Unpacking the Complexities of Financial Well-being Among Entrepreneurs and Employees: It’s More Than the Money!

This study investigates how employment type (entrepreneurship vs paid employment) and individual characteristics (demographics and career motivations) jointly influence financial well-being (FWB) in Trinidad and Tobago. It moves beyond traditional income-based indicators, adopting a subjective, contextualised approach to assess FWB for individuals in the abovementioned setting. A survey was administered to a sample comprising full-time entrepreneurs, full-time paid employees and hybrid entrepreneurs ( n = 364). Full-time entrepreneurs reported significantly higher levels of FWB than paid employees. However, hybrid entrepreneurs—who simultaneously engaged in entrepreneurship and paid employment—did not report significantly higher FWB than wage earners. This suggests that the intensity of entrepreneurial engagement plays a crucial role in shaping an individual’s FWB. Employment type interacted with other demographic variables to shape FWB, reiterating the complexity and multidimensionality of FWB. Intrinsic motivations for choosing one’s career path (passion and self-efficacy) were stronger determinants of FWB than extrinsic factors (financial motivations). The study introduces nuanced perspectives on subjective well-being theory and the theory of planned behaviour, which, to date, remain underexplored in mainstream entrepreneurship and FWB literature. Additionally, its findings underscore the importance of critically assessing individual motivations prior to entrepreneurial entry, thus offering valuable practical implications for aspiring entrepreneurs and policymakers.