In small businesses with no employees, learning environments have a low learning readiness. Consequently, learners need to rely on their own agency to shape their learning experiences. Results from a study of agricultural entrepreneurs indicated that the components of motivation and self-regulated learning strategies shape learner's agency and explain learning environment configuration in small businesses with no employees. Configuration of the learning environment was found to be a weak determinant of the learning performance of these learners. However, results showed that prior performance of learners in small businesses with no employees dictates how their agency operates and what learning effect is achieved; higher prior performance results in higher learning effects. We conclude that mechanisms that underlie learning in traditional learning environments work similarly in learning environments in small businesses with no employees. (Contains 9 tables and 1 figure.)