Greater fit and a greater gap: How environmental support for entrepreneurship increases the life satisfaction gap between entrepreneurs and employees

Steven A. Brieger*, Dirk De Clercq, Jolanda Hessels, Christian Pfeifer

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

8 Citations (Scopus)

Abstract

Purpose: The purpose of this paper is to understand how national institutional environments contribute to differences in life satisfaction between entrepreneurs and employees. Design/methodology/approach: Leveraging person–environment fit and institutional theories and using a sample of more than 70,000 entrepreneurs and employees from 43 countries, the study investigates how the impact of entrepreneurial activity on life satisfaction differs in various environmental contexts. An entrepreneur’s life satisfaction arguably should increase when a high degree of compatibility or fit exists between his or her choice to be an entrepreneur and the informal and formal institutional environment. Findings: The study finds that differences in life satisfaction between entrepreneurs and employees are larger in countries with high power distance, low uncertainty avoidance, extant entrepreneurship policies, low commercial profit taxes and low worker rights. Originality/value: This study sheds new light on how entrepreneurial activity affects life satisfaction, contingent on the informal and formal institutions in a country that support entrepreneurship by its residents.

Original languageEnglish
Pages (from-to)561-594
Number of pages34
JournalInternational Journal of Entrepreneurial Behaviour and Research
Volume26
Issue number4
DOIs
Publication statusPublished - 28 May 2020

Bibliographical note

Publisher Copyright:
© 2019, Emerald Publishing Limited.

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