Entrepreneurial behavior in self-employed direct selling representatives in Brazil

Curso: 

  • CMAE

Área de conhecimento: 

  • Empreendedorismo

Autor(es): 

  • Maria Margarita Morales Murillo

Orientador: 

Ano: 

2016

Micro-entrepreneurs and one-person business sector are important factors in the dynamics of emerging economies. In Brazil specifically, around 4,5 million of them are affiliated with direct selling companies. They are non-salaried; receive commissions on sales and work for themselves by setting their own hours and creating their own marketing plans. The aim of this study was to analyze the relationship between key entrepreneurial behaviors and sales performance among self-employed direct selling representatives in Brazil (SEDSR). Based on a quantitative approach, four independent variables were measured in a sample of 651 SEDSR: need of achievement (NA), self-efficacy (SE), risk-taking propensity (RP) and locus of control (LC). Dependent variable was business performance (Y1). An online survey was submitted to an email address database provided by a global direct selling company with operations in Brazil. Descriptive statistical and regression analysis were performed with the intent to determine first, the prevalence of each entrepreneur behavior, in a population that is traditionally pushed into direct selling by necessity and second, how each affects and predicts business performance. Results showed there is a high prevalence in terms of NA and SE, confirming these behaviors are not exclusive on successful and formal entrepreneurs. LC and RP receive medium score. Unexpectedly, results also show that none of the behaviors on its own have significant impact in predicting business performance. When putting the four behaviors into one only single regression model correlation increases slightly but not enough to make results conclusive. Through main effect plot analysis, results also suggest SE and NA are the biggest influencer factors in business success of a SEDSR. Finally, analyzing the best interactions of the variables allowed building a profile to achieve the maximum business performance. This study attempts to contribute to the academic field of the entrepreneurship and has practical implications in direct selling industry. On the first, it contributes to the existing body of knowledge on the direct selling entrepreneurship and specifically, to the conceptual debate if SEDSR should or should not be defined as micro-entrepreneurs per se and not simply, as sales distributors as some authors defend. On the second, this study provided insights to direct selling managers that could use to improve recruitment and engagement process of their independent sales force. Further studies need to include other variables besides entrepreneurial behavior to better understand and predict business performance and how enable SEDSR to transition from necessity-driven entrepreneurship to opportunity-driven.

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