I Can't Get No Satisfaction: Necessity Entrepreneurship and Procedural Utility

Block, Jorn H.; Koellinger, Philipp

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I Can't Get No Satisfaction: Necessity Entrepreneurship and Procedural Utility

ERIM Report Series Reference No. ERS-2008-051-ORG

30 Pages Posted: 14 Sep 2008 Last revised: 26 Sep 2008

See all articles by Jorn H. Block

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Philipp Koellinger

Vrije Universiteit Amsterdam

There are 2 versions of this paper

Date Written: August 20, 2008

Abstract

We study a unique sample of 1,547 nascent entrepreneurs in Germany and analyze which factors are associated with their start-up satisfaction. Our results identify a group of nascent entrepreneurs that 'cannot get satisfaction' with their start-up because they did not choose to become entrepreneurs out of free will, but out of long-term unemployment or a lack of better employment alternatives. Overall, financial success is the most important determinant of start-up satisfaction. Yet, achievement of independence and creativity is also highly important, a finding that emphasizes the economic relevance of procedural utility and non-financial incentives.

Keywords: entrepreneurship, satisfaction, procedural utility, unemployment, necessity entrepreneurship

JEL Classification: M13, O32, M

Suggested Citation: Suggested Citation

Block, Jorn Hendrich and Koellinger, Philipp, I Can't Get No Satisfaction: Necessity Entrepreneurship and Procedural Utility (August 20, 2008). ERIM Report Series Reference No. ERS-2008-051-ORG, Available at SSRN: https://ssrn.com/abstract=1267544