IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v119y2020icp58-66.html

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296320304367
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2020.06.060?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Richard Breen & Kristian Bernt Karlson & Anders Holm, 2013. "Total, Direct, and Indirect Effects in Logit and Probit Models," Sociological Methods & Research, , vol. 42(2), pages 164-191, May.
    2. Fayolle, Alain & Liñán, Francisco, 2014. "The future of research on entrepreneurial intentions," Journal of Business Research, Elsevier, vol. 67(5), pages 663-666.
    3. Ulrich Kohler, 2011. "Comparing coefficients between nested nonlinear probability models," German Stata Users' Group Meetings 2011 08, Stata Users Group.
    4. Alex Coad & Kristian Nielsen & Bram Timmermans, 2017. "My first employee: an empirical investigation," Small Business Economics, Springer, vol. 48(1), pages 25-45, January.
    5. Sam Youl Lee & Richard Florida & Zoltan J. Acs, 2008. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 13, pages 171-182, Edward Elgar Publishing.
    6. C. Praag & Peter Versloot, 2007. "What is the value of entrepreneurship? A review of recent research," Small Business Economics, Springer, vol. 29(4), pages 351-382, December.
    7. Frédéric Delmar & Johan Wiklund & Per Davidsson, 2006. "Entrepreneurship and the Growth of Firms," Post-Print hal-01892801, HAL.
    8. Frédéric Delmar & Johan Wiklund & Per Davidsson, 2006. "Entrepreneurship and the Growth of Firms," Post-Print hal-01892798, HAL.
    9. Unger, Jens M. & Rauch, Andreas & Frese, Michael & Rosenbusch, Nina, 2011. "Human capital and entrepreneurial success: A meta-analytical review," Journal of Business Venturing, Elsevier, vol. 26(3), pages 341-358, May.
    10. Alina Sorgner & Michael Fritsch & Alexander Kritikos, 2017. "Do entrepreneurs really earn less?," Small Business Economics, Springer, vol. 49(2), pages 251-272, August.
    11. Schneck, Stefan, 2014. "Why the self-employed are happier: Evidence from 25 European countries," Journal of Business Research, Elsevier, vol. 67(6), pages 1043-1048.
    12. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    13. Galindo, Miguel-Ángel & Méndez, María Teresa, 2014. "Entrepreneurship, economic growth, and innovation: Are feedback effects at work?," Journal of Business Research, Elsevier, vol. 67(5), pages 825-829.
    14. Per Davidsson & Frédéric Delmar & Johan Wiklund, 2006. "Entrepreneurship and the Growth of Firms," Books, Edward Elgar Publishing, number 3971, March.
    15. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5, September.
    16. Burke, Andrew & Millán, José María & Román, Concepción & van Stel, André, 2018. "Exploring the impact of different types of prior entrepreneurial experience on employer firm performance," Journal of Business Research, Elsevier, vol. 90(C), pages 107-122.
    17. repec:hal:journl:hal-02298077 is not listed on IDEAS
    18. Francisco Linan & Alain Fayolle, 2015. "A systematic literature review on entrepreneurial intentions : citation, thematic analyses, and research agenda," Post-Print hal-02313298, HAL.
    19. Evan J. Douglas & Dean A. Shepherd, 2002. "Self-Employment as a Career Choice: Attitudes, Entrepreneurial Intentions, and Utility Maximization," Entrepreneurship Theory and Practice, , vol. 26(3), pages 81-90, April.
    20. Li, Hua & Li, Fuli & Chen, Tingting, 2018. "A motivational–cognitive model of creativity and the role of autonomy," Journal of Business Research, Elsevier, vol. 92(C), pages 179-188.
    21. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
    22. Ari Hyytinen & Olli‐Pekka Ruuskanen, 2007. "Time Use of the Self‐Employed," Kyklos, Wiley Blackwell, vol. 60(1), pages 105-122, February.
    23. Thomas Lange, 2012. "Job satisfaction and self-employment: autonomy or personality?," Small Business Economics, Springer, vol. 38(2), pages 165-177, February.
    24. Tae Jun Bae & Shanshan Qian & Chao Miao & James O. Fiet, 2014. "The Relationship between Entrepreneurship Education and Entrepreneurial Intentions: A Meta–Analytic Review," Entrepreneurship Theory and Practice, , vol. 38(2), pages 217-254, March.
    25. Matthias Benz & Bruno S. Frey, 2008. "Being Independent is a Great Thing: Subjective Evaluations of Self‐Employment and Hierarchy," Economica, London School of Economics and Political Science, vol. 75(298), pages 362-383, May.
    26. André Stel & Peter van der Zwan, 2020. "Analyzing the changing education distributions of solo self-employed workers and employer entrepreneurs in Europe," Small Business Economics, Springer, vol. 55(2), pages 429-445, August.
    27. Belso-Martinez, Jose A. & Molina-Morales, F. Xavier & Mas-Verdu, Francisco, 2013. "Combining effects of internal resources, entrepreneur characteristics and KIS on new firms," Journal of Business Research, Elsevier, vol. 66(10), pages 2079-2089.
    28. Ricarda B. Bouncken & Andreas J. Reuschl, 2018. "Coworking-spaces: how a phenomenon of the sharing economy builds a novel trend for the workplace and for entrepreneurship," Review of Managerial Science, Springer, vol. 12(1), pages 317-334, January.
    29. Bouncken, Ricarda & Ratzmann, Martin & Barwinski, Roman & Kraus, Sascha, 2020. "Coworking spaces: Empowerment for entrepreneurship and innovation in the digital and sharing economy," Journal of Business Research, Elsevier, vol. 114(C), pages 102-110.
    30. Ulrich Kohler & Kristian Bernt Karlson & Anders Holm, 2011. "Comparing coefficients of nested nonlinear probability models," Stata Journal, StataCorp LLC, vol. 11(3), pages 420-438, September.
    31. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pau Sendra-Pons & Sara Belarbi-Muñoz & Dolores Garzón & Alicia Mas-Tur, 2022. "Cross-country differences in drivers of female necessity entrepreneurship," Service Business, Springer;Pan-Pacific Business Association, vol. 16(4), pages 971-989, December.
    2. Jerzy Cieślik & Ondřej Dvouletý & André Stel, 2025. "Expansion and job creation strategies in different solo self-employment segments," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-27, December.
    3. Erika Branca & Marika Intenza & Federica Doni, 2025. "Startup entrepreneurs’ personality traits and resilience: unveiling the interplay of prior experience," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-28, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schneck, Stefan, 2024. "Being the boss at work and at home: Self-employment and conflicts between partners," Working Papers 03/24, Institut für Mittelstandsforschung (IfM) Bonn.
    2. Koch, Michael & Park, Sarah & Zahra, Shaker A., 2021. "Career patterns in self-employment and career success," Journal of Business Venturing, Elsevier, vol. 36(1).
    3. Evan J. Douglas & Vidhula Venugopal, 2025. "The complex causality of gender and entrepreneurship: to grow or not to grow?," Small Business Economics, Springer, vol. 65(2), pages 1209-1240, August.
    4. Binder, Martin & Blankenberg, Ann-Kathrin, 2021. "Self-employment and Subjective Well-Being," GLO Discussion Paper Series 744, Global Labor Organization (GLO).
    5. João J. M. Ferreira & Cristina I. Fernandes & Mário L. Raposo & Roy Thurik & João R. Faria, 2016. "Entrepreneur location decisions across industries," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 985-1006, December.
    6. Martin Binder, 2017. "Entrepreneurial Success and Subjective Well-Being: Worries about the Business Explain One's Well-Being Loss from Self-Employment," SOEPpapers on Multidisciplinary Panel Data Research 947, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Kun Fu & Anne-Sophie Larsson & Karl Wennberg, 2018. "Habitual entrepreneurs in the making: how labour market rigidity and employment affects entrepreneurial re-entry," Small Business Economics, Springer, vol. 51(2), pages 465-482, August.
    8. Pakura, Stefanie, 2015. "Unternehmerische Motivation und Wiedergründungsbereitschaft: Eine empirische Untersuchung deutscher Unternehmensneugründungen in der Frühentwicklungsphase," Lüneburger Beiträge zur Gründungsforschung 10, Leuphana University of Lüneburg, Department of Entrepreneurship & Start-up Management.
    9. Jolanda Hessels & José María Millán & Concepción Román, 2015. "The Importance of Being in Control of Business: Work Satisfaction of Employers, Own-account Workers and Employees," Tinbergen Institute Discussion Papers 15-047/VII, Tinbergen Institute.
    10. Peter van der Zwan & Jolanda Hessels & Cornelius A. Rietveld, 2015. "The Pleasures and Pains of Self-Employment: A Panel Data Analysis of Satisfaction with Life, Work, and Leisure," Tinbergen Institute Discussion Papers 15-099/VII, Tinbergen Institute.
    11. Paul A. Coomes & Jose Fernandez & Stephan F. Gohmann, 2013. "The Rate of Proprietorship Among Metropolitan Areas: The Impact of the Local Economic Environment and Capital Resources," Entrepreneurship Theory and Practice, , vol. 37(4), pages 745-770, July.
    12. Jenny Berrill & Martha O’Hagan-Luff & André Stel, 2020. "The moderating role of education in the relationship between FDI and entrepreneurial activity," Small Business Economics, Springer, vol. 54(4), pages 1041-1059, April.
    13. André Stel & Peter van der Zwan, 2020. "Analyzing the changing education distributions of solo self-employed workers and employer entrepreneurs in Europe," Small Business Economics, Springer, vol. 55(2), pages 429-445, August.
    14. Stephen Dobson & Pete McLuskie, 0. "Performative entrepreneurship: identity, behaviour and place in adventure sports Enterprise," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-17.
    15. Christian Bjørnskov & Nicolai J Foss, 2020. "Well-being and entrepreneurship: Using establishment size to identify treatment effects and transmission mechanisms," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-22, January.
    16. Raquel Justo & Emilio Congregado & Concepción Román, 2021. "Becoming self-employed from inactivity: an in-depth analysis of satisfaction," Small Business Economics, Springer, vol. 56(1), pages 145-187, January.
    17. Boris Urban & Zethu Dlamini, 2020. "Intersections between policy and institutions: a focus on enterprise growth in Swaziland," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(3), pages 253-275, April.
    18. Fritsch, Michael & Sorgner, Alina & Wyrwich, Michael, 2019. "Self-employment and well-being across institutional contexts," Journal of Business Venturing, Elsevier, vol. 34(6).
    19. Aliaa El Shoubaki & Issam Laguir & Matthijs den Besten, 2020. "Human capital and SME growth: the mediating role of reasons to start a business," Small Business Economics, Springer, vol. 54(4), pages 1107-1121, April.
    20. Mirjam van Praag & Arjen van Witteloostuijn & Justin van der Sluis, 2009. "Returns for Entrepreneurs versus Employees: The Effect of Education and Personal Control on the Relative Performance of Entrepreneurs vis-a-vis Wage Employees," Tinbergen Institute Discussion Papers 09-111/3, Tinbergen Institute.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:119:y:2020:i:c:p:58-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.