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

See all articles by Teemu Kautonen

Teemu Kautonen

Aalto University School of Business; Anglia Ruskin University

Jenni Palmroos

University of Vaasa

Date Written: 2010

Abstract

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

Kautonen, Teemu and Palmroos, Jenni, The Impact of a Necessity-Based Start-Up on Subsequent Entrepreneurial Satisfaction (2010). International Entrepreneurship and Management Journal, 6(3), 285-300 (2010). Available at SSRN: https://ssrn.com/abstract=2271618

Teemu Kautonen (Contact Author)

Aalto University School of Business ( email )

P.O. Box 21210
AALTO, FI-00076
Finland

Anglia Ruskin University ( email )

East Road
Cambridge CB1 1PT
United Kingdom

Jenni Palmroos

University of Vaasa ( email )

P.O. Box 700
Wolffintie 34
FIN-65101 Vaasa, FI-65101
Finland

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