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 Lautenschläger. 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 March 31, 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 March 31, 2015).

Share This


More From ScienceDaily



More Science & Society News

Tuesday, March 31, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

The Future Of Japanese Whaling: Heritage Vs. Conservation

The Future Of Japanese Whaling: Heritage Vs. Conservation

Newsy (Mar. 30, 2015) — In 2014, the International Court of Justice ruled Japan could no longer engage in whaling in the Antarctic, but Japan has plans to return this year. Video provided by Newsy
Powered by NewsLook.com
Soda, Salt and Sugar: The Next Generation of Taxes

Soda, Salt and Sugar: The Next Generation of Taxes

Washington Post (Mar. 30, 2015) — Denisa Livingston, a health advocate for the Diné Community Advocacy Alliance, and the Post&apos;s Abby Phillip discuss efforts around the country to make unhealthy food choices hurt your wallet as much as your waistline. Video provided by Washington Post
Powered by NewsLook.com
UnitedHealth Buys Catamaran

UnitedHealth Buys Catamaran

Reuters - Business Video Online (Mar. 30, 2015) — The $12.8 billion merger will combine the U.S.&apos; third and fourth largest pharmacy benefit managers. Analysts say smaller PBMs could also merge. Fred Katayama reports. Video provided by Reuters
Powered by NewsLook.com
Lights out for Earth Hour

Lights out for Earth Hour

Reuters - News Video Online (Mar. 29, 2015) — Landmarks in cities around the globe turn off their lights to mark Earth Hour. Paul Chapman reports. Video provided by Reuters
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