Start-Ups

Explaining Entrepreneurial Performance of Solo Self-Employed From a Motivational Perspective

Date Added: May 2013
Format: PDF

This paper investigates whether start-up motivation (opportunity versus necessity) influences entrepreneurial performance of an important subset of entrepreneurs, viz. the solo self-employed. The authors also explore to what extent human capital measures mediate this relation. They 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 necessity driven solo self-employment. Their main finding confirms that necessity-driven solo self-employed perform worse than opportunity-driven solo self-employed.