Different thinking or similar models: do entrepreneurs and franchisees apply the same decision-making models prior to establishing a company?

This study examines the (dis)similarities between franchisees’ and
entrepreneurs’ decision-making models, and how satisfied they are with their
decisions. Based on decision-making theories, the study examines whether
entrepreneurs and franchisees use the same decision-making model, rational or
intuition, in the first stages of establishing a firm. One hundred and forty-one
subjects responded to a questionnaire, of whom 70 owned a business (i.e., were
independent entrepreneurs), and 71 were franchisees. The results of the study
indicate that the two groups used different models during the pre-establishment
stage. Entrepreneurs tended to behave more intuitively, deciding to become
self-employed based on their hunches. Nevertheless, after deciding on the form
of business, both groups engaged in rational decision-making throughout the
stages of establishing their business. Differences were also found in the
preparations made by the two groups, indicating that entrepreneurs felt less
secure in their choice compared with franchisees. The franchisees were also
more satisfied with the decision to become self-employed. The results thus
suggest that entrepreneurs and franchisees are not just diversified in their form
of organisation; they also employ different types of cognitive decision-making
during the first stage of becoming independent.