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http://ssrn.com/abstract=1240822
 
 

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I Can't Get No Satisfaction: Necessity Entrepreneurship and Procedural Utility


Jorn H. Block


University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Philipp Koellinger


Erasmus School of Economics; Erasmus Research Institute of Management (ERIM); University of Amsterdam - University of Amsterdam Business School

August 20, 2008

Kyklos, Vol. 62, No. 2, pp. 191-209, April 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.

Number of Pages in PDF File: 26

Keywords: Entrepreneurship, Satisfaction, Procedural Utility, Unemployment, Necessity Entrepreneurship

JEL Classification: J24, J17, L26

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Date posted: August 21, 2008 ; Last revised: September 6, 2010

Suggested Citation

Block, Jorn H. and Koellinger, Philipp, I Can't Get No Satisfaction: Necessity Entrepreneurship and Procedural Utility (August 20, 2008). Kyklos, Vol. 62, No. 2, pp. 191-209, April 2009. Available at SSRN: http://ssrn.com/abstract=1240822

Contact Information

Jorn Hendrich Block (Contact Author)
University of Trier - Faculty of Management ( email )
D-54296
Germany
Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )
Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands
Philipp Koellinger
Erasmus School of Economics ( email )
Netherlands
Erasmus Research Institute of Management (ERIM) ( email )
P.O. Box 1738
3000 DR Rotterdam
Netherlands
University of Amsterdam - University of Amsterdam Business School ( email )
Roetersstraat 18
Amsterdam, 1018WB
Netherlands
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