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Explaining entrepreneurial performance of solo self-employed from a motivational perspective

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  • André van Stel
  • Werner Liebregts
  • Nardo de Vries

Abstract

This paper investigates whether start-up motivation (opportunity versus necessity) influences entrepreneurial performance of an important subset of entrepreneurs, viz. the solo self-employed. We also explore to what extent human capital measures mediate this relation. We use a unique individual-level panel data set of solo self-employed in the Netherlands for three consecutive years (2009-2011) and construct three separate measures to identify necessitydriven solo self-employment. Our main finding confirms that necessity-driven solo self-employed perform worse than opportunity-driven solo self-employed. Furthermore, start-up motivation seems to have an isolated effect on entrepreneurial performance, considering that we also find that formal education and practical learning hardly mediate the relation. Our results imply that it is important to distinguish between different motivations within the population of solo self-employed in order to understand their entrepreneurial performance.

Suggested Citation

  • André van Stel & Werner Liebregts & Nardo de Vries, 2013. "Explaining entrepreneurial performance of solo self-employed from a motivational perspective," Scales Research Reports H201308, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h201308
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    Cited by:

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    2. André Stel & Jorge Barrientos-Marín & Leonel Caçador-Rodrigues & Ana Millán & José María Millán, 2023. "Measuring performance differentials across entrepreneurship types," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 981-1016, September.
    3. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    4. Orrensalo, Thao & Nikou, Shahrokh, 2021. "Digital Source Adoption and Information-Seeking Behaviours of Entrepreneurs: A Systematic Literature Review," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238044, International Telecommunications Society (ITS).
    5. Jolanda Hessels & Peter van der Zwan, 2013. "Start-up motivation and (in)voluntary exit," Scales Research Reports H201309, EIM Business and Policy Research.
    6. Raquel Carrasco & Virginia Hernanz, 2022. "Dependent self-employment across Europe: involuntariness, country’s wealth and labour market institutions," Applied Economics, Taylor & Francis Journals, vol. 54(14), pages 1568-1583, March.
    7. Marco Caliendo & Alexander S. Kritikos & Claudia Stier, 2023. "The influence of start-up motivation on entrepreneurial performance," Small Business Economics, Springer, vol. 61(3), pages 869-889, October.
    8. André Stel & Ana Millán & José María Millán & Concepción Román, 2018. "The relationship between start-up motive and earnings over the course of the entrepreneur’s business tenure," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 101-123, January.
    9. Joern H. Block & Christian Fisch & Mirko Hirschmann, 2022. "The determinants of bootstrap financing in crises: evidence from entrepreneurial ventures in the COVID-19 pandemic," Small Business Economics, Springer, vol. 58(2), pages 867-885, February.
    10. Jolanda Hessels & Brigitte Hoogendoorn & Peter van der Zwan & Nardo de Vries, 2013. "Global Entrepreneurship Monitor The Netherlands 2012," Scales Research Reports H201314, EIM Business and Policy Research.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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