The role of need satisfaction for solo self-employed individuals’ vs. employer entrepreneurs’ affective commitment towards their own businesses

Abstract

Persistence in self-employment is crucial for entrepreneurial activities to generate longterm economic benefits. Consequently, this research examined the commitment of the self-employed towards their business as an important determinant of persistence. However, this research treats the self-employed as one entity. Yet we assume that especially for the research on commitment the differentiation of the self-employed into solo self-employed individuals (self-employed individuals without employees) and employer entrepreneurs (self-employed individuals with employees) provides seminal insights. Thus, this study examined differences in affective commitment to (emotional attachment to and identification with) one's business and its antecedents between these self-employment forms. We used data of German solo self-employed individuals (n = 117) and employer entrepreneurs (n = 103) from the European Working Condition Survey (EWCS 2010). A simple t test revealed that the solo self-employed individuals report lower levels of affective commitment to their business than employer entrepreneurs. Moreover, regression analyses revealed that satisfaction of the needs for autonomy and competence was more strongly related to affective commitment for the solo self-employed than that for employer entrepreneurs, whereas satisfaction of the need for relatedness was more weakly related among the solo self-employed than that the employer entrepreneurs. These results suggest that solo self-employed individuals and employer entrepreneurs not only differ in affective commitment to their businesses but also in their antecedents. Implications for research on motivational processes of the self-employed and for fostering persistence in self-employment are discussed.

Maintaining High Eudaimonic Wellbeing Despite Ambiguity Intolerance Among Three Employment Status Groups: Examining the Buffering Effects of Positive Psychological Attributes

“…Moreover, the self-employed may not be any better. Although research has generally indicated that the self-employed tend to be happier, many individuals are engaged in what has been called precarious self-employment (Kottwitz et al, 2017;Schummer et al, 2019) especially those doing business in the informal sector and the solo selfemployed. These are challenged by long working hours, the burden of bearing risks, and having little social protection that affects the psychological wellbeing of entrepreneurs and the self-employed (Baron et al, 2016;Otto, Baluku, Hünefeld, et al, 2020).…”

Exploring the Link Between Mentoring and Intangible Outcomes of Entrepreneurship: The Mediating Role of Self-Efficacy and Moderating Effects of Gender

“…However, literature is silent on entrepreneurs’ intention to stay in their roles for a long time. Patel and Thatcher (2014) labeled this phenomenon as persistence in self-employment, while other researchers have investigated it in terms of commitment to one’s own business ( Felfe et al, 2008 ; Baluku et al, 2018a , b ,; Schummer et al, 2019 ). Persistence in entrepreneurial work is important for realization of the economic benefits of entrepreneurship since these tend to accrue in the long term than in the short term ( Baluku et al, 2018a ; Schummer et al, 2019 ).…”

“…Patel and Thatcher (2014) labeled this phenomenon as persistence in self-employment, while other researchers have investigated it in terms of commitment to one’s own business ( Felfe et al, 2008 ; Baluku et al, 2018a , b ,; Schummer et al, 2019 ). Persistence in entrepreneurial work is important for realization of the economic benefits of entrepreneurship since these tend to accrue in the long term than in the short term ( Baluku et al, 2018a ; Schummer et al, 2019 ). Having the intention to stay in this form of employment, which reflects the commitment to the form of employment ( Felfe et al, 2008 ) generates higher morale and effort, hence an essential attitude that can stimulate attainment of other work outcomes ( Felfe et al, 2008 ).…”

Caught Between Autonomy and Insecurity: A Work-Psychological View on Resources and Strain of Small Business Owners in Germany

“…Solo self-employment can be defined as operating a business and having the sole responsibility for one's economic success without employing others for technical or professional support. Solo self-employed people have to be differentiated from employer entrepreneurs who are self-employed as well but utilize personnel (Schummer et al, 2019). Notably, to be counted as solo self-employed for tax purposes in Germany, helping family members as well as other services (e.g., cleaning staff) are not counted (Brenke, 2013).…”

“…Small business owners are more strongly responsible for creating their working conditions (on their own) favorably as compared to employed people or employer entrepreneurs (i.e., self-employed people with personnel; Schummer et al, 2019 ). Also, when it comes to health, stress and strain have individual differences.…”