SSE/EFI Working Paper Series in Business Administration,
Stockholm School of Economics

Abstract: Following the idea that entrance into self-employment is a phenomenon that can be partially captured by the level of ones aspirations and well being, the purpose of this position note is to outline the nexus between well being and entrance into self employment. For that purpose Wagle's (2008) objective setting of multidimensional poverty is utilized in defining the concept. A central argument to be made is that the intention to improve one's well-being through self employment and the option to enter self-employment, in many situations, cannot be completely separated from each other. Accordingly, people seek opportunities to improve aspects of their well-being, rather than business opportunities per se. This will be demonstrated by a conceptual model of entry into self-employment residing on the notion of well-being; where well-being is seen to affect and be affected by entrance into self-employment. The model does not provide a strategic map of how to enter self employment and how to succeed with that. Nor, it aims at giving very strong practical implications. Rather, it guides attention to questions about what in an individual relative level of well-being that affect entrance into self-employment. This is important since the entrepreneurship literature has yet to theorize and examine the triggering effects of well-being on the entire entrepreneurial process.

Keywords: Entrepreneurship; Self-employment; Well-being

17 pages, First version: August 26, 2010. Revised: August 27, 2010. Earlier revisions: August 27, 2010.

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