The Mediating Effect of Financial Motives in the Association between Entrepreneurial Experience and Subjective Well-Being: Evidence from Japan

Kenta Ikeuchi,Hiroki Nakamura,Yuji Honjo

doi:10.1007/s11482-021-09947-1

Kenta Ikeuchi, Hiroki Nakamura + Show 1 more

Open Access

https://doi.org/10.1007/s11482-021-09947-1

Copy DOI

Abstract

This study investigates the relationship between entrepreneurial experience and subjective well-being. Using an original survey on subjective well-being, entrepreneurial experience, level of wealth (inferred from observed variables of income, cash, and assets), and personal attributes of 10,001 individuals in Japan, we examine the factors that mediate the association between entrepreneurial experience and subjective well-being. We measure entrepreneurial experience as an individual’s experience in funding, owning, and running a corporation. We consider the mediating effect of the level of wealth on subjective well-being because entrepreneurial well-being is associate with wealth derived from income, cash, and assets. Our results provide no significant evidence that individuals with entrepreneurial experience have higher subjective well-being. However, we find a positive indirect effect of entrepreneurial experience on subjective well-being through wealth and a negative indirect effect through debt. The findings of this study indicate the importance of considering the mediating effect of financial motives in entrepreneurial well-being.

Highlights

Subjective well-being represents a broad category of phenomena that includes people’s emotional responses, domain satisfactions, and global judgements of life satisfaction (Diener et al 1999: p.277)
This study investigated the relationship between entrepreneurial experience and subjective well-being
Using an original survey on subjective well-being, entrepreneurial experience, level of wealth, and personal attributes of 10,001 individuals in Japan, we examined the factors that mediate the association between entrepreneurial experience and subjective wellbeing

Summary

Introduction

Subjective well-being represents a broad category of phenomena that includes people’s emotional responses, domain satisfactions, and global judgements of life satisfaction (Diener et al 1999: p.277). Some scholars provided evidence that the average income of entrepreneurs is lower than that of employees (e.g., Hamilton 2000; Binder and Coad 2013; Åstebro et al 2014) These findings force us to question why individuals become entrepreneurs from financial motives, despite the possibility that subjective well-being decreases due to lower incomes. To the best of our knowledge, there is a paucity of research on the mediating role in entrepreneurial well-being, including the indirect effect of entrepreneurial experience on subjective well-being. Understanding this aspect would assist us in improving our understanding of the nature of entrepreneurship

Methods

Results

Discussion

Conclusion