Innovation and sales growth intentions among the solopreneurs: The role of experience and entrepreneurial self-efficacy

Abstract

It is widely accepted that the self-employed enjoy non-pecuniary benefits from their employment status. They have greater freedom and autonomy in running their businesses and can pursue their intrinsic ambitions relying on their experience and abilities. In this paper we focus on the group of solopreneurs – solo self-employed who have decided to remain as single employee businesses. What determines turnover growth and product/service innovation intentions among these firms? Within this interplay, previous experience from innovation and growth episodes, as well as entrepreneurial self-efficacy (ESE) plays crucial roles. We empirically analyse the relationship between, and the determinants of, innovation and growth intentions using data on a large sample of UK solopreneurs. Empirical results suggest that past innovation performance and growth shape future solopreneurial intentions through an adaptive learning process given the level of perceived ESE for each future objective. Nonetheless, empirical results suggest that for female and young solopreneurs, ESE does not contribute positively to shaping sales growth and innovation intentions.