Skip to main content

Advertisement

SpringerLink
Log in

Well-Being, Personal Success and Business Performance Among Entrepreneurs: A Two-Wave Study

  • Research Paper
  • Published:
Journal of Happiness Studies Aims and scope Submit manuscript

Abstract

This two-wave longitudinal study among 121 entrepreneurs in The Netherlands investigated bi-directional relationships between entrepreneurs’ well-being and performance. Results of Smart PLS analyses showed positive well-being at Time 1 (work engagement; life satisfaction; and job satisfaction) predicted subjective entrepreneurial success 2 years later, both as indicated by entrepreneurs’ reports of achieved financial success (including personal income security and wealth, business turn-over, sales and profit growth), as well as perceptions of achieved personal success (personal fulfilment, community impact and employee relations). No relations were found with objective indicators of business performance (profit; turnover; and number of employees) over time. The expected recursive relationship between performance and well-being was only found in the short term; a better objective financial situation immediately preceding the second measurement moment, predicted better well-being at T2. These results are both in line with a well-being–performance (gain) cycle, and the happiness set-point thesis that predicts resilience in the face of events. This paper contributes to the literature by emphasizing the importance of entrepreneurs’ well-being as a key factor in long-term subjective financial and personal entrepreneurial success. The practical implication is that entrepreneurs should maintain and improve their own well-being to achieve positive long term business outcomes.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Andersson, P. (2008). Happiness and health: Well-being among the self-employed. Journal of Socio-Economics, 37(1), 213–236.

    Google Scholar 

  • Bakker, A. B., & Bal, P. M. (2010). Weekly work engagement and performance: A study among starting teachers. Journal of Occupational and Organizational Psychology, 83, 189–206.

    Google Scholar 

  • Bakker, A. B., & Demerouti, E. (2007). The job demands-resources model: State of the art. Journal of Managerial Psychology, 22(3), 309–328.

    Google Scholar 

  • Bakker, A. B., & Demerouti, E. (2008). Towards a model of work engagement. Career Development International, 13(3), 209–223.

    Google Scholar 

  • Bakker, A. B., & Hakanen, J. J. (2013). Work engagement among public and private sector dentists. In R. J. Burke, A. J. Noblet, & C. L. Cooper (Eds.), Human resource management in the public sector (pp. 109–131). Cheltenham: Edward Elgar.

    Google Scholar 

  • Bakker, A. B., & Oerlemans, W. (2011). Subjective well-being in organizations. In K. S. Cameron & G. M. Spreitzer (Eds.), The Oxford handbook of positive organizational scholarship (pp. 178–189). New York: Oxford University Press.

    Google Scholar 

  • Bakker, A. B., Schaufeli, W. B., Leiter, M. P., & Taris, T. W. (2008). Work engagement: An emerging concept in occupational health psychology. Work & Stress, 22(3), 187–200.

    Google Scholar 

  • Bangma, K. L., & Snel, D. (2014). Algemeen beeld van het MKB in de marktsector in 2014 en 2015. Panteia, rapportnummer: A201420.

  • Binder, M., & Coad, A. (2016). How satisfied are the self-employed? A life domain view. Journal of Happiness Studies, 17(4), 1409–1433.

    Google Scholar 

  • Boehm, J. K., & Lyubomirsky, S. (2008). Does happiness promote career success? Journal of Career Assessment, 16, 101–116.

    Google Scholar 

  • Carree, M. A., & Verheul, I. (2012). What makes entrepreneurs happy? Determinants of satisfaction among founders. Journal of Happiness Studies, 13, 371–387.

    Google Scholar 

  • Chell, E. (2008). The entrepreneurial personality: A social construction. London: Routledge.

    Google Scholar 

  • Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–336). London: Lawrence Erlbaum Associates.

    Google Scholar 

  • Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9(5), 371–395.

    Google Scholar 

  • Davidsson, P. (2016). A ‘business researcher’ view on opportunities for psychology in entrepreneurship research. Applied Psychology: An International Review, 65(3), 628–636.

    Google Scholar 

  • Dej, D. (2011). Exploring entrepreneur success from a work psychology perspective: The development and first validation of a new instrument. Dissertation, TU Dresden.

  • Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management Journal, 39, 949–969.

    Google Scholar 

  • Diener, E. (2000). Subjective well-being: The science of happiness and a proposal for a national index. American Psychologist, 55(1), 34–43.

    Google Scholar 

  • Diener, E., Emmons, R. A., Larsen, R. J., & Griffin, S. (1985). The satisfaction with life scale. Journal of Personality Assessment, 49, 71–75.

    Google Scholar 

  • Diener, E., Lucas, R. E., & Scollon, C. N. (2006). Beyond the hedonic treadmill. American Psychologist, 61, 305–314.

    Google Scholar 

  • Diener, E., Nickerson, C., Lucas, R. E., & Sandvik, E. (2002). Dispositional affect and job outcomes. Social Indicators Research, 59, 229–259.

    Google Scholar 

  • Diener, E., Sandvik, E., Seidlitz, L., & Diener, M. (1993). The relationship between income and subjective well-being: Relative or absolute? Social Indicators Research, 28, 195–223.

    Google Scholar 

  • Dijkhuizen, J., Gorgievski, M., Van Veldhoven, M., & Schalk, R. (2015). Feeling successful as an entrepreneur: A job demands-resources approach. International Entrepreneurship and Management Journal. doi:10.1007/s11365-014-0354-z.

    Article  Google Scholar 

  • Fisher, C. D. (2003). Why do lay people believe that satisfaction and performance are correlated? Possible sources of a commonsense theory. Journal of Occupational Behavior, 24, 753–777.

    Google Scholar 

  • Fisher, C. D. (2010). Happiness at work. International Journal of Management Reviews, 12, 384–412.

    Google Scholar 

  • Fredrickson, B. L. (2001). The role of positive emotions in positive psychology: The broaden-and-build theory of positive emotions. American Psychologist, 56(3), 218–226.

    Google Scholar 

  • Fredrickson, B. L. (2013). Positive emotions broaden and build. Advances in Experimental Social Psychology, 47, 1–53.

    Google Scholar 

  • Frese, M., & Zapf, D. (1988). Methodological issues in the study of work stress: Objective vs subjective measurement of work stress and the question of longitudinal studies. In C. L. Cooper & R. Payne (Eds.), Causes, coping and consequences of stress at work (pp. 375–411). Chichester: Wiley.

    Google Scholar 

  • Gartner, W. B. (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review, 10(4), 696–706.

    Google Scholar 

  • Gorgievski, M. J., Bakker, A. B., Schaufeli, W. B., Van der Veen, H. B., & Giesen, C. W. M. (2010). Financial problems and psychological distress: Investigating reciprocal effects among business owners. Journal of Occupational and Organizational Psychology, 83, 513–530.

    Google Scholar 

  • Gorgievski, M. J., Moriano, J. A., & Bakker, A. B. (2014). Relating work engagement and workaholism to entrepreneurial performance. Journal of Managerial Psychology, 29, 106–121.

    Google Scholar 

  • Gorgievski, M. J., & Stephan, U. (2016). Advancing the psychology of entrepreneurship: A review of the psychological literature and an introduction. Applied Psychology: An International Review, 65(3), 437–468.

    Google Scholar 

  • Gorgievski-Duijvesteijn, M. J., Bakker, A. B., Schaufeli, W. B., & van der Heijden, P. G. M. (2005). Finances and well-being: A dynamic equilibrium model of resources. Journal of Occupational Health Psychology, 10, 210–224.

    Google Scholar 

  • Gorgievski-Duijvesteijn, M. J., Giesen, C. W. M., & Bakker, A. B. (2000). Financial problems and health complaints among farm-couples: Results of a ten-year follow-up study. Journal of Occupational Health Psychology, 5, 359–373.

    Google Scholar 

  • Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares structural equations modeling (PLS-SEM). Beverly Hills: SAGE Publishers.

    Google Scholar 

  • Halbesleben, J. R. B., & Wheeler, A. R. (2008). The relative roles of engagement and embeddedness in predicting job performance and intention to leave. Work & Stress, 22(3), 242–256.

    Google Scholar 

  • Headey, B., & Wearing, A. (1989). Personality, life events, and subjective well-being: Toward a dynamic equilibrium model. Journal of Personality and Social Psychology, 57, 731–739.

    Google Scholar 

  • Iaffaldano, M. T., & Muchinsky, P. M. (1985). Job satisfaction and job performance: A meta-analysis. Psychological Bulletin, 97(2), 251–273.

    Google Scholar 

  • Judge, T. A., Thorensen, C. J., Bono, J. E., & Patton, G. K. (2001). The job satisfaction-job performance relationship: A qualitative and quantitative review. Psychological Bulletin, 127(3), 376–407.

    Google Scholar 

  • Koys, D. J. (2001). The effects of employee satisfaction, organizational citizenship behavior, and turnover on organizational effectiveness: A unit-level, longitudinal study. Personnel Psychology, 54, 101–114.

    Google Scholar 

  • Kuratko, D. F., Hornsby, J. S., & Naffziger, D. W. (1997). An examination of owner’s goals in sustaining entrepreneurship. Journal of Small Business Management, 35(1), 24–33.

    Google Scholar 

  • Laguna, M., Allessandri, G., & Caprara, G. V. (2016). Personal goal realization in entrepreneurs: A multilevel analysis of the role of affect and positive orientation. Applied Psychology: An International Review, 65, 587–604.

    Google Scholar 

  • Locke, E. A., & Latham, G. P. (1990a). Work motivation and satisfaction: Light at the end of the tunnel. Psychological Science, 1(4), 240–246.

    Google Scholar 

  • Locke, E. A., & Latham, G. O. (1990b). Efficacy-performance spirals: A multilevel perspective. Academy of Management Review, 20, 645–678.

    Google Scholar 

  • Locke, E. A., & Latham, G. P. (1990c). A theory of goal setting and task performance. Englewood Cliffs, NJ: Prentice Hall.

    Google Scholar 

  • Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation. American Psychologist, 57(9), 705–717.

    Google Scholar 

  • Lykken, D., & Tellegen, A. (1996). Happiness is a stochastic phenomenon. Psychological Science, 7(3), 186–189.

    Google Scholar 

  • Lyubomirsky, S. (2001). Why are some people happier than others? The role of cognitive and motivational processes in well-being. American Psychologist, 56, 239–249.

    Google Scholar 

  • Lyubomirsky, S., King, L., & Diener, E. (2005a). The benefits of frequent positive affect: Does happiness lead to success? Psychological Bulletin, 131, 803–855.

    Google Scholar 

  • Lyubomirsky, S., Sheldon, K. M., & Schkade, D. (2005b). Pursuing happiness: The architecture of sustainable change. Review of General Psychology, 9, 111–131.

    Google Scholar 

  • Marks, G. N., & Fleming, N. (1999). Influences and consequences of well-being among Australian young people: 1980–1995. Social Indicators Research, 46, 301–323.

    Google Scholar 

  • Maslach, C., Schaufeli, W. B., & Leiter, M. P. (2001). Job burnout. Annual Review of Psychology, 52, 397–422.

    Google Scholar 

  • Mitchel, T. R., & Lawrence, J. R. (2001). Building better theory: Time and the specification of when things happen. Academy of Management Review, 26(4), 530–547.

    Google Scholar 

  • Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36, 15–23.

    Google Scholar 

  • Paauwe, J., & Richardson, R. (1997). Introduction: Special issue on HRM and performance. International Journal of Human Resource Management, 3(8), 257–262.

    Google Scholar 

  • Panteia. (2013). Kerngegevens MKB 2012/2013; MKB & ondernemerschap in zakformaat, rapportnummer: A201318.

  • Pavot, W., & Diener, E. (1993). Review of the satisfaction with life scale. Psychological Assessment, 5, 164–172.

    Google Scholar 

  • Pérez, E. H., & Canino, R. M. B. (2009). The importance of the entrepreneur’s perception of “success”. Review of International Comparative Management, 10(5), 990–1009.

    Google Scholar 

  • Petty, M. M., McGee, G. W., & Cavender, J. W. (1984). A meta-analysis of the relationship between individual job satisfaction and individual performance. The Academy of Management Review, 9(4), 712–721.

    Google Scholar 

  • Rauch, A., & Frese, M. (2000). Psychological approaches to entrepreneurial success. A general model and an overview of findings. In C. L. Cooper & I. T. Robertson (Eds.), International review of industrial and organizational psychology (pp. 101–142). Chichester: Wiley.

    Google Scholar 

  • Reijonen, H., & Komppula, R. (2007). Perception of success and its effect on small firm performance. Journal of Small Business and Enterprise Development, 14, 689–701.

    Google Scholar 

  • Russell, J. A. (1980). A circumplex model of affect. Journal of Personality and Social Psychology, 39, 1161–1178.

    Google Scholar 

  • Russell, J. A. (2003). Core affect and the psychological construction of emotion. Psychological Review, 110, 145–172.

    Google Scholar 

  • Russell, J. A., & Caroll, J. M. (1999). On the bipolarity of positive and negative affect. Pyschological Bulletin, 125, 3–30.

    Google Scholar 

  • Ryan, A. M., Schmit, M. J., & Johnson, R. (1996). Attitudes and effectiveness: Examining relations at an organizational level. Personnel Psychology, 49, 853–882.

    Google Scholar 

  • Sandvik, E., Diener, E., & Seidlitz, L. (1993). Subjective well-being: The convergence and stability of self-report and non-self-report measures. Journal of Personality, 61, 317–342.

    Google Scholar 

  • Schaufeli, W., & Bakker, A. B. (2003). De Utrechtse Bevlogenheid Schaal: handleiding [The Utrecht work engagement scale: Manual, Occupational Health Psychology Unit]. Utrecht: Utrecht University.

    Google Scholar 

  • Schmidt, S. (2009). Shall we really do it again? The powerful concept of replication is neglected in the social sciences. Review of General Psychology, 13, 90–100.

    Google Scholar 

  • Schneider, B., Hanges, P. J., Smith, D. B., & Salvaggio, A. N. (2003). Which comes first: Employee attitudes or organizational financial and market performance? Journal of Applied Psychology, 88, 836–851.

    Google Scholar 

  • Seligman, M. E. P. (2004). Can happiness be taught? Daedalus, 133, 80–87.

    Google Scholar 

  • Seligman, M. E. P. (2006). Learned optimism: How to change your mind and your life. New York: Vintage Books.

    Google Scholar 

  • Seligman, M. E. P., & Csikszentmihalyi, M. (2000). Positive psychology: An introduction. American Psychologist, 55, 5–14.

    Google Scholar 

  • Seppäla, P., Hakanen, J., Mauno, S., Perhoniemi, R., Tolvanen, A., & Schaufeli, W. B. (2014). Stability and change model of job resources and work engagement: A seven-year three-wave follow-up study. European Journal of Work and Organizational Psychology. doi:10.1080/1359432X.2014.910510.

    Article  Google Scholar 

  • Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource Management Review, 13, 257–279.

    Google Scholar 

  • Siehl, C., & Martin, J. (1990). Organizational culture: A key to financial performance? In B. Schneider (Ed.), Organizational climate and culture (pp. 241–281). San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Sonnentag, S. (2001). Work, recovery activities, and individual well-being: A diary study. Journal of Occupational Health Psychology, 6, 196–210.

    Google Scholar 

  • Sonnentag, S., & Fritz, C. (2007). The recovery experience questionnaire: Development and validation of a measure for assessing recuperation and unwinding from work. Journal of Occupational Health Psychology, 12, 204–221.

    Google Scholar 

  • Taris, T. W., & Schreurs, P. J. G. (2009). Well-being and organizational performance: An organization-level test of the happy-productive worker hypothesis. Work & Stress, 23(2), 120–136.

    Google Scholar 

  • Tellegen, A., Lykken, D. T., Bouchard, T. J., Wilcox, K. J., Segal, N. L., & Rich, S. (1988). Personality similarity in twins reared apart and together. Journal of Personality and Social Psychology, 54, 1031–1039.

    Google Scholar 

  • Ulrich, D., Halbrook, R., Meder, D., Stuchlik, M., & Thorp, S. (1991). Employee and customer attachment: Synergies for competitive advantage. Human Resource Planning, 14, 89–103.

    Google Scholar 

  • Van de Voorde, K., Paauwe, J., & Van Veldhoven, M. (2012). Employee well-being and the HRM-organizational performance relationship: A review of quantitative studies. International Journal of Management Reviews, 14, 391–407.

    Google Scholar 

  • Van de Voorde, K., Van Veldhoven, M., & Paauwe, J. (2014). Relationships between work climate and labour productivity in the financial sector: A longitudinal test of the mediating role of work satisfaction. European Journal of Work and Organizational Psychology, 23, 295–309.

    Google Scholar 

  • Van Praag, C. M., & Versloot, P. H. (2007). What is the value of entrepreneurship? A review of recent research. Small Business Economics, 29, 351–382.

    Google Scholar 

  • Veenhoven, R. (1991). Is happiness relative? Social Indicators Research, 24, 1–34.

    Google Scholar 

  • Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11, 801–814.

    Google Scholar 

  • Wach, D., Stephan, U., & Gorgievski, M. J. (2016). More than money: Developing an integrative multi-factorial measure of entrepreneurial success. International Small Business Journal, 34, 1098–1121.

    Google Scholar 

  • Walker, E., & Brown, A. (2004). What success factors are important to small business owners? International Small Business Journal, 22, 577–594.

    Google Scholar 

  • Wright, T. A., & Cropanzano, R. (2000). Psychological well-being and job satisfaction as predictors of job performance. Journal of Occupational Health Psychology, 5, 84–94.

    Google Scholar 

  • Wright, T. A., Cropanzano, R., & Bonett, D. G. (2007). The moderating role of employee positive well-being on the relation between job satisfaction and job performance. Journal of Occupational Health Psychology, 12, 93–104.

    Google Scholar 

  • Wright, T. A., & Staw, B. M. (1999). Affect and favorable work outcomes: Two longitudinal tests of the happy-productive worker thesis. Journal of Organizational Behavior, 20, 1–23.

    Google Scholar 

  • Xanthopoulou, D., Bakker, A. B., Demerouti, E., & Schaufeli, W. B. (2009). Work engagement and financial returns: A diary study on the role of job and personal resources. Journal of Occupational and Organizational Psychology, 82, 183–200.

    Google Scholar 

  • Zelenski, J. M., Murphy, S. A., & Jenkins, D. A. (2008). The happy-productive worker thesis revisited. Journal of Happiness Studies, 9, 521–537.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Human Resource Studies, Tilburg University, P.O. Box 90153, 5000 LE, Tilburg, The Netherlands

    Josette Dijkhuizen, Marc van Veldhoven & René Schalk

  2. Maastricht School of Management, Endepolsdomein 150, 6229 EP, Maastricht, The Netherlands

    Josette Dijkhuizen

  3. Department of Work and Organisations Psychology, Erasmus University, P.O. Box 1738, 3000 DR, Rotterdam, The Netherlands

    Marjan Gorgievski

Authors
  1. Josette Dijkhuizen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Marjan Gorgievski
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Marc van Veldhoven
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. René Schalk
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Josette Dijkhuizen.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Dijkhuizen, J., Gorgievski, M., van Veldhoven, M. et al. Well-Being, Personal Success and Business Performance Among Entrepreneurs: A Two-Wave Study. J Happiness Stud 19, 2187–2204 (2018). https://doi.org/10.1007/s10902-017-9914-6

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10902-017-9914-6

Keywords

Search

Navigation