The Analysis of Nascent Entrepreneurs’ Happiness Level in Indonesia

Yosep Oktavianus Sitohang, Yoga Sasmita, Yudhie Andriyana, Gandhi Pawitan

Abstract

This study tried to analyze the factors that influence the happiness level of entrepreneurs in Indonesia especially the nascent entrepreneurs. The level of entrepreneurs’ happiness has a positive effect on the sustainability of their business. The research data are secondary data from 1,148 respondents who are included in the category of Total Early-stage Entrepreneurial Activity (TEA) at Global Entrepreneurship Monitor (GEM) in 2013. The variables employed are motivation, perception and innovation and demographic variables (gender, education and income). Analyzer used is multiple linear regressions with dummy variable. From  the result, it is found that only the motivation, education level and level of income that significantly influence the level of happiness. The nascent entrepreneurs, who have motivation to start a business because of opportunity, have a higher level of happiness than necessity motivation due to necessity. The level of education and income are also proportional to the level of happiness, but the level of education gives greater influence to the level of happiness of nascent entrepreneurs in Indonesia.

Keywords

Level of happiness; Motivation; Perception; Innovation; Demographic Variables.

Full Text:

PDF

References

Andersson, P. 2008. Happiness and Health: Well-being among the Self-Employed. The Journal of Socio-Economics. 37: 213-236.

Badan Pusat Statistik. 2015. Indikator Pasar Tenaga Kerja Indonesia Agustus 2015. Jakarta: BPS.

Badan Pusat Statistik. 2017. Laporan Bulanan Data Sosial Ekonomi September 2017. Jakarta: BPS.

Berglund, V. 2014. Entrepreneurs Subjective Well-being and Job Satisfaction: does Personality Matter?. Sociologiska Institutionen UMEA Universitet. 40: 1-25.

Bhola, R., Verheul, I., Thurik, A. R & Grilo, I. 2006. Explaining EngagementLevels of Opportunity and Necessity Entrepreneurs. Business & Policy Research. 1-45.

Binder, M & Coad, A. 2012. Life Satisfaction and Self-Employment: a Matching Approach. Small Business Economics. 40 (4): 1009-1033.

Blanchflower, D. 2004. Self-Employed: More May Not Be Better. Swedish Economic Policy Review. 11 (2): 15-73.

Cakar, N. D & Erturk, A. 2010. Comparing Innovation Capability of Small and Medium-Sized Enterprises: Examining the Effects of Organizational Culture and Empowerment. Journal of Small Business Management. 48 (3): 325-359.

Carree, M & Verheul, I. 2012. What Makes Entrepreneurs Happy? Determinants of Satisfaction among Founders. Journal of Happiness Studies. 13 (2): 371-387.

Charron, N., Lapuente, V & Nistotskaya, M. 2012. The Wealth of Regions: Government Quality and Entrepreneurship in Europe. European Quality of Government Index Working Paper Series. University of Guthenburg. 2012:12.

Estay C., Durrieu, F & Akhter, M. 2013. Entrepreneurship: from Motivation to Start-up. Journal of International Entrepreneurship. 11 (3): 243-267.

Jerry L., Miller, L & Erickson, M. L. 1974. On Dummy Variable Regression Analysis. Sociological Methods & Research. 2 (4): 409-430.

Landstrom, H., Harirchi, G & Astrom, F. 2012. Entrepreneurship: Exploring the Knowledge Base. Research Policy Journal. 41 (7): 1154-1181.

Liao, P. 2009. Parallels Between Objective Indicators and Subjective Perceptions of Quality of Life: A Study of Metropolitan and County Areas in Taiwan. Social Indicators Resesarch. 91 (1): 99-114.

Mahadea, D. 2014. Happinomics among Factors of Production using a Principal Component Analysis Approach: A Case Study of Labour and Entrepreneurs’ Subjective Happiness in KwaZulu-Natal, South Africa. Mediterranean Journal of Social Sciences. 5 (4): 99-110.

Mahadea, D & Ramroop, S. 2015. Influences on Happiness and Subjective Well-being of Entrepreneurs and Labour: Kwazulu-Natal Case Study. South African Journal of Economic and Management Sciences. 18 (2): 245-259.

Mulyana & Sutapa. 2016. The Impact of Entrepreneurial Orientation and Collaborative Networks on Creative Industries Performance. Jurnal Dinamika Manajemen. 7 (2): 166-181.

Mahadea, D & Ramroop, S. 2015. Influences on Happiness and Subjective Well-Being of Entrepreneurs and Labour: Kwazulu-Natal case study. South African Journal of Economic and Management Sciences. 18 (2): 245-259.

Naudé, W., Amorós, J. E & Cristi, O. 2014. Surfeiting, the Appetite may Sicken: Entrepreneurship and Happiness. Small Business Economics. 42 (3): 523-540.

Nawangpalupi, C. B., Pawitan, G., Gunawan, A., Widyarin, M & Iskandar, T. 2014. Global Entrepreneurship Monitor 2013 Indonesia Report. Bandung: Universitas Katolik Parahyangan.

Olcay, G & Kunday, O. 2016. Determinants of Well-being of Turkish Entrepreneurs: an Assessment Based on Entrepreneurial Perception, Motives and Innovation. Journal of Entrepreneurship and Innovation Management. 5: 1-16.

Parasuraman, S., Purohit, Y. S & Godshalk, V. M. 1996. Work and Family Variable, Entrepreneurial Career Success and Psychological Wellbeing. Journal of Vocational Behavior. 48 (3): 275-300.

Reynolds, P. D., Bygrave, W. D., Autio, E., Cox, L. W & Hay, M. 2002. The Entrepreneur Next Door: Characteristics of Individuals Starting Companies in America: An Executive Summary of the Panel Study of Entrepreneurial Dynamics. 2002 Executive Report. SSRN University Ave.

Romero, I & Martinez-Romain, J. A. 2012. Self-Employment and Innovation. Exploring the Determinants of Innovative Behavior in Small Businesses. Research Policy Journal. 41 (1): 178-189.

Ryff, C. D & Singer, H. B. 2008. Know Thyself and Become What You Are a Eudaimonic Approach to Psychological Wellbeing. Journal of Happiness Studies. 9: 13-39.

Saiz-Alvarez, J. M., Martinez, A. C & Martinez, C. C. 2014. An Entrepreneurial Well-Being Model Based on GEM Data for Spain. International Journal of Artificial Intelligence and Interactive Multimedia. 2 (5): 38-47.

Salinas-Jimenez, M., Artes, J & Salinas-Jimenez, J. 2010. Income, Motivation and Satisfaction with Life: An Empirical Analysis. Journal of Happiness Studies. 11 (6): 779-793.

Schaltegger, S & Wagner, M. 2011. Sustainable Entrepreneurship and Sustainability Innovation: Categories and Interactions. Business Strategy and the Environment. 20 (4): 222-237.

Sherman, C. L., Randall, C & Kauanui S. K. 2015. Are You Happy yet? Entrepreneurs’ Subjective Well-being. Journal of Management, Spirituality & Religion. 13 (1): 7-23.

Uy, M. A., Foo, M. D & Song, Z. 2013. Joint Effects of Prior Start-Up Experience and Coping Strategies on Entrepreneurs’ Psychological Well-Being. Journal of Business Venturing. 28 (5): 583-597.

Williams, C. C & Nadin, S. 2010. Entrepreneurship and the Informal Economy: an Overview. Journal of Developmental Entrepreneurship. 15 (4): 361-378.

Wynarczyk, P. 2013. Open Innovation in SMEs: a Dynamic Approach to Modern Entrepreneurship in the Twenty‐First Century. Journal of Small Business and Enterprise Development. 20 (2): 258-278.

Zali, M. R., Faghih, N., Ghotbi, S & Rajaie, S. 2013. The Effect of Necessity and Opportunity Driven Entrepreneurship on Business Growth. International Research Journal of Applied and Basic Sciences. 7 (2): 100-108.

Zbierowski, P. 2014. Well-being of Entrepreneurs- International Comparison Based on GEM Data. Journal of Positive Management. 5 (4): 89-100.

Zimmerman, M. A & Chu, H. M. 2013. Motivation, Success and Problems of Entrepreneurs in Venezuela. Journal of Management Policy and Practice. 14 (2): 76-90.

View Counter: Abstract - 701 and PDF - 600

Refbacks

  • There are currently no refbacks.


Bookmark and Share