Do entrepreneurs' values make them “happy”? The role of personal and cultural values for entrepreneurs' wellbeing

Abstract

Despite increasing attention to entrepreneurs' wellbeing, we know little about the role of entrepreneurs' personal values representing intrinsic and extrinsic motivations for their wellbeing. In this paper, we introduce a contextualized values perspective on entrepreneurs' wellbeing that considers both their personal values and the ways these values interact with cultural values in the regions they operate in. In a multilevel study (3038 entrepreneurs across 143 European regions), we find intrinsic personal values (openness to change) foster positive wellbeing and decrease negative wellbeing, whereas extrinsic personal values (self-enhancement) undermine positive wellbeing and increase negative wellbeing. We also find initial evidence of person–culture congruence effects regarding intrinsic, but not extrinsic, values, with high congruence resulting in higher positive (less negative) wellbeing. Overall, our findings suggest entrepreneurs' wellbeing may be shaped both by “who they are” and “where they operate.” Executive summary Despite increasing attention to entrepreneurs' wellbeing, we know little about the role of entrepreneurs' personal values representing intrinsic and extrinsic motivations for their wellbeing. On the one hand, acting on any values (reflecting intrinsic or extrinsic motivation) can be a source of wellbeing. On the other hand, expressing values reflecting extrinsic motivation may undermine wellbeing because of the lack of self-determination associated with extrinsic motivation. Clarifying the wellbeing effects of values representing extrinsic motivation is particularly important in entrepreneurship, because these values are linked to growth, profitability, and innovation which underpin the economic contributions of entrepreneurship. Drawing on Schwartz's theories of personal and cultural values and person-culture value congruence, we introduce a contextualized values perspective on entrepreneurs' wellbeing that considers both their personal values and the ways these values interact with cultural values in the regions they operate in. In a multilevel study (3038 entrepreneurs across 143 European regions), we find the personal values central to entrepreneurial activity can be a double-edged sword for the wellbeing of practicing entrepreneurs, highlighting the role of intrinsic (vs. extrinsic) motivation for entrepreneurs' positive and negative wellbeing. We also find initial evidence of person–culture congruence effects regarding intrinsic, but not extrinsic, values, with high congruence resulting in higher positive (less negative) wellbeing. Overall, our findings suggest entrepreneurs' wellbeing may be shaped both by “who they are” and “where they operate.”</p