STRATEGY
AN EMPIRICAL EXAMINATION OF

MANAGERIAL COMPETENCIES AMONG
BLACK WOMEN ENTREPRENEURS

AND BLACK WOMEN
CORPORATE EXECUTIVES~

Joe Singer
University of Missouri - Kansas City

ABSTRACT

The new economic reali ty of the l 990's is clearly the notable enirepreneuri ol pursuits of
women business ownersin general and black women ennepreneursin parncular. This paper
reports on the managerial colnpetencies and perceived skill development needs ofblack women
entrepreneurs and contrasts their profile wuh black women corporate managers. Managerial
competencies were assessed through the use of the "Leadership Competency Inventory" (LCII.
The LCI provides feedback on 55 competencies arranged in four cotegories: (I)Socio-Economic
Environmeiu of Business, (2) Technical and Operational Methods, (3) Human Resource and
Interpersonal Communication Ski lls, and (4) Vision and En vi ronmen tal CoA li gnmeiu Scanni ng
Abilities. Upon testi ng for si gnificance, the conclusions indi cote tluu a rehui vely dr/creat and
disunct competency profile exists and illusirates the developmental needs for black women
managers nui cipanng stepping offthe corporate track in favor ofthe entrepreneurial al ternati ve.
As for black women emrepreneurs, they continue to display mixed perceptions of thei r ski lls ond
abiluies wi th some areas idennfie as very weak and others very positi vely viewed.

INTRODUCTION

Aspiring black women entrepreneurs and corporate businesswomen have always faced
numerous unique batriers, even when compared to other minority group members. Yet, experts
anticipate a continuing growth trend for black women's labor force panicipauon; reaching a 65
percent net growth rate through the year 2000 (Brand, 1988)and representing 5 6 percent of jobs
(Hudson, 1987).Ironically, the black women's successes in the 1980's, particularly the corporate
beneficiaries of desegregadon, have created a rift between women in professional and managerial
jobs and those black women entrepreneurs who are among the fastest growing segment of the
small business formation population (Reskin k Roos, 1990).This may contribute to diminishing
the number of black women who have been leaving their corporate employers in large numbers
to seek the entrepreneurial alternative (Morrison, White, gt Van, 1987). One challenge that the

vTAis article received the Distinguished Paper Award at The l993 National SB/DA Conference
in San Diego. It was noi reviewed by the ISBS Editorial Advisory Board.

43



mnainder of the 1990's will bring both occupational groups is to create a united political-
econrxnic basis for demanding enhanced gender and race equity. Such a basis should be keyed to
transcending the economic barriers and disproportionate institutional support between the more

and less favored black businesswomen.

'Ibe possibility for building effective soci~omic coalitions supportive of the training,
positioning and development needs of black women, rests with a clearer understanding of the
managerial competencies, styles and motive profiles of black women entrepreneurs and black
corponue businesswomen. (Diffley, 1983).The newest emerging group of modern black women
e trepreneurs is most likely to be small business owners with prior corporate business experience,
a strong need to be independent, and a selfwmpowered will to succeed (Birley, 1989, Brush k.
Hisrich, 1988). Often identified in the literature as the "second generation" modem women
entrepreneur, (Gregg, 1985), this new source of black small businesswomen comes to the
challenge often prepared with technical operative knowledge and managerial planning skills, a
network of contacts and a 1990's orientation to creating a customer (Drucker, 1986) through
inventing new markets (Sehuan dt Izxxtg, 1992). Having utilized her previous corporate
managerial environment as a skills and competency building incubator (Cooper k Dunkelberg,
1987),she seeks the entrepreneurial alternative to bridging the occupational and career queueing
gaps, in order to reach for newly emerging opportunities in today's fresh approaches to the global
marketplace.

If women business owners are truly the fastest growing "new breed of entrepreneurs"
(Moriya,yudd, 41 File, 1988).then understanding the competencies and skills necessary to make
the transition from the corporate to entrepreneurial environment would be of considerable value
(Rescuer, 1989).Although numerous research studies have examined the women entrepreneur
(Ksrich, 1986),very liule attempt has been made to isolate the characteristic skills, problems and
perceptions of the black women entrepreneurs.

OBJECTIVES

lite purpose of this paper is (1)to examine the managerial orientations and competencies
of black women entrepreneurs compared to black businesswomen holding executive and
managerial positions in large corporations, as well as (2) to explore the developmental needs of
both groups in order to enhance the survival and growth of minority firms and inform management
assistance consultants and educators regarding developmental factors among the largest potential

pool of future black women entrepreneurs.

'Ihe failure of legislators, administrators, and the feminist movement to address the working
concerns of black women is currently receiving political attention and engendering widespread
discussion in white women's organizations (Glenn, 1992).Although racial ethnic schohrs have
auempted research focusing on racial ethnic women in relation to family, community and labor

force participation, those studies have not explicitly recognized the speciTic competencies of
black women in the two fastest growth fields of employment; professional and managerial
occupations (especially small business formation).

Clearly, a necessary next step is to understand and develop a theoretical and conceptual
framework for analyzing the socio-economic competencies and occupational development needs
at the interacuon of race and gender stratification within the process of enuepreneurship.
Hopefully a staning point for developing such a theoretical framework would appear to lie in the

44



assessment of contrasting business skills and abilities among black women entrepreneurs and
coporate managers. Such information should assist small business development educators and
administrators in fcamulating minority business assistance strategies.

RESEARCH DESIGN

Following the suggestions of PJ.Hoffman (1960),MitcheB & Beach (1977) and Michael
J. Stahl (1986), that a behavioral decision theory modeling approach (see Stahl, 1983, pp. 775-
789) be used to study managerial competencies, a skills inventory assessment approach was
developed. An advantage of such an approach is that scores based on the action-oriented behavior
of subjects as reported by superiors, peers and subordinates can be combined with subject's self-
reports of their perceived competencies. The research design therefore presents a rigorous
experimental testing methodology (a triple replicate of a 2 x 2 x 2 full factorial) with regression
analysis of each subject's perceived managerial competencies. The clear advantage of such a
cmss-scoring approach is that testing for nonsignificant regression equations highlights inconsis-
tent data. Then errors in the separate data set models can be compared with the coors in the model
run on the full sample.

Although instrument test-retest reliabilities are not a focus of this study, the average test-
retest reliability for principal advisor/boss samples was .86, for self-reports .84 and for peer/
subordinate .81.The test-retest reliability coefficient for the composite managerial competence
measures for all samples averaged.72. Keep in mind that suchreliability coefficientsareconsiderably
higher than the often employed McClelland's (1965)TAT instrument (.30).

Data Collection

Obtaining an accurate assessment and comparison of black women entrepreneurs'ana-
gerial competencies with black corporate businesswomen managers, was a difficult undertaking.
To locate entrepreneurs and businesswomen for this study, a number of sources were employed.
These included

~ National Directory of Minority-owned Business Firms (1992)
~ The Directory of Women Entrepreneurs (1991)
~ National Minority Business Directory (1990)
~ The Women's Business Initiative, Inc. (Association)
~ The Society of Women Engineers (Association)
~ Women in Management Division of the American Academy of Management

(Association)
~ The Network of Women in Business Directory (1990)
~ National Association of Family Business Directory (1992)

An initial stratified random sampling plan was employed to identify and select a proportion-
ate number of black women entrepreneurs and black businesswomen executives who would
consent to study panicipation. From these two groups a final sample was constructed to balance
business type, geographic location, business size, duration, and industry.

Data for this study were obtained on each of the 55 (5 = High; I = Low) competency
components from the panicipating entrepreneur and manager, her closest business advisor or her
immediate superior, and fmm four to six "observers" equally split at the peer and subordinate

45



levels. In every case, the participants were to select people who were very important to them in
doing their job and on the basis of "people whose opinion you value."

Each participant selected for the study was provided with a complete set of questionnaues
(coded), instructitxts and postage paid return envelopes in order to preserve the confidentiality of
the assessment process.

'Ihe 55 managerial ctaupetencies (see the Appendix to this paper) assessed by each group
pmvided the following data sets:

1. The participant enuepreneur and corporate manager established the most "Important
Competencies" for her job and identified their most critical areas for improvement
("Needed Improvement" ).Complete data sets were assembled for 88 enuepreneurs and
102 businesswomen executives or managers.

2. For black women entrepreneurs, a principal business advisor (mentor) or board
chairperson provided feedback on competencies "Important" to the job and "Needs for
Improvement." The same set of questionnaires was received for participating black
businesswomen managers.

3.The selected "Observers" perceptions of important managerial competencies and need
for improvement, included 348 survey instruments for participating entrepreneurs and
520 quest'naires, returned for participating corporate businesswomen.

Research Hypotheses

'Ihe hypothetical constructs developed for this research effort are a first attempt at
identifying creative development strategies for scholars, practitioners, and small business
ctxrsut chants, who, based upon the suggestions in the literature, believe that in order to succeed,
entrepreneurial owner-operators need a broad and balanced spectrum of managerial competen-
cies. In addition, it has been pointed out, time and again, that most corporate black businesswomen
move, quit-working, or pursue their independent business because they perceive themselves
discriminated against, thwarted and ~in their careers, even by other women (Nkomo,
1988).Yet, by their achievements, skills, creativity and talents, they represent the largest pool of
potential black women entrepreneurs in the history of our nation. Paying heed to the managerial
canpetencies and needs for impmvement among these two groups of minority women, is an
essential, necessary and sufficient condition for the continuing success of entrepreneurial
organizations in the United States and abroad. Therefore, based upon theory and previous
research, the following hypotheses were developed:

Hypotheses I: Bladi women owner-operator entrepreneurs will exhibit a significant
difference in managerial competencies when compared to black businesswomen corporate
executives or managers; on the competencies perceived as "Important".

Hypotheses 2: Bladi women owner-operator entrepreneurs will exhibit a signiTicant
difference when compared to black businesswomen corporate executives or managers, in the
perceptions of "Need for Improvement" as evaluated by their own self-assessments, their
principal business advisors, or immediate superiors, and "observers" selected at peer and
su ordinate organizational levels.

46



Based upon years of experience in teaching minority businesswomen programs, a number
of sub-hypotheses are possible relative to motivauonal characteristics, value systems and
personafity types. Expectations are that entrepreneurs will perceive Part I and Part IV dimensions
of signiTicantly higher importance than their advisors and observers. On the other hand, black
coporate businesswomen managers wifi be highly task focused (Part II) and truly interested in
human resource management issues (Part III).

SURVEY RESULTS

Respondents to the leadership competencies inventory were presented a five point scale
upon which to indicate both major (5) and minor (I) importance and developmental needs for
improvemenL The compiled data is presented in the following tables and ranked by the magnitude
of difference between entrepreneurs and corporate managers. After first testing each data set for
homogeneity of variance, Student'T" tests (as modified by the Kendefl Tau statistic) were applied
to examine significance in group means at the .01 (vv) and .05 (v) levels. In addition, although
all observations were employed, only the significant data for the upper and lower quartiles are
presented. High priority and low priority development needs are also indicated by other study
paftlcipallts.

Table I summarizes the highest and lowest quartile dimensions of managerial competen-
cies considered important (unimportant) by the participating black women entrepreneurs and
their counterpart black businesswomen corporate managers. At a.01 level of significance, women
entrepreneurs ranked profit management and control and monitoring, as the most important
success skills along with competitor awareness and skill in managing creativity (.05 levels). Of
least importance and significantly different than corporate businesswomen managers (.01)were
legal requirements and organizational blending. Not surprisingly, group process skills and
conflict resolution abilities were ranked higher (signifiicantly different at the .05 level) by black
corporate businesswomen executives.

In examining the highest quartile, which includes the greatest relative comparative
importance selections by enuepreneurs, it should be noted that 70 percent of the competencies
represent Part I and II dimensions or the "mechanics" of management (skills) rather than the
"humanics" (process abilities) or dimensions from Parts III and IV).

Of critical importance to any business person is feedback relative to what "competencies"
their immediate supervisor or principal business advisors (mentors) consider most important to
doing a good job. Table 2, reports the assessments of business advisors and the bosses of
participating corporate managers. In comparison with corporate businesswomen managers, seven

competencies, including 1.02-profit management, 4.10-managing creativity, 2.11-control and
monitoring, and 1.03 - cost and cost control, exhibit significant difference, while 1.06-
competition awareness, 3.07-personnel/staffing and 4.11-entrepreneurship are significant at the
.05 leveL Again, among the thirteen highest ranked competencies, eight out of thineen represent
the "blocidng and tadding" on mechanics of operating a business. The mentors of participating
corporate managers regarded 1.01-monetary conditions, 1.08-organizational culture and 4.05-
sense of timing as more critical areas of managerial competency.

47



Table I

Parncipant's Select/oust Important Competencies

Item ¹ Dimension Description Entrepreneur Manager Signif.

( Lowest Quartfle )

1.12 Legal Requirements 2.9850 3.5033
1.07 Impact 2.5110 3.0438
4.04 Organizational Blending 3.7210 4.1315
1.01 Monetary Conditions 2.2888 2.7037 u

3.14 Group Process Skills 3.7200 4.0645
3.02 Resolving Conflicts 3.9535 4.2840 NS
4.14 Policy Formulation/Implementation 3.2500 3.5598 NS
1.09 Internal Structure and Operation 4.2631 4.5750 NS
1.08 Organizational Culture 3.8370 4.1157 NS
1.04 Business Conditions 3.1167 3.3733 NS
3.09 Performance Management 4.2248 4.4728 NS
4.05 Sense of Timing 3.8761 4.1158 NS
2.09 Time Management 4.3800 4.5092 NS

( Highest Quartile )

1.05 Customer / Client Awareness 4.3025 4.2167 NS
2.08 Delegation 4.4965 4.3878 NS
2.07 Implementation 4.6901 4.5750 NS
4.13 Managing Change 4.0310 3.8943 NS
4.11 Entreprenetnship 3.7598 3.6227 NS
4.12 Risk Tahng 3.8373 3.6567 NS
1.11 Social and Political 2.5583 2.3472 NS
2.12 Proposal Preparation 3.4883 3.1805 NS
1.06 Competition Awareness 3.2947 2.9423
3.07 Personnel / Staffing 4.0698 3.6737 NS
4.10 Managing Creativity 4.2248 3.6738
1.02 Profit Management 4.6989 4.1448
2.11 Control and Monitoring 4.5103 3.9557 t ~

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Table 2

Business Advisor / Mentor Selections: Iinpononr Conrpeiencies

Item tt Dimension Description Entrepreneur Manager Signif.

( Lowest Quartile )

1.01 Monetary Conditions 2.2392 2.6768 ~ 4

1.08 Organisadonal Culture 2.5613 2.9644 v

1.07 Impact 3.5067 3.8965 NS
2.14 Information Management 3.7618 4.1510 NS
4.05 Sense of Timing 3.8618 4.2510 4

4.14 Policy Formulation / Implementation 3.0895 3.4525 NS
1.12 Legal Requirements 3.1302 3.4353 NS
4.07 Pmblem Solving 3.6992 3.8778 NS
3.14 Group Process Skills 4.3497 4.5068 NS
1.10 International Awareness 3.8618 4.0137 NS
4.13 Managing Change 1.9922 2.1430 NS
1.11 Social and Political 2.1953 2.3132 NS
3.11 Stress Management 3.8212 3.9287 NS

( Highest Quartile )

2.08 Delegation 3.8620 3.6567 NS
2.04 Objective Setting 4.4715 4.1837 NS
1.05 Customer / Client Awareness 4.7155 4.3878 NS
4.03 Resource Blending 4.5528 4.1498 NS
3.09 Performance Management 4.7155 4.3027 NS
2.12 Proposal Preparation 3.6178 3.1973 NS
4.11 Entrepreneurship 4.1870 3.7417
3.07 Personnel / Staffing 4.1870 3.6905
1.03 Cost and Cost Control 4.6342 4.1328 44

2.11 Contml and Monitoring 4.8008 4.2993 44

1.06 Competition Awareness 3.4147 2.7725
4.10 Managing Creativity 4.2683 3.5203
1.02 PmEit Management 4.7355 3.9847

Tbe participating women entrepreneurs and corporate managers, in this study, were asked

to distribute and equal number of assessment questionnaires (at the peer and subordinate levels)
to "observers" whose opinions were valuable to them in doing their jobs. These observers were
to be in a position to judge which managerial competencies are of critical importance to
the manager and entrepreneur and what improvements or developmental needs they would

recommend.

While the identification of important competencies, as reported by the participants and their
mentors demonstrated some similarity, the data provided by selected observers clearly displays

a highly discriminate difference in imponance, as shown in Table 3.

49



Table 3

Observer's Se/ecnonsi Irnporarnr Competencies

Item ¹ Dimension Description Entrepreneur Manager Signif

( Lowest Quanile )

1.10 International Awareness 2.4870 3.1708 vv
4.04 ganizational Blending 2.8675 3.4850
1.12 Legal Requhements 2.9102 3.5070
4.14 Policy Formulatkut/Implementation 2.9103 3.3150
1.04 Business Condititats 2.6858 3.0490
1.07 Impact 2.4783 2.8308
1.01 Monetary Conditions 3.7565 3.9847
1.08 Organizational Culture 4.1623 4.3532
3.14 Group Process Shgs 1.9862 2.1655 NS
1.11 Social and Political 3.8333 4.0025 NS
4.09 Vertical Communication 2.8757 2.9932 NS
3.11 Stress Management 3.3592 3.4627 NS
4.08 Lateral Communication 2.3143 2.3688 NS

( Highest Quanile )

3.07 Personnel / Staffing 4.1968 4.0872 NS
2.11 Control and Monitoring 4.7495 4.6378 NS
4.10 Managing Creativity 3.8170 3.6955 NS
2.12 Proposal Preparation 4.7495 4.6268 NS
2.09 Time Management 4.3955 4.2720 NS
1.03 Cost and Cost Conuol 4.7063 4.5648 v

3.09 Performance Management 4.3265 4.1500 NS
2.03 Decision Making 3.1952 2.9970 NS
1.05 Customer /Client Awareness 4.4042 4.1980 1
1.06 Competition Awareness 4.0587 3.8027 vv

3.10 Development / Coaching 4.5078 4.2350
2.10 Budget Management 4.0328 3.6733
1.02 Profit Management 3.9910 3.5727

Observers of black women owner-operator entrepreneurs identiTies eight competencies at
significantly lower critical importance; three-fourths of which are dimensions defined in Part I
(soci~onomic environment) of the assessment questionnaire. They rated competencies in the
areas of sound financial management control, as well as, a suong marketing orientation to
customer and competitor, as the highest priority skills and abilities. One significant competency
(.01 level) that had not appeared before was the development and coaching of employees.

Turning now to managerial competencies which are identified as areas for "needed
improvement", Tables 4, 5, and 6, summarize the participant's, mentor's and observer's
selecdats.

50



Table 4

Participant's Selections: Areas for Needed Improvement

Item ¹ Dimension Description Entrepreneur Manager Signif

( Lowest Quartile )

3.01 Managing Motivation 2.7558 3.6501 44

2.08 Delegation 3.0917 3.6167
1.07 Impact 2.9845 3.3503 4

3.04 Effective Listening 3.0233 3.3673 4

1.10 International Awanness 2.8295 3.1463 4

3.06 Effective Presentation 2.8297 3.1295 NS
3.12 Information Sharing 3.1395 3.4353 NS
2.13 Organizing Systems and Structures 3.2945 3.5545
4.03 Resource Blending 3.0620 3.2993 NS
4.10 Managing Creativity 3.0233 3.2483 NS
4.05 Sense of Timing 3.0232 3.2485 NS
1.12 Legal Requirements 3.2945 3.5033 NS
4.06 Problem Perception 2.7520 2.9422 NS

( Highest Quartile )

1.05 Customer / Client Awareness 3.4108 3.3503 NS
2.02 Problem Analysis 3.5658 3.5033 NS
2.10 Budget Management 3.1017 3.0272 NS
3.03 Empathic Response 3.1395 3.0612 NS
3.05 Influencing 3.2945 3.2143 NS
1.02 Profit Management 3.0233 2.9422 NS
2.11 Control and Monitoring 3.0620 2.9762 NS
4.04 Organizational Blending 3.6820 3.5885 NS
4.13 Managing Change 3.6822 3.5373 4

2.04 Objective Setting 3.5272 3.3163 4

1.06 Competition Awareness 3.2170 2.8862
3.10 Development / Coaching 3.7322 3.3327
4.14 Policy Formulation/Implementation 3.5043 3.0631 44

Participating entrepreneurs appear to believe that they need little improvement in 3.01-
managing motivation and 2.08 - delegation, for which they exhibit a significant difference (.01)
when compared to women managers. Yet, they seem to recognize a need to impmve their
employee coaching and development skills. Other areas of significance in terms of impmvement
needed include 4.14- policy formulation and implementation ( 01), 1.06-competition awareness,
2.04 -objective seuing and 4.04 -organizational blending or the systematic bahncing of tasks.

Both the men tora (Table 5) and observers (Table 6) tend to agree that controlling costs (1.03,
2.10,2.11)and competitor/customer/client awareness are criucal areas for needed improvement.

51



Two dimensions that have not previously received high priority rankings. 4 01-networking ( 01)
and 4.05-sense of timing, show upas mentor selections for improvement and observers give time
management a high order of priority for needed improvement.

Table 5

Business Advisor //rfentor Selections: Areas for Needed Imttrovement

Item tt Dimension Description Entrepreneur Manager Signif

( Low Priority )

3.03 Empathic Response 2.6830 3.1293
3.13 Diffaentiating Individuals 2.8862 3.2993 v
3.01 Managing Motivadon 2.6017 3.0102 v

3.11 Stress Management 32113 3.5713 NS
2.14 Information Management 2.7235 3.0782 v

3.02 Resolving Conflicts 2.6830 2.9932 NS

( High Priority )

1.03 Cost and Cost Control 3.0082 2.8062 NS
3.10 Development/Coaching 3.0488 2.8232 NS
4.05 Sense of Timing 3.4553 3.2143 NS
1.06 Competition Awareness 3.4187 3.1086
1.05 Customer / Client Awareness 3.5833 3.2230
4.01 Networking 3.6857 3.3081 vJ

Tables 7 and 8 simply present the top priority competency ranking (rather than compara-
tively addressed as in the previous tables) as provided by study entrepreneurs and corporate
managers. Both groups of participants give primary weight to Part II, technical and operational
skills (40 percent and 50 percent respectively) with the corporate managers displaying a stronger
association to human resource management and interpersonal communicauon skills (Part III), 40
percent of managerial competencies. What is perhaps more remarkable, and not necessarily
unexpected, is the balance of managerial competencies selected by entrepreneurowner-operators.

Having identified the critical managerial competencies for success, women entrepreneurs
seek help in improving their 2.09 - ume management skills, 4.13- change management abilities
and their 1.05 - customer/client awareness strategies (Table 9) employment development and
coaching and organizational blending are among their top five identified needs for improvement.

Bhck women corpomte managers share three areas of need improvement (Table 10):2.09
- time management, 4.13 - managing change and 2.02 -problem analysis with participating
entrepreneurs. However, delegation, management of motivation, and managing performance
represent areas of needed improvement that they also regard as critical managerial competencies
in their careers.

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Table 6

Observer's Selections: Areas for Needed Improvement

Item ¹ Dimension Description Entrepreneur Manager Signif
( Low Priority )

3.03 Empathic Response 2.3057 2.6275 44

1.08 Organizational Culture 2.8325 3.0780 4

1.01 Monetary Conditions 2.7462 2.9712 4

3.14 Group Process Skills 2.2625 2.4870 44

3.13 Differentiating Individuals 2.7807 2.9860
1.10 International Awareness 2.7893 2.9897 4

( High Priority )
2.09 Time Management 3.1852 2.9997 NS
4.03 Resource Blending 4.6011 4.4117 NS
2.10 Budget Management 4.3267 4.0048 4

2.12 Proposal Preparation 3.1958 2.9549 4

2.11 Control and Monitoring 4.5078 4.1989 44

1.06 Competition Awareness 4.0328 3.5431 44

Table 7 Table 8

Ranking of Most Important Ranking of Most Imporuuu
Managerial Competencies Managerial Competencies

by Black Women Entrepreneurs by Black Businesswomen Managers

Item Dimension Description Mean Item Dimension Description Mean

1.02 Profit Management 4.6989 2.02 Problem Analysis 4.7960
42.07 Implementation 4.6901 2.01 Situation Analysis 4.6938
4208 Delegation 4.4965 3.01 Managing Motivation 4.6935
3.05 Influencing 4.4573 3.04 Effective Listening 4.5918
2.11 Contmland Monitoring 4.5013 «2.07 Implementation 43750
2.09 Time Management 4.3798 1.09 Internal Strucuue tk Operuion 4.5750
1.05 Customer/Cflent Awareness 4.3025 2.03 Decision Making 4.5578
4.10 Manag'ug Creativity 4.2248 3.09 Performance Management 4.4728
3.07 Personnel / Staffing 4.0698 42.08 Delegation 4.3878
4.13 Managing Change 4.0310 3.10 Development/Coaching 4.3707

53



Table 9 Table 10

Ranking ofMost Important Ranking of Most Important
Needs for /mprovemenr by Needs for Improvement by
Black Women Entrepreneurs Black Businesswomen Managers

Item Dimension Description Mean Item Dimension Description Mean

~2.09 Time Management 3.7340 «2.09 Time Management 3.7245
3.10 Devektpment/Coaching 3.7322 3.01 Managing Motivation 3.6501

'4.13 Managing Change 3.6822 2.08 Delegation 3.6167
4.04 Organizational Blending 3.6800 4.04 Organizational Blending 3.5885

«2.02 Problem Analysis 3.5658 3.11 Stress Management 3.5715
2.04 Objective Setting 3.5272 2.13 Organizing Systems
1.03 Policy Formulation / dt Structures 3.5545

Implementation 3.5043 3.09 Performance Management 3.5373
2.05 Strategic Planning 3.4450 «4.13 Managing Chance 3.5373
1.05 Customer / Client Awareness 3.4108 «2.02 Problem Analysis 3.5033
1.06 Competition Analysis 3.2170 1.12 Legal Requirements 3.5033

DISCUSSION

As with the case of all entrepreneurial ventures in general, a number and variety of
influences can be expected to affect survival. For minority-owned firms operated by black
women, Patt I- socio-economic business knowledge, and Part II - technical and operational skills
tend to dominate their "focused-in" approach to needed impmvement and their identiTication of
critical managerial competencies.

Although black businesswomen corporate managers agree on the significance of Part H
skills, they display a more "focused-out", (Part III - human resource management and interper-
sonal conununications skflls) developmental need and critical competencies. Both the mentors
and observers for each group of participants, strongly support this picture of strengths andw~.

The fact that there were a number of signiTicant differences among entrepreneurs and
corporate managers, in the nature and direction of competency development, suggests that strong
joint-pnnership alliances may be warranted. As an example, rather than attempting to become
more of a generalin (moving from Part I/II to Part III/IV in shlls development), enuepreneurs
could reach into a significandy large and growing pool of executive business talent among
corporate businesswomen managers to form mutually beneficial co-parmerships (see Table 11).
Work-tule performance could be greatly enhanced without puuing the survival of their firms
ahead of personal time and values, while complementing creativity and offering greater potential
for empowering and anracting good employees.

54



Table 11

Employment of Women in Managerial and Professional Occnpadons

Black Women White Women

Occupation 1970 1980 1990 1970 1980 1990

Total Employed 3.7 MM 4.7 MM 5.1 MM 25.5 MM 26.7 MM 37.1 MM
Pmfessional 11.0% 14.2% 21.6% 15.3% 15.1% 28.2%
Managerial 13% 4.7% 20.0% 3.8% 8.4% 20.9%

Source: U.S.Bureau of the Census of the Populations. 1970, 1980, 1990. Characteristics of the
Population.Vot I, Part I, U.S Summary.

Worthy of note are the consistendy higher mean importance scores given by black
businesswomen managers to Part II and Part III competencies, indicating that they attach greater
significance to rational order and motivation strategies associated with defined objectives and job
performance expectations (also, apparently producing high stress levels). Corporate management
participants, for example, identify "fmnt-end" operational management skills such as situation
analysis, problem identification and decision making as the most critical competencies (Part II),
while entrepreneurs stress implementation, delegation and control and performance monitoring
pmcess skills (apparently pmducing time management problems for them).

One remarkable finding is the perception of both gmups of participants regarding their most
critical areas for impmvemenL Corporate management participants identify delegation, time
management and system ~onal skills as impmvement needs. Women entrepreneurs, on
the rnher hand, recognize the need to develop problem analysis, objecuve seuing and strategic
planning ("front-end") skills. Once again, these findings clearly show how well the study
participants complement each other as potential team players.

CONCLUSION

Tire exploratory research results presented in this paper serve to suggest that a unique
interaction of race and gender isa viable, challenging,and rewarding area of research that has been
generally ignored in the women manager and entrepreneurship literature. Clearly, educators and
organizational development consultants interested in understanding the status of women in
organizations and ownerapemted firms must begin to recognize that the study of both race and
gender is a key pivotal point in establishing, developing, and advancing educational programs and

government policies to enhance that status.

As for the first hypothesis proposed in this study, that black women owner-operator
entrepnmeurs will exhibit a significant difference in managerial competencies when compared to
black businesswomen corporate executives or managers, the results are clear. Overall. entrepre-
neurs hold those components of leadership relauvely more important that are "focused-in" and
"focused-on" task performance. There were signiTicant differences in concern for profit manage-
ment and conuol and monitoring skills. Therefore, the first hypothesis was well supporuxL

55



Tbe second hypothesis proposed that black women owner-operator entrepreneurs will
exhibit a significant difference when compared to black businesswomen corporate executives or
managem, in the pemeptions of "need for impmvement" as evaluated by their own self-
assessments, their mentors, and "observers" selected at the peer and subordinate levels. The data
provides some relative support for this view, but with mixed results. Entrepreneurs self-select
employee coaching and development along with policy formulation and implementation skills as
most critical. Yet, their mentors and observers identify customer and competitor analysis, as well
as, a need for greater netwoddng.

Black businesswomen corporate managers fared much better in their self-selections relative
tomentors and observers. Their areas for impmvement include resource blending, monitoring and
control and the ever present problem of time management. Overall, therefore, the second
hypothesis was supported, but not well supported.

Perhaps the greatest surprise, although not posed as an hypothesis, was an intuitive
expectation that entrepreneurs will perceive Part I and Part II dimensions of signilicanUy higher
importance, as well as, developmentally needed, in concurrence with their advise and observers,
and that black corporate businesswomen managers will be highly task focused (Part li) and truly
interested in human resource management issues (Part III). Study results demonstrate that
entrepreneurs, in a relative sense, regard Part I and Part II as most important competencies and
areas ofdevelopmental need. Black women managers showed a strong concern for Part II and Part
III sh1ls and abilities. Thus, both groups exhibit minimal concern for "big picture", Part IV
abilities. Those associated with organizational vision, mission and environmental co-alignment
issues. While this might be easily explained for entrepreneurs, it may suggest that organizations
place black women managers in highly visible, showcase type jobs without external job
challenges or future mobility. Nevertheless, black women managers and entrepreneurs need to
maintain more proactively in defining their own criteria of success.

In the final analysis, the findings and implications of this study must be evaluated within
the context of its design and methodology. Although funher specific entrepreneur case study
research would reveal more micro-speciTic competencies and developmental needs, interesting
observations and conclusions have been made in this study that should serve as a clear basis for
further research.

Previous research, it seems, has produced only generalizations about black women

enuepreneurs that serve toobscure differences in how they perceive themselves within the context
of managerial competencies and especially the pauerns of knowledge they regard as critical to
their development. Only by continuing to study black women entrepreneurs'nd black business-
women corporate managers'xperiences, can we afford a unique opportunity for understanding
the effects and pardcular developmental needs associated with race and gender.

56



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57



APPENDIX

Leadership Competency Inventory Self-Assessment Exercise

Your knowledge and understanding about business, economic, social, organizational, and
poliucal condiuons, and their impact on present and future business decision-making and
performance.
1.01 MONETARY CONDITIONS -Understanding of cash flow, capital market conditions,

interest rates, invesunents, and fiscal and monetary policies.
1.02 PROFIT MANAGEMENT -Understanding the time value of money relationship and its

impact of return on capital, sales, profit margins, growth rates, return on assetsflinvestments.
1.03 COST AND COST CONTROL -Knowledge of cost of materials, labor, facilities, com-

modities, and services.
1.04 BUSINESS CONDITIONS -Knowledgeable about business opportunities, growth poten-

tial, long-range forecasts, inflationary uends, and recession or growth expectations.
1.05 CUSTOMERitCLIENT AWARENESS -Sensitivity to and awareness of customers'eeds,

organizatitut, systems, characteristics, climate, and personnel
1.06 COMPETITION AWARENESS -Knowledge and understanding of competitive

positions~gth, w aknesses, market share, potential, and trends.
I.07 IMPACT - Assesring the impact/influence of general business, economic, social, and

political conditions on management of the internal organizauon.
1.08 ORGAMZATIONAL CULTURE-Understanding the organizational culture, values, stan-

dards, formal and informal norms, operating principles, stated and unstated values,
folkways, and mythology.

1.09 IhfiERNAL STRUCTURE AND OPERATION - Understanding of both formal and
informal structure and systems within the organization. Knows formal and informal

hierarchy, power bases and decision makers. Knows who to work with to get things done.
1.10 INTERNATIONAL AWARENESS -Understanding of other countries social, cultural,

business and political conditions and the resulting influence and impact on management of
the business. Ability to effectively communicate with international customers and contem-
pomfles.

1.11 SOCIAL AND POLITICAL -Understanding and ability to assess the impact of external
social and political conditions. Ability to interface with governmental and related agencies.

1.12 LEGAL REQUIREMENTS - Knowledge of legal requirements, guidelines, restrictions,
laws, and contracts, and understanding of legalimplication in management of material and
human resources.

This category includes the tradiuonal technical skills and business operational skills, most of
which are based on classical management science concepts. The focus is on the ongoing, day-to-
day, management function.
2.01 SITUATION ANALYSIS - Ability to: Identify issues, break issues into component pans,

determine priorities, set goals, define appropriate action, and recognize alternatives.
2 02 PROBLEM ANALYSIS - Ability to define problems, analyze causes, determine corrective

action, and implement solutions.
2.03 DECISION MAIGNG - Skill of establishing criteria, gathering and reviewing information,

developing alternatives, assessing risks, choosing among alternatives and choosing opti-
mum timing for decisions.

58



2.04 OBJECI1VE SETFING - Skill in determining short and long-range goals, targets, and end
results. Stating objectives incorporating inputs from self, boss, subordinates, clients,
customers, and others.

2.05 STRATEGIC PLANNING - (Long and Medium Range Orientation) Skill in developing
strategies to accomplish organizational mission. Ability to understand and articulate
organization mission and plan for optimumuse of resources to accomplish mission.

2.06 TACTICAL PLANNING - (Short-Range Orientation) Skill in developing an implementa-
tion plan to meet objectives determining and sequencing activities, scheduling, seeking
help, getting feedback, taking corrective or contingent action.

2 07 IMPLEMENTATION- AbiTity to program steps and move from plan to initiating action for
accomplishment of mission and goals.

2.08 DELEGATION - Skill in appropriate sharing of authority accountability, responsibility,
power and influence for meeting organizational and individual objectives.

2.09 TIME MANAGEMENT- Skill in allocation of individual and organizational time to meet
individual and organizational goals.

2.10 BUDGET MANAGEMENT - Skill in establishing, negotiating, and controlling operating
budget.

2.11 CONTROL AND MONITORING - Skill in effectively contmfling material and human
resourcm, projects and tasks, against plans using appropriate tools, techniques, and
procechms to assess status and take required action.

2.12 PROPOSAL PREPARATION- Skill in preparing and documenting proposals, bids, grants,
or recommendations for internal or external review and msponse.

2.13 ORGANIZING SYSTEMS AND STRUCTURES - Skill in establishing organizational
structure, relationships, responsibilities, systems, procedmes, and charters to meet organi-

zational needs.
2.14 INFORMATION MANAGEMENT -Knowledge of and access to relevant management

information. Use and understanding of communication systems, hardware and software
systems, and applicable management information systems.

Your effectiveness as a manager or small business owner-operator depends to a large degree on
the undertaking of and responses to human behavior. This category includes competencies of an
interpersonal nature, especially as they relate to instilling productive behaviors in the working
environm ann

3.01 MANAGING MOTIVATION - Knowledge and understanding of motivational drives of
self and others. Ability to develop and maintain a motivated work group by appropriate
management of rewards, recognition, coaching, participation, delegation, assignments, and
developmental opportunities.

3.02 RESOLVING CONFLICTS - Skill in recognition, confrontation, and resolution of dis-
putes, disagreements, differing opinions, conflict, and personality clashes at both the
individual and group level.

3.03 EMPHATIC RESPONSE - Ability to maintain personal objectivitywhile providing under-
standing and sensitivity to others and enhancing others'elf-esteem. Putting yourself in the
other person's place.

3.04 EFFECTIVE LISTENING - Skill in accurately hearing what others are saying and
providing others with verbal and non-verbal clues that they are being heanL Receptiveness

to inputs and feedback from others.
3.05 INFLUENCING - Effectiveness in influencing the behavior and receptiveness of others,

including subordinates, peers, superiors, clients, and customers.

59



3.06 EFFECTIVE PRESENTATION-Ability to present ideas to others clearly and persuasively.
3.07 PERSONNEL/STAFFING - Skill in recruitment, interviewing, selection, and placement of

personnel.
3.08 COMPENSATION - Knowledge of compensation practices and internal and external rates

and levels.
3.09 PERFORMANCE MANAGEMENT - Skill in evaluating performance against job expec-

tations; identifying motivational and skill strengths and deficiencies; pmviding ongoing
informal and periodic formal feedback on consequence of both good and poor perfonnance.

3.10 DEVELOPING/COACHING - Skflt in providing direction and feedback, advice, training,
job opportunity, and relational interfaces to develop employees for proficiency in
cunentassignment and potential future roles in the organization.

3.11 STRESS MANAGEMENT -Understanding the nature of stress and stressors. Skill in
managing the envimnment and use of coping techniques to maintain stress level of self and
employees at a production level.

3.12 INFORMATION SHARING- Skill in maintaining environment ofopen communication to,
from, and within work unit. Ability to develop climate of two-way communication about
work status, goals, and visions of the future.

3.13 DIFFERENTIATING INDIVIDUALS -Ability to recognize, respect, and respond to the
individuality and uniqueness of each employee. Ability to recognize and reward contribu-
tions on an individual basis, ability to maximize potential of each. Recognizing and taking
effective action with problem performers.

3.14 GROUP PROCESS SKILLS - Ability to recognize and act on task and interpersonal
dynamics that occur in group situations.

v i
n'eeingthe "big picture." Ability to integrate hard and soft information, to orchestrate human and

material resources, to utilize rational and intuitive perceptions, to respond to organizational and
individual needs, and to know when to act and when to defer action.
4.01 NETWORKING - Ability to developand reciprocate in a network of relationships which

pmvides information, technical expertise, political insights, etc.
4.02 INFORMATION GATHERING -Develops many and varied sources and ways of gaining

needed information and has ability to integrate varied and conflicting information.
4.03 RESOURCE BLENDING - Skill in integrating group and individual competencies,

motivation, experience, tasks and responsibility to provide individual and team effective-

4.04 ORGANIZATIONAL BLENDING -Understands total organizational system, structure,
and dynamics and effectively blends his/her work unit and its output into total.

4.05 SENSE OF TIMING - Skill in integrating a variety of information, issues, and opinions to
sense potential for problems and may take preventative action before problem becomes
acute.

4.06 PROBLEM PERCEPTION - Skill in integmting a variety of information, issues, and
opinions to sense potential for problems and may take preventative action before problem
becomes acute.

4.07 PROBLEM SOLVING - Ability to solve problems by focusing in on specific issues and
information and also by finding relationships between remote but related events and data.

4.08 LATERAL COMMUbflCATION- Abilityto effectively communicate across the organiza-
tion and beyond to achieve cooperation, coordination, collaboration, negotiation, and
problem solving.

60



4.09 VERTICAL COMMUNICATION -Ability to communicate plans, accomplishments, re-
quirements, and recommendations, both up and down the organization.

4.10 MANAGING CREATIVITY-Understanding specific needs of creative people. Setting the
proper climate for creativity to emerge. Arousing the creative urge in others and fostering
uulovauon.

4.11 ~RENEURSHIP - Ability to create alternatives, perceive/accept and exploit new
ideas, redirect resources, establish new directions, seek extraordinary results.

4.12 RISK TAKING - Skill in defining parameters of acceptable risk taking, encouraging and
supporting risk laking in others, and practicing individual risk taking. May involve
operating in an environment of uncertainty and ambiguity.

4.13 MANAGING CHANGE - Ability to assess current state, determine desirable future state,
articulate the desired, overcome resistance, shape the political system to support the change,
and provide management of the transition from the current to the desired state.

4.14 POLICY FORMULATION/IMPLEMENTATION-Ability to know, interpret, implement,
establish or
modifycompany policies.

4.15 ENVIRONMENTAL SCANNING -Ability to analyze current and potential change in
specific segments in order to better understand the change and its implications for strategic
decision making.

61