I can't get no Satisfaction - Necessity Entrepreneurship and Procedural Utility

Joern Block and Philipp Koellinger

No 08-078/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

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.

Keywords: Entrepreneurship; Satisfaction; Procedural Utility; Unemployment; Necessity Entrepreneurship (search for similar items in EconPapers)
JEL-codes: J17 J24 L26 (search for similar items in EconPapers)
Date: 2008-09-02
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: I Can't Get No Satisfaction—Necessity Entrepreneurship and Procedural Utility (2009)
Working Paper: I Can’t Get No Satisfaction - Necessity Entrepreneurship and Procedural Utility (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20080078

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