The Impact of a Necessity-Based Start-Up on Subsequent Entrepreneurial Satisfaction
International Entrepreneurship and Management Journal, 6(3), 285-300 (2010)
Posted: 31 May 2013
Date Written: 2010
Necessity entrepreneurship has been much debated in research and policy. This paper examines the impact of necessity as a start-up motive on subsequent entrepreneurial satisfaction. Empirically, the paper is based on a sample of 777 recently established Finnish micro enterprises. The results show that necessity entrepreneurs are somewhat more likely to want to switch back to paid employment later in their entrepreneurial careers. However, if the individual earns a satisfactory livelihood through self-employment, the negative effect of a necessity-based start-up on subsequent entrepreneurial satisfaction diminishes. Training in business skills that helps necessity entrepreneurs to run an economically viable business might thus increase their satisfaction with being self-employed.
Keywords: necessity, entrepreneurship, satisfaction, income, work traits, self-employment, Finland
Suggested Citation: Suggested Citation