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The impact of a necessity-based start-up on subsequent entrepreneurial satisfaction

  • Teemu KautonenEmail author
  • Jenni Palmroos
Article

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 

Notes

Acknowledgement

This paper is based on research commissioned and funded by the Finnish Ministry of Labour 2006–2007. The authors would like to thank the Ministry and the members of the steering board of the project for their support and insightful comments.

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Copyright information

© Springer Science + Business Media, LLC 2008

Authors and Affiliations

  1. 1.Department of ManagementUniversity of VaasaVaasaFinland

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