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I Can't Get No Satisfaction—Necessity Entrepreneurship and Procedural Utility.
- Source :
- Kyklos; Apr2009, Vol. 62 Issue 2, p191-209, 19p, 4 Charts
- Publication Year :
- 2009
-
Abstract
- We study a unique sample of 1,547 nascent entrepreneurs in Germany and analyze which factors are associated with their self-reported satisfaction regarding their start-up. Our study identifies a new facet of procedural utility and offers new insights about the motivations and goals of nascent entrepreneurs. Most importantly, we identify a group of nascent entrepreneurs that ‘cannot get satisfaction’ with their start-up—not because their start-up fails to deliver financial returns, but because they did not choose to become entrepreneurs in the first place. This group of unsatisfied entrepreneurs includes individuals starting a business after a period of long-term unemployment and those individuals with a lack of better employment alternatives (necessity entrepreneurs). In addition, we provide additional evidence for the importance of both financial and non-financial incentives of entrepreneurs. While financial success is the most important determinant of start-up satisfaction, achievement of independence and creativity is also highly important. Our results emphasize the relevance of procedural utility for understanding economic behavior. We show that the process leading to a decision has an impact on the later satisfaction with the outcome of that decision. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00235962
- Volume :
- 62
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Kyklos
- Publication Type :
- Academic Journal
- Accession number :
- 37589968
- Full Text :
- https://doi.org/10.1111/j.1467-6435.2009.00431.x