TUM – A study of more than 2,500 companies shows that certain owner competencies promote growth – a new tool enables personalized assessment.
Am I a natural-born entrepreneur? With just 23 questions, the new Ownership Competence Tool provides a scientifically sound assessment. It was developed by Prof. Dr. Miriam Bird, Professor of Entrepreneurship and Family Enterprise at the Technical University of Munich (TUM), Heilbronn Campus.
This free online tool measures two key competencies that are crucial for business owners: “matching competence” and “governance competence.” Matching competence describes the ability to identify business opportunities and effectively combine resources—for example, when launching new products or services or developing innovative business models. Governance competence, on the other hand, refers to the ability to create sustainable structures, balance the interests of various stakeholders, and ensure sustainable value creation.
“Many people bear entrepreneurial responsibility without knowing exactly where their strengths lie. With our tool, we’re making these competencies systematically measurable for the first time,” says Professor Bird.
Four role profiles with specific development recommendations
It takes about ten minutes to complete the online questionnaire. Based on individual responses, the tool assigns participants to one of four roles: Wanderer, Guardian, Pioneer, or Architect. In addition to a brief description of each profile, users receive specific guidance for their continued development as business owners.
Scientific basis: Data from more than 2,500 companies
The tool is based on the findings of a comprehensive scientific study. Bird and her team analyzed a dataset containing information on the finances, ownership structures, and top management of more than 2,500 German owner-managed companies.
Together with Prof. Ed Saiedi of BI Norwegian Business School, researchers Dr. Jannis von Nitzsch and Prof. Miriam Bird also examined the LinkedIn profiles of the largest shareholders in each company. Using a “bag-of-words” approach, they identified characteristic terms that suggest specific competencies. Among other things, the analysis examined education, professional experience, and terms that indicate strong matching or governance competencies—such as “experimenting,” “creative,” “startup,” or “entrepreneur” for matching competency. To test the validity of this method, selected terms were translated into specific questions and used in a survey of business owners. These developed questions are now being made available to companies.
Key Findings of the Study
The study shows:
- Companies are more likely to grow if their owners have strong matching and governance skills.
- This positive correlation is particularly strong among young companies with structures that are not yet well established.
- In family-owned businesses, the impact of governance competence on growth is often less pronounced than in other companies. One possible reason: leadership and key positions are sometimes filled from within the family, regardless of competence profiles.
The Ownership Competence Tool is available online free of charge at: https://www.ownership-competence.de/de/take-questionnaire.
Caption/Photo credit: Prof. Dr. Miriam Bird, Professor of Entrepreneurship and Family Enterprise at the Technical University of Munich (TUM), Heilbronn Campus. © TUM Heilbronn