A large number of successful entrepreneurs across Canada and the United States with companies that experienced 150% growth on average for each of the first five years of operation were polled. The entrepreneurs were asked which one single attribute they felt had the greatest impact on their success. The chart below is a record of their responses.
- Prepare a Pareto analysis of the data collected from the entrepreneurs
- What does this analysis reveal about the responses from the entrepreneurs.
A Pareto chart is a bar chart with a superimposed cumulative frequency curve. The bars are frequency counts in each of the observed category, where the bars are ordered by frequency (largest first). By ordering the bars in this way, the analyst can see which category(s) make up the majority of the observations.
In this case the categories are attributes which entrepreneurs questioned in a poll said had had the greatest impact on their success. Looking at the attached figure, over 20% of the respondents answered that a gift for leadership was the attribute that had had the greatest impact on their success. However, each of the 7 categories have fairly comparable frequencies, indicating that no one thing or couple of things accounts mainly for the success of the entrepreneurs.
If one could separate out 'nature' and 'nurture' components and 'creativity' and 'analytical skill' this might be more revealing. For example, considering the question of 'nature' versus 'nurture': IQ, EQ and creativity (all 'nature'/genetic one might expect) heavily outweigh Education and Experience (the result of 'nurture'/environment) (108 counts versus 40). However, the remaining categories unaccounted for are Leadership and Presentation Skills. Whether these components are associated with 'nature' or 'nurture' I would say is a grey area, as although they have a basis in innate ability, ie genes, they can be improved upon through learning and experience, perhaps significantly. These two attributes account for 91 counts. Depending on how this is split between the 'nature' and 'nurture' categories, this would impact possibly on whether it were mainly nature or nurture that were responsible for the success of the entrepreneurs.
With the data left in the categories given, there is no obvious attribute or couple of attributes that are responsible for the success of entrepreneurs. However, if the categories were collated, say by 'nature' and 'nurture' categories, this might be more informative.