I Can't Get No Satisfaction: Necessity Entrepreneurship and Procedural Utility
30 Pages Posted: 14 Sep 2008 Last revised: 26 Sep 2008
Date Written: August 20, 2008
We study a unique sample of 1,547 nascent entrepreneurs in Germany and analyze which factors are associated with their start-up satisfaction. Our results identify a group of nascent entrepreneurs that 'cannot get satisfaction' with their start-up because they did not choose to become entrepreneurs out of free will, but out of long-term unemployment or a lack of better employment alternatives. Overall, financial success is the most important determinant of start-up satisfaction. Yet, achievement of independence and creativity is also highly important, a finding that emphasizes the economic relevance of procedural utility and non-financial incentives.
Keywords: entrepreneurship, satisfaction, procedural utility, unemployment, necessity entrepreneurship
JEL Classification: M13, O32, M
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