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Well-Being, Personal Success and Business Performance Among Entrepreneurs: A Two-Wave Study

Author

Listed:
  • Josette Dijkhuizen

    (Tilburg University
    Maastricht School of Management)

  • Marjan Gorgievski

    (Erasmus University)

  • Marc Veldhoven

    (Tilburg University)

  • René Schalk

    (Tilburg University)

Abstract

This two-wave longitudinal study among 121 entrepreneurs in The Netherlands investigated bi-directional relationships between entrepreneurs’ well-being and performance. Results of Smart PLS analyses showed positive well-being at Time 1 (work engagement; life satisfaction; and job satisfaction) predicted subjective entrepreneurial success 2 years later, both as indicated by entrepreneurs’ reports of achieved financial success (including personal income security and wealth, business turn-over, sales and profit growth), as well as perceptions of achieved personal success (personal fulfilment, community impact and employee relations). No relations were found with objective indicators of business performance (profit; turnover; and number of employees) over time. The expected recursive relationship between performance and well-being was only found in the short term; a better objective financial situation immediately preceding the second measurement moment, predicted better well-being at T2. These results are both in line with a well-being–performance (gain) cycle, and the happiness set-point thesis that predicts resilience in the face of events. This paper contributes to the literature by emphasizing the importance of entrepreneurs’ well-being as a key factor in long-term subjective financial and personal entrepreneurial success. The practical implication is that entrepreneurs should maintain and improve their own well-being to achieve positive long term business outcomes.

Suggested Citation

  • Josette Dijkhuizen & Marjan Gorgievski & Marc Veldhoven & René Schalk, 2018. "Well-Being, Personal Success and Business Performance Among Entrepreneurs: A Two-Wave Study," Journal of Happiness Studies, Springer, vol. 19(8), pages 2187-2204, December.
    • Handle: RePEc:spr:jhappi:v:19:y:2018:i:8:d:10.1007_s10902-017-9914-6
    DOI: 10.1007/s10902-017-9914-6
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    3. Binder, Martin & Blankenberg, Ann-Kathrin, 2021. "Self-employment and subjective well-being," University of Göttingen Working Papers in Economics 411, University of Goettingen, Department of Economics.
    4. Norizzati Bahsri & Zaleha Yazid & Zafir Mohamed Makhbul & Nor Asiah Omar, 2023. "Systematic Literature Review on the Factors Affecting the Well-Being of Entrepreneurs in Malaysian SMEs," SAGE Open, , vol. 13(2), pages 21582440231, June.
    5. Yuji Honjo & Kenta Ikeuchi & Hiroki Nakamura, 2022. "The Mediating Effect of Financial Motives in the Association between Entrepreneurial Experience and Subjective Well-Being: Evidence from Japan," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 1043-1067, April.
    6. José M. Peiró & David Montesa & Aida Soriano & Malgorzata W. Kozusznik & Esther Villajos & Jorge Magdaleno & Nia Plamenova Djourova & Yarid Ayala, 2021. "Revisiting the Happy-Productive Worker Thesis from a Eudaimonic Perspective: A Systematic Review," Sustainability, MDPI, vol. 13(6), pages 1-27, March.
    7. Pathak, Saurav & Muralidharan, Etayankara, 2021. "Consequences of cross-cultural differences in perceived well-being for entrepreneurship," Journal of Business Research, Elsevier, vol. 122(C), pages 582-596.
    8. Lindblom, Arto & Lindblom, Taru & Wechtler, Heidi, 2020. "Dispositional optimism, entrepreneurial success and exit intentions: The mediating effects of life satisfaction," Journal of Business Research, Elsevier, vol. 120(C), pages 230-240.
    9. van Hugten, Joeri & el Hejazi, Zainab-Noor & Brassey, Jacqueline & Vanderstraeten, Johanna & Cannaerts, Nele & Loots, Ellen & Coreynen, Wim & van Witteloostuijn, Arjen, 2021. "What Makes Entrepreneurs Happy? Psychological Flexibility and Entrepreneurs' Satisfaction," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    10. Marshall, David R. & Meek, William R. & Swab, R. Gabrielle & Markin, Erik, 2020. "Access to resources and entrepreneurial well-being: A self-efficacy approach," Journal of Business Research, Elsevier, vol. 120(C), pages 203-212.

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