The Career Reasons of Nascent Entrepreneurs

The reasons for nascent entrepreneurs' careerchoices are explored in comparison to those offered by non-entrepreneurs. Prior research on the reasons entrepreneurs give for starting a business is reviewedand several theoretical justifications are provided. The data used are obtained from the Panel Study of Entrepreneurial Dynamics (PSED) (through a mailsurvey), and include a set of 558 nascent entrepreneurs and a comparison group of non-entrepreneurs. The findings show that six factors contribute to nascent entrepreneurs'choices: (1) self-realization, (2) financial success, (3) roles, (4)innovation, (5) recognition, and (6) independence. These factors account for 68% of the variance of reasons in career choice. Differences for career choiceare also examined in terms of gender: males are found to be more likely to seekfinancial success and opportunities to create new products or technology thanwomen. The reasons nascent entrepreneurs offer for starting a business are found tobe very similar to the career reasons of other people, for the most part. It issuggested that such findings will challenge prior beliefs and theories thatposit that people choose entrepreneurship because they desire higher levels offinancial success. (CBS)