Feeling successful as an entrepreneur: a job demands — resources approach

This cross-sectional study among 277 Dutch entrepreneurs investigates how entrepreneurs’ job demands relate to their work-related strain and work engagement, as well as their feelings of subjective success. As such it contributes to the literature firstly by focusing on psychological rather than business outcomes of entrepreneurship, and secondly by contextualizing demands and resources for entrepreneurs, e.g. capturing the general but also the specific factors that are demands and resources in entrepreneurial work. Results of the study show that work-related strain is related to both less personal and less financial subjective business success. Work engagement is related to higher personal, but not financial subjective business success. As predicted by the JD-R Model, both high job demands and low job resources predicted work-related strain. In contrast to findings of other studies, high job demands are not related to low work engagement, only having low job resources did. The practical implication of these findings is that entrepreneurs can achieve an important competitive advantage over other entrepreneurs if they can learn to deal effectively with job demands and work-related strain. The challenge for policy makers is to get more information about how to assist business owners in eliminating and preventing work-related strain in order to achieve higher subjective financial and personal success.     

Entrepreneurs’ achieved success: developing a multi-faceted measure

Firm performance is typically measured via objective financial indicators. However, researchers increasingly acknowledge that entrepreneurs do not measure their success solely in financial terms but that a range of often subjective indicators matter to them. This article contributes to the debate on entrepreneurial performance by studying how entrepreneurs assess their achieved success. ‘Entrepreneurs’ achieved success’ was conceptualized as a multi-faceted construct that includes entrepreneurs’ self-reported achievement of firm performance, workplace relationships, personal fulfilment, community impact, and personal financial rewards. It was measured via the Subjective Entrepreneurial Success–Achievement Scale (SES-AS). Over the course of three studies (N?=?390) the factorial structure of ‘entrepreneurs’ achieved success’ was established and largely replicated in two cultures. Based on a nomological network, we documented relationships among ‘entrepreneurs’ achieved success’, quasi-objective indicators of firm performance, and entrepreneurs’ financial satisfaction, creativity, and health. Based on our research, we propose a new conceptual framework to study performance in the context of entrepreneurship. This framework acknowledges both the success criteria that entrepreneurs wish to achieve and those that they actually achieve, and extends our understanding of firm performance.

     

Small Business Owners' Success Criteria,a Values Approach to Personal Differences

This study of 150 Dutch small business owners, identified through business/network directories, investigated relationships between owners' understanding of success and their personal values. Business owners ranked 10 success criteria. Personal satisfaction, profitability, and satisfied stakeholders ranked highest. Multidimensional scaling techniques revealed two dimensions underlying the rank order of success criteria: person‐oriented (personal satisfaction versus business growth) and business‐oriented (profitability versus contributing back to society). Furthermore, business growth, profitability, and innovativeness were guided by self‐enhancing value orientations (power and achievement). Softer success criteria, such as having satisfied stakeholders and a good work–life balance, were guided by self‐transcendent value orientations (benevolence and universalism).