Abstract

PurposeThe aim is to expand the challenge-hindrance framework and develop a coherent theoretical framework that explains individual differences in the way small business owners appraise their job demands. Literature has shown that dealing effectively with job demands leads to competitive advantage and depends on individual appraisals.Design/methodology/approachFor this qualitative study, 20 in-depth interviews were analyzed using a partially grounded theory approach.FindingsOpen and axial coding revealed a broader range of demands than have hitherto been studied, related to actions rather than job characteristics. Selective coding confirmed expectations based on the Conservation of Resources Theory that appraisals of demands differ between business owners and change over time depending on role identities, and material, social, personal and energy resource levels, via the valence (identities) and degree of anticipated outcomes. Business owners appraised certain demands as challenging when they were co-occurring with other demands usually categorized as challenges, whereas these same demands were appraised as hindering when co-occurring with demands usually categorized as hindrances.Research limitations/implicationsThe results imply that appraisals can be influenced by societal context, life events, processes of formal and informal learning, personal growth and aging. These topics would be interesting avenues for future research.Originality/valueThe results of this study challenge our understanding of job demands in general and current categorizations of job demands as challenges versus hindrances in specific, by providing an in-depth, contextualized and dynamic view of the appraisal of demands related to owning and running a business.

Highlights

  • Small and medium-sized enterprises (SMEs) are key drivers of national and local economies

  • Based on Conservation of Resources (COR) theory (Hobfoll, 2001), we argue that appraisals are not purely individual, idiosyncratic perceptions

  • Demands appraised as challenges The first research question was “which demands do business owners appraise as challenges?” Open and axial coding showed that main challenges included building resources; creating value; realizing business outcomes; entrepreneurial and strategic managerial activities; entrepreneurial job characteristics; and dealing with cultural dimensions (See Table 1)

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Summary

Introduction

Small and medium-sized enterprises (SMEs) are key drivers of national and local economies. SMEs provide over 50% of all employment opportunities and added value per business sector. Business owners form an important part of our workforce; almost 15% of the European workforce is currently self-employed, either with or without employees The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

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