Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86847
Authors: 
Block, Joern
Koellinger, Philipp
Year of Publication: 
2008
Series/Report no.: 
Tinbergen Institute Discussion Paper 08-078/3
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.
Subjects: 
Entrepreneurship
Satisfaction
Procedural Utility
Unemployment
Necessity Entrepreneurship
JEL: 
J24
J17
L26
Document Type: 
Working Paper

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