Featured Research

from universities, journals, and other organizations

Avoiding founder frustration in technology start-ups

Date:
October 14, 2011
Source:
Inderscience
Summary:
A new study of more than 440 technology entrepreneurs reveals that wealth does not necessarily bring happiness. According to new research, long-term employment growth in a new technology-based company correlates with the founder's satisfaction with their rising income, but is negatively related to their overall happiness.

A new study of more than 440 technology entrepreneurs reveals that wealth does not necessarily bring happiness. According to research published in the International Journal of Entrepreneurial Venturing, long-term employment growth in a new technology-based company correlates with the founder's satisfaction with their rising income, but is negatively related to their overall happiness.

Related Articles


Arndt Lautenschlaeger of the University of Applied Sciences Jena in Germany analysed data on 441 entrepreneurs in several fields of high-technology as well as technology-based services. The aim being to empirically analyses the relationship between personal happiness and employment growth in new technology-based firms. Personal happiness is measured by the company founder's satisfaction with life, work, financial situation, and leisure time.

The founder of a business might speak of success in terms of achieving company goals, although these can vary wildly between individuals and companies. Some founders equate success with profits and their becoming rich, while others value self-fulfilment and being their own boss more. From the perspective of the company itself, success can be defined more objectively based on sales, efficiency and profits. Lautenschlaeger suggests that it is unfortunate that personal indicators are all but ignored in economic studies of high-tech start-ups, where development and growth are often considered the only relevant factors.

"I found that in an early firm stage performance and individual satisfaction go hand in hand with a few exceptions," Lautenschlaeger says, but satisfaction with life correlates negatively in the long run with company growth despite rising income. He points out that to some extent this counteracts the aspirations of promoting start-up firms as a panacea for fighting unemployment and the generation of wealth. He adds that, his findings challenge the traditional view that company growth parallels personal success of the founder.

The study has important implications for individual entrepreneurs but for the ongoing success of countless high-tech start-up companies. Founder exit from a business is often neglected in corporate discussions, but it might be necessary to address the issue of how the boss feels as a company grows and so help the management team avoid the potential for company failure in the long term if founders are allowed to continue in their role despite growing personal dissatisfaction.


Story Source:

The above story is based on materials provided by Inderscience. Note: Materials may be edited for content and length.


Journal Reference:

  1. Arndt Lautenschlδger. Personal happiness and employment growth in new technology-based firms. Int. J. Entrepreneurial Venturing, 2011, 3, 359-374

Cite This Page:

Inderscience. "Avoiding founder frustration in technology start-ups." ScienceDaily. ScienceDaily, 14 October 2011. <www.sciencedaily.com/releases/2011/10/111014080030.htm>.
Inderscience. (2011, October 14). Avoiding founder frustration in technology start-ups. ScienceDaily. Retrieved February 1, 2015 from www.sciencedaily.com/releases/2011/10/111014080030.htm
Inderscience. "Avoiding founder frustration in technology start-ups." ScienceDaily. www.sciencedaily.com/releases/2011/10/111014080030.htm (accessed February 1, 2015).

Share This


More From ScienceDaily



More Science & Society News

Sunday, February 1, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

China's "Great Firewall" Frustrates Internet Users

China's "Great Firewall" Frustrates Internet Users

Reuters - News Video Online (Jan. 31, 2015) — The Chinese government moves to tighten regulations for virtual private network (VPN) services that are used to access websites and services normally blocked in China. That&apos;s affected many internet users in the country. Yiming Woo reports. Video provided by Reuters
Powered by NewsLook.com
Excuses, Excuses: Weirdest Reasons People Give For Tardiness

Excuses, Excuses: Weirdest Reasons People Give For Tardiness

Newsy (Jan. 30, 2015) — CareerBuilder surveyed around 5,000 workers and human resources managers nationwide to compile a list of strange excuses employees used when tardy. Video provided by Newsy
Powered by NewsLook.com
CDC: Get Vaccinated for Measles

CDC: Get Vaccinated for Measles

Reuters - US Online Video (Jan. 30, 2015) — The CDC is urging people to get vaccinated for measles amid an outbreak that began at Disneyland and has now infected more than 90 people. Linda So reports. Video provided by Reuters
Powered by NewsLook.com
Obama To Outline New Plan For Personalized Medicine

Obama To Outline New Plan For Personalized Medicine

Newsy (Jan. 30, 2015) — President Obama is expected to speak with drugmakers Friday about his Precision Medicine Initiative first introduced last week. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:

Strange & Offbeat Stories

 

Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins