literature on entrepreneurship the following hypotheses were formulated for testing among family business owners in canada and denmark h1 lifestyle and autonomy goals predominate h2 lifestyle and autonomy-oriented owners are attracted to specific business types h3 growth and profit-oriented entrepreneurs will be clearly differentiated from lifestyle and autonomy-oriented owners as measured by a set of attitude statements and future-oriented goals h4 growth and profit-oriented entrepreneurs are attracted to specific business types 2 research method the comparative case study method was selected for this research no two destinations or resort environments are the same hence any sample is very limited in terms of statistical inferences or generalizability nevertheless there are major advantages in taking this approach as argued by stake 2000 p 24 case studies can be used to test hypotheses yparticularly to examine a single exception that shows the hypothesis to be false in this research the hypotheses have been derived from previous research and may be considered to be propositions about the behavior of family businesses and entrepreneurs in the tourism industry therefore disproving the hypotheses is a challenge to the underlying theory or weakens the generalizability of the cases selection of case studies should avoid atypical situations however this implies foreknowledge of the complete range of tourism environments and a predetermination of what variables in particular are most important conditions that could not be met picking these two resorts in difference countries is not a systematic selection of case studies as recommended by gomm et al 2000 however it does constitute a reasonable test of the hypotheses given that the resorts are different in many ways finding similar motives goals and behavior in two settings provides support for the emerging theory on entrepreneurship in this industry while any deviations can be used to generate new research questions or hypotheses research was undertaken in 2001 consisting of almost-identical self-completion mail-back questionnaires in bornholm and canmore the canmore instrument was prepared first in english translated by danish researchers then back-translated into english by a third party to ensure consistency the peak tourism season summer was deliberately avoided the sampling frame in both cases was a census of businesses with owner-managers selected for study in canmore the researchers were assisted in this selection by the local economic development agency as they possess intimate knowledge of the community in bornholm the researchers relied on

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article in press 224 d getz t petersen hospitality management 24 2005 219­242 detailed personal knowledge and input from local business owners to determine the sample privately owned accommodation food and tour services attractions recreation facilities taxi and bus companies and tourist-oriented manufacturing and retailing specifically arts and crafts producers were included plus antique dealers gift shops and candy manufacturers grocery clothing furniture and other stores were excluded even though in resorts a portion of their trade would likely come from nonresidents consequently the samples can be said to represent all the major elements of the tourism and hospitality sectors within a resort 2.1 the questionnaires questionnaires were mailed to respondents with a self-addressed postage-paid return envelope follow-up telephone calls were made to encourage a larger response rate anonymity was promised and data have been analyzed and reported in a format that will not permit identification of individual respondents or their businesses the questionnaire consisted of mostly closed tick-the-box questions in the following sequence description of the business including type age origin ownership participation of family members open-ended questions on what aspects of the business provided the most satisfaction and were most difficult plans for disposition of the business e.g sell or inherit problems facing the business e.g highly seasonal demand quality or quantity of workers the degree of importance that respondents attached to a list of goals when starting this business based on getz and carlsen 2000 using a 5-point likert scale level of agreement with a list of statements about this business encompassing factual and attitudinal statements and future-oriented goals based on getz and carlsen 2000 using a 5-point likert scale problems that might impact on inheritance if applicable 3 responses were provided for each not a problem somewhat of a problem or a serious problem an open-ended question asking for other reasons why the business might not be passed on within the family the relative importance of family related goals measured on a 5-point likert scale based on getz and carlsen 2000 personal information gender age marital status education previous business ownership in this paper the analysis concentrates on goal statements and the identification of profiles reflecting the growth and profit-oriented versus autonomy and lifestyleoriented owners.

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article in press d getz t petersen hospitality management 24 2005 219­242 225 3 profiles of canmore and bornholm the two selected resorts display a number of contrasts especially in terms of their physical and economic environments canmore with mountains versus bornholm with the seashore age young and growing rapidly versus mature and seasonality some all-year demand versus extreme summer peaks and despite the obvious cultural differences between canada and denmark there are key structural similarities in terms of entrepreneurial free-market development a range of accommodations and domination by small family businesses it is in both settings a matter of personal choice that dictates the motives for locating there the nature and type of investment that owners have made and the degree to which they expand their businesses canmore is a rapidly growing resort town situated just outside the boundary of banff national park a one hour drive west of calgary alberta canada its very recent transition from coal-mining village to tourist destination is attributable to several major factors staging of part of the 1988 winter olympics in canmore which generated publicity and a world-class facility for cross-country skiing a development freeze within the national park resulting in spill-over development in canmore and mounting demand for second homes in the mountains consequently since 1988 tourism has become the town s major industry numerous accommodation retail tour and other services have opened there table 1 provides a profile of the respondents and subsequent references will be made to these data canmore s business registry with interpretation by local economic development officials revealed 1034 businesses of which 61 were considered to be family owned that is owned by identifiable persons not corporations a total of 198 tourism-related businesses were identified and it was estimated that 78 of these were family owned see table 2 almost all the family owned businesses are owner-managed with resident owners although a very small proportion lived outside the community a total of 100 respondents completed the survey a breakdown of accommodation businesses in canmore reveals that it is heavily weighted to bed and breakfast houses 79 out of 106 and 36 of these b and b owners replied to the questionnaire all b and b operations were family businesses in addition there are 27 other accommodation businesses hotels and motels plus one campground of which 16 59 were believed to be family owned the survey yielded 9 respondents from these other accommodation types the island of bornholm in the baltic sea is one of the most renowned destinations in denmark having been popular since the late 19th century it has been described as ya mature seaside resort with an established tourism infrastructure dominated by small enterprises gyimothy 2000 p 56 the climate is temperate and often sunny but winters are harsh and not attractive for visitors the main attractions are unspoilt rural and coastal scenery quaint fishing villages outdoor recreational activities historic churches arts and crafts especially glass blowing and ceramics and visiting small museums tourist demand is extremely seasonal being concentrated in july and august.

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article in press 226 d getz t petersen hospitality management 24 2005 219­242 table 1 profiles of the respondents profile variables categories bornholm n=84 63.3 36.7 88.8 11.3 1.3 5.0 27.5 31.3 30.0 5.0 31 22 5 21 8 4 23 2.6 33.3 14.1 12.8 15.4 7.7 14.1 7.3 31.7 53.7 79.3 91.5 100 38.1 56.3 2.5 1.3 21 14 38 2 4 4 30 41 canmore n=100 45.8 54.2 87.8 12.2 0 10 40 28 15 7 45 19 2 3 20 12 26 10 67 14 3 1 2 0 13 65 88 96.7 98.9 100 74.5 25.5 50 29 26 5 1 2 25 64 gender marital status age male female married other under 25 25­34 35­44 45­54 55­64 65 accommodation restaurant/cafe attraction art/craft recreation retail tour service other 2000 1990s 1980s 1970s 1960s 1950s older À1 or less À5 or less À10 or less À20 or less À30 or less À40 or less purchased started myself inherited renting husband/wife ltd company sole proprietor partnership no family partnership with family other only me with spouse included in the business respondents were asked to indicate the activities included in their business yielding multiple answers year business started years in this business cumulative percentage purchased or started the business ownership multiple responses permitted family involvement multiple answers permitted

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article in press d getz t petersen hospitality management 24 2005 219­242 table 1 continued profile variables categories bornholm n=84 11 7 53.0 12.0 28.9 6.0 0­35 76.3 31.2 68.8 canmore n=100 12 5 62.5 6 .3 21.9 9.4 0­35 66 43.4 56.6 227 children other family paid employees non-family full-time none 1 2­10 over 10 range post-secondary yes no education previous business ownership table 2 profile of canmore tourism-related businesses and the survey sample type total number of businesses estimated family businesses questionnaire sample number and of type n ¼ 100 construction wholesale and retail personal and other services accommodation professional services food and beverage arts entertainment and recreation real estate rental leasing manufacturing transportation warehousing and utilities other total 269 180 130 106 104 60 56 31 27 25 45 65 68 90 66 80 38 61 52 36 19 all retail 45 19 2 13 all tour services 46 1034 range 0­73 61 2 100 bornholm is similar to two other baltic islands aland and gotland all three islands possess high levels of local ownership and control and twining-ward and baum 1998 concluded that all three had entered a period of decline and were suffering from the ill-effects of seasonally low demand the problems are augmented by a dominance of small family enterprises ywhich in many cases lack the professional training required to secure a high quality of service twining-ward and baum 1998 p 135

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article in press 228 d getz t petersen hospitality management 24 2005 219­242 table 3 bornholm estimated number of businesses and proportion of family businesses type of business estimated number in study area estimated number and proportion of family businesses 54 88.5 3 60 5 100 11 92 7 100 48 100 35 94.5 51 100 39 100 19 90.5 30 97 302 95.3 hotels/pensions holiday centers hostels campgrounds summer house rentals restaurants/cafes attractions/recreation arts/crafts other retail transport other services total 61 5 5 12 7 48 37 51 39 21 31 317 table 4 bornholm business activities of respondents multiple answers permitted business activities accommodation restaurant or cafe arts and crafts attraction or recreation other retail most arts and crafts include both production and retailing tour company other number including each activity 31 22 21 11 8 4 23 an estimate was made by local researchers of the total number of tourism and hospitality businesses in the study area using municipal directories and the proportion that was family owned based on detailed local knowledge as in canmore the principal criterion for determining if a business was family owned was the presence of resident owner-managers table 3 shows there were 317 identifiable tourism/hospitality businesses in the two bornholm municipalities covered by the research of which fully 95.3 were deemed to be family businesses the main sector of corporate ownership was that of larger accommodation establishments the questionnaire sample of 84 owners on bornholm is not directly comparable to the categories used in table 3 because each respondent was asked to indicate all the different activities of their business and a small number of them ran multiple businesses or multi-activity businesses such as hotel plus restaurant of the 120 activities listed by respondents see table 4 accommodation was the largest category 31 followed by restaurants/cafes 22 and arts and craft producers 21 most of which are combined production and retail operations

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article in press d getz t petersen hospitality management 24 2005 219­242 229 regarding the industry canmore has attracted more chain hotels and restaurants which are larger and typically not family owned or controlled although owning a franchise counted as a family business in this research it is unknown if investors in either resort have greater access to capital or other forms of business assistance 4 data and analysis in both samples see table 1 again the respondents were predominantly married 88­89 but there were more males in the bornholm group 63 compared to 46 and they were on average older this reflects the older age of the businesses covered by the sample i.e 65 of the canmore owners had owned their business for 5 years or less compared to 32 in bornholm and in turn the much longer history of tourism development on the island data on business types are not directly comparable as the industry is somewhat different in these resorts the largest group in both cases were accommodation operators but in canmore there was a high proportion of bed and breakfast owners while the bornholm sample consisted mostly of operators of small hotels and pensions pensions are sometimes smaller than hotels but often indistinguishable the bornholm sample also contained a group of 2l arts and craft producers/retailers but there were none of these in the canmore sample ownership was largely in the hands of married couples and sole proprietors quite a few families have formed companies but partnerships were a small minority there was a higher proportion of sole proprietors in bornholm and a higher proportion of married couples as owners in canmore exact percentages are not possible because multiple answers were permitted on the ownership question in both samples the businesses were very small with mostly just the owners being employed in bornholm less than half had non-family full-time paid employees only 11 involved children and 7 others involved other family members beside spouses companies as opposed to other ownership forms and non-accommodation businesses had more paid full-time non-family employees in canmore less than half had employees and only 17 involved children or other family members beside a spouse those canmore businesses owned by companies had more employees and these were primarily hotels restaurants and to a lesser extent tour companies none of the bed and breakfast establishments had non-family full-time paid employees in canmore a relatively new resort 74.5 of the businesses were started by the respondents compared to 56.3 in bornholm there were no inherited businesses in canmore but several existed in bornholm i.e 2.5 of the sample previous business ownership was high 31 of respondents in bornholm and 43 in canmore but it is unknown what kinds of businesses these were 4.1 testing the hypotheses motives and goals for starting the business in order to test hypotheses 1 and 2 mean responses to the start-up goals see table 5 were analyzed and t-tests were used to compare responses between the two samples to

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article in press 230 d getz t petersen hospitality management 24 2005 219­242 table 5 level of agreement with goals when starting this business goals when starting this business 1 to be my own boss 2 to keep my family together 3 to keep this property in the family 4 to live in the right environment 5 to support my/our leisure interests 6 to enjoy a good lifestyle 7 to make lots of money 8 to gain prestige by operating a business 9 to meet interesting people 10 to provide a retirement income 11 to provide me with a challenge 12 to permit me to become financially independent 13 to supplement my income from other sources 14 to avoid unemployment 15 to move to bornholm bornholm means ðn ¼ 71274Þ 3.99 2.99 2.29 4.03 3.16 3.90 2.76 2.06 3.74 2.72 4.36 4.03 2.10 2.63 2.83 standard deviations 1.39 1.69 1.63 1.33 1.57 1.37 1.32 1.39 1.16 1.59 .99 1.40 1.47 1.73 1.77 canmore means ðn ¼ 92297Þ 4.20 3.18 2.12 4.02 3.73 4.23 3.18 2.19 3.84 3.40 3.75 3.95 not asked n.a n.a standard deviations 1.16 1.73 1.49 1.27 1.40 1.05 1.17 1.21 1.04 1.53 1.21 1.37 means out of five 1 not at all important and 5 very important significant differences using 2-tailed t-tests po:05 discover the underlying structure of motives and goals factor analysis with varimax rotation was conducted table 5 displays mean scores out of 5 with 1 being not at all important and 5 being very important and standard deviations pertaining to start-up goals note that three additional items were provided to the bornholm sample overall there was a high degree of congruence between these two samples on their start-up goals in terms of means the highest 6 were the same for each sample although the ranking was different several were significantly different t-test sig o.05 as indicated in the table to make lots of money appealed more to the canadians as did to support my/our leisure interests and to provide a retirement income the goal to provide me with a challenge was ranked significantly higher by the danish owners none of the three extra items for the danish sample attracted high means although to move to bornholm was apparently a motivator for some of the respondents results of the factor analysis are displayed in table 6 for bornholm six factors were derived with a cumulative 72.2 of variance explained given the sample size

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article in press d getz t petersen hospitality management 24 2005 219­242 231 table 6 bornholm start-up goals rotated factor matrix n ¼ 66274 loadings of .70 or higher are significant goal statements f-1 lifestyle f-2 challenge f-3 money matters f-4 family first f-5 f-6 to enjoy a good lifestyle to live in the right environment to support my/our leisure interests to provide me with a challenge to be my own boss to move to bornholm to make lots of money to gain prestige by operating a business to provide a retirement income to keep this property in the family to meet interesting people to avoid unemployment to supplement my income from other sources to keep my family together to permit me to become financially independent percent of variance explained cumulative percentage .88376 .83252 .77297 .77177 .70503 .67553 .84841 .79378 .61859 .52600 .83733 .49632 .60839 .78860 .60068 À.57988 .54514 .55483 .84555 24.6 24.6 12.2 36.9 10.1 47.0 9.3 56.2 8.2 64.4 7.8 72.2 .38384 .31960 66­74 respondents for each goal significant loadings are those of .70 or higher hair et al 1998 factor 1 explaining 24.6 of variance consists of three goals all clearly linked to lifestyle considerations demonstrating the synergistic allure of an island location to live in the right environment to support my/our leisure interests and to enjoy a good lifestyle factor 2 explains 12.25 of variance it is called challenge and encompasses two goals to provide me with a challenge and to be my own boss there is definitely a high degree of autonomy-orientation in this grouping factor 3 10.l of variance has been called money matters based on the goal to make lots of money as well to gain prestige by operating a business might be related to the goal of obtaining a higher income to provide a retirement income conceptually links to the money motive it is important to note that the means for these three items see table 5 are all low likely indicating that money and prestige were a minor set of goals among the danish owners there is a possibility however that this reflects a cultural bias against overtly stating a profit orientation.

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article in press 232 d getz t petersen hospitality management 24 2005 219­242 table 7 canmore start-up goals rotated factor matrix n ¼ 92297 loadings of .60 or higher are significant goal statements f-1 life-style f-2 money matters f-3 family first f-4 prestige to enjoy a good lifestyle to support my/our leisure interests to be my own boss to make lots of money to permit me to become financially independent to provide a retirement income to keep this property in the family to live in the right environment to keep my family together to gain prestige by operating a business to meet interesting people to provide me with a challenge percent of variance explained cumulative percentage .84976 .77066 .65299 .82027 .80559 .58998 .46626 .44694 À.30344 .30743 26.9 26.9 13.8 40.7 11.4 52.1 .45377 .74376 .61631 .61277 À.37406 .70623 .66076 .54982 10.9 63.0 factor four 9.3 is called family first and includes one statistically significant goal to keep this property in the family and another that is closely linked to keep my family together the goal to meet interesting people also loads here but not significantly factor 5 8.2 has only one significant goal to avoid unemployment factor 6 7.8 contains only one significant goal to permit me to become financially independent turning to the canmore sample a four-factor solution was derived see table 7 cumulatively explaining 63 of variance the sample size ranging from 92 to 97 on each goal requires a minimum loading of .60 to be significant hair et al 1998 as with the danish sample factor 1 is labeled lifestyle explaining 26.9 of variance it contains two of the same goals lifestyle and leisure and another goal statement that achieved high means in both samples to be my own boss to live in the right environment and to provide me with a challenge are also linked to this factor and all five goals received high means factor 2 13.8 is called money matters as it contains two significant loadings to make lots of money and to permit me to become financially independent making lots of money was significantly more important to the canmore owners means 3.18 vs 2.76 whereas financial independence was important in both samples bornholm 4.03 canmore 3.75 to provide a retirement income is loaded here although not significantly given its fairly high mean in the canmore sample 3.40 vs 2.72 in bornholm it can be concluded that a substantial number had sought retirement in a resort setting.

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article in press d getz t petersen hospitality management 24 2005 219­242 233 factor 3 11.4 has been called family first including three significant loadings to keep this property in the family to live in the right environment and to keep my family together the goal pertaining to property was ranked low mean 2.12 whereas living in the right environment was more important mean 4.02 factor 4 11.4 is called prestige but the two items loading significantly are a strange mix to gain prestige by operating a business achieved a very low mean of 2.19 among the canmore respondents whereas to meet interesting people was a much higher 3.84 the challenge goal loads here as well but not significantly 4.1.1 who are the lifestyle-oriented entrepreneurs analysis confirms hypothesis 1 that lifestyle was the dominant motivational factor in both samples autonomy-related goals especially the highly ranked to be my own boss and to permit me to become financially independent were also very important in canmore financial independence correlated more closely with making lots of money whereas in bornholm it stood alone in some owners mind-set being one s own boss might be a lifestyle consideration as in canmore and to others it is more linked to challenge as in bornholm although money matters emerged as a distinct factor in both samples it was not very important to a majority of respondents within each sample a search was undertaken for the business types and ownership characteristics most associated with lifestyle goals the procedure began with creation of a new variable called lifestyle consisting of the combined means of the three goals significantly loaded on this factor subsequently the independent means t-test was employed to detect any significant effects on the new variable in bornholm it was determined that sole proprietors and owners of arts and crafts establishments were significantly more lifestyle oriented although gender was not a significantly different variable it is noteworthy that more females than males were sole proprietors and of the 19 arts and crafts owners 11 were female among canmore owners lifestyle start-up goals were predominant among all types of owners and businesses hypothesis 2 is thereby partially confirmed as lifestyle and autonomyoriented owners were identifiable with ownership and business types in bornholm 4.1.2 attitudes and future-oriented goals respondents were asked to indicate their level of agreement with 18 statements about this business see table 8 using a five-point likert scale where 1 completely disagree and 5 completely agree the scales were identical in both samples the items include attitudinal statements that are likely to shape strategy explicit goals for the future plus some factual statements about the nature of the business for purposes of factor analysis the five factual statements i.e 4 5 10 11 12 in table 8 were deleted almost everyone in both samples agreed strongly that it is crucial to keep this business profitable means 4.73 and 4.48 and i believe in hands-on management means 4.67 4.43 canmore respondents displayed a higher level of interest in starting new businesses means 1.79 in bornholm vs 2.84 in canmore but this cannot be viewed as anything more than neutral on the scale of five debt avoidance

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