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Hiring plans by solo entrepreneurs at the time of start-up: The role of education and the desire for self-expression

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  • van Stel, André
  • Kaciak, Eugene
  • Cieślik, Jerzy

Abstract

We investigate hiring plans by solo self-employed workers at the time of business start-up using a survey of solo start-up entrepreneurs. We find a negative relationship between the tertiary education of the entrepreneurs and their future plans to hire employees, reflecting that motives other than income may be relevant for highly-educated solo self-employed to start a business. We suggest that a specific form of autonomy may play a mediating role in this relationship: pursuing self-expression in work, which is best realized by operating in a solo capacity in Knowledge-Intensive Services (KIS) sectors. We thus argue that the choice to operate in these sectors can be seen as an indicator of pursuing self-expression in work. Our empirical analysis shows that the negative relationship between tertiary education and hiring plans is indeed mediated by the choice of KIS sectors. Our interpretation of this result is that pursuit of self-expression in work is the main reason for highly-educated solo entrepreneurs to refrain from hiring employees.

Suggested Citation

  • van Stel, André & Kaciak, Eugene & Cieślik, Jerzy, 2020. "Hiring plans by solo entrepreneurs at the time of start-up: The role of education and the desire for self-expression," Journal of Business Research, Elsevier, vol. 119(C), pages 58-66.
    • Handle: RePEc:eee:jbrese:v:119:y:2020:i:c:p:58-66
    DOI: 10.1016/j.jbusres.2020.06.060
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